Value of service pricing is based on the concept which states:
A) shippers should pay rates high enough to insure a high profit for the carrier.
B) carriers should set prices based on the level of service they offer
C) rates should be related to value of the commodity - the higher the value of the commodity the higher the rate should be
D) shippers should offer a price that they feel is fair in relation to the service offered.

Question

Quizplus · Accepted Answer

Value of service pricing is based on the principle that the rates should be related to the value of the commodity being shipped. The higher the value of the commodity, the higher the rate can be, as the shipper is presumed to be willing to pay more for the transportation of more valuable goods. This approach allows carriers to charge rates commensurate with the perceived value of the service to the shipper, rather than solely on the cost of providing the service.

Value of Service Pricing Is Based on the Concept Which