With which pricing strategy does the seller take responsibility for part or all of the actual freight charges in order to acquire the desired business?
A) FOB origin pricing
B) freight-absorption pricing
C) basing-point pricing
D) location-based pricing
E) uniform-delivered pricing

Question

Quizplus · Accepted Answer

Freight-absorption pricing is a pricing strategy in which the seller takes responsibility for part or all of the actual freight charges in order to acquire the desired business. This strategy is beneficial for the seller in attracting customers who are sensitive to shipping costs, as the seller absorbs the cost of shipping to make their product more affordable for the customer.

With Which Pricing Strategy Does the Seller Take Responsibility for Part