+---+--------------+------------------+------------------+-------------+---+
|   |              |                  |                  |             |   |
+---+--------------+------------------+------------------+-------------+---+
|   |              |                  |                  |             |   |
+---+--------------+------------------+------------------+-------------+---+
|   | **NETPOST    |                  |                  |             |   |
|   | RESEARCH**   |                  |                  |             |   |
+---+--------------+------------------+------------------+-------------+---+
|   | ########     |                  |                  |             |   |
+---+--------------+------------------+------------------+-------------+---+
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+---+--------------+------------------+------------------+-------------+---+
|   |              |                  |                  |             |   |
+---+--------------+------------------+------------------+-------------+---+
|   | **\-- Survey |                  |                  |             |   |
|   | Methodology  |                  |                  |             |   |
|   | & Results    |                  |                  |             |   |
|   | \--**        |                  |                  |             |   |
+---+--------------+------------------+------------------+-------------+---+
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|   | **prepared   |                  |                  |             |   |
|   | for**        |                  |                  |             |   |
+---+--------------+------------------+------------------+-------------+---+
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|   | **July 10,   |                  |                  |             |   |
|   | 1998**       |                  |                  |             |   |
+---+--------------+------------------+------------------+-------------+---+
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|   |              | **NATIONAL       |                  |             |   |
|   |              | ANALYSTS, INC.** |                  |             |   |
+---+--------------+------------------+------------------+-------------+---+
|   |              | R E S E A R C H  |                  |             |   |
|   |              | AND C O N S U L  |                  |             |   |
|   |              | T I N G          |                  |             |   |
+---+--------------+------------------+------------------+-------------+---+

**[Table of Contents]{.underline}**

**[Page]{.underline}**

I. PROJECT OVERVIEW 1

II\. QUALITATIVE PHASE 2

III\. QUANTITATIVE PHASE 4

A. Sample Design 4

B. Questionnaire Development and Pretesting 9

C. Data Collection Procedures and Results 13

D. Data Preparation Procedures 18

E. Survey Results 30

# I. PROJECT OVERVIEW

National Analysts was commissioned by the Postal Service to perform
research to evaluate the market response to NetPost, a new hybrid mail
product.[^1] The main goal of the study was to provide estimates of the
volume that NetPost could realize under various product configuration
and pricing scenarios. Specifically, the research assessed the demand
for two versions of NetPost: a basic version, that contained a limited
set of physical, delivery, and security features, and an enhanced
version, that included a range of additional physical, delivery, and
security features which could be purchased for additional fees. In
addition, each product configuration was tested under two different rate
schedules: one intended to yield a 25% contribution margin on the
printing-related portion of the revenue earned by the Postal Service and
one intended to yield a 50% contribution-margin on the printing-related
portion of the revenue earned by the Postal Service.[^2]\* The fee
schedules were provided by the Postal Service.

The research consisted of both qualitative and quantitative phases. The
qualitative phase consisted of a series of focus groups with a broad
range of potential end-users and intermediaries, such as printers and
graphics art shops. It was designed to assess qualitatively the overall
level of interest in the NetPost concept, to identify the types of
applications that appeared to have high potential for NetPost, and to
identify revisions to the NetPost concept that might be required to
encourage greater adoption and usage. The quantitative phase consisted
of a survey of business decision-makers who were responsible for the
production and/or distribution of the high potential applications
identified in the qualitative phase and sampled in the quantitative
phase. The latter included a telephone screening and a mail
questionnaire, to be completed in either hard copy or computerized form.

The following sections detail the qualitative phase, the survey
methodology, including the sample design, and questionnaire development,
data collection, data preparation procedures, and the resulting
estimates and standard errors.

**II. QUALITATIVE PHASE**

A total of twelve focus groups were held \-- three each in Chicago, Los
Angeles, Tampa and Washington, D.C. during December, 1995 and January,
1996. These cities were selected to ensure that differences in practices
and opinions based on geography could be detected. Ten groups were held
with document producers who were hypothesized to be the most likely
end-users of NetPost: 1) two with managers responsible for the
production and/or distribution of [catalogs and
advertising]{.underline}; 2) two with managers responsible for the
production and/or distribution of [newsletters and
publications]{.underline}; 3) two with managers responsible for the
production and/or distribution of [forms]{.underline}; 4) two with
office managers who were responsible for the production and/or
distribution of [general correspondence]{.underline}; and 5) two with
"virtual office workers" who work at home or "on the road" and,
therefore, produce and distribute documents without the production
support and infrastructure commonly housed at traditional offices. In
addition, two focus groups were held with intermediaries who influence
the methods used to produce and distribute their clients' applications,
such as advertising agencies, graphic designers, and printers.

To qualify for group participation, respondents and their organization
had to meet the following criteria: 1) must be the manager or supervisor
most responsible for decisions about production of the application or
general correspondence; 2) do not outsource design/layout of
application; 3) produce application using desktop publishing system; 4)
distribute less than 5,000 copies of the application at one time; and 5)
have less than 500 employees. While organizations meeting these criteria
represent only a portion of NetPost's potential users, it was
hypothesized that they would be the organizations most likely to be
attracted to NetPost, given its physical and economic characteristics.
Focusing solely on them would provide an indication of whether there was
sufficient interest to justify further evaluation of NetPost. In
addition, discussions with them would yield richer insights into
potential modification to NetPost than discussions with decision-makers
with less overall interest in the NetPost concept.

The focus groups were configured to represent the full range of
potential end-users and intermediaries, so as to reveal the full range
of issues and opinions. Therefore, each group contained a mix of
participants in different industries such as education, financial
services, government, manufacturing, retail, services, and
telecommunications.

Participants were recruited by telephone from the general business
population in each of the selected cities. They were screened using a
brief questionnaire designed to ensure that they met all of the
qualifying criteria. (See Attachment A \-- Qualitative Screening Form).
Ten to twelve participants were recruited for and included in each group
discussion.

A discussion guide was prepared to facilitate the group interviews and
ensure that critical points were covered. (See Attachment B \--
Qualitative Discussion Guide). It explored each document producer's
current production and distribution practices, problems and concerns
with these practices, reactions to the NetPost concept, feelings with
regard to the U.S. Postal Service as the provider of NetPost, and
pricing issues.

The discussions were led by experienced National Analysts moderators who
were the Officer-in-Charge and Project Manager on this project. After
the initial discussion of existing production and distribution methods,
needs related to the production and distribution of the applications,
and awareness of existing hybrid mail products, a description of the
proposed NetPost concept was distributed. (See Attachment C \--
Qualitative NetPost Concept). Participants then discussed their overall
reaction and likelihood of using NetPost, its perceived benefits and
drawbacks, features that were liked and disliked, and additional
features that would be required to encourage NetPost's adoption.

The qualitative research suggested that there was a market for NetPost
among a well-defined set of applications. NetPost was deemed most
appropriate for applications with the following characteristics: 1) sent
as mass mailings or repetitively; 2) have relatively unsophisticated
physical output requirements; 3) require quick delivery; and 4) need a
broad geographic coverage. Five applications were determined to best
meet these criteria: 1) invoices and statements; 2) standardized
confirmations and announcements; 3) advertising mail; 4) newsletters;
and 5) forms. As a result, the subsequent quantitative research was
designed to focus entirely on these five applications.

**III. QUANTITATIVE PHASE**

###### 

###### A. Sample Design

The universe for the study was defined as the subset of establishments
within selected employee size and industry groupings that produced at
least some documents that were hypothesized to be appropriate for
NetPost, given its physical and economic characteristics (referred to as
NetPost-appropriate businesses). Namely, NetPost-appropriate
businesses: 1) produced one or more of the five high priority
applications (invoices or statements, announcements or confirmations,
advertising mail, newsletters, or forms); 2) used desktop publishing
systems for the layout and design, word processing, etc. associated with
the applications; 3) produced at least some of the specific application
with a run size less than or equal to 5,000 pieces; 4) produced at least
some of the application in non-glossy, non-four-color formats[^3]; and
5) performed the design or layout functions for the application
in-house.

By defining the universe in this way, the percentage of respondents for
whom NetPost would be inappropriate, and, therefore, the percentage of
respondents sending zero NetPost volume, would be reduced. As a result,
a given level of statistical reliability could be achieved using a
smaller sample in the survey. Based on this universe definition, the
survey results would project to all document producers in the
continental United States that generate at least some
NetPost-appropriate pieces, *not* to all document producers in the
continental United States. Compared with the general business
population, small establishments are over-represented in the
NetPost-appropriate universe, because they are more likely to produce
NetPost-appropriate pieces than larger organizations. The two universes
(one including exclusively NetPost-type document producers and the other
including all businesses) should yield the same estimated NetPost
volume, because organizations excluded from the NetPost-appropriate
universe theoretically would not have sent or be likely to send any
pieces via NetPost.

The sampling frame used to draw the sample was the Dun & Bradstreet
(D&B) universe of continental commercial, governmental, and non-profit
organizations. This is a list of over 10 million organizations at the
*location* level. Therefore, each location of a multi-location
enterprise had a chance to enter the sample.

The sample was drawn using the following employee size and industry
classification scheme:

## Employee Size Strata

  ----------------------------------- -----------------------------------
  [Stratum Code]{.underline}          [Employee Size]{.underline}

  1                                   1 -- 9 & Unknown

  2                                   10 -- 99

  3                                   100+
  ----------------------------------- -----------------------------------

####### SIC[^4] Group Strata

  ------------------- ---------------------------- ----------------------------
  [Stratum            [Group Name]{.underline}     [SICs]{.underline}
  Code]{.underline}                                

  1                   Heavy Industry               0100-4999 (excl. 4215,
                                                   4513,\
                                                   4300-4399)

  2                   Wholesale & Retail Trade     5000-5999

  3                   Finance & Public             6000-6799, 9000-9999
                      Administration               

  4                   Services                     7000-8999 (excl. 8800-8899)
  ------------------- ---------------------------- ----------------------------

All SICs are accounted for in these four strata, with the following
exceptions. The Postal Service and other courier services were excluded
from SIC Group 1, and private households were excluded from Group 4.
Also note that organizations were classified by the number of employees
at the *sampled location*, not the total enterprise.

These employee size and industry groupings represented a logical way to
segment the market, based on the patterns of needs and interest levels
that emerged in the qualitative phase of research. It had been found
that interest in NetPost was related to the types and time sensitivity
of documents produced, which in turn, were related to the organization's
industry. In addition, interest in NetPost was related to the
respondent's degree of comfort with technology and the availability or
unavailability of resources to assist in document production and
distribution. These factors were largely related to the organization's
size.

