Which pricing strategy sets different prices based on geographic delivery areas?

Zone pricing is a pricing strategy where different prices are set based on specific geographic delivery areas. This means that the price a customer pays can vary depending on their location, taking into account factors such as transportation costs, competitive conditions, and local market demand. For example, a company might charge more in areas that are further away from its distribution centers due to higher shipping expenses, whereas customers closer to those centers might receive lower prices.

This strategy is beneficial for businesses operating in multiple regions as it allows them to adjust their pricing in a way that reflects the cost of serving different markets while still maximizing sales and profitability. It can also help to accommodate local competitive conditions and customer willingness to pay in different areas.

The other pricing strategies mentioned do not relate specifically to geographic delivery areas. Price fixing involves colluding with competitors to set prices at a given level, which is illegal. Bait and switch is a deceptive marketing practice where a product is advertised at a low price to attract customers, only to switch them to a higher-priced item. Predatory pricing involves setting extremely low prices to drive competitors out of the market, with the intention to raise prices afterwards. None of these strategies adjust prices based on geographic location in the way that zone pricing does.