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Mail Composition and Recipients? Reaction to Direct Mail

Author

Listed:
  • Thomas Geissmann
  • Christian Jaag
  • Martin Maegli
  • Urs Trinkner

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.

Suggested Citation

  • Thomas Geissmann & Christian Jaag & Martin Maegli & Urs Trinkner, 2017. "Mail Composition and Recipients? Reaction to Direct Mail," Working Papers 0058, Swiss Economics.
    • Handle: RePEc:chc:wpaper:0058
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    File URL: http://www.swiss-economics.ch/RePEc/files/0058GeissmannJaagMaegliTrinkner.pdf
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    Keywords

    Mailstream; Postal Sector; Platform; recipient's reaction; Direct Mail;
    All these keywords.

    JEL classification:

    • L43 - Industrial Organization - - Antitrust Issues and Policies - - - Legal Monopolies and Regulation or Deregulation
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation

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