A catalog merchant divides the country into regions. Every buyer in a particular region pays the same average shipping charge. The shipping charges differ from region to region, depending on how far the region is from the catalog merchant's main warehouse facility. The catalog merchant is using:

Question

Quizplus · Accepted Answer

The catalog merchant is dividing the country into regions and charging the same average shipping charge for every buyer in a particular region. This is an example of zone pricing, which charges different prices based on the location or zone of the buyer. F.O.B. pricing and freight absorption pricing do not take into account the location of the buyer. Therefore, the best choice is B, zone pricing.

A Catalog Merchant Divides the Country into Regions