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Our research investigates the competitive ramifications of individual marketing and information management in today's information-intensive marketing environments. The specific managerial issues we address are as follows. First, what kinds of incentive environments do competing firms face when they can only target individual customers imperfectly? Second, does the improvement in an industry's targetability intensify price competition in the industry such that all competing firms become worse off? Third, should a firm share its customer knowledge so as to improve its rival's targetability? Fourth, how should an information vendor sell its information that can improve a firm's targetability? Finally, do competing firms have the same incentives to invest in their own targetability?

To answer those questions, we develop a simple model à la Narasimhan (1988), in which each of the two competing firms have their own loyal …