The combination of these two stratifying variables yields a twelve-cell
matrix as shown in Table 1. The D&B universe sizes available at the
beginning of the study are also shown:

Table 1

### [D&B Universe Sizes]{.underline}

+-------------+-------------+-------------+-------------+---+-------------+
| ## SIC      | [Employee   |             |             |   | Total       |
|             | Size        |             |             |   |             |
|             | Group]{     |             |             |   |             |
|             | .underline} |             |             |   |             |
+-------------+-------------+-------------+-------------+---+-------------+
| [Group]{    | [1]{        | [2]{        | [3]{        | [ |             |
| .underline} | .underline} | .underline} | .underline} | E |             |
|             |             |             |             | s |             |
|             |             |             |             | t |             |
|             |             |             |             | a |             |
|             |             |             |             | b |             |
|             |             |             |             | l |             |
|             |             |             |             | i |             |
|             |             |             |             | s |             |
|             |             |             |             | h |             |
|             |             |             |             | m |             |
|             |             |             |             | e |             |
|             |             |             |             | n |             |
|             |             |             |             | t |             |
|             |             |             |             | s |             |
|             |             |             |             | ] |             |
|             |             |             |             | { |             |
|             |             |             |             | . |             |
|             |             |             |             | u |             |
|             |             |             |             | n |             |
|             |             |             |             | d |             |
|             |             |             |             | e |             |
|             |             |             |             | r |             |
|             |             |             |             | l |             |
|             |             |             |             | i |             |
|             |             |             |             | n |             |
|             |             |             |             | e |             |
|             |             |             |             | } |             |
+-------------+-------------+-------------+-------------+---+-------------+
| **1**       | 1,795,463   | 411,409     | 55,655      | * |             |
|             |             |             |             | * |             |
|             |             |             |             | 2 |             |
|             |             |             |             | , |             |
|             |             |             |             | 2 |             |
|             |             |             |             | 6 |             |
|             |             |             |             | 2 |             |
|             |             |             |             | , |             |
|             |             |             |             | 5 |             |
|             |             |             |             | 2 |             |
|             |             |             |             | 7 |             |
|             |             |             |             | * |             |
|             |             |             |             | * |             |
+-------------+-------------+-------------+-------------+---+-------------+
| **2**       | 2,518,973   | 523,530     | 36,166      | * |             |
|             |             |             |             | * |             |
|             |             |             |             | 3 |             |
|             |             |             |             | , |             |
|             |             |             |             | 0 |             |
|             |             |             |             | 7 |             |
|             |             |             |             | 8 |             |
|             |             |             |             | , |             |
|             |             |             |             | 6 |             |
|             |             |             |             | 6 |             |
|             |             |             |             | 9 |             |
|             |             |             |             | * |             |
|             |             |             |             | * |             |
+-------------+-------------+-------------+-------------+---+-------------+
| **3**       | 837,052     | 166,232     | 20,750      | * |             |
|             |             |             |             | * |             |
|             |             |             |             | 1 |             |
|             |             |             |             | , |             |
|             |             |             |             | 0 |             |
|             |             |             |             | 2 |             |
|             |             |             |             | 4 |             |
|             |             |             |             | , |             |
|             |             |             |             | 0 |             |
|             |             |             |             | 3 |             |
|             |             |             |             | 4 |             |
|             |             |             |             | * |             |
|             |             |             |             | * |             |
+-------------+-------------+-------------+-------------+---+-------------+
| **4**       | 3,678,239   | 552,319     | 59,420      | * |             |
|             |             |             |             | * |             |
|             |             |             |             | 4 |             |
|             |             |             |             | , |             |
|             |             |             |             | 2 |             |
|             |             |             |             | 8 |             |
|             |             |             |             | 9 |             |
|             |             |             |             | , |             |
|             |             |             |             | 9 |             |
|             |             |             |             | 7 |             |
|             |             |             |             | 8 |             |
|             |             |             |             | * |             |
|             |             |             |             | * |             |
+-------------+-------------+-------------+-------------+---+-------------+
| **Total**   | **          | **          | **171,991** | * |             |
|             | 8,829,727** | 1,653,490** |             | * |             |
|             |             |             |             | 1 |             |
|             |             |             |             | 0 |             |
|             |             |             |             | , |             |
|             |             |             |             | 6 |             |
|             |             |             |             | 5 |             |
|             |             |             |             | 5 |             |
|             |             |             |             | , |             |
|             |             |             |             | 2 |             |
|             |             |             |             | 0 |             |
|             |             |             |             | 8 |             |
|             |             |             |             | * |             |
|             |             |             |             | * |             |
+-------------+-------------+-------------+-------------+---+-------------+

At the outset of the study, the size of the NetPost-appropriate universe
was not known. The NetPost-appropriate universe size was estimated at
the conclusion of data collection, based on the eligibility rates found
during the screening process.

The sample of completed interviews was allocated to the twelve employee
size/industry group cells. To begin, the sample was allocated
disproportionately to those industries expected to send large volumes
via NetPost. In addition, large organizations were oversampled in order
to obtain a readable base for them, even though their likelihood of
sending NetPost volume was believed to be lower than other size groups.

Table 2

[Sample Allocation]{.underline}

  --------------------- -------------------- ----------------- ----------------- ------------------------------ --------------
  SIC                   [Employee Size                                                                          Total
                        Group]{.underline}                                                                      

  [Group]{.underline}   [1]{.underline}      [2]{.underline}   [3]{.underline}   [Establishments]{.underline}   

  **1**                 12.0%                5.0%              1.0%              **18.0%**                      

  **2**                 18.0%                7.33%             1.33%             **26.7%**                      

  **3**                 13.7%                5.3%              1.0%              **20.0%**                      

  **4**                 23.3%                10.0%             2.0%              **35.3%**                      

  **Total**             **67.0%**            **27.7%**         **5.3%**          **100.0%**                     
  --------------------- -------------------- ----------------- ----------------- ------------------------------ --------------

Quotas were also set for the number of respondents responsible for each
of the applications included in the study, to ensure that a readable
base was obtained for each application. Initially, the sampling plan
called for 300 interviews to be completed for each of the five
applications. However, early field experience indicated that the
incidence of companies that had NetPost-appropriate advertising mail,
newsletters, and forms was so low that the number of screening
interviews required to obtain 300 completed interviews for each would be
prohibitive. Therefore, the quotas for interviews by application were
revised, as follows:

Table 3

[Completed Interview Quotas]{.underline}

+-----------------------------------+-----------------------------------+
| **[Application]{.underline}**     | **[Target Number of               |
|                                   | Interviews]{.underline}**         |
+-----------------------------------+-----------------------------------+
| Invoices/Statements               | 300                               |
+-----------------------------------+-----------------------------------+
| Announcements/Confirmations       | 300                               |
+-----------------------------------+-----------------------------------+
| Advertising Mail                  | 150                               |
+-----------------------------------+-----------------------------------+
| Newsletters                       | 292                               |
+-----------------------------------+-----------------------------------+
| Forms                             | 260                               |
+-----------------------------------+-----------------------------------+
| # Total                           | **1,302**                         |
+-----------------------------------+-----------------------------------+

In addition, a split sample design was utilized, with half the
respondents randomly assigned to be exposed to a lower priced fee
schedule that would yield a 25% contribution margin on printing-related
costs and half randomly assigned to be exposed to a higher priced fee
schedule that would yield a 50% contribution margin on printing-related
costs. The difference in demand at the two price points could,
therefore, be assessed by comparing each sample group's results. This
split sample design precludes the potential bias that could result when
respondents are exposed to multiple price points, and purposely
understate their demand at higher prices relative to their demand at
lower prices.

The sample used to complete these interviews was drawn from the D&B
universe in each of the twelve cells. Approximately 45,000 records were
drawn in order to ensure that we could complete the requisite number of
interviews, given the contact and cooperation rates that we expected.
The samples were drawn as systematic random samples from the D&B
universe and divided into 30 replicates with 1,500 records each.

The replicates were used to control the telephone screening: screenings
on a replicate, once opened, had to be attempted before the study was
completed. This would ensure that screening attempts had been made on a
sample which replicated the disproportionate sampling imposed by the
design in Table 2. Once the interview quotas had been filled, no
additional replicates were opened. The first replicate screened was the
large one, since we were confident that the quotas would not be filled
before that replicate was screened.

Table 4 displays the screening, eligibility and cooperation rates that
were realized.

Table 4

####### Screening, Eligibility and Cooperation Rates

  ---------- ------- --------- -------- --------- ---------- --------- ------------- ----------
                               Sample             Number               Cooperators   
                               Used               Eligible                           

  Employee   SIC\*   Total     \#       \% of     \#         \% of     \#            \% of
  Size[^5]           Records            Total                Sample                  Eligible
                                        Records              Used                    

  1          1       5,400     3,436    64%       285        8%        276           97%

  1          2       8,100     5,124    63%       406        8%        383           94%

  1          3       6,150     3,940    64%       500        13%       473           95%

  1          4       10,500    6,593    63%       780        12%       741           95%

  2          1       2,250     1,437    64%       262        18%       243           93%

  2          2       3,300     2,086    63%       220        11%       212           96%

  2          3       2,400     1,499    62%       274        18%       261           95%

  2          4       4,500     2,800    62%       619        22%       579           94%

  3          1       450       298      66%       66         22%       57            86%

  3          2       600       400      67%       38         10%       35            92%

  3          3       450       227      50%       40         18%       38            95%

  3          4       900       593      66%       143        24%       136           95%
  ---------- ------- --------- -------- --------- ---------- --------- ------------- ----------

###### B. Questionnaire Development and Pretesting

Two documents, a screening form and a questionnaire, were used for data
collection.

*1. Content of the Screening Form*

The screening form had five objectives: 1) determine if the organization
is a NetPost-appropriate organization (as defined above) and
consequently eligible for the study; 2) place the organization in a
sampling cell; 3) identify the individual most qualified to complete the
survey; 4) solicit participation in the main study; and 5) identify the
respondent's preferred data collection methodology. To achieve these
objectives, it included questions about the following (See Attachment D
\-- Quantitative Screening Form):

1.  Verification of location name and address

2.  Determination of which of the five applications included in the
    study were produced by the organization

3.  Determination/confirmation of respondent's production and
    distribution-related responsibilities, to ensure that the most
    knowledgeable decision-maker at each location was interviewed

4.  "Security questions" to ensure that interviews were not conducted
    with individuals having family members who worked for mail/delivery
    service businesses, market research companies, or advertising
    agencies

5.  Determination of the percentage of the location's volume of the
    sampled application for which the respondent was responsible, to be
    used to project the respondent's responses to his or her total
    organization[^6]

6.  Determination of whether the location was NetPost-appropriate (i.e.,
    design/layout functions were performed in-house, at least some of
    the sampled application was produced on a personal computer, at
    least some of the sampled application was produced in non-glossy and
    non-four-color formats (advertising mail only), and the typical
    production run size was less than 5,000 pieces)

7.  Determination of whether the respondent had the hardware and
    software capacity to complete a computerized version of the
    questionnaire

*2. Content of the Main Questionnaire*

The questionnaire contained questions to collect the data required to
gauge market response to NetPost, under both of the pricing scenarios
and both of the product configuration scenarios. (See Attachment E \--
Quantitative Questionnaire.) It began by asking questions about the
current volume of the sampled application for which the respondent had
decision-making responsibility, including both NetPost-appropriate and
NetPost-inappropriate pieces. Current volume was asked because it helped
to ground respondents' switched volume estimates and elicited more
consistent/realistic estimates overall. Individuals are better able to
estimate their behaviors in hypothetical situations when they have first
been forced to consider their actual behaviors. Respondents were then
asked to estimate their current production and distribution costs per
piece, including printing and other contracted services, labor,
equipment depreciation and maintenance, space, consumables, postage,
transportation to mail facilities, administration, and overhead. This
question was asked so that respondents would evaluate the NetPost rate
schedules in a realistic, comparative context.

