NIFT UG 2008 Question Paper with solutions

Directions (Q. Nos. 71-75) : Read the passage carefully. The passage is followed by one statement each against these questions.

PASSAGE

   Early in 1953, the soft drink world began to watch an interesting experiment : the introduction of soft drinks in cans. Grocery outlets up to that time had enjoyed about one-half of all sales, but it was felt that if the new package was successful, local bottling plants might give way to great central plants, possibly operated by companies with established names in the grocery fields, with shipments being made in carload lots. Local bottlers faced a great decision. If the change were to prove permanent, they should perhaps hasten to add canfilling machines lest they lose their market. CocaCola, Canada Dry, White Rock, and many other bottlers experimented with the new plan. An eastern chain put out privately branded cans.
  A basic limitation was the cost factor of about three cents per can, whereas bottle cost was put a fraction of a cent, since a bottle averaged about twenty-four round trips. It was known, however, that at that time about one third of all bear sales were made in cans and, furthermore, that other beverages had paved the way for consumer acceptance of a canned product. Beer prices were normally from three to four times those of soft drinks.
  Many leaders in the industry felt that it might well be that consumer advertising emphasizing the convenience of using a non-returnable package might offset both habit and the extra cost to the consumer. One of the principal bottling companies undertook a large-scale market research project to find useful guides to future action.