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