Question
READY4SHIP is a shipping service that will ship a good anywhere within the state of Washington for a flat fee of $10. They are also
READY4SHIP is a shipping service that will ship a good anywhere within the state of Washington for a flat fee of $10. They are also willing to ship goods outside the state, but charge a $5 surcharge for doing so. According to the first tenet of prospect theory, what would be a better way to frame this pricing scheme but still keep prices the same?
Charge a flat fee of $15 to ship goods anywhere, but provide a $5 discount for shipping within the state of Washington. | ||
Charge a flat fee of $10 to ship goods anywhere with no surcharges or discounts based on location. | ||
Charge a flat fee of $15 to ship goods anywhere with no surcharges or discounts based on location. | ||
Charge a flat fee of $5 plus a $5 surcharge for shipping within the state of Washington and a $10 surcharge for shipping outside the state of Washington. | ||
Charge a flat fee of $10 plus $1 for each 100 miles that the good must be shipped. |
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