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 9, 2024
  • 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

The correct answer is option (D):On enquiry, he learnt that the cheapest dish in the food court is priced at ₹200.
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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 9, 2024
  • 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

The correct answer is option (E):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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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 9, 2024
  • 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

The correct answer is option (C):Provide a discount to those hospital staff members who order on phone, and deliver food in their staffroom
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