Under which type of geographic pricing strategy does each customer pay the exact freight for the product from the factory to its destination? Zone pricing basing-point pricing uniform-delivered pricing fob-origin pricing dynamic pricing
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Under FOB origin geographic pricing strategy, each customer pays the exact freight for the product from the factory to its destination.
Explanation:
FOB origin pricing is a geographical strategy of pricing. In this type of pricing, the purchaser or buyer has to pay the transportation cost incurred from the production plant to distribution center.
The contracts that include universal transportation contains concise terms and conditions related to the exchange. The terms may include-
i. Time and place of the transport or conveyance.
ii. Installment of the goods.
iii. Date, when the misfortune of any danger or damage shifts from the manufacturer to the buyer.
iv. Terms related to the protection.
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