Respondents were then asked about the number and characteristics of
pieces they would send via the basic NetPost concept. Specifically, they
were asked how many basic NetPost pieces they would send, and how this
volume would break out by delivery time frame (First-Class or Standard),
number of pages, size of pages, black and white versus spot color, and
simplex versus duplex.[^7] Furthermore, they were asked how they
currently send the pieces that they would send via the basic NetPost
service.

The additional, fee-based features that would be included in an enhanced
NetPost service were then presented, and this series of questions was
repeated for the enhanced NetPost. In this section of the questionnaire,
respondents were also asked how likely they would be to use each of the
individual fee-based service enhancements, and how many of their
enhanced NetPost pieces they would send using each.

Along with the questionnaire, respondents were sent a detailed
description of the NetPost concept, including: 1) an overview of how it
would work and the roles played by each party in the transaction (e.g.,
printer, USPS, etc.); 2) a catalog of NetPost's features, including the
appearance of printed pieces, delivery performance, personalization and
customization features, security features, and access requirements; and
3) rate cards (relevant to the respondent's split sample group)
displaying the combined printing and postage rates being evaluated for
both commercial and non-profit mailers. They were also sent several
worksheets, to assist them in calculating their current volumes and
costs (See Attachment F \-- NetPost Service and Optional Worksheets 1
and 2.)

*3. Questionnaire Pretesting and Programming*

The screening forms and questionnaires were subjected to rigorous
pretesting prior to data collection. Prior to programming, the hard copy
documents were pretested with respondents to ensure that the questions
were unambiguous, that the questionnaire flowed smoothly, and that it
was not overly burdensome. Business respondents were screened by
National Analysts' project management staff using a sample of
Philadelphia businesses from the Dun & Bradstreet list of businesses and
organizations. Nine respondents were recruited to participate in the
pretest. Each cooperating business was mailed a hard copy version of the
questionnaire, which they were asked to complete at their convenience.
Each of the respondents then attended a group debriefing held at
National Analysts' facilities which was led by the National Analysts'
Project Manager on this assignment. In this session, the respondents'
understanding and ability to answer each question were probed
extensively.

After the initial pretests, revisions were made to the survey documents,
and final versions with programming instructions were produced. A final
hard copy of the main questionnaire was also produced, to be sent to
respondents who did not have access to a compatible computer or who
preferred to complete a hard copy, as opposed to a computerized, version
of the questionnaire. The screening forms were then programmed into a
CATI[^8] system. The main interview was programmed into NA-Quest™,
National Analysts' proprietary Windows-based interviewing program, by
members of National Analysts' systems staff, and copied onto diskettes
to be mailed to respondents. Both computer programs were tested
extensively for logic and wording, by both National Analysts' data
processing and project management staff.

**C. Data Collection Procedures and Results**

*1. The Interviewing Process*

Sampled business locations were contacted by telephone and the screening
questionnaire was administered. Depending on the application, 14% to 28%
of businesses were found to be eligible for the study as shown in the
following table.

Table 5

[Study Eligibility Rates]{.underline}

  ----------------------- -------------------------- ---------------------------
                          [Produce                   Produce NetPost-Appropriate
                          Application]{.underline}   Pieces of
                                                     [Application]{.underline}

  Invoices/Statements     58%                        28%

  Announcements/          26%                        15%
  Confirmations                                      

  Advertising Mail        24%                        11%

  Newsletters             23%                        12%

  Forms                   28%                        14%
  ----------------------- -------------------------- ---------------------------

Organizations were placed in a sampling cell based on their employee
size, industry, and applications produced. If an organization produced
multiple applications, they were randomly assigned to one using an
algorithm which assigned respondents to low incidence applications with
a greater probability than by chance alone. They were not simply
assigned to the lowest incidence application in order to ensure that
there would be respondents in each application that have other types of
application of interest as well. The method maintained the probabilistic
nature of the sample while reducing the number of screening interviews
required to fill the quotas.

The following probabilities of selection were assigned to each of the
five applications.

+-------------+-------------+-------------+-------------+--------------+
| #######     | #####       | ##          | #######     | ####### A    |
| Advertising | ## Invoices | ##### Forms | Newsletters | nnouncements |
|             |             |             |             |              |
| .33         | 0           | .19         | .22         | .26          |
+-------------+-------------+-------------+-------------+--------------+

Based on which of the five applications the respondent had, one was
selected with probabilities proportional to the above. For example, if a
respondent had three applications, advertising, forms, and
announcements, one of the three was selected with the following
probabilities.

> Forms .2436 (=.19/\[.33+.19+.26\])
>
> Announcements .3333 (=.26/\[.33+.19+.26\])
>
> Advertising .4231 (=.33/\[.33+.19+.26\])

Mechanically, this would be accomplished as follows:

-   Generate a random number, r, in the range from 0-1

-   If r ≤ .2436, then Forms is the selected application

-   If .2436 \< r ≤ (.2436+.3333), then Announcements is the selected
    application

-   If (.2436+.3333) \< r ≤ 1.0, then Advertising is the selected
    application

If the quota had been reached for one of the respondent's applications,
we treated that application as though the respondent did not have it.

Respondents were able to choose between computerized and hard copy
versions of the questionnaire, in order to avoid the potential bias
associated with excluding those who lacked access to or who were
uncomfortable with computers. Overall, 76% of all recruited respondents
opted to receive the computerized questionnaire.

At the end of the screening process, recruited respondents were randomly
assigned to receive either the 25% or 50% contribution questionnaire.
Those assigned to the 25% contribution questionnaire were exposed to a
lower set of fees than those assigned to the 50% contribution
questionnaire. The questionnaire and accompanying materials were mailed
to them. They were instructed to return the questionnaire to National
Analysts within two weeks from receipt. By the date on which National
Analysts stopped accepting completed interviews, 1,237 questionnaires,
or 36% of those mailed out, had been returned.

Table 6

[Questionnaire Returns]{.underline}

+---------------------------+-------------+-------------+-------------+
|                           | **[Compu    | **[Hard     | *           |
|                           | terized]{.u | Copy]{.u    | *[Total]{.u |
|                           | nderline}** | nderline}** | nderline}** |
+---------------------------+-------------+-------------+-------------+
| ##### Mailed              | 540         | 212         | 752         |
|                           |             |             |             |
| Invoices/Statements       | 584         | 166         | 750         |
|                           |             |             |             |
| #### An                   | 330         | 102         | 432         |
| nouncements/Confirmations |             |             |             |
|                           | 579         | 169         | 748         |
| Ad Mail                   |             |             |             |
|                           | [582]{      | [164]{      | [746]{      |
| Newsletters               | .underline} | .underline} | .underline} |
|                           |             |             |             |
| Forms                     | **2,615**   | **813**     | **3,428**   |
|                           |             |             |             |
| ########  Total           |             |             |             |
+---------------------------+-------------+-------------+-------------+
| **[\#                     | 225         | 52          | 277         |
| Complete]{.underline}**   |             |             |             |
|                           | 213         | 39          | 252         |
| Invoices/Statements       |             |             |             |
|                           | 121         | 27          | 148         |
| An                        |             |             |             |
| nouncements/Confirmations | 265         | 41          | 306         |
|                           |             |             |             |
| Ad Mail                   | [212]{      | [42]{       | [254]{      |
|                           | .underline} | .underline} | .underline} |
| Newsletters               |             |             |             |
|                           | **1,036**   | **201**     | **1,237**   |
| Forms                     |             |             |             |
|                           |             |             |             |
| **Total**                 |             |             |             |
+---------------------------+-------------+-------------+-------------+
| **[%                      | 41.7%       | 24.5%       | 36.8%       |
| Complete]{.underline}**   |             |             |             |
|                           | 36.5%       | 23.5%       | 33.6%       |
| Invoices/Statements       |             |             |             |
|                           | 36.7%       | 26.5%       | 34.3%       |
| An                        |             |             |             |
| nouncements/Confirmations | 45.8%       | 24.3%       | 40.9%       |
|                           |             |             |             |
| Ad Mail                   | [36.4%]{    | [25.6%]{    | [34.0%]{    |
|                           | .underline} | .underline} | .underline} |
| Newsletters               |             |             |             |
|                           | **39.6%**   | **24.7%**   | **36.1%**   |
| Forms                     |             |             |             |
|                           |             |             |             |
| ########  Total           |             |             |             |
+---------------------------+-------------+-------------+-------------+

*2. Interviewing Quality Control Procedures*

An extensive interviewer training and quality control program was
employed to assure that accurate data were collected during the
screening process. Using CATI for the screening interviews and a
computerized main questionnaire substantially reduced potential data
collection errors. As is customary during the CATI screening interview,
questions were displayed on a computer screen for the interviewer to
read, and the interviewer recorded responses through a keyboard.
Similarly, in the computerized mail questionnaire, questions were
displayed on a computer screen for the respondent to read, and the
respondent recorded responses using a mouse. In either case, use of
computerized questionnaire reduces errors by automatically performing
skip patterns and logic tests that are built into the program ahead of
time based upon instructions outlined in the paper questionnaire.
Interviewers and respondents are signaled when responses are
inconsistent, so that errors can be corrected before the data are sent
to National Analysts.

A data collection team was assigned to the screening portion of the
study that included executive interviewers and interviewing supervisors,
many of whom had been interviewing for quite some time. Supervisor and
interviewer training manuals were developed for use during training and
to serve as references during data collection. (See Attachment G \--
Interviewer Reference Guide.) The interviewers' manual included an
overview of the project and specific instructions for administering the
screener. All data collection team members attended a personal training
session led by the senior National Analysts Field Manager responsible
for this project. Although the training was comprehensive, it was
informal, in that team members were free to ask questions and give
suggestions at any time during the training process. It was designed to
foster maximum learning and give interviewers sufficient grounding to
handle all possible situations.

The screening interviews were monitored closely throughout the data
collection period. Each interviewer was monitored by both Data
Collection and Project Management staff, and feedback was provided on an
ongoing basis. Monitoring was performed via telephone and CRT (computer
remote terminal), which allowed the monitor to watch what the
interviewer was entering into the computer at the same time he or she
was listening to the interview.

Respondents were given a toll-free telephone number to call if they had
any questions while completing the questionnaire. These questions were
fielded by one of two Project Managers who were intimately involved in
the questionnaire design and analytic phase of the study.

Each day, the results of all screening interviews were downloaded, and
the completed questionnaires that had been received that day were
uploaded into the questionnaire database. Progress reports were prepared
daily to ensure that the sample was being worked according to the
research protocol and that we were on target toward reaching the study
quotas. The reports included the number of eligible and ineligible
respondents, non-contacts and completed interviews by various
demographic segments, including employee size and industry type.

