 How Price Sensitive Is Letter Advertising Mail in the UK?Frédérique Fève,
Thierry Magnac,
Leticia Veruete-McKay and
Soterios Soteri ()
A chapter in New Business and Regulatory Strategies in the Postal Sector, 2018, pp 207-217 from Springer Abstract: Abstract The share of advertising expenditure going to letter mail has been declining for many years. While this has mainly been due to an increasing focus on digital advertising spend other factors, such as the price of letter mail, are also important. In order to help inform advertising letter mail pricing strategies this chapter provides price elasticity estimates conditional on customers using Royal Mail retail advertising products. The overall price elasticity estimated for this customer group was around −0.7 but tended to increase in absolute value by customer size and vary substantially by industry sector. For example, customers operating in the Finance and Insurance and Utilities sectors were estimated to be highly sensitive to price movements with estimated price elasticities of −1.5 to −2.6 respectively. Additional analysis was undertaken for customer sub-samples. However due to potential issues related to selection bias these results should be viewed as directional in nature and subject to further research. Date: 2018 There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:spr:topchp:978-3-030-02937-1_16 Ordering information: This item can be ordered from DOI: 10.1007/978-3-030-02937-1_16 Access Statistics for this chapter More chapters in Topics in Regulatory Economics and Policy from Springer |
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