In the context of consumer surplus and willingness to pay, pricing objectives involve specifying the role of price in which two areas of an organization?

• A. Marketing strategy and financial goals
• B. Production efficiency and labor relations
• C. Inventory management and supply chain logistics
• D. Human resources and organizational culture

Answer: (A)

Verified step by step guidance

1. Understand the concept of consumer surplus, which is the difference between what consumers are willing to pay for a good or service and what they actually pay.
2. Recognize that willingness to pay reflects the maximum price a consumer is ready to pay, which directly influences pricing decisions.
3. Identify that pricing objectives are strategic goals that guide how a firm sets prices to achieve broader organizational aims.
4. Analyze the options given and consider which areas of an organization are most directly impacted by pricing decisions related to consumer surplus and willingness to pay.
5. Conclude that pricing objectives primarily involve specifying the role of price in marketing strategy (to attract and retain customers) and financial goals (to ensure profitability and revenue targets).