Author Question: Sellers can sometimes prolong a product's life cycle. Indicate whether the statement is true or ... (Read 51 times)

HudsonKB16 · **on:** Jun 29, 2018

Sellers can sometimes prolong a product's life cycle.

Indicate whether the statement is true or false

Question 2

What are the terms of F.O.B. pricing?

pocatato · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

True

Answer to Question 2

Geographic pricing involves reductions for transportation costs or other costs associated with the physical distance between buyer and seller. Prices may be quoted as F.O.B. (free-onboard) factory or destination. An F.O.B. factory price indicates the price of the merchandise at the factory before it is loaded onto the carrier, and thus excludes transportation costs. The buyer must pay for shipping. An F.O.B. destination price means the producer absorbs the costs of shipping the merchandise to the customer. This policy may be used to attract distant customers. Although F.O.B. pricing is an easy way to price products, it is sometimes difficult to administer, especially when a firm has a wide product mix or when customers are widely dispersed. Because customers will want to know about the most economical method of shipping, the seller must be informed about shipping rates.