Scenario 12.2
Use the following to answer the questions.
The BASF Chemical Company in Germany has developed a new rubberized coating. The product has an application for cell phones and other hand-held electronic devices that gives them protection from falls and scratches. BASF plans to market the product directly to businesses that manufacture the casings for these types of products. BASF currently uses a system of salespeople headquartered in Germany, while its primary business customers are in China.
-Refer to Scenario 12.2. BASF is considering the problem of actual distance in delivering its product from the plant in Germany to some of its customers in China. Which pricing strategy would help overcome this problem?

Question

Quizplus · Accepted Answer

The geographic pricing strategy would help overcome the problem of actual distance in delivering the product from Germany to its customers in China. This pricing strategy involves setting different prices for different regions based on the distance from the production facility, transportation costs, and other factors that affect the cost of delivering the product. By setting different prices for different regions, BASF can account for the additional costs of delivering the product to customers in China and still maintain a profitable pricing structure.

Scenario 12.2 Use the Following to Answer the Questions