Sparkling Valley, a luxury resort, prices cottages facing the lake higher than cottages that do not, even though the cottages and services offered are identical in every other aspect. This form of pricing is called pricing.

Location grounded pricing

Explanation:

Location grounded pricing is the term which is defined as the prices of the items at the location level or at the company. This method of pricing let the business to define the different price base for the same item or product at different locations of inventory.

In short, it is defined as when the business change the price base of the product or item at one location, it will affect the price base at other locations.

So, in this case, the resort, set the price base for cottages facing the lake higher than those of cottages which do not face lake. Therefore, it kind of pricing is referred to as the location based pricing.