ETS Chapter 8

Question 1

What is the difference between contract pricing and tariff pricing?

Answer 1

Contract pricing involves negotiated long-term agreements

tariff pricing follows predefined rate structures.

Example: A retailer signs a yearly contract with a shipping company for stable delivery rates, while individual customers pay standard tariff rates.

Question 2

How do transportation tariffs work?

Answer 2

fixed price structures used to determine the cost of transport based on distance, weight, and mode of transport.

Example: A courier service charges different rates for express and standard delivery based on a tariff schedule.

Question 3

What are the different methods of calculating transportation prices?

Answer 3

cost-plus pricing,

distance-based pricing,

time-based pricing,

value-based pricing.

Example: A taxi service charges per kilometer traveled, while an airline uses dynamic pricing based on demand.

Question 4

Why is price modeling important for transportation companies?

Answer 4

Price modeling helps companies forecast revenues, adjust to market changes, and remain competitive.

Example: A ride-hailing app uses real-time data to adjust fares during high-demand periods.