Landover Carpentry,Inc.currently markets its garden benches in the Ontario market.It would like to expand into the Western Canada market,but the competition there is intense.Which geographic pricing tactic should the Landover use?

Question

Quizplus · Accepted Answer

Freight absorption pricing is the best tactic for Landover Carpentry, Inc. to use when entering a new market with intense competition like Western Canada. By absorbing the shipping costs, they can offer their garden benches at more competitive prices, making their products more attractive to potential customers in the new market. This approach helps mitigate the disadvantage of geographical distance and can be a strategic move to gain market share.