Week 4 Pricing 2 - to see which one is the cheapest and if...

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I tried finding some more information on zone pricing, but mostly just came up with the fact that the further away you are the more shipping charges you will receive. Another example of zone pricing that I kept running into was how gasoline prices are determined. The following factors are used when determining how to price gasoline: number of competing stations, average traffic flow, population density, and geographical characteristics. There was no mention made to lower income areas, but I know that I have noticed price differences based on where the store I am shopping at is located. I will have to start paying more attentions to the areas I shop in regularly
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Unformatted text preview: to see which one is the cheapest and if that is true for most of the businesses in that area. One point that was made is if companies take into account the fact that people have transportation to even have the ability to go to a competitor. This could defiantly affect gasoline prices and would be good for convenience stores, grocery stores, and other retail stores in an area with a low number of people having their own transportation. These types of stores have items that everyone needs and may have a loyal customer base because of the lack of ability to shop at a competitor who is further away....
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This note was uploaded on 03/26/2012 for the course BUS GM560 taught by Professor Fields during the Summer '10 term at Keller Graduate School of Management.

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