APICS Certified Supply Chain Professional (CSCP) — Question 378

Two individuals are travelling by train to the same location, departing from two different cities. Both purchased tickets when they arrived for departure, yet paid different prices. Which of the following pricing strategies was most likely practiced by the train company?

Answer options

• A. Regional pricing
• B. Coupons and rebates
• C. Product versioning
• D. Channel pricing

Correct answer: A

Explanation

The correct answer is A, Regional pricing, as this strategy allows companies to set different prices based on geographical location or market demand. The other options do not fit the scenario; Coupons and rebates (B) apply discounts rather than base pricing, Product versioning (C) refers to different product variations, and Channel pricing (D) involves different prices based on sales channels, which doesn’t explain the variance in ticket costs from different cities.