Instructions

Read the following scenario and answer the THREE questions that follow.

Kasta, a small industrial town hosted a steel plant and its associated ancillary companies. Most of its residents were steel plant employees from different states of the country. While the town offered employment opportunities, it lacked an airport. For those wanting to fly, the nearest airport was in Michaelganj, 100 kms from Kasta. To reach the airport, people rented taxi services available at Kasta, and Prabhu was one such taxi-service provider.

Prabhu’s rates were reasonable — a trip to airport cost Rs. 2200, but for a round trip, the fare was Rs. 3000. Yet, it was not just the affordability that made him popular, his reputation for punctuality and reliability was unmatched. When it came to ensuring the safety of women travelling alone, he would always be the first choice. Such was his trustworthiness that even the steel plant would solicit his services when expecting solo female visitors. Moreover, whenever residents encountered issues with their personal cars, they would turn to Prabhu for help.

However, the world shifted when the COVID-19 pandemic struck. Travel restrictions and safety concerns limited Prabhu’s trips to Michaelganj for over a year and a half. Financial strain followed, with accumulating interest on his home loan. He was weighed down by debt, but things improved once COVID-19 travel restrictions were lifted. Having faced financial hardships during COVID-19, he sought to offset his losses by raising the fare. Yet, he was aware of the stiff competition in town, where many others offered services at a similar fare as his.

Question 38

Prabhu decided to increase the taxi fare for all future trips. He planned to charge Rs. 3000 for a one-way trip to the airport, and Rs. 1000 more for a round trip.
Which of the following facts will BEST help Prabhu’s regular customers in accepting the increase in fare?

Solution

Here's the corrected version:

We are clearly given in the passage that it was not just Prabhu's affordability that made him popular, but also his punctuality and reliability. We are not told about any price hikes by Prabhu's competition after the lockdown, so we cannot be assured if Prabhu was charging less, equal to, or more than his competitors.

Further, the question asks us about what factors would help Prabhu's regular customers in accepting the fare increase. The regular customers, which were the solo females and the official trips by the steel plant, would value punctuality and reliability over a price hike.

Let's evaluate each option to see which one would suit our needs best:

Option A: This option accounts for the general price increase or a simpler version of inflation within the town. Even if it were true, this does not mean it would be enough for Prabhu's regular customers to accept his hiked prices. There might be other drivers who might have also increased their prices, but not to such an extent as Prabhu.

Option B: This helps Prabhu's regular customers in accepting his increased prices. Although they would be paying more than necessary, they would be sure about the safety and punctuality with Prabhu, which is important for solo female travelers and official trips to the steel plant.

Option C: Although the people of the town might be sympathetic towards Prabhu, they cannot sustain paying increased prices just out of sympathy for a service they might get cheaper elsewhere.

Option D: This is an additional service that Prabhu provides. Although this might keep regular customers coming back to him for servicing their cars, it does not help his case for increasing his prices and the customers accepting them.

Option E: This is irrelevant to the concerns of his regular customers, other than those on official trips from the steel plant. Offering a luxurious name or a service used by top officials might attract some higher officials and individuals, but the increased prices take away the affordability factor associated with Prabhu, acting as a deterrent for his regular customers.

Although some of these options were close, option B clearly resonates with the reason for Prabhu's popularity as given in the questions, and thus would be the best fit. 

Therefore, Option B is the correct answer. 


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