Studies in restaurants show that the tips left by customers : GMAT Critical Reasoning (CR)
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# Studies in restaurants show that the tips left by customers

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Studies in restaurants show that the tips left by customers [#permalink]

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08 Jan 2008, 07:44
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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.
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Manager
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Re: CR studies in Restaurants S23_31 [#permalink]

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08 Jan 2008, 08:19
JCLEONES wrote:
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.

B it is

We are talking about the psychology here,.... Author argues that when somebody sees the logo, it reminds him that he owns a credit card and his spending power is actually more than the cash he has in his wallet so he can afford to tip more..

The arguement of this psychological thinking can be strengthen if we present a similar case when a customer reacts to the similar psychological situation. This is presented in B...

B suggests that if patron is in debt of the credit card company, he pays less tip when he see the credit card logo simply because when he sees the credit card it reminds him of the debt he owe to the company and thus wants to save money of the tip to repay the debt...

if I'm correct, Its a good question
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Re: CR studies in Restaurants S23_31 [#permalink]

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09 Jan 2008, 10:38
what is the OA?
Intern
Joined: 11 Oct 2007
Posts: 38
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Re: CR studies in Restaurants S23_31 [#permalink]

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09 Jan 2008, 11:44
JCLEONES wrote:
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.

The cause: When they see the logo, they recognize that they have more money than the cash they have.
The effect: They pay more tip.

Thus, I vote for E.
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Re: CR studies in Restaurants S23_31 [#permalink]

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09 Jan 2008, 15:58
What is the answer for this question, plz?
Re: CR studies in Restaurants S23_31   [#permalink] 09 Jan 2008, 15:58
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# Studies in restaurants show that the tips left by customers

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