Ace the CLEP Marketing Test 2026 – Market Your Skills to Success!

Freight absorption pricing is a pricing strategy where the seller includes the transportation costs within the price of the product, effectively absorbing those costs rather than passing them onto the customer. By doing so, the seller aims to make the overall purchase more appealing to customers. This approach can help attract more customers as it eliminates a separate charge for shipping, encouraging buyers who may be deterred by additional costs to complete their purchases. This strategy is often employed in competitive markets where price sensitivity is high, making it a valuable tool for increasing sales volume and market share.

In this context, the focus is on attracting customers, as the seller uses absorbed freight costs as a promotional tactic to entice potential customers.