Comprehension
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 ₹25 and masala for ₹40.
His dosa stall is popular amongst the hospital staff members, who mostly hail from South India and form his core clientele. They frequent 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%.
Question: 1

One day, Dileep, while walking through the hospital food court, sees a vacant spot. He wonders if he can shift his stall to that spot.
Which of the following information will dissuade him the MOST from shifting his stall to the food court?

Updated On: Aug 22, 2025
  • The food court has no other stall selling dosas.
  • The food court closes by 10:30 pm, though his current stall is open till midnight.
  • The food court sees a daily footfall of about 5000 people.
  • On enquiry, he learnt that the cheapest dish in the food court is priced at ₹200.
  • All the restaurants in the food court, except the fast-food stalls, sell North Indian meal during lunch time.
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The Correct Option is D

Solution and Explanation

Step 1: Identify the key issue 
Dileep sells dosas at modest prices (₹40–₹60). If the food court’s cheapest dish is ₹200, it means the entire food court operates at a significantly higher price band.

Step 2: Analyze each option

  • Option 1: No other dosa stall ⇒ actually good for him (less competition).
  • Option 2: Closing by 10:30 pm ⇒ small limitation, but hospital traffic is mainly daytime, so not a big deterrent.
  • Option 3: 5000 daily footfall ⇒ positive, increases customer base.
  • Option 4: Cheapest dish at ₹200 ⇒ huge mismatch with Dileep’s pricing (₹40–₹60). Customers might perceive his stall as “cheap” or “low quality,” and his model won’t align with the premium pricing of the food court.
  • Option 5: North Indian meals are sold elsewhere ⇒ irrelevant for his dosa stall (South Indian specialty).

Step 3: Conclusion
The most discouraging information is the price mismatch (Option 4). His affordable dosa stall would look out of place in a premium-priced environment, potentially alienating customers and failing to attract the expected sales.

Therefore, the correct choice is: \[ \boxed{\text{Option (4)}} \]

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Question: 2

Dileep shifts his stall to the hospital food court. He prices his plain dosa at ₹40 and masala dosa at ₹60. 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?

Updated On: Aug 22, 2025
  • a. Increase prices of all the food items by 50% and introduce a new Shezwan dosa at ₹200 a plate
  • Reduce price by 20% for hospital staff, and increase the price by 50% for others
  • Introduce a North Indian meal, and give a discount of 20% to the hospital staff members
  • Introduce a South Indian meal, exclusively for the hospital staff members at a discounted rate of ₹40 per plate
  • Add more varieties of dosas at higher price points, and reduce plain and masala dosa prices to ₹25 and ₹40 respectively
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The Correct Option is

Solution and Explanation

Step 1: Identify the problem 
Dileep is stuck with the same hospital staff clientele. His dosa options are limited (only plain and masala dosa). General visitors are avoiding his stall because it feels like a "staff canteen". Hence, both product variety and pricing strategy need improvement to attract new customers.

Step 2: Evaluate the options

  • Option 1: Increasing all prices by 50% and adding a ₹200 dosa is unrealistic. It will alienate existing customers and not attract new ones.
  • Option 2: Differential pricing (discount for staff, higher price for visitors) creates resentment and further alienates potential customers.
  • Option 3: Introducing North Indian meals shifts focus away from dosa specialization. It may also add operational complexity.
  • Option 4: A South Indian meal only for staff reinforces the "canteen image" and fails to attract general visitors.
  • Option 5: Adding new dosa varieties (cheese dosa, paneer dosa, set dosa, etc.) at premium price points caters to diverse tastes. At the same time, reducing the price of plain and masala dosa makes them affordable for staff. This balances volume + variety, increasing total sales and revenue.

Step 3: Why Option 5 is BEST
- Variety attracts new customers (general visitors).
- Lower base prices encourage staff to continue buying daily.
- Premium dosa options add higher margins from visitors willing to spend more.
- Improves stall’s image from a "canteen" to a more professional, multi-choice food counter.

Final Answer:
The most effective strategy is to add more varieties of dosas at higher prices while reducing the basic dosa prices. Hence, the number of dosas sold and the overall revenue will increase. \[ \boxed{\text{Option (5)}} \]

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Question: 3

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?

Updated On: Aug 22, 2025
  • Appeal to the hospital management to give a space in the staffroom where an exclusive dosa counter can be set up by Dileep
  • Introduce a massive discount on price for the next two months to increase the footfall
  • Provide a discount to those hospital staff members who order on phone, and deliver food in their staffroom
  • Charge the hospital staff members a premium to offset the losses due to their presence
  • Request the hospital management to prohibit hospital staff from entering the food court
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The Correct Option is C

Solution and Explanation

Step 1: The problem faced by Dileep is not a lack of customers, but the composition of customers. General visitors avoid his stall because it appears like a staff canteen due to the heavy presence of hospital staff members. 

Step 2: Any solution must aim at two goals simultaneously:

  • Discouraging staff from crowding the stall physically.
  • Encouraging general visitors to come and buy from the stall.

Step 3: Let’s evaluate the options:

  • Option 1: Shifting a counter to the staffroom may solve the staff problem, but it requires management’s approval and additional cost. Not directly feasible for Dileep.
  • Option 2: A massive discount will only increase footfall of staff (existing majority), worsening the “canteen image”.
  • Option 3: Delivering food directly to staff in their staffroom with a small discount is practical. This removes staff presence from the stall, freeing the food court for visitors. At the same time, Dileep doesn’t lose staff business, but also gains potential visitor business.
  • Option 4: Charging staff a premium risks alienating them, leading to loss of a strong revenue base.
  • Option 5: Asking management to prohibit staff is extreme and impractical. Staff members are his main current customers, so banning them would cause losses.

Step 4: Therefore, the most balanced and feasible approach is Option 3. This ensures that staff continue to get their food conveniently (through delivery and discount), while visitors now perceive the stall as open and welcoming.

Final Answer: \[ \boxed{\text{Option 3: Provide a discount to those hospital staff members who order on phone, and deliver food in their staffroom}} \]

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