Customers located close to a firm are less likely to benefit from FOB-origin pricing than customers located farther away.

Question

Quizplus · Accepted Answer

FOB-origin pricing is a pricing strategy that requires the buyer to pay for shipping costs from the origin of the goods to their destination. Therefore, customers located closer to the firm's location would have lower shipping fees, making FOB-origin pricing more beneficial for them. On the other hand, customers located farther away would have to pay higher shipping fees, making FOB-origin pricing less beneficial for them.

Customers Located Close to a Firm Are Less Likely to Benefit