Sharyl Kabbes Manufactures Dairy Products on Her Farm Outside Sherbrooke,Quebec

Multiple Choice

Sharyl Kabbes manufactures dairy products on her farm outside Sherbrooke,Quebec.Her products carry the brand name Mrs.K's Premium Quebec.The company sells milk,cheese,and sausage products.The products are sold individually or in sets that include a variety of cheeses and sausage products for a special price.Currently,the products are sold only in the province of Quebec.Mrs.K's products were introduced with a high price relative to competition.Kabbes says that her products are premium and,therefore,justify the high initial price.To get retailers to carry Mrs.K's products,the company offers discounts to buyers who will transport the products from the Kabbes Farm to their warehouses.Kabbes also offers retailers money to run ads for Mrs.K's products.
Because Mrs.K's products are perishable,transportation is very important,and some of her customers could not take advantage of the discount offered for picking up the product from the farm.As a result,Kabbes has decided to divide the province of Quebec into several segments and base her freight charges on the location of the buyer within these segments.
-Refer to Mrs.K's Premium Quebec Cheese.Which type of pricing involves dividing the state of Quebec into segments and pricing products based on the freight charges to different segments?

A) uniform delivered
B) freight absorption
C) zone
D) basing point