Scenario 20.2
Use the following to answer the questions.
The BASF Chemical Company in Germany has developed a new rubberized coating.The product has an application for cell phones and other hand-held electronic devices that gives them protection from falls and scratches.BASF plans to market the product directly to businesses that manufacture the casings for these types of products.BASF currently uses a system of salespeople headquartered in Germany,while its primary business customers are in China.
-Refer to Scenario 20.2.If BASF were to employ pricing that includes the price at the factory plus freight charges from a chosen point nearest the buyer,this would be an example of ____ pricing.
A)factory plus
B)dispersion
C)base-point
D)freight absorption
E)uniform geographic

Question

Quizplus · Accepted Answer

Base-point pricing involves setting a price at a chosen point and adding charges for freight or delivery from that point to the buyer. In this scenario, BASF may use a base-point pricing strategy where they set a price at the factory and add charges for freight from Germany to China, where their primary business customers are located. This would allow them to offer a uniform price to all customers in China, regardless of their location.

Scenario 20.2 Use the Following to Answer the Questions