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# Studies in restaurants show that the tips left by customers

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Manager
Joined: 29 Nov 2006
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Studies in restaurants show that the tips left by customers [#permalink]

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14 Jun 2007, 15:18
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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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14 Jun 2007, 16:02
B.

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Manager
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14 Jun 2007, 17:09
B it is .Good Question

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GMAT Club Legend
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Location: Singapore

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14 Jun 2007, 23:28
B. Patrons under financial pressure from their credit-card obligations will realize their spending power has diminished and so tip less. Turn it around, and it supports the argument presented in the passage.

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CEO
Joined: 17 May 2007
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15 Jun 2007, 00:28
I think its E. This supports the arrangement IMHO without interpreting it in anyway, whereas for B you need to do too much to it to make it "fit" the argument.

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Manager
Joined: 29 Jan 2007
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15 Jun 2007, 13:35
really a gud question

It should B as it presents another example where the logo impacts the credit card holder while deciding on how much to tip.thus strengthening the interpretation presented .

~sara

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Director
Joined: 29 Jul 2006
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15 Jun 2007, 21:25
The conclusion says:
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.

Now,choice B says that although the patrons are reminded of their spending power they tend to spend less...not more...Isn't this weakening??...any thoughts??

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Director
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17 Jun 2007, 07:42
Whats the OA for this??

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Current Student
Joined: 03 Oct 2006
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11 Jul 2007, 19:03
I got really confused on this question and selected C. OA is supposed to be B according to the GMAT Set #3 exam answers. Can someone please provide a concise explanation why it's B? Thanks!

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Senior Manager
Joined: 24 Sep 2006
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19 Jul 2007, 21:20
ywilfred explained it.

If you have more spending power you spend more

if you have less spending power you spend less, B says the same
_________________

AimHigher

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19 Jul 2007, 21:20
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