With which pricing strategy does the seller take responsibility for part or all of the actual freight charges in order to get the desired business?
A) FOB origin pricing
B) freight-absorption pricing
C) basing-point pricing
D) location-based pricing
E) uniform-delivered pricing

Question

Quizplus · Accepted Answer

Freight-absorption pricing is when the seller takes responsibility for part or all of the freight charges in order to entice buyers to purchase their products. This strategy is often used when the seller wants to remain competitive and attract more customers. The other options listed (FOB origin pricing, basing-point pricing, location-based pricing, and uniform-delivered pricing) do not involve the seller taking responsibility for freight charges in order to attract business.

With Which Pricing Strategy Does the Seller Take Responsibility for Part