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Studies in restaurants show that the tips left by customers who pay th

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

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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.

[Reveal] Spoiler:
I picked A........views???
[Reveal] Spoiler: OA

Last edited by Engr2012 on 02 Aug 2015, 09:43, edited 1 time in total.
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Re: Studies in restaurants show that the tips left by customers [#permalink]

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singh_amit19 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.

I picked A........views???


Interpretation: Credit card logo reminds people (with credit card) of spending power
A, C, D all weakens this statement. E says that the logo reminds people with that "particular" card, but not spending power.

B is the best since it clearly states the relationship between spending power and credit card logo.
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Re: Studies in restaurants show that the tips left by customers [#permalink]

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New post 29 Sep 2007, 18:57
Agree with B. It's the only choice that shows the relationship between the thinking behind a credit card logo and what the customers pay.
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Re: Studies in restaurants show that the tips left by customers [#permalink]

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New post 29 Sep 2007, 20:44
singh_amit19 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.

I picked A........views???


Conc - credit card logo remindes customers that they have more purchasing power available.
My pick B. people with debt don't pay more tip because credit card reminds that they don't have much purchasing power.
IMO A weakens the argument.
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Re: Studies in restaurants show that the tips left by customers [#permalink]

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New post 29 Sep 2007, 23:26
singh_amit19 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.

I picked A........views???


I didn't get this one, ran outta time =(.

B makes sense now.

A: irrelevant we are concerned w/ people w/ credit cards. if anything this weakens the argument by suggesting that credit cards are not the only cause to this.
C: weakens the argument.
D: seems to weaken the argument.
E:Irrelevant.

B: if we have the opposite effect as explained in B then the argument is valid.
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Studies in the resturants show that the tips left by [#permalink]

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Studies in the restaurants show that the tips left by customers who pay their bill in cash tent 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 notes 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 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 posses s credit card.

(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.
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Re: Studies in the resturants show that the tips left by [#permalink]

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New post 23 May 2009, 11:15
I would say E or B.

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Re: Studies in the resturants show that the tips left by [#permalink]

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New post 24 May 2009, 09:09
C.

Patron's who don't have credit cards want to spend more because they see the credit symbol. The patrons who pay their bill in CASH tend to tip more, not ones with CREDIT, when the symbol is on the tray, not the other way around. I think the psychology is that the credit symbol makes cardholders spend more, and makes the cash spenders tip more because they wish they had a card. They want to compensate for the lack of spending power the symbol displays that they possess. I think C is most logical.

B - says that credit card holders would tip less, refuting the claim by the psychologists' hypothesis

E - relates to credit card holders of the same brand, not people who pay their bill in cash
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Re: Studies in the resturants show that the tips left by [#permalink]

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New post 24 May 2009, 20:21
"seeing a credit card logo makes many credit card holders willing to spend more becuase it remides them that their spending power exceeds the cash they have immediately available," is the claim made by the psychologists

"Patrons who are under financial pressure from their credit casd 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," refutes the claim, thereby not supporting it
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Re: Studies in the resturants show that the tips left by [#permalink]

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Studies in the resturants show that the tips left by cutomers who pay their bill in cash tent 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 becuase it remides 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?

B) Patrons who are under financial pressure from their credit casd 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
Now if i understood ques right, the inference is abt the influence of credit card's logo on the psycology of the customer, and that makes a person to give more tip.
B says that logo does have an influence... and gives us with a logic .

C) In virtually all of the cases in the studies, the patrons who paid bills in cash did not posses s credit card.
If they don't possess credit card where is the talk of influence? an all of the cases funda makes it eligible for elimination

D) In general, resturant patrons who pay their bills in cash leave larger tips than do those who pay by credit card
This also does not fits into my consideration for finding an answer

E) The percentage of resturant 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.
Now, this again fits in a bit and says that cc logo on tray influences spendig by that only cc.
but it hits on the influence of brand to use that brand, not on the psycology of spending more

so i guess B

what is OA
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Re: Studies in the resturants show that the tips left by [#permalink]

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New post 25 May 2009, 11:58
gmatprep09 wrote:
Studies in the 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 notes 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 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 a credit card.
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.


