XAT 2022 — Decision Making Question 15
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%.
On the first anniversary of his stall at the food court, Dileep reviews his customer base. Almost all of his customers are the hospital staff members. Though he wishes to serve the general visitors at the hospital, they avoid his stall. On enquiring, he discovers that visitors generally avoid his stall because it is majorly frequented by the hospital staff members, giving it a feel of a staff canteen.
Dileep realizes his best efforts have not given him any extra sales and the visitors can potentially increase his revenue by a considerable amount.
Which of the following options can BEST help Dileep in discouraging hospital staff members from visiting his stall while increasing his overall revenue?
Answer & solution
- A
Charge the hospital staff members a premium to offset the losses due to their presence
- B
Request the hospital management to prohibit hospital staff from entering the food court
- C
Introduce a massive discount on price for the next two months to increase the footfall
- D
Appeal to the hospital management to give a space in the staff room where an exclusive dosa counter can be set up by Dileep
Provide a discount to those hospital staff members who order on phone, and deliverfood in their staffroom
In this question, Dileep wants to include general visitors and increase his sales. Option A is incorrect as charging premium prices to hospital staff is unfair. Introducing massive discounts welcomes hospital staff to the stall, making general visitors think that the stall is a staff canteen. Therefore, option C is incorrect.
Option E is correct; this discourages hospital staff from visiting the stall and increases sales from staff and general visitors.
Answer is option E.