Question

When considering the pricing of a Hummer vehicle, would the geographic location of the vehicle make...

When considering the pricing of a Hummer vehicle, would the geographic location of the vehicle make a difference in the price?

Homework Answers

Answer #1

Yes, the geographic location of the vehicle would make a difference in the price so the prices increase with increasing distribution distance. This is sometimes done by drawing a collection circle on a map with a headquarters or warehouse in the center, and each circle demarcating the boundaries of the value zone. Instead of using circles, incorrectly established pricing can be drawn that reflects geography, population density, transport infrastructure, and shipping costs. (The term "gene price" can also refer to the implementation of pricing that reflects local competitive conditions, i.e. market forces of supply and demand rather than actual shipping costs).


Regional pricing, as practiced in the U.S. gasoline industry, is a gasoline pricing based on complex weight and includes factors such as the number of competing stations, number of vehicles, average traffic, population density and geographical characteristics.

Many traders and economists say the rise in gasoline prices simply reflects the cost of doing business in a complex and volatile market. Critics have argued that the industry's monopoly and ability to manage not only the industry's own corporate stations, but also local stations or rights stations, makes the price zone a justification for raising gasoline prices almost exclusively. The oil industry claims that while determining the prices of wheelchairs and distributors, each vendor is free to see what price they want, and the practice in itself causes significant price fluctuations. Extensive beyond industrial management.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Problem:  The owner of a pizza shop is considering buying a new delivery vehicle.  A new vehicle would...
Problem:  The owner of a pizza shop is considering buying a new delivery vehicle.  A new vehicle would result in a savings of $8,000 per year over the old vehicle.  The new vehicle would cost $25,000 and would have a useful life of eight years, at which time it would be sold for $2,500.  The owner uses a 20% before-tax MARR, and the vehicle would be depreciated by using MACRS.  Should the owner purchase the van on an after-tax basis?  Use a 40% tax rate.
The zone of tolerance may be described as: A. the zone in a geographic location in...
The zone of tolerance may be described as: A. the zone in a geographic location in which companies have identified overlapping market segments that are difficult to differentiate. B. the tolerable range in service before customers will leave a clinic due to wait time problems. C. the range of forgiveness a loyal customer gives an organization for service lapses. D. price insensitivity market segments that will tolerate slight increases in health premiums. 3 points    QUESTION 18 The divorce rate...
A flexible-fuel vehicle averages 26 mpg when fueled with gasoline. What would the average mpg-rating be...
A flexible-fuel vehicle averages 26 mpg when fueled with gasoline. What would the average mpg-rating be for the vehicle when fueled with E85 (85% ethanol + 15% gasoline, by volume)? Assume that the fuel energy conversion efficiency is the same for both fuels.
"Full-Cost Pricing" is one of the principles of sustainability described in your text. When all of...
"Full-Cost Pricing" is one of the principles of sustainability described in your text. When all of the environmental costs of a product or service are not included in the price, environmental problems will result. Identify and describe an environmental problem that is caused because an industry does not follow full-cost pricing. (2 points) What could be done to make the industry include the external cost in the price of their product (2 points)
#1The manager of the party is considering whether to use uniform pricing or two-part-pricing . Your...
#1The manager of the party is considering whether to use uniform pricing or two-part-pricing . Your willingness to pay for rides for the party is P = 48 – (0.75)×Q, where P is the ticket price per ride and Q is the number of rides. The amusement park has a marginal cost of $5 for each additional rise. Its fixed cost for handling the party is $20. Show all your work in an excel spreadsheet. a) Create a spreadsheet with...
When would companies generally employ cost-plus pricing? What’s the dynamic between shorter/longer channels of distribution relative...
When would companies generally employ cost-plus pricing? What’s the dynamic between shorter/longer channels of distribution relative to pricing?
When would the customer be willing to pay a premium price for a product or service?...
When would the customer be willing to pay a premium price for a product or service? What pricing strategy would be appropriate under these circumstances?
Why does it make sense for macroeconomists to focus on the “labor force” rather than the...
Why does it make sense for macroeconomists to focus on the “labor force” rather than the total population when considering the role of people production? What is the difference between a change in relative price and a change in general price? Give an example of each to make your point.
When would you use a report deck? What considerations would you make when deciding if a...
When would you use a report deck? What considerations would you make when deciding if a report deck should be used or not?   Explain a time when you would not want to use a report deck.
Suppose a firm owns a gym and is trying to determine the best pricing structure to...
Suppose a firm owns a gym and is trying to determine the best pricing structure to use. The gym’s cost structure is C(Q) = 10, 000 + 15Q. There are two types of users: Heavy Gym users and Light Gym users. The individual demand curve for a Heavy user is qDH(P) = 400?10P and the individual demand for a Light user is qDL(P) = 125?5P. Suppose in the market there are 10 Heavy users and 5 Light users. (a) Suppose...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT