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**Please answer all the attached question: ***Please answer this question only if you know all the answers: Q25 Soft selling occurs when a buyer is

**Please answer all the attached question:

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***Please answer this question only if you know all the answers: Q25 Soft selling occurs when a buyer is skeptical of the usefulness of a product and the seller offers to set a price that depends on realized value. For example, suppose a sales representative is trying to sell a company a new accounting system that will, with certainty, reduce costs by 20%. However, the customer has heard this claim before and believes there is only a 10% chance of actually realizing that cost reduction and a 90% chance of realizing no cost reduction. Assume the customer has an initial total cost of $900. According to the customer's beliefs, the expected value of the accounting system, or the expected reduction in cost, is ( ............ ) Suppose the sales representative initially offers the accounting system to the customer for a price of $99.00. The information asymmetry stems from the fact that the ( .............. ) \"Sales Representative { Buyer\" has less information about the efcacy of the accounting system than does the ( .............. ) \"Sales Representative z' Buyer\". At this price, the customer ( .............. ) \"Will I Will not\" purchase the accounting system, since the expected value of the accounting system is ( ............... ) \"Less ;" Greater\" than the price. Instead of naming a price, suppose the sales representative offers to give the customer the product in exchange for 50% of the cost savings. Ifthere is no reduction in cost for the customer, then the customer does not have to pay. True or False: This pricing scheme worsens the problem of information asymmetry in this scenario. F True C False

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