If Detroit DLX charges the same price for the delivery of its product to customers located in the states near the Great Lakes, but a different price to customers elsewhere, the company is using ________.
A) psychological pricing
B) promotional pricing
C) zone pricing
D) reference pricing
E) uniform-delivered pricing

Question

Quizplus · Accepted Answer

Detroit DLX is using zone pricing, which involves charging different prices based on geographic locations. In this case, the company charges the same price for customers in states near the Great Lakes, indicating that it has created a pricing zone for that particular region. This allows the company to adjust prices based on local market conditions and competition, while still maintaining consistency within each pricing zone.

If Detroit DLX Charges the Same Price for the Delivery