PLEASE HELP SOLVE THESE ANSWERS THANK YOU! HERE ARE THE OPTIONS FOR THE DROP BOX CHOICES:

1.) sales representative or buyer

2.) buyer or sales representative

3.) will or will not

4.) less or greater

6 .Individual Problems 195 Soft selling occurs when a buyer is skeptical of re usefulness of a product and the seller offers to set a price that depends on realized value. For example, suppose a sales representave 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 before and believes there is only a 40% chance of actually realizing that cost reduction and a 60% chance of realizing no cost reduction. Assume the customer has an initial total cost of $100. 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 $100. The information asymmetry stems from the fact that the V has less infomration about the efficacy of the accounting system than does the V . At this price, the customer V purchase the accounb'ng system, since the expected value of the accounting system is V 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. If there is no reduction in cost for the customer, ren the customer does not have to pay. True or False: This pricing scheme worsens the problem of information asymmetry in this scenario. 0 True 0 False ' "u: c: . Continue without saving