Practice Questions on Reading Comprehension
Verbal Test Questions and Answers

Common Information

Indian car rental market may be segmented under four broad categories. First, the most popular segment is of a fuel conscious and mileage hungry consumer who prefers a chauffeur driven car. To extract maximum benefit from hired car, consumer representing

(5) mileage per liter of fuel that he has paid for. Consumer of this segment is very price sensitive and wants maximum value for money even if he may rent by unorganized players. Branded players are lagging behind to true this segment because

(10) Indian marker, organized car rental industry is crawling for the last couple of years to position itself as a most sought after option to meet segment requirements. Hertz India is also practicing the same. To position itself perfectly in the mind of the targeted segment, it has gone for multiple strategic routes to win over different segments. The major external influencing factors for the consumer in this segment may

(15) be the firm’s marketing efforts to establish itself as a service provider with value for money. Due to their association with renewed airlines and hotels, Hertz, to a lot many people means faith. This may help her to create an impression in the mind of this segment that they will definitively be cheated and get their value, even if it means spending a little extra. Further, it is trying to educate this segment about

(20) benefits of self-driven car as a medium of hassle-free journey by projecting a premium value for money image and with a fleet nix of compact and luxury cars (such as Ikon, Accent and Esteem).Second, a sizable amount of people are there who usually use their own compact or three box mid-size car but prefer to enjoy the riding thrill of SUV (sports? Utility Vehicles)

(25) like Ford Endeavor/Honda CRV/GM Chevrolet or a Luxury car like a Mercedes/Camry for a shorter time span. Upcoming new generations urban executive of large corporate in India with a high disposable income and proactive to enjoy all new things in life and to make it more adventurous and eventful represent this segment. To them renting a self-drive car and driving off to a palace of their choice in a

(30) Mercedes /SUV gives them an experience off to a place of their choice in a holiday. Under this same self-drive segment, another type of consumers are frequent international travellers (including foreign tourists) who prefer their privacy and independence and wish to choose their own routes/ car model at the time of exploring destination. They love their freedom & space in life wherever they

(35) travel without any barrier like being driven by a chauffeur. Equipped with their internationally accepted credit cards, an international driving permit or license, they prefer advance car rental booking by logging on the car rental company’s website and thereafter just picking up the keys of their booked car once they enter a new country/city. They are adventurous, driving enthusiast, belonging to the upper middle

(40) class, have brand loyalty about their car rental agency. In this self-driven segment, Hertz India is trying to position itself as a contemporary service provider by offering both economy cars and SUV’s (Scorpio and Tata Safari). To win over occasional self-drivers of SUV type cars and frequent travellers. Hertz uses slogans like "Break free" or "Drive the World’s #1" regularly in travel magazines to portrait the quality of its cars,

(45) and the range it offers. Third segment consists of instructional consumers, mainly hotels in big cities and air service providers. Institutional consumers prefer quality and service assurance to offer maximum possible service to their customers. In India, all big car rental agencies have contract with start hotels to offer rental service to them. In this segment, Hertz has

(50) prominent clienteles like Taj Group of Hotels, Marriott and Jet Airways. Further, they have contract with hotels like Shangrila in Delhi, and Renaissance and JW Marriott in Mumbai to provide all car rental requirements of them. Their other clients are Carlson Wagonlit, BTI Sita, Thomas Cook and online travel sites like Make my trip, India times and Travelguru. According to their deal with Jet Airways, it allows Jet

(55) Privilege members to earn ‘miles’ every time they use Hertz car rental service. For every Rs. 1000/- spent on Hertz rentals, a Jet privilege member earns 100 JP Miles and special discounts are given to platinum, gold and silver card holders.

In recent past ‘fleet management’ is coming up as a possible fourth target segment for car rental companies in India. Word wide cars are not purchased but only leased and

(60) this trend is getting its root in Indian market also. It means the management of a fleet of vehicles, using certain tools, to improve operational efficiency and effectiveness. To win over consumers of this segment, services should be professional and a fleet management company should address all the issues a company might deal awith pertaining to managing its fleet. In India, Lease plan Fleet Management

(65) India (LPFM), the wholly-owned subsidiary of Leas plan Corporation, Netherlands is pioneer in this focusing more on car rentals than on fleet management. Though it provides chauffeur-driven cars to many companies like IBM, Sony, KPMG, Compaq, there is a huge scope in this segment for future growth. This segment demands

(70) Customized service in terms of vehicle acquisition, fuel management, vehicle financing and maintenance, resale of the cars at the end of the contract period etc.

