Mail Composition and Recipients? Reaction to Direct Mail

Thomas Geissmann, Christian Jaag, Martin Maegli and Urs Trinkner

No 58, Working Papers from Swiss Economics

Abstract: This paper examines the relevance of interdependencies between various types of mail in analogy to other platform markets. It then empirically analyzes the interdependencies of various mail types based on a Swiss data set of 2016. It shows that a balanced mailmix increases the probability of the recipient reacting positively to addressed advertisement significantly. For example, a higher share of non-advertisement mail in the recipients? mailbox increases response rates to direct advertisement, thereby increasing the advertisers? willingness to pay for postal services. If so, postal services with a high share of advertisement mail might, in particular if they are not restricted by direct competition from competing deliverers, aim to reflect externalities between different mail types in their pricing. More explicitly, such postal services might want to increase the price of advertising mail and decrease the price of mail pieces that recipients like to receive in their mailbox.

Keywords: Mailstream; Postal Sector; Platform; recipient's reaction; Direct Mail (search for similar items in EconPapers)
JEL-codes: L43 L51 (search for similar items in EconPapers)
Date: 2017-01
New Economics Papers: this item is included in nep-ind and nep-reg
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http://www.swiss-economics.ch/RePEc/files/0058GeissmannJaagMaegliTrinkner.pdf

Related works:
Chapter: Mail Composition and Recipients’ Reaction to Direct Mail (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:chc:wpaper:0058

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