###### D. Data Preparation Procedures

*1. Cleaning Programs and Consistency Checks*

Once collected, the data were subjected to a rigorous interviewing set
of electronic and manual checks. Each day's data collected from the
screening interviews were downloaded from the interviewing facility to
our headquarters' offices. These were run through an electronic cleaning
program (see Attachment H -- Electronic Cleaning Program) which verified
that the skip patterns and consistency checks built into the CATI
program were working appropriately. In addition, the cleaning program
checked that the Result of Call codes (ROCs) that had been assigned to
each respondent matched the results of their screening questions and
that only eligible respondents had been recruited for the main
interview. (See Attachment I \-- Result of Call Summary Report.) These
initial cleanings provided assurance that the CATI program was working
correctly, the data layout provided from the interviewing facility was
accurate, and that no corruption of the data occurred during the
downloading process. Only after a day's data had passed the initial
cleaning step was it merged into the master database, with the previous
day's screening interviews.

When completed hard copy questionnaires were received, they were edited
manually before the data were keyed. The editing process verified that
all skip patterns were correctly adhered to, all responses were within
the permissible range, there were no multiple responses to single
response questions, all critical questions were answered in order to
consider the questionnaire complete, all blanks were filled in with
zeroes as appropriate, and all associated logic was correctly followed.
After editing, the data were entered with 100% key verification. An
electronic cleaning was then executed. Any error detected by the
cleaning programs resulted in the paper document being pulled and
presented to the Field or Project Manager for problem resolution. If
resolution was not possible, the interview was tagged for a callback.

When completed computerized questionnaires were received, they were
subjected to a comparable series of cleanings, as well. After a
questionnaire passed this initial cleaning, it was merged into the
master database.

*2. Outlier Checking and Callbacks*

The next step in preparing the data was a check of unweighted outliers.
Frequency distributions were produced for question 1 (i.e., current
volume) by application and by employee size, question 2 (i.e., per piece
cost) by application, and questions 4d (i.e., total volume of basic
NetPost pieces) and 11d (i.e., total volume of enhanced NetPost pieces).
Within each cell, all respondents whose volumes were more than three
standard deviations from the mean, were flagged for inspection and
possible callback. After these distributions were reviewed, it was
determined that several respondents whose answers were less than three
standard deviations from the mean but unusually large should also be
called back. In addition, special outlier checks were written to
evaluate respondents who switched a high percentage of their current
volume to either the basic or enhanced NetPost services.

The complete set of interviewing data, along with a list of problems,
was printed for every respondent who had one or more flags. These data
were then examined manually on a respondent-by-respondent basis by
comparing to the printout of all responses. Respondents were called back
by the Field or Project Manager on this assignment to confirm or correct
the reported and recorded responses. If a respondent could not be
reached, the interview was voided.

Upon completion of all callbacks and associated data changes, the data
were weighted (see weighting section below for a detailed description of
the weighting model and procedures.) After the weighting procedures were
applied, a set of weighted frequencies were run for Question 1. The
respondents were sorted according to the percentage of the total
weighted volume accounted for by that respondent. Respondents who
represented more than 20% of the total estimate were flagged for
possible callback. Each case was examined carefully and many things were
considered in determining the appropriateness of a callback. These
included the number of variables for which a respondent appeared to be
an outlier, the impact on the total estimate of their weight versus
their actual reported volume, the type of business they were in, as well
as whether they had been called back previously. Calls resulted in
either data changes or confirmations with possible weight adjustments.

The callback process yielded a total of 118 questionnaires with data
changes. In addition, 35 respondents were voided, either because they
could not be reached, or because corrections could not be determined.

*3. Weighting the Survey Data*

Weights were created in order to project the sample's results to the
universe and to correct for disproportionate sampling and response bias.
Two different sets of weights were required:

8.  An "Application Weight" for those questions that were answered by
    the *entire* sample (i.e. questions about current volume and
    production and distribution costs), and

9.  A "Price Point Weight" for those questions that were answered by
    *only half* of the sample, under the split sample design described
    previously (i.e. questions about the response to NetPost assuming
    either the 25% or 50% price point).

    The Application Weight consisted of two components: 1) an
    "Organization Projection Factor" to project the volume for which
    each respondent had decision-making responsibility (and, therefore,
    about which he or she completed the questionnaire) to his or her
    organization's total volume, and 2) a "Universe Projection Factor"
    to project the sampled organization's results to the universe of
    NetPost-appropriate businesses. The Application Weight was equal to
    the Universe Projection Factor divided by the Organization
    Projection Factor.

    The Organization Projection Factor was simply the percentage of the
    respondent's organization's total volume for which he or she was
    responsible.

    The Universe Projection Factor was derived using a multi-staged
    process:

    For each application, the eligible universe in each employee
    size/industry cell was obtained by multiplying the total number of
    establishments in the D&B universe (displayed in Table 1) by two
    factors derived from responses to the screening questionnaire: 1)
    percentage of establishments that produced the application, and 2)
    percentage of the application producers that qualified on all of the
    other NetPost-appropriate criteria (i.e., they had pieces produced
    on desktop systems with run sizes less than or equal to 5,000
    pieces, which were not four-color or glossy, for which design/layout
    functions were performed in-house.) This process yielded the
    following NetPost-appropriate universe sizes for each application:

    Table 7

    [NetPost-Appropriate Universe Sizes]{.underline}[^9]

