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XAT 2021 Question Paper | Bussiness Decision Making

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Read the following scenario and answer the three questions that follow.
Amish is the marketing head of an e-commerce firm named FillInCart (FICT). Recently, FICT signed a contract with a top celebrity to endorse their firm. A few months later, the celebrity was signed as the ambassador to promote tourism in a small country, Wadiya, ruled by a dictator. The dictator, in his zeal to bring peace to the region, brutally supressed an armed uprising in Wadiya. He is currently facing sanctions, imposed by a few countries. When the news of the celebrity’s association with Wadiya becomes public, calls for boycott of FICT start trending on social media.

Question 20 : FICT’s closest competitor, ShopAtUs (SAU), wants to grab this opportunity. They have come up with a slogan, “Never at the cost of human rights!” which has started trending in the social media. Amish is unsure if he should respond to the social media campaign of the competitor.
Which of the following options, if true, will BEST assure Amish that SAU’s slogan is not affecting FICT’s business negatively?

  1. More people are looking for Cash on Delivery for the high-end products since the SAU slogan launch, which is against company’s policies.
  2. FICT’s average monthly sales revenue has decreased by 3% overall when compared with the same month previous year.
  3. FICT’s average monthly sales revenue has increased by 1% overall since last month.
  4. FICT’s average monthly sales volume has increased by 5% since the SAU slogan launch, driven by the sales to repeat customers.
  5. Number of visitors to FICT’s home page has increased by 15% since the SAU slogan launch.

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Explanatory Answer

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The answer is 'FICT’s average monthly sales volume has increased by 5% since the SAU slogan launch, driven by the sales to repeat customers.'

Choice D is the correct answer.

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