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XAT 2020 Question 31

This is a detailed step-by-step solution for XAT 2020 Question 31. Understand the concept, common mistakes, and expert tips to solve similar questions in XAT exam.

XAT

Option A would be unethical and thus can be rejected.
Option B will also be wrong as after removing the contaminants, the water won't be natural spring water. So marketing it as such will be cheating the customers.
The unique selling point of the brand was that they were selling natural spring water and were also charging a premium for it. If they rebrand it as purified water, then it would lose it's uniqueness.
Option D will lead to massive losses for the MNC and can be rejected.
Option E is the best choice for the company as it will help them stay in business while they solve the problem.
Hence, the answer is option D.

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