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

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