Green Earth Marketing sells containers for temporary storage of recyclables nationally through its catalogue.The company wants to simplify pricing and reduce its risk.Green Earth also desires some type of difference in price due to distance.Which type of pricing should the company use?
A) freight absorption
B) two-part
C) flexible
D) zone

Question

Quizplus · Accepted Answer

Zone pricing allows for price differentiation based on distance or location, which meets Green Earth's desired pricing strategy. This method uses zones to group customers based on proximity to the company and charges a uniform price within each zone. It simplifies pricing and reduces the company's risk. Freight absorption, two-part and flexible pricing are not suitable for this specific requirement.

Green Earth Marketing Sells Containers for Temporary Storage of Recyclables