The original hypothesis is logo ---> increased tip DURING CASH PAYMENT.

B - This weakens; this suggests logo ---> DECREASED tip under some circumstances.
C - Neutral statement, not a strong answer.
D - This is a weaken, this suggests an alternative reason for larger tips.
E - Irrelevant, we're talking about customers who pay WITH CASH.

(A) is the strongest answer. It suggests the results of the study can be repeated and is generalizable to both cardholders and non-cardholders.
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Re: Studies in the resturants show that the tips left by [#permalink]

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New post 25 May 2009, 13:20
vagesh:

B) Patrons who are under financial pressure from their credit casd 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
Now if i understood ques right, the inference is abt the influence of credit card's logo on the psycology of the customer, and that makes a person to give more tip.
B says that logo does have an influence... and gives us with a logic .


The claim supported in B refutes the psychologists interpretation of the studies, that the credit card logo "increased" what credit card holders want to spend.

I guess C is a little neutral, but A is much more neutral. Saying that the study is not limited to patrons who have credit cards simply means that people who do not have credit cards and are not patrons are included in the study. This says absolutely nothing to strengthen or refute the inference made by the psychologists.
In C, it shows that the people (patrons specifically), lack the ability to exceed the amount they have on hand by using a credit card, but the logo has the same effect and makes them want to spend more. It is a stretch interpretation, but the only one that does have the potential to say that a credit card logo does make people want to spend more, which is the psychologists interpretation of the studies, in my opinion.

All answers either refute or make a somewhat neutral claim, I say that C is stronger than A in its implications.

What is OA?
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New post 27 May 2009, 20:14
dk94588 wrote:
C.

Patron's who don't have credit cards want to spend more because they see the credit symbol. The patrons who pay their bill in CASH tend to tip more, not ones with CREDIT, when the symbol is on the tray, not the other way around. I think the psychology is that the credit symbol makes cardholders spend more, and makes the cash spenders tip more because they wish they had a card. They want to compensate for the lack of spending power the symbol displays that they possess. I think C is most logical.

B - says that credit card holders would tip less, refuting the claim by the psychologists' hypothesis

E - relates to credit card holders of the same brand, not people who pay their bill in cash


You may confuse btw "tip more" and "spend more". They are really different.
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Studies in restaurants shows that the tips left by customers [#permalink]

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Studies in restaurants shows 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 remains them that their spending power exceeds the cash they 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 posses credit card.

(D) In general, restaurant patrons who pay their bills in cash leaves 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.
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Re: Studies in restaurants shows that the tips left by customers [#permalink]

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New post 02 Jun 2010, 14:30
B because it strengthens the assumption that seeing the credit card logo reminds people of their spending limit.
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Re: Studies in restaurants shows that the tips left by customers [#permalink]

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New post 03 Jun 2010, 00:26
Can u please explain... I don't understand the logic.As per the argument seeing credit card logo make people feel more about their spending power. But choice B say that on seeing Credit card logo they tip less thinking about their financial obligations.

The OA is B
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Re: Studies in restaurants shows that the tips left by customers [#permalink]

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New post 03 Jun 2010, 08:35
pheonix wrote:
Can u please explain... I don't understand the logic.As per the argument seeing credit card logo make people feel more about their spending power. But choice B say that on seeing Credit card logo they tip less thinking about their financial obligations.

The OA is B


The main point to ponder here is that seeing a credit card logo has an effect on the customer.
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Re: Studies in restaurants shows that the tips left by customers [#permalink]

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New post 05 Jun 2010, 10:16
can someone explain why (E) is incorrect....if we are talking about the effect of credit card logo on the customers.
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Re: Studies in restaurants shows that the tips left by customers [#permalink]

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New post 29 Jun 2010, 19:54
seekmba wrote:
can someone explain why (E) is incorrect....if we are talking about the effect of credit card logo on the customers.


Option E talks about Bills not Tip.
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Re: Studies in the resturants show that the tips left by [#permalink]

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New post 12 Oct 2010, 22:18
Can someone clearly explain the OA here. I came across this question in OG12 today and did not get it at all...
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Re: Studies in the resturants show that the tips left by   [#permalink] 12 Oct 2010, 22:18

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