Final answer:
Firms use customer relationship management to target profitable consumers more precisely by assessing costs and revenues. The correct option is a.
Step-by-step explanation:
In order to target profitable consumers more precisely, firms use customer relationship management (CRM). CRM involves assessing the costs to serve a consumer along with the revenues generated. By analyzing customer data and interactions, firms can tailor their marketing efforts and provide personalized experiences to maximize profitability.
Firms are able to target more precisely those consumers who are profitable by assessing the costs to serve a consumer along with the revenues generated using customer relationship management. By dividing its total costs into fixed and variable costs, a firm can understand its cost structure. However, choosing the profit-maximizing quantity and optimal pricing requires analyzing these costs in conjunction with sales and revenues within the firm's market structure. With customer relationship management, businesses evaluate both direct and indirect customer interactions to enhance the value derived from customer relationships over time.