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# Studies in restaurants show that the tips left by customers

Author Message
Manager
Status: Its Wow or Never
Joined: 11 Dec 2009
Posts: 204

Kudos [?]: 303 [0], given: 7

Location: India
Concentration: Technology, Strategy
GMAT 1: 670 Q47 V35
GMAT 2: 710 Q48 V40
WE: Information Technology (Computer Software)
Studies in restaurants show that the tips left by customers [#permalink]

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22 Jan 2010, 13:31
00:00

Difficulty:

(N/A)

Question Stats:

70% (01:31) correct 30% (01:46) wrong based on 62 sessions

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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 fi nancial pressure from their credit-card obligations tend to tip less when presented
with a restaurant bill on a tray with a 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 a given brand of credit card increases when that credit card’s
logo is displayed on the tray with which the bill is presented.
[Reveal] Spoiler:
B

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Last edited by mojorising800 on 24 Jan 2010, 11:44, edited 1 time in total.

Kudos [?]: 303 [0], given: 7

Senior Manager
Joined: 16 Apr 2009
Posts: 317

Kudos [?]: 157 [0], given: 14

Re: Studies in restaurants show [#permalink]

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23 Jan 2010, 16:51
My pic is B

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

If Patrons spends less when they are in financial pressure then it is certain that they spend more in normal scenarios
and hence , psychologist hypothesis is correct
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Kudos [?]: 157 [0], given: 14

Senior Manager
Joined: 22 Dec 2009
Posts: 356

Kudos [?]: 418 [0], given: 47

Re: Studies in restaurants show [#permalink]

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24 Jan 2010, 10:26
B....

Cause = Own a credit card
Effect = Pay higher tips as purchasing power increases (on seeing the logo)

Point B emphasis on this Cause Effect relation. If the financial pressure is high on the Credit Card holder, he would pay less tip if he/she sees the logo!
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Kudos [?]: 418 [0], given: 47

Re: Studies in restaurants show   [#permalink] 24 Jan 2010, 10:26
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# Studies in restaurants show that the tips left by customers

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