If a company decides to divide its market area into segments or regions and charge a flat rate for freight to all customers in a given region,which type of pricing is the company using?
A)zone
B)uniform delivered
C)FOB origin
D)basing point

Question

Quizplus · Accepted Answer

Segmenting the market area into regions and charging a flat rate for freight to all customers in a given region is known as zoning. Zoning is primarily used to simplify transportation costs, save time, and develop pricing strategies to meet the needs of different markets. Therefore A) Zone is the correct answer.

B) Uniform delivered pricing refers to setting a uniform price for a product, which will minimize transportation pricing, while FOB origin and basing point pricing are methods used to calculate the transportation expenses incurred by the buyer.

If a Company Decides to Divide Its Market Area into Segments