XAT 2022 — Decision Making Question 14
Read the following scenario and answer the THREE questions that follow.
Dileep Dosan sells dosas in front of an upscale hospital at a city in Punjab. He only sells two varieties of dosas: plain for â¹25 and masala for â¹40.
His dosa stall is popular amongst the hospital staff members, who mostly hail from South India and form his core clientele. They frequently visit his stall during office hours as they find his dosas to be reasonably priced. Though the hospital staff members can visit the upscale food court on the top floor of the hospital, they prefer his stall for breakfast and lunch, and even for occasional evening snacks. His daily sale volume varies between 300 and 400 dosas, in which the demand for masala dosas is around 50-60%.
Dileep shifts his stall to the hospital food court. He prices his plain dosa at â¹40 and masala dosa at â¹60. However, two months on, he is serving only about 150 dosas per day. The clientele is mostly the same hospital staff members, who had been his customers before he moved to the food court.
Which of the following actions will BEST help Dileep in increasing his sales?
Answer & solution
- A
Reduce price by 20% for hospital staff, and increase the price by 50% for others
- B
Introduce a South Indian meal, exclusively for the hospital staff members at a discounted rate of â¹40 per plate
- C
Increase prices of all the food items by 50% and introduce a new Shezwan dosa at â¹200 a plate
Add more varieties of dosas at higher price points, and reduce plain and masala dosaprices to â¹25 and â¹40 respectively
- E
Introduce a North Indian meal, and give a discount of 20% to the hospital staff members
Giving a discount to only hospital staff is unfair to the other customers. Therefore, options A, B and E are incorrect.
Option C is incorrect as the increasing prices of all food items discourage staff from visiting the stall, and adding shezwan dosa will not help.
Option D is the correct answer as the prices for best-sellers remain the same, and adding more varieties at higher prices will help.
Answer is option D.