Freight-absorption pricing is used for ________ and ________.
A) market penetration; higher profit margins
B) holding on to increasingly competitive markets; higher profit margins
C) market penetration; holding on to increasingly competitive markets
D) generating temporary higher profits; discouraging competitors
E) services; installations

Question

Quizplus · Accepted Answer

Freight-absorption pricing is a strategy where the seller absorbs all or a portion of the freight costs to make the product more affordable and attractive to buyers. This pricing strategy is commonly used to penetrate a new market or to hold on to an increasingly competitive market. By absorbing the freight costs, the seller can lower the overall price and make their product more competitive in the market. This can be beneficial in both scenarios where a company wants to enter a new market or compete with other market players.

Freight-Absorption Pricing Is Used for ________ and ________

Freight-Absorption Pricing Is Used for and