PDF800 SET8 Quesion 14

zozo123 · Posted: Sat Jul 28, 2007 3:49 am Post subject: PDF800 SET8 Quesion 14

Studies in restaurants show that the tips left by customers who pay their bill in cash tend to be larger when the bill is presented on a tray that bears a credit-card logo. Consumer psychologists hypothesize that simply seeing a credit-card logo makes many credit-card holders willing to spend more because it reminds them that their spending power exceeds
the cash they have immediately available.

Which of the following, if true, most strongly supports the psychologists’ interpretation of the studies?
A. The effect noted in the studies is not limited to patrons who have credit cards.

B. Patrons who are under financial pressure from their credit-card obligations tend to tip less when presented with a restaurant bill on a tray with credit-card logo than when the tray has no logo.

C. In virtually all of the cases in the studies, the patrons who paid bills in cash did not possess credit cards.

D. In general, restaurant patrons who pay their bills in cash leave larger tips than do those who pay by credit card.

E. The percentage of restaurant bills paid with given brand of credit card increases when that credit card’s logo is displayed on the tray with which the bill is prepared.

RM · Posted: Sat Jul 28, 2007 10:02 am Post subject:

Is it E. According to Psychologists hypothesis, credit card holders pay more trip after seeing credit card logo. Choice E presents results that support this hypothesis.

saurabh_1922@yahoo.co.in · Posted: Sat Jul 28, 2007 3:15 pm Post subject: PDF800 SET 8 Q 14

Is It B.
According to psychologist studies,people tend to pay more on seeing the credit card logo as they feel they have more spending power.
Similarly if a person is under financial pressure he would pay less when he sees the credit card Logo as it would remind him of his financial problem.

Please let us know the correct answer.

zozo123 · Posted: Sun Jul 29, 2007 12:04 am Post subject:

The answer is B