Comprehension
Due to increased competition, Ginger Automobiles, the Indian subsidiary of Pepper Automobile
Company (PAC) reported lower sales and profits. PAC expects its new model Limo, developed
especially for value conscious customers of India and China, would revive its fortunes. In order
to prevent customers from buying competing products, PAC announced the launch of Limo
six months before schedule. Due to unrest in its Indian supplier’s plant, deliveries of essential
components for its main plant was hampered, and hence it decided to launch Limo in China
only as per the original plan.
Within a short span of time, Limo captured 30% market share in China, which was 200% higher than expected. Indian customers who had looked forward to purchasing Limo were becoming increasingly unhappy due to the non-availability of Limo in India. Ginger’s dealers were worried about loss of business from the customers who might switch to other cars.
Within a short span of time, Limo captured 30% market share in China, which was 200% higher than expected. Indian customers who had looked forward to purchasing Limo were becoming increasingly unhappy due to the non-availability of Limo in India. Ginger’s dealers were worried about loss of business from the customers who might switch to other cars.
Question: 1
Which of the following conclusions can be most justifiably made?
Statement I: In the Chinese market, Baft and Hebe, are competing models in Limo’s target market. Due to increase in sales of Limo by 200%, Baft and Hebe saw their market share decline by 10%.
Statement II: Baft and Hebe were not desired by the customers due to their new features.
Which of the following conclusions can be most justifiably made?
Statement I: In the Chinese market, Baft and Hebe, are competing models in Limo’s target market. Due to increase in sales of Limo by 200%, Baft and Hebe saw their market share decline by 10%.
Statement II: Baft and Hebe were not desired by the customers due to their new features.
Statement I: In the Chinese market, Baft and Hebe, are competing models in Limo’s target market. Due to increase in sales of Limo by 200%, Baft and Hebe saw their market share decline by 10%.
Statement II: Baft and Hebe were not desired by the customers due to their new features.
Show Hint
- In inference questions, do not assume causation unless explicitly mentioned.
- Check whether the conclusion introduces new information not in the passage.
- Check whether the conclusion introduces new information not in the passage.
Updated On: Dec 6, 2025
- I alone
- II alone
- Either I or II
- Neither I nor II
- I and II together
Show Solution
Verified By Collegedunia
The Correct Option is D
Solution and Explanation
Step 1: Statement I assumes that the increase in Limo’s sales directly caused Baft and Hebe’s decline in market share. However, the passage does not confirm this causal link—it only provides data on Limo’s growth and Baft/Hebe’s decline. Correlation is not causation.
Step 2: Statement II assumes customers did not desire Baft and Hebe due to their new features. No evidence about customer preference or features is provided. Hence, this is speculative.
Step 3: Since both statements go beyond the data, neither can be justifiably concluded.
Thus, the correct answer is (D).
Step 2: Statement II assumes customers did not desire Baft and Hebe due to their new features. No evidence about customer preference or features is provided. Hence, this is speculative.
Step 3: Since both statements go beyond the data, neither can be justifiably concluded.
Thus, the correct answer is (D).
Was this answer helpful?
0
0
Question: 2
Unhappy customers will not only leave the company, but also spread negative publicity about the company. The best way, among the options below, to deal with customers is
Unhappy customers will not only leave the company, but also spread negative publicity about the company. The best way, among the options below, to deal with customers is
Show Hint
- In decision-making questions, prioritize \textbf{immediate, practical solutions} over long-term policy advice.
- Offering substitutes with incentives helps retain customers quickly.
- Offering substitutes with incentives helps retain customers quickly.
Updated On: Dec 6, 2025
- suggest to customers to wait.
- suggest to customers to consider purchasing any of the other PAC’s models available in showrooms, with a substantial discount along with gifts.
- suggest to PAC to treat Indian and Chinese markets equally.
- promise the top management of PAC higher sales/profit from Indian market compared to Chinese market.
- suggest to the top management of PAC to manufacture essential components in either India or China.
