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With _____, the seller pays the actual freight charges and bills every purchase with an identical, flat freight charge. a. uniform delivered pricing b. zone pricing c. FOB origin pricing d. freight absorption pricing e. basing-point pricing ANS: A If the marketer wants total costs, including freight, to be equal for all purchasers of identical products, the firm will adopt uniform delivered pricing, or “postage stamp” pricing. PTS: 1 REF: 321 OBJ: 20-3 TYPE: Def TOP: AACSB Reflective Thinking | TB&E Model Pricing 54. Uniform delivered pricing enables a firm to: a. charge each customer the actual cost of shipping its products b. stir up price competition between buyers c. maintain a nationally advertised price d. discriminate in favor of buyers that are geographically closer to the seller e. charge each customer its fair share of the cost of shipping ANS: C With uniform delivered pricing, all customers will pay the same price regardless of their location. PTS: 1 REF: 321 OBJ: 20-3 TYPE: Comp TOP: AACSB Reflective Thinking | TB&E Model Pricing 55. Uniform delivered pricing: a. creates no geographic price discrimination b. is sometimes called "postage stamp pricing" c. is prevalent in the steel, cement, corn oil, and lead industries d. is common where freight costs are a large portion of total costs e. is calculated from regional base points ANS: B With uniform delivered pricing, all customers pay the same amount for freight regardless of location. PTS: 1 REF: 321 OBJ: 20-3 TYPE: Comp TOP: AACSB Reflective Thinking | TB&E Model Pricing 56. L.L. Bean charges all customers the same flat freight rate. It uses _____. a. FOB origin pricing b. zone pricing c. freight absorption pricing d. basing-point pricing e. uniform delivered pricing ANS: E In uniform delivery pricing, all customers are charged the same flat freight rate. PTS: 1 REF: 321 OBJ: 20-3 TYPE: App TOP: AACSB Reflective Thinking | TB&E Model Pricing Marketing MCQ Marketing Chapter 21 A price tactic that requires the purchaser to absorb the freight costs from the shipping point is called ___. In this case, the farther buyers are from sellers, the more they pay, because transportation costs generally increase with the distance merchandise is shipped. a. basing-point pricing ANSWER: e Recommended textbook solutions Principles of Economics7th EditionN. Gregory Mankiw 1,394 solutions Introductory Business Statistics1st EditionAlexander Holmes, Barbara Illowsky, Susan Dean 2,174 solutions Financial Accounting4th EditionDon Herrmann, J. David Spiceland, Wayne Thomas 1,097 solutions Principles of Economics8th EditionN. Gregory Mankiw 1,335 solutions |
Is a price tactic that requires the purchaser to absorb the freight costs from the shipping point?
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