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The customer service department of a vitamin and nutritional supplement company has been receiving an increase in customer complaints since the company changed the shipping and handling charges to be the same amount for every order. Which delivery pricing method is this company using?

a. free on board
b. uniform delivered
c. basing point
d. zone
e. cumulative quantity

1 Answer

6 votes

Final answer:

The company is using a uniform delivered pricing method, resulting in a standardized shipping fee for all orders. This can cause customer dissatisfaction as it doesn't consider the specifics of each order, potentially leading to an increase in complaints.

Step-by-step explanation:

The correct option : b

The vitamin and nutritional supplement company is using uniform delivered pricing method since they charge the same shipping and handling fee for every order, regardless of the order size or delivery distance. This strategy simplifies the pricing structure but can lead to customer dissatisfaction, especially if the standardized fee seems high compared to the value of the order or the delivery distance. Providing a one-size-fits-all rate, the company risks alienating customers who place smaller orders or those who are located near the distribution centers, as they might feel that they are being overcharged for shipping.

Customers often prefer a shipping fee that reflects the actual cost associated with their specific order. Therefore, the strategy might lead the company to reevaluate its pricing approach to better align with customer expectations and to maintain customer satisfaction and loyalty. The goal of a delivery pricing strategy should be to balance the needs of the company with those of the customer to foster a long-term relationship.

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