Difficult Reading Comprehension Question - 41


Common Information Question: 4/6

As a business manager of a globally recognized ‘car-rental’ agency if you like to tap institutional consumers of India, you should not:


Banks on your globally recognized ‘brand name’ to ensure sale


Make a list of your global clientele to impress your prospective consumer


Consider offerings of your competitors to formulate your value proposition


Accept service assurance not as a major influencer behind buying decision

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Difficult Reading Comprehension Question - 42


Common Information Question: 5/6

As a business manager you think ‘fleet management’ a profitable segment for organized sector to explore in India because:


Companies want to associate with ‘brand name’ and unorganized players are lacking here


There is a huge scope as competition is low in this filed


Everywhere in India logistics services are outsourced and companies are focusing on their core business


This business demands gamut of customized services and organized professionals may only offer those

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Difficult Reading Comprehension Question - 43


Common Information Question: 6/6

If you are to tap "first" segment of "car rental" business as a manger of a branded company, you should not:


Advertise your brand name to communicate with consumers


Compare your service conditions vis-a-vis your competitors to influence consumers


Match price of your service with your companies from organized sector


Create unique value proposition to position you away from your competition

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Common Information

Marketing executives in television work with a relatively stable advertising medium. In many ways, the television ads aired today are similar to those aired two decades ago. Most television ads still feature actors, still run 30 or 60 seconds, and still show a product. However, the differing dynamics of the Internet pose unique challenges to advertisers, forcing them to adapt their practices and techniques on a regular basis.

In the early days of Internet marketing, online advertisers employed banner and pop-up ads to attract customers. These techniques reached large audiences, generated many sales leads, and came at a low cost. However, a small number of Internet users began to consider these advertising techniques intrusive and annoying. Yet because marketing strategies relying heavily on banners and pop-ups produced results, companies invested growing amounts of money into purchasing these ad types in hopes of capturing market share in the burgeoning online economy. As consumers became more sophisticated, frustration with these online advertising techniques grew. Independent programmers began to develop tools that blocked banner and pop-up ads. The popularity of these tools exploded when the search engine Google, at the time an increasingly popular website fighting to solidify its place on the Internet with giants Microsoft and Yahoo, offered free software enabling users to block pop-up ads. The backlash against banner ads grew as new web browsers provided users the ability to block image-based ads such as banner ads. Although banner and pop-up ads still exist, they are far less prominent than during the early days of the Internet.

A major development in online marketing came with the introduction of pay-per-click ads. Unlike banner or pop-up ads, which originally required companies to pay every time a website visitor saw an ad, pay-per-click ads allowed companies to pay only when an interested potential customer clicked on an ad. More importantly, however, these ads circumvented the pop-up and banner blockers. As a result of these advantages and the incredible growth in the use of search engines, which provide excellent venues for pay-per-click advertising, companies began turning to pay-per-click marketing in droves. However, as with the banner and pop-up ads that preceded them, pay-per-click ads came with their drawbacks. When companies began pouring billions of dollars into this emerging medium, online advertising specialists started to notice the presence of what would later be called click fraud: representatives of a company with no interest in the product advertised by a competitor click on the competitor's ads simply to increase the marketing cost of the competitor. Click fraud grew so rapidly that marketers sought to diversify their online positions away from pay-per-click marketing through new mediums.

Although pay-per-click advertising remains a common and effective advertising tool, marketers adapted yet again to the changing dynamics of the Internet by adopting new techniques such as pay-per-performance advertising, search engine optimization, and affiliate marketing. As the pace of the Internet's evolution increases, it seems all the more likely that advertising successfully on the Internet will require a strategy that shuns constancy and embraces change.

Difficult Reading Comprehension Question - 44


Common Information Question: 1/7

The author implies what about the future of pay-per-performance advertising?


Although it improves on pay-per-click advertising, it is still vulnerable to click fraud


It will one day become extinct as Internet users discover drawbacks with it


Internet users will develop free software to block its effectiveness


It will eventually become less popular with advertisers as the Internet evolves and drawbacks emerge


It will not face drawbacks due to its differing approach to online marketing

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Difficult Reading Comprehension Question - 45


Common Information Question: 2/7

Which of the following most accurately states the main idea of the passage?


Although pay-per-click advertising remains a wide-spread and effective online advertising medium, its popularity is likely to diminish as the Internet evolves.


Internet advertising is not well received by Internet users, causing independent programmers to subvert advertisers.


Unlike the television, the Internet has experienced dramatic changes in short periods of time.


Unlike the television, the Internet has evolved rapidly, forcing online marketers to develop new advertising strategies and mediums.


The pace of the Internet’s evolution is increasing and will only increase in the future.

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