Janet Eckerd wants to buy a new Volvo. She lives in Richmond, Virginia, but can't find the exact color and model she wants at her local Volvo dealers. She searches the Web and discovers that a dealership 90 minutes away, in Alexandria, Virginia, has the car she wants. She called the dealer and found that the price of the vehicle is the same as it would be in Richmond, although the Alexandria dealer wants to charge Janet an additional$150 to have someone drive the car from Alexandria to Janet's home in Richmond. As Janet was about to reject the offer and hang up the phone, the dealer offered to waive the extra "shipping charge" and make the price exactly equal to the price in Richmond. This geographic pricing tactic by the Alexandria dealer is a form of:
a. F.O.B. pricing.
b. zone pricing.
c. uniform delivered pricing.
d. intermediary pricing.
e. freight absorption pricing.
Answer: e. freight absorption pricing.