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.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

A geographic pricing strategy would help overcome the problem of actual distance by adjusting the price based on the location of the customer. This would help account for any additional costs associated with transporting the product to customers in China.

Scenario 20.2 Use the Following to Answer the Questions