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Ms. Vineeta Lama, a respected figure in the small town of Jampur, found herself…

XAT 2024 · Decision Making · 3 questions

Ms. Vineeta Lama, a respected figure in the small town of Jampur, found herself stranded on the road, once again, when her old small hatchback car broke down. Finding herself alone on the deserted road with no one to help, Vineeta, in desperation called Shyam Saigal, the General Manager of Balaji Motors − the only dealership in Jampur that sells Diplomatico cars, the brand that Vineeta drives. Vineeta knew Shyam from her frequent visits for getting her hatchback car serviced. Surprisingly, he arrived within fifteen minutes, accompanied by a mechanic from his dealership. Further, he arranged for the vehicle to be towed and kindly offered Vineeta a ride home. On the way back, he advised Vineeta to exchange her old car with a new Sports Utility Vehicle (SUV) on a good discount from his dealership. He assured her that he would add several additional services to ensure her SUV remained in excellent condition for many years ahead.

Question 1

Due to her old car's frequent breakdowns, Vineeta decided it was a time to replace it. She was afraid whether buying a Diplomatico SUV from Balaji Motors, as suggested by Shyam, will be a right decision for her. Which of the following, if true, would MOST justify her apprehension?
  1. A. She has no idea which SUV to choose, and she feels that all SUVs are the same.
  2. B. Her brother, an SUV enthusiast, staying in a metro city, has advised her to stay away from Diplomatico Cars.
  3. C. In Jampur, SUVs have a 6-month waiting period; however, one red-coloured Diplomatico SUV, not her favourite colour, is available at Balaji Motors.
  4. D. Jampur, being an old city with congested roads, has a parking problem in many areas.
  5. E. A new dealership of Panther Motors, the highest selling car brand in the country, is about to come to the town soon.

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Question 2

Shyam's satisfaction from meeting the month's quota for selling SUVs turned to dismay when one of his young executives nervously told him that he mistakenly punched an extended warranty for free to Vineeta's purchase contract earlier that morning. This could not be reversed from the company's system and meant a loss of Rs. 19,000 for the dealership. The executive was very sorry and was ready to take accountability. However, the amount was too large to be borne by the executive. Shyam was not concerned about placing accountability, but rather the recovery of the loss. He was unsure whether he should ask Vineeta for the money. The following pieces of information are available to Shyam: A. Shyam is aware that Vineeta is very happy with the deal he gave her for the car. B. Shyam feels that Diplomatico's software system is complicated for new employees, which might have also played a role in the error. C. Vineeta has a wide network and can connect Shyam with many potential customers. D. Vineeta's brother, a car enthusiast, has enough knowledge of how car dealers operate. E. Shyam feels that if he maintains the current sales volume, he might be able to persuade Diplomatico to write off the amount (Rs. 19,000). Which of the following combinations, of the above pieces of information, will MOST likely stop Shyam from trying to recover the money from Vineeta?
  1. A. A & B
  2. B. A & D
  3. C. C & D
  4. D. C & E
  5. E. B & E

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Question 3

Three months passed. While returning from a friend's house, Vineeta's new SUV was hit by another car. Fortunately, she was not injured, but the SUV was badly damaged. Surprisingly, when Vineeta took the car for repairs to Balaji Motors, she was told that the repairs would not cost her anything as the extended warranty on her car covered such accidents. Vineeta could not recall purchasing such a warranty; hence, she contacted Shyam. Shyam informed her that the extended warranty was mistakenly punched into her contract by an executive. As this mistake could not be reversed due to the company's rigid policies, Shyam bore the cost of Rs. 19,000. He further added that Vineeta should consider it a gift from Balaji Motors for purchasing the highest-priced Diplomatico SUV. As Vineeta rode back home, she wondered if she should pay Rs. 19,000 to Shyam since the extended warranty came to her aid that day. Which of the following is the MOST compelling rationale for Vineeta to justify not paying Rs. 19,000 to Shyam?
  1. A. She paid more for the Diplomatico SUV, compared to the price of a similar SUV from Panther.
  2. B. She is aware that for expensive SUVs like hers, dealers often offer free extended warranty.
  3. C. The mistake happened three months back and is water under the bridge now.
  4. D. Had the accident not happened, she would not have been aware of the warranty.
  5. E. Shyam would have come back to her if he had needed the money.

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