Sunday, 7 October 2012

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#4



   figure 1-2




as u can see in this diagram , geographic pricing method have 5 categories


  1. F.O.B PRICING
  • destination = the price is quoted at the customer's location or in the vicinity. also implied that the    customer takes title to the goods at the point destination
  • factory  = the price is quoted at the factory location .

     2. ZONE PRICING
  • reduce administrative complexity by establishing a single price within a wide geographic area. 

     3. SINGLE, OR UNIFORM, PRICING
  • used for many fair-trade items, first-class mail , and books

     4. FREIGHT EQUALIZATION PRICING

  • two firm equal efficiency in producing and selling
  • result same in product,competitive pricing is a matter of transportation cost.

     5. BASING POINT PRICING

  • if the location chosen be is the location of a major competitor
  • price can be forced to be similar to competitor stage in geographic customer location



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