Frogmore Gardens in central Victoria specialises in mail- order supplies of bare- rooted perennial plants, herbs and cottage garden favourites to retail and wholesale customers around Australia. Frogmore Gardens sends one of the most extensive catalogues of plants to customers in late Spring each year. When customers place their orders, they must also pay a delivery fee. The schedule of delivery fees is included in the catalogue and shows that rates are based on the state where customers live and are as follows: Vic= $11.50; NSW and SA = $12.50; Queensland = $14.50; Tasmania = $17.50. Frogmore Gardens is using:
A) geographic pricing.
B) freight absorption pricing.
C) basing point pricing.
D) zone pricing.
E) none of the above

Question

Quizplus · Accepted Answer

Frogmore Gardens is using zone pricing, which sets different prices based on the geographic location of customers. The schedule of delivery fees shows that rates are based on the state where customers live, which is a characteristic of zone pricing.

Frogmore Gardens in Central Victoria Specialises in Mail- Order Supplies