One-to-one marketing advocates tailoring of one or more aspects of the firm's marketing mix to the individual customer (Peppers and Rogers 1997; Peppers, Rogers and Dorf 1999; Shaffer and Zhang 2002). One-to-one marketing represents an extreme form of segmentation, with a target segment of size one....

Return policies are ubiquitous, and customer-friendly returns policies benefit retailers through greater customer demand. However, offering such policies also increases the cost of returns handling, impacting retailers' profitability negatively. Therefore, firms need to design optimal returns...