A question in XAT 2012 Question Paper with Answers has been updated:
Directions for next three questions: Answer question nos. 3 – 5 on the basis of the information given in the following case.
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 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.
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?
- II alone
- I alone
- Neither I nor II
- Either I or II
- I and II together
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