+-------------+-------------+-------------+-------------+---+---+-------------+
|             | [Invoices & |             |             |   |   |             |
|             | S           |             |             |   |   |             |
|             | tatements]{ |             |             |   |   |             |
|             | .underline} |             |             |   |   |             |
+-------------+-------------+-------------+-------------+---+---+-------------+
| SIC         | #####       |             |             |   | # |             |
|             | ## Employee |             |             |   | # |             |
|             |  Size Group |             |             |   | # |             |
|             |             |             |             |   | # |             |
|             |             |             |             |   | # |             |
|             |             |             |             |   | # |             |
|             |             |             |             |   | # |             |
|             |             |             |             |   | # |             |
|             |             |             |             |   | # |             |
|             |             |             |             |   |   |             |
|             |             |             |             |   | T |             |
|             |             |             |             |   | o |             |
|             |             |             |             |   | t |             |
|             |             |             |             |   | a |             |
|             |             |             |             |   | l |             |
+-------------+-------------+-------------+-------------+---+---+-------------+
| [Group]{    | [1]{        | [2]{        | [3]{        | [ |   |             |
| .underline} | .underline} | .underline} | .underline} | E |   |             |
|             |             |             |             | s |   |             |
|             |             |             |             | t |   |             |
|             |             |             |             | a |   |             |
|             |             |             |             | b |   |             |
|             |             |             |             | l |   |             |
|             |             |             |             | i |   |             |
|             |             |             |             | s |   |             |
|             |             |             |             | h |   |             |
|             |             |             |             | m |   |             |
|             |             |             |             | e |   |             |
|             |             |             |             | n |   |             |
|             |             |             |             | t |   |             |
|             |             |             |             | s |   |             |
|             |             |             |             | ] |   |             |
|             |             |             |             | { |   |             |
|             |             |             |             | . |   |             |
|             |             |             |             | u |   |             |
|             |             |             |             | n |   |             |
|             |             |             |             | d |   |             |
|             |             |             |             | e |   |             |
|             |             |             |             | r |   |             |
|             |             |             |             | l |   |             |
|             |             |             |             | i |   |             |
|             |             |             |             | n |   |             |
|             |             |             |             | e |   |             |
|             |             |             |             | } |   |             |
+-------------+-------------+-------------+-------------+---+---+-------------+
| 1           | 390,752     | 185,519     | 2,441       | * |   |             |
|             |             |             |             | * |   |             |
|             |             |             |             | 5 |   |             |
|             |             |             |             | 7 |   |             |
|             |             |             |             | 8 |   |             |
|             |             |             |             | , |   |             |
|             |             |             |             | 7 |   |             |
|             |             |             |             | 1 |   |             |
|             |             |             |             | 3 |   |             |
|             |             |             |             | * |   |             |
|             |             |             |             | * |   |             |
+-------------+-------------+-------------+-------------+---+---+-------------+
| 2           | 497,792     | 124,641     | 0           | * |   |             |
|             |             |             |             | * |   |             |
|             |             |             |             | 6 |   |             |
|             |             |             |             | 2 |   |             |
|             |             |             |             | 2 |   |             |
|             |             |             |             | , |   |             |
|             |             |             |             | 4 |   |             |
|             |             |             |             | 3 |   |             |
|             |             |             |             | 3 |   |             |
|             |             |             |             | * |   |             |
|             |             |             |             | * |   |             |
+-------------+-------------+-------------+-------------+---+---+-------------+
| 3           | 410,236     | 34,175      | 2,441       | * |   |             |
|             |             |             |             | * |   |             |
|             |             |             |             | 4 |   |             |
|             |             |             |             | 4 |   |             |
|             |             |             |             | 6 |   |             |
|             |             |             |             | , |   |             |
|             |             |             |             | 8 |   |             |
|             |             |             |             | 5 |   |             |
|             |             |             |             | 2 |   |             |
|             |             |             |             | * |   |             |
|             |             |             |             | * |   |             |
+-------------+-------------+-------------+-------------+---+---+-------------+
| 4           | 1,199,227   | 166,188     | 7,554       | * |   |             |
|             |             |             |             | * |   |             |
|             |             |             |             | 1 |   |             |
|             |             |             |             | , |   |             |
|             |             |             |             | 3 |   |             |
|             |             |             |             | 7 |   |             |
|             |             |             |             | 2 |   |             |
|             |             |             |             | , |   |             |
|             |             |             |             | 9 |   |             |
|             |             |             |             | 6 |   |             |
|             |             |             |             | 9 |   |             |
|             |             |             |             | * |   |             |
|             |             |             |             | * |   |             |
+-------------+-------------+-------------+-------------+---+---+-------------+
| **Total**   | **          | **510,523** | **12,436**  | * |   |             |
|             | 2,498,007** |             |             | * |   |             |
|             |             |             |             | 3 |   |             |
|             |             |             |             | , |   |             |
|             |             |             |             | 0 |   |             |
|             |             |             |             | 2 |   |             |
|             |             |             |             | 0 |   |             |
|             |             |             |             | , |   |             |
|             |             |             |             | 9 |   |             |
|             |             |             |             | 6 |   |             |
|             |             |             |             | 7 |   |             |
|             |             |             |             | * |   |             |
|             |             |             |             | * |   |             |
+-------------+-------------+-------------+-------------+---+---+-------------+
|             | [An         |             |             |   |   |             |
|             | nouncements |             |             |   |   |             |
|             | &           |             |             |   |   |             |
|             | Conf        |             |             |   |   |             |
|             | irmations]{ |             |             |   |   |             |
|             | .underline} |             |             |   |   |             |
+-------------+-------------+-------------+-------------+---+---+-------------+
| SIC         | [Employee   |             |             |   | # |             |
|             | Size        |             |             |   | # |             |
|             | Group]{     |             |             |   | # |             |
|             | .underline} |             |             |   | # |             |
|             |             |             |             |   | # |             |
|             |             |             |             |   | # |             |
|             |             |             |             |   | # |             |
|             |             |             |             |   | # |             |
|             |             |             |             |   | # |             |
|             |             |             |             |   |   |             |
|             |             |             |             |   | T |             |
|             |             |             |             |   | o |             |
|             |             |             |             |   | t |             |
|             |             |             |             |   | a |             |
|             |             |             |             |   | l |             |
+-------------+-------------+-------------+-------------+---+---+-------------+
| [Group]{    | [1]{        | [2]{        | [3]{        | [ |   |             |
| .underline} | .underline} | .underline} | .underline} | E |   |             |
|             |             |             |             | s |   |             |
|             |             |             |             | t |   |             |
|             |             |             |             | a |   |             |
|             |             |             |             | b |   |             |
|             |             |             |             | l |   |             |
|             |             |             |             | i |   |             |
|             |             |             |             | s |   |             |
|             |             |             |             | h |   |             |
|             |             |             |             | m |   |             |
|             |             |             |             | e |   |             |
|             |             |             |             | n |   |             |
|             |             |             |             | t |   |             |
|             |             |             |             | s |   |             |
|             |             |             |             | ] |   |             |
|             |             |             |             | { |   |             |
|             |             |             |             | . |   |             |
|             |             |             |             | u |   |             |
|             |             |             |             | n |   |             |
|             |             |             |             | d |   |             |
|             |             |             |             | e |   |             |
|             |             |             |             | r |   |             |
|             |             |             |             | l |   |             |
|             |             |             |             | i |   |             |
|             |             |             |             | n |   |             |
|             |             |             |             | e |   |             |
|             |             |             |             | } |   |             |
+-------------+-------------+-------------+-------------+---+---+-------------+
| 1           | 186,765     | 34,628      | 18,615      | * |   |             |
|             |             |             |             | * |   |             |
|             |             |             |             | 2 |   |             |
|             |             |             |             | 4 |   |             |
|             |             |             |             | 0 |   |             |
|             |             |             |             | , |   |             |
|             |             |             |             | 0 |   |             |
|             |             |             |             | 0 |   |             |
|             |             |             |             | 8 |   |             |
|             |             |             |             | * |   |             |
|             |             |             |             | * |   |             |
+-------------+-------------+-------------+-------------+---+---+-------------+
| 2           | 288,958     | 53,837      | 2,145       | * |   |             |
|             |             |             |             | * |   |             |
|             |             |             |             | 3 |   |             |
|             |             |             |             | 4 |   |             |
|             |             |             |             | 4 |   |             |
|             |             |             |             | , |   |             |
|             |             |             |             | 9 |   |             |
|             |             |             |             | 4 |   |             |
|             |             |             |             | 0 |   |             |
|             |             |             |             | * |   |             |
|             |             |             |             | * |   |             |
+-------------+-------------+-------------+-------------+---+---+-------------+
| 3           | 213,428     | 68,201      | 13,863      | * |   |             |
|             |             |             |             | * |   |             |
|             |             |             |             | 2 |   |             |
|             |             |             |             | 9 |   |             |
|             |             |             |             | 5 |   |             |
|             |             |             |             | , |   |             |
|             |             |             |             | 4 |   |             |
|             |             |             |             | 9 |   |             |
|             |             |             |             | 2 |   |             |
|             |             |             |             | * |   |             |
|             |             |             |             | * |   |             |
+-------------+-------------+-------------+-------------+---+---+-------------+
| 4           | 601,615     | 142,341     | 20,453      | * |   |             |
|             |             |             |             | * |   |             |
|             |             |             |             | 7 |   |             |
|             |             |             |             | 6 |   |             |
|             |             |             |             | 4 |   |             |
|             |             |             |             | , |   |             |
|             |             |             |             | 4 |   |             |
|             |             |             |             | 0 |   |             |
|             |             |             |             | 9 |   |             |
|             |             |             |             | * |   |             |
|             |             |             |             | * |   |             |
+-------------+-------------+-------------+-------------+---+---+-------------+
| **Total**   | **          | **299,007** | **55,076**  | * |   |             |
|             | 1,290,766** |             |             | * |   |             |
|             |             |             |             | 1 |   |             |
|             |             |             |             | , |   |             |
|             |             |             |             | 6 |   |             |
|             |             |             |             | 4 |   |             |
|             |             |             |             | 4 |   |             |
|             |             |             |             | , |   |             |
|             |             |             |             | 8 |   |             |
|             |             |             |             | 4 |   |             |
|             |             |             |             | 9 |   |             |
|             |             |             |             | * |   |             |
|             |             |             |             | * |   |             |
+-------------+-------------+-------------+-------------+---+---+-------------+
|             | [           |             |             |   |   |             |
|             | Advertising |             |             |   |   |             |
|             | Mail]{      |             |             |   |   |             |
|             | .underline} |             |             |   |   |             |
+-------------+-------------+-------------+-------------+---+---+-------------+
| SIC         | [Employee   |             |             |   | # |             |
|             | Size        |             |             |   | # |             |
|             | Group]{     |             |             |   | # |             |
|             | .underline} |             |             |   | # |             |
|             |             |             |             |   | # |             |
|             |             |             |             |   | # |             |
|             |             |             |             |   | # |             |
|             |             |             |             |   | # |             |
|             |             |             |             |   | # |             |
|             |             |             |             |   |   |             |
|             |             |             |             |   | T |             |
|             |             |             |             |   | o |             |
|             |             |             |             |   | t |             |
|             |             |             |             |   | a |             |
|             |             |             |             |   | l |             |
+-------------+-------------+-------------+-------------+---+---+-------------+
| [Group]{    | [1]{        | [2]{        | [3]{        | [ |   |             |
| .underline} | .underline} | .underline} | .underline} | E |   |             |
|             |             |             |             | s |   |             |
|             |             |             |             | t |   |             |
|             |             |             |             | a |   |             |
|             |             |             |             | b |   |             |
|             |             |             |             | l |   |             |
|             |             |             |             | i |   |             |
|             |             |             |             | s |   |             |
|             |             |             |             | h |   |             |
|             |             |             |             | m |   |             |
|             |             |             |             | e |   |             |
|             |             |             |             | n |   |             |
|             |             |             |             | t |   |             |
|             |             |             |             | s |   |             |
|             |             |             |             | ] |   |             |
|             |             |             |             | { |   |             |
|             |             |             |             | . |   |             |
|             |             |             |             | u |   |             |
|             |             |             |             | n |   |             |
|             |             |             |             | d |   |             |
|             |             |             |             | e |   |             |
|             |             |             |             | r |   |             |
|             |             |             |             | l |   |             |
|             |             |             |             | i |   |             |
|             |             |             |             | n |   |             |
|             |             |             |             | e |   |             |
|             |             |             |             | } |   |             |
+-------------+-------------+-------------+-------------+---+---+-------------+
| 1           | 43,547      | 1,879       | 1,879       | * |   |             |
|             |             |             |             | * |   |             |
|             |             |             |             | 4 |   |             |
|             |             |             |             | 7 |   |             |
|             |             |             |             | , |   |             |
|             |             |             |             | 3 |   |             |
|             |             |             |             | 0 |   |             |
|             |             |             |             | 5 |   |             |
|             |             |             |             | * |   |             |
|             |             |             |             | * |   |             |
+-------------+-------------+-------------+-------------+---+---+-------------+
| 2           | 337,812     | 32,403      | 0           | * |   |             |
|             |             |             |             | * |   |             |
|             |             |             |             | 3 |   |             |
|             |             |             |             | 7 |   |             |
|             |             |             |             | 0 |   |             |
|             |             |             |             | , |   |             |
|             |             |             |             | 2 |   |             |
|             |             |             |             | 1 |   |             |
|             |             |             |             | 5 |   |             |
|             |             |             |             | * |   |             |
|             |             |             |             | * |   |             |
+-------------+-------------+-------------+-------------+---+---+-------------+
| 3           | 211,148     | 33,591      | 21,993      | * |   |             |
|             |             |             |             | * |   |             |
|             |             |             |             | 2 |   |             |
|             |             |             |             | 6 |   |             |
|             |             |             |             | 6 |   |             |
|             |             |             |             | , |   |             |
|             |             |             |             | 7 |   |             |
|             |             |             |             | 3 |   |             |
|             |             |             |             | 2 |   |             |
|             |             |             |             | * |   |             |
|             |             |             |             | * |   |             |
+-------------+-------------+-------------+-------------+---+---+-------------+
| 4           | 347,227     | 78,012      | 18,125      | * |   |             |
|             |             |             |             | * |   |             |
|             |             |             |             | 4 |   |             |
|             |             |             |             | 4 |   |             |
|             |             |             |             | 3 |   |             |
|             |             |             |             | , |   |             |
|             |             |             |             | 3 |   |             |
|             |             |             |             | 6 |   |             |
|             |             |             |             | 4 |   |             |
|             |             |             |             | * |   |             |
|             |             |             |             | * |   |             |
+-------------+-------------+-------------+-------------+---+---+-------------+
| **Total**   | **939,734** | **145,885** | **41,997**  | * |   |             |
|             |             |             |             | * |   |             |
|             |             |             |             | 1 |   |             |
|             |             |             |             | , |   |             |
|             |             |             |             | 1 |   |             |
|             |             |             |             | 2 |   |             |
|             |             |             |             | 7 |   |             |
|             |             |             |             | , |   |             |
|             |             |             |             | 6 |   |             |
|             |             |             |             | 1 |   |             |
|             |             |             |             | 6 |   |             |
|             |             |             |             | * |   |             |
|             |             |             |             | * |   |             |
+-------------+-------------+-------------+-------------+---+---+-------------+

Table 7

(Continued)

