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When a firm adjusts prices to account for geographical location of buyers and freight transportation costs, it is using:

ADiscriminatory Pricing
BSegmented Pricing
CGeographical Pricing
DPsychological Pricing

Explanation

* Geographical Pricing adjusts pricing according to customer distance to account for shipping overheads.
* Key variations: FOB-origin pricing, Uniform-delivered pricing, Zone pricing, and Freight-absorption pricing.
* Choice of strategy impacts regional competitive competitiveness.

Exam Relevance
  • Topic: Pricing Strategy
  • Subtopic: Geographic Pricing
Submitted by: mcqstutor Team More Marketing MCQs →

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