5 Questions
What is the pricing strategy where the company charges the same price plus freight to all customers, regardless of location?
Uniformed delivery pricing
What is the pricing strategy where the seller absorbs all or part of the actual freight charge as an incentive to attract business in competitive markets?
Freight absorption pricing
Which pricing strategy involves setting up two or more zones where customers within a given zone pay a single total price?
Zone pricing
In which pricing strategy do the goods are delivered to the carrier and the title and responsibility passes to the customer?
FOB pricing
What is the pricing strategy where a seller selects a given city as a 'basing point' and charges all customers the freight cost associated from that city to the customer location?
Basing point pricing
Study Notes
Pricing Strategies
- Uniform Delivered Pricing: The company charges the same price plus freight to all customers, regardless of location.
Freight Absorption Pricing
- The seller absorbs all or part of the actual freight charge as an incentive to attract business in competitive markets.
Zone Pricing
- The strategy involves setting up two or more zones where customers within a given zone pay a single total price.
FOB (Free on Board) Pricing
- The goods are delivered to the carrier and the title and responsibility passes to the customer.
Basing Point Pricing
- The seller selects a given city as a 'basing point' and charges all customers the freight cost associated from that city to the customer location.
Test your knowledge of geographical pricing methods used by businesses to set prices for customers in different locations. This quiz covers FOB pricing, uniformed delivery pricing, zone pricing, basing point pricing, and freight absorption pricing.
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