+-------------+-------------+-------------+-------------+---+---+-------------+
|             | [Ne         |             |             |   |   |             |
|             | wsletters]{ |             |             |   |   |             |
|             | .underline} |             |             |   |   |             |
+-------------+-------------+-------------+-------------+---+---+-------------+
| SIC         | [Employee   |             |             |   | # |             |
|             | Size        |             |             |   | # |             |
|             | Group]{     |             |             |   | # |             |
|             | .underline} |             |             |   | # |             |
|             |             |             |             |   | # |             |
|             |             |             |             |   | # |             |
|             |             |             |             |   | # |             |
|             |             |             |             |   | # |             |
|             |             |             |             |   | # |             |
|             |             |             |             |   |   |             |
|             |             |             |             |   | T |             |
|             |             |             |             |   | o |             |
|             |             |             |             |   | t |             |
|             |             |             |             |   | a |             |
|             |             |             |             |   | l |             |
+-------------+-------------+-------------+-------------+---+---+-------------+
| [Group]{    | [1]{        | [2]{        | [3]{        | [ |   |             |
| .underline} | .underline} | .underline} | .underline} | E |   |             |
|             |             |             |             | s |   |             |
|             |             |             |             | t |   |             |
|             |             |             |             | a |   |             |
|             |             |             |             | b |   |             |
|             |             |             |             | l |   |             |
|             |             |             |             | i |   |             |
|             |             |             |             | s |   |             |
|             |             |             |             | h |   |             |
|             |             |             |             | m |   |             |
|             |             |             |             | e |   |             |
|             |             |             |             | n |   |             |
|             |             |             |             | t |   |             |
|             |             |             |             | s |   |             |
|             |             |             |             | ] |   |             |
|             |             |             |             | { |   |             |
|             |             |             |             | . |   |             |
|             |             |             |             | u |   |             |
|             |             |             |             | n |   |             |
|             |             |             |             | d |   |             |
|             |             |             |             | e |   |             |
|             |             |             |             | r |   |             |
|             |             |             |             | l |   |             |
|             |             |             |             | i |   |             |
|             |             |             |             | n |   |             |
|             |             |             |             | e |   |             |
|             |             |             |             | } |   |             |
+-------------+-------------+-------------+-------------+---+---+-------------+
| 1           | 33,416      | 19,897      | 6,077       | * |   |             |
|             |             |             |             | * |   |             |
|             |             |             |             | 5 |   |             |
|             |             |             |             | 9 |   |             |
|             |             |             |             | , |   |             |
|             |             |             |             | 3 |   |             |
|             |             |             |             | 9 |   |             |
|             |             |             |             | 0 |   |             |
|             |             |             |             | * |   |             |
|             |             |             |             | * |   |             |
+-------------+-------------+-------------+-------------+---+---+-------------+
| 2           | 107,840     | 23,921      | 6,059       | * |   |             |
|             |             |             |             | * |   |             |
|             |             |             |             | 1 |   |             |
|             |             |             |             | 3 |   |             |
|             |             |             |             | 7 |   |             |
|             |             |             |             | , |   |             |
|             |             |             |             | 8 |   |             |
|             |             |             |             | 2 |   |             |
|             |             |             |             | 0 |   |             |
|             |             |             |             | * |   |             |
|             |             |             |             | * |   |             |
+-------------+-------------+-------------+-------------+---+---+-------------+
| 3           | 166,524     | 51,956      | 11,125      | * |   |             |
|             |             |             |             | * |   |             |
|             |             |             |             | 2 |   |             |
|             |             |             |             | 2 |   |             |
|             |             |             |             | 9 |   |             |
|             |             |             |             | , |   |             |
|             |             |             |             | 6 |   |             |
|             |             |             |             | 0 |   |             |
|             |             |             |             | 5 |   |             |
|             |             |             |             | * |   |             |
|             |             |             |             | * |   |             |
+-------------+-------------+-------------+-------------+---+---+-------------+
| 4           | 611,931     | 154,067     | 54,152      | * |   |             |
|             |             |             |             | * |   |             |
|             |             |             |             | 8 |   |             |
|             |             |             |             | 2 |   |             |
|             |             |             |             | 0 |   |             |
|             |             |             |             | , |   |             |
|             |             |             |             | 1 |   |             |
|             |             |             |             | 5 |   |             |
|             |             |             |             | 0 |   |             |
|             |             |             |             | * |   |             |
|             |             |             |             | * |   |             |
+-------------+-------------+-------------+-------------+---+---+-------------+
| Total       | **919,711** | **249,841** | **77,413**  | * |   |             |
|             |             |             |             | * |   |             |
|             |             |             |             | 1 |   |             |
|             |             |             |             | , |   |             |
|             |             |             |             | 2 |   |             |
|             |             |             |             | 4 |   |             |
|             |             |             |             | 6 |   |             |
|             |             |             |             | , |   |             |
|             |             |             |             | 9 |   |             |
|             |             |             |             | 6 |   |             |
|             |             |             |             | 5 |   |             |
|             |             |             |             | * |   |             |
|             |             |             |             | * |   |             |
+-------------+-------------+-------------+-------------+---+---+-------------+
|             | [Forms]{    |             |             |   |   |             |
|             | .underline} |             |             |   |   |             |
+-------------+-------------+-------------+-------------+---+---+-------------+
| SIC         | [Employee   |             |             |   | # |             |
|             | Size        |             |             |   | # |             |
|             | Group]{     |             |             |   | # |             |
|             | .underline} |             |             |   | # |             |
|             |             |             |             |   | # |             |
|             |             |             |             |   | # |             |
|             |             |             |             |   | # |             |
|             |             |             |             |   | # |             |
|             |             |             |             |   | # |             |
|             |             |             |             |   |   |             |
|             |             |             |             |   | T |             |
|             |             |             |             |   | o |             |
|             |             |             |             |   | t |             |
|             |             |             |             |   | a |             |
|             |             |             |             |   | l |             |
+-------------+-------------+-------------+-------------+---+---+-------------+
| [Group]{    | [1]{        | [2]{        | [3]{        | [ |   |             |
| .underline} | .underline} | .underline} | .underline} | E |   |             |
|             |             |             |             | s |   |             |
|             |             |             |             | t |   |             |
|             |             |             |             | a |   |             |
|             |             |             |             | b |   |             |
|             |             |             |             | l |   |             |
|             |             |             |             | i |   |             |
|             |             |             |             | s |   |             |
|             |             |             |             | h |   |             |
|             |             |             |             | m |   |             |
|             |             |             |             | e |   |             |
|             |             |             |             | n |   |             |
|             |             |             |             | t |   |             |
|             |             |             |             | s |   |             |
|             |             |             |             | ] |   |             |
|             |             |             |             | { |   |             |
|             |             |             |             | . |   |             |
|             |             |             |             | u |   |             |
|             |             |             |             | n |   |             |
|             |             |             |             | d |   |             |
|             |             |             |             | e |   |             |
|             |             |             |             | r |   |             |
|             |             |             |             | l |   |             |
|             |             |             |             | i |   |             |
|             |             |             |             | n |   |             |
|             |             |             |             | e |   |             |
|             |             |             |             | } |   |             |
+-------------+-------------+-------------+-------------+---+---+-------------+
| 1           | 83,701      | 59,916      | 10,741      | * |   |             |
|             |             |             |             | * |   |             |
|             |             |             |             | 1 |   |             |
|             |             |             |             | 5 |   |             |
|             |             |             |             | 4 |   |             |
|             |             |             |             | , |   |             |
|             |             |             |             | 3 |   |             |
|             |             |             |             | 5 |   |             |
|             |             |             |             | 8 |   |             |
|             |             |             |             | * |   |             |
|             |             |             |             | * |   |             |
+-------------+-------------+-------------+-------------+---+---+-------------+
| 2           | 202,485     | 23,090      | 1,213       | * |   |             |
|             |             |             |             | * |   |             |
|             |             |             |             | 2 |   |             |
|             |             |             |             | 2 |   |             |
|             |             |             |             | 6 |   |             |
|             |             |             |             | , |   |             |
|             |             |             |             | 7 |   |             |
|             |             |             |             | 8 |   |             |
|             |             |             |             | 8 |   |             |
|             |             |             |             | * |   |             |
|             |             |             |             | * |   |             |
+-------------+-------------+-------------+-------------+---+---+-------------+
| 3           | 273,174     | 61,073      | 2,693       | * |   |             |
|             |             |             |             | * |   |             |
|             |             |             |             | 3 |   |             |
|             |             |             |             | 3 |   |             |
|             |             |             |             | 6 |   |             |
|             |             |             |             | , |   |             |
|             |             |             |             | 9 |   |             |
|             |             |             |             | 4 |   |             |
|             |             |             |             | 0 |   |             |
|             |             |             |             | * |   |             |
|             |             |             |             | * |   |             |
+-------------+-------------+-------------+-------------+---+---+-------------+
| 4           | 584,172     | 122,034     | 52,205      | * |   |             |
|             |             |             |             | * |   |             |
|             |             |             |             | 7 |   |             |
|             |             |             |             | 5 |   |             |
|             |             |             |             | 8 |   |             |
|             |             |             |             | , |   |             |
|             |             |             |             | 4 |   |             |
|             |             |             |             | 1 |   |             |
|             |             |             |             | 1 |   |             |
|             |             |             |             | * |   |             |
|             |             |             |             | * |   |             |
+-------------+-------------+-------------+-------------+---+---+-------------+
| **Total**   | **          | **266,113** | **66,852**  | * |   |             |
|             | 1,143,532** |             |             | * |   |             |
|             |             |             |             | 1 |   |             |
|             |             |             |             | , |   |             |
|             |             |             |             | 4 |   |             |
|             |             |             |             | 7 |   |             |
|             |             |             |             | 6 |   |             |
|             |             |             |             | , |   |             |
|             |             |             |             | 4 |   |             |
|             |             |             |             | 9 |   |             |
|             |             |             |             | 7 |   |             |
|             |             |             |             | * |   |             |
|             |             |             |             | * |   |             |
+-------------+-------------+-------------+-------------+---+---+-------------+

Completed interviews (defined as those with a final result of call code
greater than or equal to 80) were arrayed in the same employee
size/industry group matrix.

Table 8

[Completed Interviews]{.underline}[^10]

+-------------+-------------+-------------+-------------+---+---+-------------+
|             | [Invoices & |             |             |   |   |             |
|             | S           |             |             |   |   |             |
|             | tatements]{ |             |             |   |   |             |
|             | .underline} |             |             |   |   |             |
+-------------+-------------+-------------+-------------+---+---+-------------+
| SIC         | #####       |             |             |   | # |             |
|             | ## Employee |             |             |   | # |             |
|             |  Size Group |             |             |   | # |             |
|             |             |             |             |   | # |             |
|             |             |             |             |   | # |             |
|             |             |             |             |   | # |             |
|             |             |             |             |   | # |             |
|             |             |             |             |   |   |             |
+-------------+-------------+-------------+-------------+---+---+-------------+
| [Group]{    | [1]{        | [2]{        | [3]{        | [ |   |             |
| .underline} | .underline} | .underline} | .underline} | T |   |             |
|             |             |             |             | o |   |             |
|             |             |             |             | t |   |             |
|             |             |             |             | a |   |             |
|             |             |             |             | l |   |             |
|             |             |             |             | ] |   |             |
|             |             |             |             | { |   |             |
|             |             |             |             | . |   |             |
|             |             |             |             | u |   |             |
|             |             |             |             | n |   |             |
|             |             |             |             | d |   |             |
|             |             |             |             | e |   |             |
|             |             |             |             | r |   |             |
|             |             |             |             | l |   |             |
|             |             |             |             | i |   |             |
|             |             |             |             | n |   |             |
|             |             |             |             | e |   |             |
|             |             |             |             | } |   |             |
+-------------+-------------+-------------+-------------+---+---+-------------+
| 1           | 31          | 28          | 1           | * |   |             |
|             |             |             |             | * |   |             |
|             |             |             |             | 6 |   |             |
|             |             |             |             | 0 |   |             |
|             |             |             |             | * |   |             |
|             |             |             |             | * |   |             |
+-------------+-------------+-------------+-------------+---+---+-------------+
| 2           | 35          | 16          | 0           | * |   |             |
|             |             |             |             | * |   |             |
|             |             |             |             | 5 |   |             |
|             |             |             |             | 1 |   |             |
|             |             |             |             | * |   |             |
|             |             |             |             | * |   |             |
+-------------+-------------+-------------+-------------+---+---+-------------+
| 3           | 35          | 10          | 1           | * |   |             |
|             |             |             |             | * |   |             |
|             |             |             |             | 4 |   |             |
|             |             |             |             | 6 |   |             |
|             |             |             |             | * |   |             |
|             |             |             |             | * |   |             |
+-------------+-------------+-------------+-------------+---+---+-------------+
| 4           | 86          | 32          | 2           | * |   |             |
|             |             |             |             | * |   |             |
|             |             |             |             | 1 |   |             |
|             |             |             |             | 2 |   |             |
|             |             |             |             | 0 |   |             |
|             |             |             |             | * |   |             |
|             |             |             |             | * |   |             |
+-------------+-------------+-------------+-------------+---+---+-------------+
| **Total**   | **187**     | **86**      | **4**       | * |   |             |
|             |             |             |             | * |   |             |
|             |             |             |             | 1 |   |             |
|             |             |             |             | 7 |   |             |
|             |             |             |             | 7 |   |             |
|             |             |             |             | * |   |             |
|             |             |             |             | * |   |             |
+-------------+-------------+-------------+-------------+---+---+-------------+
|             | [An         |             |             |   |   |             |
|             | nouncements |             |             |   |   |             |
|             | &           |             |             |   |   |             |
|             | Conf        |             |             |   |   |             |
|             | irmations]{ |             |             |   |   |             |
|             | .underline} |             |             |   |   |             |
+-------------+-------------+-------------+-------------+---+---+-------------+
| SIC         | [Employee   |             |             |   |   |             |
|             | Size        |             |             |   |   |             |
|             | Group]{     |             |             |   |   |             |
|             | .underline} |             |             |   |   |             |
+-------------+-------------+-------------+-------------+---+---+-------------+
| [Group]{    | [1]{        | [2]{        | [3]{        | [ |   |             |
| .underline} | .underline} | .underline} | .underline} | T |   |             |
|             |             |             |             | o |   |             |
|             |             |             |             | t |   |             |
|             |             |             |             | a |   |             |
|             |             |             |             | l |   |             |
|             |             |             |             | ] |   |             |
|             |             |             |             | { |   |             |
|             |             |             |             | . |   |             |
|             |             |             |             | u |   |             |
|             |             |             |             | n |   |             |
|             |             |             |             | d |   |             |
|             |             |             |             | e |   |             |
|             |             |             |             | r |   |             |
|             |             |             |             | l |   |             |
|             |             |             |             | i |   |             |
|             |             |             |             | n |   |             |
|             |             |             |             | e |   |             |
|             |             |             |             | } |   |             |
+-------------+-------------+-------------+-------------+---+---+-------------+
| 1           | 36          | 14          | 7           | * |   |             |
|             |             |             |             | * |   |             |
|             |             |             |             | 5 |   |             |
|             |             |             |             | 7 |   |             |
|             |             |             |             | * |   |             |
|             |             |             |             | * |   |             |
+-------------+-------------+-------------+-------------+---+---+-------------+
| 2           | 22          | 18          | 1           | * |   |             |
|             |             |             |             | * |   |             |
|             |             |             |             | 4 |   |             |
|             |             |             |             | 1 |   |             |
|             |             |             |             | * |   |             |
|             |             |             |             | * |   |             |
+-------------+-------------+-------------+-------------+---+---+-------------+
| 3           | 36          | 25          | 5           | * |   |             |
|             |             |             |             | * |   |             |
|             |             |             |             | 6 |   |             |
|             |             |             |             | 6 |   |             |
|             |             |             |             | * |   |             |
|             |             |             |             | * |   |             |
+-------------+-------------+-------------+-------------+---+---+-------------+
| 4           | 45          | 37          | 6           | * |   |             |
|             |             |             |             | * |   |             |
|             |             |             |             | 8 |   |             |
|             |             |             |             | 8 |   |             |
|             |             |             |             | * |   |             |
|             |             |             |             | * |   |             |
+-------------+-------------+-------------+-------------+---+---+-------------+
| **Total**   | **139**     | **94**      | **19**      | * |   |             |
|             |             |             |             | * |   |             |
|             |             |             |             | 2 |   |             |
|             |             |             |             | 5 |   |             |
|             |             |             |             | 2 |   |             |
|             |             |             |             | * |   |             |
|             |             |             |             | * |   |             |
+-------------+-------------+-------------+-------------+---+---+-------------+
|             | [           |             |             |   |   |             |
|             | Advertising |             |             |   |   |             |
|             | Mail]{      |             |             |   |   |             |
|             | .underline} |             |             |   |   |             |
+-------------+-------------+-------------+-------------+---+---+-------------+
| SIC         | [Employee   |             |             |   |   |             |
|             | Size        |             |             |   |   |             |
|             | Group]{     |             |             |   |   |             |
|             | .underline} |             |             |   |   |             |
+-------------+-------------+-------------+-------------+---+---+-------------+
| [Group]{    | [1]{        | [2]{        | [3]{        | [ |   |             |
| .underline} | .underline} | .underline} | .underline} | T |   |             |
|             |             |             |             | o |   |             |
|             |             |             |             | t |   |             |
|             |             |             |             | a |   |             |
|             |             |             |             | l |   |             |
|             |             |             |             | ] |   |             |
|             |             |             |             | { |   |             |
|             |             |             |             | . |   |             |
|             |             |             |             | u |   |             |
|             |             |             |             | n |   |             |
|             |             |             |             | d |   |             |
|             |             |             |             | e |   |             |
|             |             |             |             | r |   |             |
|             |             |             |             | l |   |             |
|             |             |             |             | i |   |             |
|             |             |             |             | n |   |             |
|             |             |             |             | e |   |             |
|             |             |             |             | } |   |             |
+-------------+-------------+-------------+-------------+---+---+-------------+
| 1           | 11          | 1           | 1           | * |   |             |
|             |             |             |             | * |   |             |
|             |             |             |             | 1 |   |             |
|             |             |             |             | 3 |   |             |
|             |             |             |             | * |   |             |
|             |             |             |             | * |   |             |
+-------------+-------------+-------------+-------------+---+---+-------------+
| 2           | 31          | 10          | 0           | * |   |             |
|             |             |             |             | * |   |             |
|             |             |             |             | 4 |   |             |
|             |             |             |             | 1 |   |             |
|             |             |             |             | * |   |             |
|             |             |             |             | * |   |             |
+-------------+-------------+-------------+-------------+---+---+-------------+
| 3           | 29          | 5           | 2           | * |   |             |
|             |             |             |             | * |   |             |
|             |             |             |             | 3 |   |             |
|             |             |             |             | 6 |   |             |
|             |             |             |             | * |   |             |
|             |             |             |             | * |   |             |
+-------------+-------------+-------------+-------------+---+---+-------------+
| 4           | 20          | 25          | 4           | * |   |             |
|             |             |             |             | * |   |             |
|             |             |             |             | 5 |   |             |
|             |             |             |             | 8 |   |             |
|             |             |             |             | * |   |             |
|             |             |             |             | * |   |             |
+-------------+-------------+-------------+-------------+---+---+-------------+
| **Total**   | **100**     | **41**      | **7**       | * |   |             |
|             |             |             |             | * |   |             |
|             |             |             |             | 1 |   |             |
|             |             |             |             | 4 |   |             |
|             |             |             |             | 8 |   |             |
|             |             |             |             | * |   |             |
|             |             |             |             | * |   |             |
+-------------+-------------+-------------+-------------+---+---+-------------+

Table 8

(Continued)

  --------------------- --------------------------- ----------------- ----------------- --------------------- -- --------------
                        [Newsletters]{.underline}                                                                

  SIC                   [Employee Size                                                                           
                        Group]{.underline}                                                                       

  [Group]{.underline}   [1]{.underline}             [2]{.underline}   [3]{.underline}   [Total]{.underline}      

  1                     6                           10                6                 **22**                   

  2                     13                          10                3                 **26**                   

  3                     36                          30                8                 **74**                   

  4                     76                          85                23                **184**                  

  **Total**             **131**                     **135**           **40**            **306**                  

                        [Forms]{.underline}                                                                      

  SIC                   [Employee Size                                                                           
                        Group]{.underline}                                                                       

  [Group]{.underline}   [1]{.underline}             [2]{.underline}   [3]{.underline}   [Total]{.underline}      

  1                     15                          23                5                 **43**                   

  2                     20                          14                1                 **35**                   

  3                     35                          25                2                 **62**                   

  4                     65                          34                15                **114**                  

  **Total**             **135**                     **96**            **23**            **254**                  
  --------------------- --------------------------- ----------------- ----------------- --------------------- -- --------------

The NetPost-appropriate universe size in each cell was then divided by
the number of completed interviews in the corresponding cell, to arrive
at the initial universe projection factors displayed in Table 9.

Table 9

[Initial "Universe Projection Factors"]{.underline}

+----------------+----------------+----------------+----------------+
| [Invoices &    |                |                |                |
| Statement      |                |                |                |
| s]{.underline} |                |                |                |
+----------------+----------------+----------------+----------------+
| SIC            | ####### Emplo  |                |                |
|                | yee Size Group |                |                |
+----------------+----------------+----------------+----------------+
| [Grou          | [              | [              | [              |
| p]{.underline} | 1]{.underline} | 2]{.underline} | 3]{.underline} |
+----------------+----------------+----------------+----------------+
| 1              | 12,605         | 6,626          | 2,441          |
+----------------+----------------+----------------+----------------+
| 2              | 14,223         | 7,790          | 0              |
+----------------+----------------+----------------+----------------+
| 3              | 11,721         | 3,418          | 2,441          |
+----------------+----------------+----------------+----------------+
| 4              | 13,945         | 5,193          | 3,777          |
+----------------+----------------+----------------+----------------+
| [Announcements |                |                |                |
| &              |                |                |                |
| Confirmation   |                |                |                |
| s]{.underline} |                |                |                |
+----------------+----------------+----------------+----------------+
| SIC            | [Employee Size |                |                |
|                | Grou           |                |                |
|                | p]{.underline} |                |                |
+----------------+----------------+----------------+----------------+
| [Grou          | [              | [              | [              |
| p]{.underline} | 1]{.underline} | 2]{.underline} | 3]{.underline} |
+----------------+----------------+----------------+----------------+
| 1              | 5,188          | 2,473          | 2,659          |
+----------------+----------------+----------------+----------------+
| 2              | 13,134         | 2,991          | 2,145          |
+----------------+----------------+----------------+----------------+
| 3              | 5,929          | 2,728          | 2,773          |
+----------------+----------------+----------------+----------------+
| 4              | 13,369         | 3,847          | 3,409          |
+----------------+----------------+----------------+----------------+
| [Advertising   |                |                |                |
| Mai            |                |                |                |
| l]{.underline} |                |                |                |
+----------------+----------------+----------------+----------------+
| SIC            | [Employee Size |                |                |
|                | Grou           |                |                |
|                | p]{.underline} |                |                |
+----------------+----------------+----------------+----------------+
| [Grou          | [              | [              | [              |
| p]{.underline} | 1]{.underline} | 2]{.underline} | 3]{.underline} |
+----------------+----------------+----------------+----------------+
| 1              | 3,959          | 1,879          | 1,879          |
+----------------+----------------+----------------+----------------+
| 2              | 10,897         | 3,240          | 0              |
+----------------+----------------+----------------+----------------+
| 3              | 7,281          | 6,718          | 10,997         |
+----------------+----------------+----------------+----------------+
| 4              | 11,973         | 3,120          | 4,531          |
+----------------+----------------+----------------+----------------+
| [Newsletter    |                |                |                |
| s]{.underline} |                |                |                |
+----------------+----------------+----------------+----------------+
| SIC            | [Employee Size |                |                |
|                | Grou           |                |                |
|                | p]{.underline} |                |                |
+----------------+----------------+----------------+----------------+
| [Grou          | [              | [              | [              |
| p]{.underline} | 1]{.underline} | 2]{.underline} | 3]{.underline} |
+----------------+----------------+----------------+----------------+
| 1              | 5,569          | 1,990          | 1,013          |
+----------------+----------------+----------------+----------------+
| 2              | 8,295          | 2,392          | 2,020          |
+----------------+----------------+----------------+----------------+
| 3              | 4,626          | 1,732          | 1,391          |
+----------------+----------------+----------------+----------------+
| 4              | 8,052          | 1,813          | 2,354          |
+----------------+----------------+----------------+----------------+

