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Encyclopedia > Geographical pricing
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Geographical pricing, in marketing, is the practice of modifying a basic list price based on the geographical location of the buyer. It is intended to reflect the costs of shipping to different locations. Marketing is the process of planning and executing the pricing, promotion, and distribution of goods, ideas, and services to create exchanges that satisfy individual and organizational goals. ...


There are several types of geographic pricing:

  • FOB origin (Free on Board origin) - The shipping cost from the factory or warehouse is paid by the purchaser. Ownership of the goods is transferred to the buyer as soon as it leaves the point of origin. It can be either the buyer or seller that arranges for the transportation.
  • Uniform delivery pricing - (also called postage stamp pricing) - The same price is charged to all.
  • Zone pricing - Prices increase as shipping distances increase. This is sometimes done by drawing concentric circles on a map with the plant or warehouse at the center and each circle defining the boundary of a price zone. Instead of using circles, irregularly shaped price boundaries can be drawn that reflect geography, population density, transportation infrastructure, and shipping cost. (The term "zone pricing" can also refer to the practice of setting prices that reflect local competitive conditions, i.e., the market forces of supply and demand, rather than actual cost of transportation.)
  • Basing point pricing - Certain cities are designated as basing points. All goods shipped from a given basis point are charged the same amount.
  • Freight-absorption pricing - The seller absorbs all or part of the cost of transportation. This amounts to a price discount, and is used as a promotional tactic.

Discounts and allowances are modifications to the basic price. ... Promotion may mean: Promotion (chess), a term used in the game of chess Promotion (marketing), a marketing term Promotion (rank), an increase in position in a hierarchy Promotion (academic), German academic degree that is roughly equivalent to the Ph. ...

See also


  Results from FactBites:
 
Geographical pricing - Wikipedia, the free encyclopedia (269 words)
Geographical pricing, in marketing, is the practice of modifying a basic list price based on the geographical location of the buyer.
This is sometimes done by drawing concentric circles on a map with the plant or warehouse at the center and each circle defining the boundary of a price zone.
This amounts to a price discount, and is used as a promotional tactic.
Geography - encyclopedia article about Geography. (3391 words)
Geographers A geographer is a scientist whose area of study is geography, the study of Earth's physical environment and human habitat.
The geographer is capable of studying not only the physical details of the environment but also its impact on human and wildlife ecologies, weather and climate patterns, economics, and culture.
Geographers studying hazards are interested in both the dynamics of the hazard event and how people and societies deal with it.
  More results at FactBites »


 
 

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