Show Solution
Verified By Collegedunia
The Correct Option is B
Solution and Explanation
Step 1: The problem is immediate: Indian customers are unhappy due to Limo’s non-availability. Waiting (A) risks losing them; managerial suggestions (C, D, E) are long-term, not solutions for the current discontent.
Step 2: The best way is to redirect customers to existing models with discounts and incentives, thereby retaining them and reducing negative publicity.
Hence, the correct option is (B).
Step 2: The best way is to redirect customers to existing models with discounts and incentives, thereby retaining them and reducing negative publicity.
Hence, the correct option is (B).
Was this answer helpful?
0
0
Question: 3
Mr. Murugan from Chennai experienced the comfort of Limo during his visit to China. He was willing to deposit an approximate price of Limo to buy the first available unit from Mr. Ahmed, a dealer in Chennai, known for fair dealing. Ginger Automobile is yet to announce the actual price, and the process for allocation of the vehicles. In order to maximise his cash flow, Mr. Ahmed should
Mr. Murugan from Chennai experienced the comfort of Limo during his visit to China. He was willing to deposit an approximate price of Limo to buy the first available unit from Mr. Ahmed, a dealer in Chennai, known for fair dealing. Ginger Automobile is yet to announce the actual price, and the process for allocation of the vehicles. In order to maximise his cash flow, Mr. Ahmed should
Show Hint
- In ethical decision-making, transparency with customers is critical.
- Always combine cash-flow maximization with clear communication to avoid disputes later.
- Always combine cash-flow maximization with clear communication to avoid disputes later.
Updated On: Dec 6, 2025
- collect the amount from Mr. Murugan. Later when the delivery is delayed, blame it on PAC’s problems.
- collect 50% as advance and the remaining 50% after the confirmation of launch date by Ginger Automobiles.
- collect the amount Mr. Murugan is willing to deposit after clarifying that delivery is subject to the company policy.
- not collect the amount, but suggest to Mr. Murugan to write to Ginger Automobiles.
- collect the amount and transfer it to the account of Ginger Automobiles, instead of keeping it in his personal account.
Show Solution
Verified By Collegedunia
The Correct Option is C
Solution and Explanation
Step 1: Mr. Ahmed wants to maximize cash flow, so refusing payment (D) is not ideal. Blaming PAC later (A) is unethical. Partial payment (B) does not fully maximize cash flow. Transferring the money to PAC (E) removes Mr. Ahmed’s advantage.
Step 2: The best balance is to collect the full deposit, but clarify that delivery is bound by company policy. This keeps customer trust intact while giving Ahmed maximum liquidity.
Hence, the correct answer is (C).
Step 2: The best balance is to collect the full deposit, but clarify that delivery is bound by company policy. This keeps customer trust intact while giving Ahmed maximum liquidity.
Hence, the correct answer is (C).
Was this answer helpful?
0
0
Top XAT Questions
- Ashok, a maths teacher in the school, asked his students to guess his date of birth by giving the following hints.
Hint 1: He was born in 1995
Hint 2: The sum of the products of his birth date multiplied by 24 and his birthday month multiplied by 60 is 1284.
Find the sum of Ashok’s birth date, birth month, and birth year. - Solve for the number of integral values of \(x: \frac{(x^2-15x+47)(x-13)}{(x-8)}<0\).
- In an examination, Akhil scored 11.11% less than the pass marks and Akshay scored 12.5% more than the pass marks. Find the percentage of pass marks if the sum of the scores of Akhil and Akshay is 25% more than the total marks.
- The ratio of paint and oil in Tank A is 3: 4, whereas in Tank B, the respective ratio is 4: 5 . Then, 96 liters of a mixture consisting of paint and oil in the ratio of 5: 1 is added to Tank A, such that the respective ratio in Tank A becomes exactly the reverse of that in Tank B. Find the amount (in liters) of the mixture from Tank B that is poured into Tank A such that the amount of paint and water in Tank A become equal.
- The points (–4, 3) and (–1, –4) are two end points of a diagonal of a parallelogram. If the other diagonal has the equation 7y + 3x + c = 0, then find the value of c.
View More Questions