Question

​Recently, a bank was trying to decide what fee to charge for​ "expedited ​payments"long dash payments that the bank would transmit extra speedily to enable customers to avoid late fees on cable TV​ bills, electric​ bills, and the like. To try to determine what fee customers were willing to pay for expedited​ payments, the bank conducted a survey. It was able to determine that many of the people surveyed already paid fees for services that exceeded the maximum fees that they said they were willing to pay. This illustrates that__________.

Answer 1

Answer:

A disparity between their feedback and what they actually did. In this case it is better to set the fees based on what logical people would do.

Obviously the service is valued highly, and people are willing to pay higher fees.

The information provided in the survey is not a true reflect of what customers are willing to pay.

Price testing will be most effective, where a price is set and based on acceptance or rejection it is adjusted.

Explanation: