The Household Diary Study Mail Use & Attitudes in FY 2007

United States Postal Service
John Mazzone – Economist
John Pickett – Manager, Demand Forecasting and Economic Analysis
Finance Department

United States Postal Service Headquarters
475 L’Enfant Plaza, SW RM 8600
Washington, D.C. 20260-5323

March 2008, Contract# 102592-02-B-1502

NuStats
206 Wild Basin Road, Suite A-300
Austin, Texas  78746

Table of Contents

 

E    Executive Summary  5

Background  6

Overview    6

Mail Markets  7

1    Chapter 1:  Introduction – Volumes & Trends  9

The Survey  9

U.S. Postal Service Volumes  9

Mail Flows  12

Household Mail 13

Classes and Markets  14

Report Organization  14

2    Chapter 2:  Profile of Mail Usage  15

Introduction  16

Mail Volume and Demographics  16

Characteristics of Higher- and Lower-Volume Households  17

Demographic Characteristics of  U.S. Households  18

Use of the Post Office  21

3    Chapter 3:  Correspondence  23

Introduction  24

Correspondence Mail Volume  24

Correspondence Mail and Household Characteristics  24

Personal Correspondence  27

Business Correspondence  30

4    Chapter 4:  Transactions  31

Introduction  32

Transactions Mail Volume  32

Transactions Mail and Household Characteristics  33

Bill Payment 36

Bills and Statements Received  41

5    Chapter 5:  Advertising Mail 43

Introduction  44

The Advertising Market 44

Advertising Mail Volumes  45

Advertising Mail and  Household Characteristics  47

Senders of Advertising Mail 49

Attitudes Toward Advertising  49

Effectiveness of Advertising Mail 52

6    Chapter 6:  Periodicals  53

Introduction  53

The Periodical Market 53

Advertising’s Impact on Periodicals  54

Household Periodicals Volume  56

Periodicals Mail and Household Characteristics  59

Subscription Type  61

Trends in Readership  62

7    Chapter 7:  Packages  62

Introduction  62

The Package Market 62

Postal Service Package Volume  66

Packages and Household Characteristics  67

Household Package Contents  70

A        Appendix A:  Comparative Tables 1987, 2006 and 2007

Concordance

A1. Total Mail Overview

A2. First-Class Mail

A3. Standard Mail (A)

A4. Direct Mail Advertising

A5. Periodicals

A6. Packages & Expedited

A7. Electronic Communications

A8. Annual Trends

B        Appendix B:  Methodology

Study Design and Methodology

Sample Design

Data Collection Method

Data Processing

Sample Demographic Profile (all counts unweighted), Government Fiscal Year 2007

Data Weighting and Expansion

Weighting Procedures - FY 2007 Diary Data

Adjustment Factors

C        Appendix C:  Survey Instruments

C1. Recruitment Questionnaire

C2. Diary Package

            Advance Letter

            Certificate of Appreciation

            Photo Quick Start

            Instruction Booklet

            Question Booklet

            Answer Booklet

            Frequently Asked Questions

            "I'm Finished. . . ." Card

            Gift Selection Form

 


List of Tables and Figures

E    Executive Summary  5

Table E.1:  Mail Received and Sent by Households  6

Table E.2:  Household Mail Volume Received and Sent by Market Served  7

Table E.3:  Advertising by Mail Class  7

Table E.4:  Periodical Type Received  8

Table E.5:  Packages Received and Sent via the U.S. Postal Service  8

1    Chapter 1:  Introduction – Volumes & Trends  9

Table 1.1:  Total Mail Volume: FY 1987, 2005, 2006 and 2007  10

Table 1.2:  Total Mail: Revenue, Pieces, and Weight by Shape, FY 2007  10

Table 1.3:  Total Mail: Revenue and Weight per Piece by Shape, FY 2007  11

Table 1.4a:  Total Domestic Mail Flows  12

Table 1.4b:  Domestic Mail Flows per Household per Week  12

Table 1.5:  Mail Received and Sent by Households  13

Table 1.6:  Pieces Received and Sent per Household  13

Table 1.7:  Mail Received and Sent by Households  14

2    Chapter 2:  Profile of Mail Usage  15

Table 2.1:  Mail Volume and Demographics Average Annual Growth 1981-2007  16

Table 2.2:  Characteristics of Higher- and Lower-Mail-Volume Households  17

Table 2.3:  Education of Higher- and Lower-Mail-Volume Households  18

Table 2.4:  Households by Income and Education  18

Table 2.5:  Households by Income and Age  19

Table 2.6:  Households by Size  19

Table 2.7:  Households by Number of Adults  19

Table 2.8:  Households by Type of Internet Access  20

Figure 2.1:  PC Ownership and Internet Access  20

Figure 2.2:  Broadband Subscribers  20

Figure 2.3:  Household Use of Rented Mailboxes  21

Figure 2.4:  Household Visits to Post Office in Past Month  21

3    Chapter 3:  Correspondence  23

Table 3.1:  First Class Correspondence Mail Sent and Received by Sector 24

Table 3.2:  Correspondence Mail Received by Income and Education  25

Table 3.3:  Correspondence Mail Sent by Income and Education  25

Table 3.4:  Correspondence Mail Received by Income and Age  26

Table 3.5:  Correspondence Mail Sent by Income and Age  26

Table 3.6:  Correspondence Mail Received and Sent by Household Size  26

Table 3.7:  Correspondence Mail Received and Sent by Number of Adults in Household  26

Table 3.8:  Correspondence Mail Received and Sent by Type of Internet Access  27

Table 3.9:  Income and Education by Type of Internet Access  27

Table 3.10:  Personal Correspondence Sent and Received  27

Figure 3.1:  Personal Correspondence Sent by Income Group  28

Figure 3.2:  Personal Correspondence Sent by Age Cohort 28

Figure 3.3:  Holiday Greetings Received by Age and Income, FY 2005, 2006 and 2007  29

Table 3.11:  Personal Correspondence by Type of Internet Access  29

Figure 3.4:  Daily Personal E-mails Sent and Received  30

Table 3.12:  Business Correspondence Type (Sent and Received) by Sector (Millions of Pieces) 30

4    Chapter 4:  Transactions  31

Table 4.1:  Transactions Mail Sent and Received  32

Table 4.2:  Transactions Mail Received by Income and Education  33

Table 4.3:  Transactions Mail Sent by Income and Education  34

Table 4.4:  Transactions Mail Received by Income and Age  34

Table 4.5:  Transactions Mail Sent by Income and Age  34

Table 4.6:  Transactions Mail Received and Sent by Household Size  35

Table 4.7:  Transactions Mail Received and Sent by Number of Adults in Household  35

Table 4.8:  Transactions Mail Received and Sent by Internet Access  35

Table 4.9:  Income and Education by Type of Internet Access  36

Table 4.10:  Bill Payment by Method, FY 2005 2006 and 2007  36

Figure 4.1:  Monthly Average Household Bill Payment by Method  38

Figure 4.2:  Average Monthly Automatic Deductions per Household  40

Table 4.11:  Types of Bills Paid by Mail 40

Figure 4.3:  Average Bills Paid per Month by Income and Age  41

Figure 4.4:  Bill Payment Method by Age  41

Table 4.12:  Bill and Statement Volumes by Industry  42

Figure 4.5:  Statements Received by Mail by Income  43

Table 4.13:  Average Monthly Bills Received by Method  43

5    Chapter 5:  Advertising Mail 43

Table 5.1:  U.S. Advertising Spending by Medium, 2005-2007  44

Figure 5.1:  Direct Mail as a Share of Total Advertising, 1990-2007  45

Table 5.2:  Advertising Mail by Mail Classification  46

Table 5.3:  Advertising Mail by Mail Classification  46

Table 5.4:  Ad Mail Received by Income and Education  47

Table 5.5:  Ad Mail Received by Income and Age  47

Table 5.6:  Ad Mail Received by Size of Household  48

Table 5.7:  Ad Mail Received by Number of Adults  48

Table 5.8:  Ad Mail Received by Internet Access  49

Figure 5.2:  Advertising Volumes for First-Class and Standard Mail Advertising by Sender Type  49

Figure 5.3:  Advertising Mail Behavioral Trends — 1987, 2005, 2006 and 2007  49

Figure 5.4:  Treatment of Standard Mail by Type  51

Figure 5.5:  Treatment of Standard Advertising Mail by Number of Standard Mail Pieces Received per Week  52

Table 5.9: Intended Response to Advertising Mail by Class  52

Figure 5.6:  Weekly Number of Responses by Income  52


6    Chapter 6:  Periodicals  53

Figure 6.1:  Periodicals Mail Volume per Person – 1971 to 2007  53

Figure 6.2:  Real Per-Capita Consumer Magazine Advertising Spending  55

Table 6.1:  Periodical Type by Year 57

Figure 6.3:  Newspaper Circulation  57

Figure 6.4:  Daily Newspaper Readership – 1987 to 2007  58

Table 6.2:  Periodicals by Income and Education  59

Table 6.3:  Periodicals by Income and Age  59

Table 6.4:  Periodicals by Size of Household  60

Table 6.5:  Periodicals by Number of Adults in Household  60

Table 6.6:  Periodicals by Type of Internet Access  60

Figure 6.5:  Subscription Type by Year 61

Table 6.7:  Periodicals by Sender Type  61

Figure 6.6:  Number of Periodicals Received Per Week by Households by Income Group  62

7    Chapter 7:  Packages  62

Table 7.1:  Total Package Market Volume Growth  63

Figure 7.1:  Package Delivery Market Segment Share  63

Table 7.2:  Postal Service's Volume Market Share  65

Table 7.3:  FY 2007 Overnight Air Segment Statistics  65

Table 7.4:  FY 2007 Two- and Three-Day Air Segment Statistics  65

Table 7.5:  FY 2007 Ground Segment Statistics  65

Table 7.6:  Postal Service Sent and Received Packages, FY 2005, 2006 and FY 2007</