Question

Jane Eckerd wants to buy a new Volvo. She lives in Richmond Virginia, but can't find the exact color and model she wants at her local Volvo dealers. She searches the Web and discovers that a dealership 90 minutes away, in Alexandria, Virginia has the car she wants. She called the dealer and found that the price of the vehicle is the same as it would be in Richmond. although, the Alexandria dealer wants to charge Janet an additional $150 to have someone drive the car from Alexandria to Janet's home in Richmond. As Janet was about to reject the offer and hang up the phone, the dealer offered to waive the extra "shipping charge" and make the price exactly equal to the price in Richmond. This geographic pricing tactic by the Alexandria dealer is a form ofa. F.O.B Pricing.b. Zone Pricing.c. Uniform Delivered Pricing.d. Intermediary Pricing.e. Freight Absorption Pricing.

Answer 1

The purchase of a car is an example of a shopping product. When shopping for a high end product such as a new car the consumers looks up information about the product such as reviews and compares it to other similar products. The consumer compares things, such as cost, effectiveness, quality and features before a purchase. This type of shopping takes longer than your typical shopping.