Question

Which of the following statements is true of geographic pricing? Group of answer choices Freight absorption pricing is a tactic that requires a buyer to absorb the freight costs from the shipping point. Postage stamp pricing is adopted when the marketing manager wants total costs to be equal for all purchasers of identical products. With basing-point pricing, a seller designates a location as a basing point so that all buyers are not charged the freight cost from that point. Uniform delivered pricing divides the United States into segments or zones and charges a flat freight rate to all customers in a given zone.

Answer 1

Answer:

The correct answer is letter "B": Postage stamp pricing is adopted when the marketing manager wants total costs to be equal for all purchasers of identical products.

Explanation:

Geographic pricing refers to pricing strategies companies carry out to reduce the freight costs moreover for distant customers. Among those strategies we can identify: Free On Board (FOB) origin pricing, uniform delivered pricing or postage stamp pricing, zone pricing, freight absorption pricing, basing-point pricing, single-price tactic, and flexible pricing.

By implementing postage stamp pricing the company will use standard delivery, freight and total cost pricing for every buyer purchasing identical products. What happens with this method is that the firm assumes part of the freight costs but send the buyers only a fixed freight cost.