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....

As supermarkets have developed the capability to gather customer data, their focus on customer loyalty has increased; however, retailers cannot actually measure loyalty. In this paper, we propose and test a hierarchical Bayesian approach to predicting customers' share-of-wallet loyalty that offers...