How to answer interview question "Where else are you applying"?

Short answer: This is assessing maturity question. Paraphrased, it reads "Do you understand your strengths and weaknesses well enough to be able to judge which schools will accept you?"

Research and pick related schools. If the particular school doesn't belong to the same tier, be ready to explain the rationale for applying to the school. If you have a specific interest in any of Entrepreneurship, Finance, General Management, Marketing etc and applying for the corresponding schools, then your job of explaining becomes even more easier. On the contrary, if you wish to specialize, but reel out random schools, then you are stepping into ambiguous and DING territory.

Pick related schools (matching your interest area), no matter the school's ranking, and then state the reasons for applying for the chosen basket of schools. Idea is to set up a perception that you are focused, will leverage the MBA to specialize and then grow as a leader in your chosen area. Strong intent to translate this perception into a reality should come across in the interview discussions.