Question

Direction: Read the following scenario and answer the questions that follow:
Mohan, Kishan, Manohar, and Kripa own a dry cleaning shop each in Skardi Plaza. They are the only dry cleaners in a township which is home to over 5,000 families. Each of them offered three services: Dry cleaning, Darning, and Alteration. One morning they met at a snack shop and verbally agreed to charge Rs. 200 for any of the three services on weekdays. On weekends and holidays, they agreed to increase the rate by Rs. 50.
The business of Manohar heavily relies on the income made from providing services to a particular set of customers who were loyal to him. He is worried that since the rates would be the same everywhere in the township, he might not be able to retain his loyal customers.
Which of the following options would enable him to retain his customers while also keeping the rates same as other dry cleaners?

• A. Manohar should charge his customers based on the frequency of their orders.
• B. Manohar should set the price lower for his loyal customer base as compared to others.
• C. Manohar should give a free service for every fourth order of the customers.
• D. Manohar should charge all his customers the same price as all his competitors had agreed upon.
• E. Manohar should give precedence to the orders of his loyal customers over others.

Answer 1

Answer: (E)

Differential rates (as suggested in A), lower rates (as suggested in B), and free service (as suggested in C. would all violate the agreement.

Charging even his loyal customer base at par with other customers would let Manohar keep his part of the agreement but might not help him address his concern of retaining his loyal customer base.

Giving precedence to his loyal customers over others in terms of delivery time period would ensure that Manohar would still be able to keep the agreement and also give extra attention to his customers. This measure would help him retain his loyal customers.

So, the correct answer is E.