The profitability of catalog-based direct marketers is highly sensitive to postal rates and paper costs.

Question

Quizplus · Accepted Answer

Catalog-based direct marketers rely heavily on mailing catalogs to potential customers, which means that any increase in postal rates will directly impact their bottom line. In addition, paper costs are a significant expense for these businesses, as they need to print and distribute large volumes of catalogs on a regular basis. Therefore, any fluctuations in paper prices will also affect their profitability.

The Profitability of Catalog-Based Direct Marketers Is Highly Sensitive to Postal