A pricing strategy in which a manufacturer pays for the shipping cost of its merchandise to the wholesaler is called ____ pricing.
A) geographic
B) FOB origin
C) trade discount
D) FOB destination
E) postage-stamp

Question

Quizplus · Accepted Answer

FOB stands for "free on board." FOB destination means that the manufacturer takes responsibility for the cost of shipping the product to the wholesaler. This is advantageous for the wholesaler because they do not have to pay for shipping costs, which can be significant. Therefore, if the manufacturer offers FOB destination pricing, it could be a good choice for both parties.

A Pricing Strategy in Which a Manufacturer Pays for the Shipping