5. Individual Prublerns 19-5 SoFt selling occurs when a huveris skeptical of the usefulness of a product and the seller offers ho set a price that depends on realized value. For example, suppose a sales reprEenlative is trying to sell a company a new accounting system that will, with certainty. reduce costs by 10%. However, the customer has heard this claim he'Fore and believes there is onlyI a 40% chance of actually realizing that cost reduction and a 60% chance of realizing no cost reduction. Assume the cusbomer has an initial total cost of $3300. According to the customer's beliefs. the upected value ofthe accounting svstem. or the expecbed reduction in cost. is . Suppose the sales reprEenlatiue initially alters the accounting svsbem to the customer for a price of$21.0CI. The information asvmmeh'y stems from the fact that the V has more information about the efcacy of the accounting svsbem than does the V . At this price. the customer 7 purchase the accounting svsbem. since the expecbed value ofthe accounting svsbem is 7 than the price. Instead of naming a pricer suppose the sales reprEenlative offers to give the customer the product in exchange for 59% of the cost savings. If there is no reduction in cost for the cusbomer. then the customer do not have to pay. True or False: This pricing scheme worsens the problem of information asvmmetry in this scenario. 0 True 0 False