Scenario 19.2 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 19.2. 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, which could be the factory or a nearby location, and adding freight charges from that point to the buyer's location. This allows for a more uniform pricing structure and can help account for differing shipping costs based on geographic location.