Scenario 12.2 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 12.2. BASF is considering the problem of actual distance in delivering its product from the plant in Germany to some of its customers in China. Which pricing strategy would help overcome this problem?
A) Geographic
B) Transfer
C) Commercial
D) Transit
E) Factory

Question

Quizplus · Accepted Answer

Geographic pricing strategy would be the best choice to overcome the problem of actual distance in delivering the product from the plant in Germany to customers in China. This pricing strategy considers the location of customers and charges different prices based on their geographic location. By using this strategy, BASF can adjust its prices based on the cost of transportation and distance, which can help them provide a competitive price to their customers in China.