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XAT 2016 — Decision Making Question 2

Decision MakingEasy
Passage / Data

Answer the following question based on the information given below.

Kamal Chinnappa, Vimal Rao, Ganesh Krishnan and Dines Kumar own a saloon each on the Barbil street. They are the only hairdressers on that street. Each of them offered three services viz. haircut, shaving and hair-dye. One evening, all four of them met in a nearby tea-stall and agreed to charge Rs. 100 for any of the three services (haircut, shave and hair-dye) on weekdays. They also agreed to increase this rate to Rs. 115 on weekends and holidays. All verbally decided to implement the agreement.

Vimal relies heavily on a bunch of loyal customers. He is concerned about retaining them.

Which of the following options should he chose if he does not want to violate the agreement?

Answer & solution

Correct answer: He should allow his loyal customers to jump the queue.

  • A

    He should charge differential rates for loyal customers.

  • B

    He should charge the loyal customers lower.

  • C

    He should make every third visit free for his loyal customers.

  • D

    He should charge all the agreed upon price.

  • He should allow his loyal customers to jump the queue.

Solution

The question clearly says that there should be no violation, hence even minimum violation has to be avoided.
Charging differential rates is a clear violation of the agreement and can be ruled out immediately.
Option 2 can be ruled out along the same lines as option 1 as charging lower is also a violation.
Option 3 is also a violation as providing service free of charge was not the part of the agreement.
Option 4 will not help Vimal in his attempt to retain his loyal customers. So, eliminate option 4.
Option 5 is the most suitable course of action as a privilege of this kind would definitely help him sustain the trust of his loyal customers. Also, there won't be any violation in terms of agreed upon rates.
Hence, the correct answer is option 5.

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XAT 2016 Decision Making Q2: Vimal relies heavily on a bunch of loyal customers. He is concerned about retaining them. Which of the followi — Solution | TheCATExam