Table 9

(Continued)

  --------------------- -------------------- ----------------- -----------------
  [Forms]{.underline}                                          

  SIC                   [Employee Size                         
                        Group]{.underline}                     

  [Group]{.underline}   [1]{.underline}      [2]{.underline}   [3]{.underline}

  1                     5,580                2,605             2,148

  2                     10,124               1,649             1,213

  3                     7,805                2,443             1,347

  4                     8,987                3,589             3,480
  --------------------- -------------------- ----------------- -----------------

The range of these projection factors was deemed to be too large because
the sample size (i.e., completed interviews) in each cell was too small.
To reduce the range, the strata were collapsed as follows: 1) employee
size groups 2 and 3 were combined; 2) SIC groups 2 and 4 were combined;
and 3) SIC groups 1 and 3 were combined. Employee size groups 2 and 3
were combined because group 3 had small sample sizes and group 2 was the
next closest size group. In terms of SICs, in all but one application,
groups 1 and 2 had the smallest sample sizes so combining them would
still result in a large range of projection factors. Therefore, we
combined SIC groups 1 and 3 and 2 and 4 to smooth out the weights. A new
set of projection factors were then calculated by dividing the
NetPost-appropriate universe in each stratum by the number of completed
interviews in that stratum. These Final Universe Projection Factors are
displayed in Table 10.

Table 10

[Final "Universe Projection Factors"]{.underline}

+----------------------+----------------------+----------------------+
| [Invoices &          |                      |                      |
| Sta                  |                      |                      |
| tements]{.underline} |                      |                      |
+----------------------+----------------------+----------------------+
| SIC                  | #######              |                      |
|                      |  Employee Size Group |                      |
+----------------------+----------------------+----------------------+
| [Group]{.underline}  | [1]{.underline}      | [2/3]{.underline}    |
+----------------------+----------------------+----------------------+
| 1/3                  | 12,136               | 5,614                |
+----------------------+----------------------+----------------------+
| 2/4                  | 14,025               | 5,968                |
+----------------------+----------------------+----------------------+
| [Announcements &     |                      |                      |
| Confir               |                      |                      |
| mations]{.underline} |                      |                      |
+----------------------+----------------------+----------------------+
| SIC                  | [Employee Size       |                      |
|                      | Group]{.underline}   |                      |
+----------------------+----------------------+----------------------+
| [Group]{.underline}  | [1]{.underline}      | [2/3]{.underline}    |
+----------------------+----------------------+----------------------+
| 1/3                  | 5,558                | 2,653                |
+----------------------+----------------------+----------------------+
| 2/4                  | 13,292               | 3,529                |
+----------------------+----------------------+----------------------+
| [Advertising         |                      |                      |
| Mail]{.underline}    |                      |                      |
+----------------------+----------------------+----------------------+
| SIC                  | [Employee Size       |                      |
|                      | Group]{.underline}   |                      |
+----------------------+----------------------+----------------------+
| [Group]{.underline}  | [1]{.underline}      | [2/3]{.underline}    |
+----------------------+----------------------+----------------------+
| 1/3                  | 6,367                | 6,594                |
+----------------------+----------------------+----------------------+
| 2/4                  | 11,417               | 3,296                |
+----------------------+----------------------+----------------------+
| [News                |                      |                      |
| letters]{.underline} |                      |                      |
+----------------------+----------------------+----------------------+
| SIC                  | [Employee Size       |                      |
|                      | Group]{.underline}   |                      |
+----------------------+----------------------+----------------------+
| [Group]{.underline}  | [1]{.underline}      | [2/3]{.underline}    |
+----------------------+----------------------+----------------------+
| 1/3                  | 4,760                | 1,649                |
+----------------------+----------------------+----------------------+
| 2/4                  | 8,087                | 1,969                |
+----------------------+----------------------+----------------------+
| [Forms]{.underline}  |                      |                      |
+----------------------+----------------------+----------------------+
| SIC                  | [Employee Size       |                      |
|                      | Group]{.underline}   |                      |
+----------------------+----------------------+----------------------+
| [Group]{.underline}  | [1]{.underline}      | [2/3]{.underline}    |
+----------------------+----------------------+----------------------+
| 1/3                  | 7,138                | 2,444                |
+----------------------+----------------------+----------------------+
| 2/4                  | 9,255                | 3,102                |
+----------------------+----------------------+----------------------+

Each respondent's Universe Projection Factor was divided by his or her
Organization Projection Factor to arrive at an initial "Application
Weight." After applying these weights to the survey results, "weighted
outliers," or respondents who accounted for more than 20% of the total
estimated current volume, were identified. These respondents were
downweighted, and the Application Weights for the remaining respondents
were correspondingly adjusted upward. After making these adjustments, no
respondent accounted or more than 1.8% of the total current volume
estimate. In addition, the range of Final Application weights met our
criteria for weight ranges; all but two respondents fell into the range
of 313:1.[^11]

The process described above was repeated on each of the two split sample
groups, to arrive at an initial "Price Point Weight." In addition, a
subsequent step called "raking" was required. Theoretically, when
respondents are assigned randomly to a split sample group, each group
should be a microcosm of the total sample that is identical to the total
sample on all characteristics. However, when using split samples in
reality, this seldom occurs. Raking is a technique that adjusts the
survey weights to equate each split sample to the overall sample on
critical measures, based on the assumption that any differences are due
to an unmeasured non-response bias.

Because the respondents in this questionnaire were assigned to a split
sample group randomly, each group's projected current volume should have
been roughly equivalent to the current volume projected from the total
sample. To ensure that this would be the case, a revised "Price Point
Weight" was developed using raking. The exact algorithm for raking is
described fully in Attachment J entitled "Description of the Raking
Algorithm." The control files used for raking the sample is shown in
Attachment K entitled "Raking Program Specifications."

After the revised Price Point Weights were developed, weighted outliers,
who accounted for more than 20% of the total NetPost volume estimate,
were identified and downweighted. After making these adjustments, no
single respondent accounted for more than 17.3% of the weighted NetPost
volume estimate for the basic service and no more than 14.9% of the
weighted NetPost volume estimate for the enhanced service. (See
Attachment L \-- Outlier Checking Program.) In addition, the final
weights fell into a reasonable range: 401:1 with the exception of one
respondent at the 25% price point and 452:1 for the 50% price point.

It is important to note that the weights were calculated on an
application-specific basis and that they do not account for the overlap
of organizations across applications.[^12] For output measures that are
additive (i.e., overlap across applications does not produce double
counting), such as estimated NetPost volume, total market results can be
calculated as the sum across all applications.

###### 

###### E. Survey Results

*1. Adjustments to Raw Volume Estimates*

The weighted survey results for questions 4, 7, 8, 11, 14, and 15
provide raw estimates of NetPost volume under each price and product
configuration scenario. The raw estimates under the 25% contribution
scenario are the weighted NetPost volume estimates for the split sample
group that was exposed to the 25% contribution fee schedule. The raw
estimate under the 50% contribution scenario are the weighted average
NetPost estimates for the split sample group exposed to the 50%
contribution fee schedule. The raw estimates for the basic product
scenario are the weighted NetPost volume estimates generated when
respondents were exposed to the basic NetPost concepts, that contained a
limited set of physical, delivery and security features. The raw
estimates for the enhanced product scenario are the weighted NetPost
volume estimates generated when respondents were exposed to the enhanced
NetPost concept, that included a range of additional physical, delivery
and security features that could be purchased for additional fees.

To produce more reasonable estimates of the volume NetPost would be
likely to realize over time, these raw estimates were adjusted by four
factors, commonly used for this purpose:

10. **Awareness**: In the questionnaire, we presented respondents with a
    description of NetPost before asking them if they would use it. This
    approach essentially produces a 100% awareness for NetPost. In
    reality, not everyone would be aware of NetPost's existence or
    features even with advertising and other promotions. To adjust for
    this over-awareness, the Postal Service provided us with an estimate
    of the percentage of the eligible universe whom they believe would
    be aware of NetPost after each of its first five years in the
    marketplace, given the marketing plans that they envision for the
    product:

    Table 11

    [Awareness Adjustment Factor]{.underline}

+-----------------------------------+-----------------------------------+
| 11. Year 1                        | 12. 25%                           |
+-----------------------------------+-----------------------------------+
| 13. Year 2                        | 14. 32%                           |
+-----------------------------------+-----------------------------------+
| 15. Year 3                        | 16. 35%                           |
+-----------------------------------+-----------------------------------+
| 17. Year 4                        | 18. 39%                           |
+-----------------------------------+-----------------------------------+
| 19. Year 5                        | 20. 41%                           |
+-----------------------------------+-----------------------------------+

21. 

22. **Access to Compatible Hardware and Software**: The NetPost concept
    included with the questionnaire stated that NetPost would be
    compatible with all standard hardware and software platforms. In
    reality, this is unlikely, given the multitude of different hardware
    and software platforms in use. To adjust for this, the Postal
    Service provided us with an estimate of the percentage of the
    eligible universe whom they believe would have compatible hardware
    and software platforms in each of NetPost's first five years in the
    marketplace.

    Table 12

    [Access to Compatible Hardware and Software Adjustment
    Factor]{.underline}

+-----------------------------------+-----------------------------------+
| 23. Year 1                        | 24. 98%                           |
+-----------------------------------+-----------------------------------+
| 25. Year 2                        | 26. 99%                           |
+-----------------------------------+-----------------------------------+
| 27. Year 3                        | 28. 100%                          |
+-----------------------------------+-----------------------------------+
| 29. Year 4                        | 30. 100%                          |
+-----------------------------------+-----------------------------------+
| 31. Year 5                        | 32. 100%                          |
+-----------------------------------+-----------------------------------+

33. 

34. **Access to the Internet**: After the questionnaire was fielded, it
    was decided that the most effective way for users to access NetPost
    would be through the Internet. Since the concept statement included
    with the questionnaire did not specify this requirement (i.e., must
    have access to the Internet), it is likely that some of the
    respondents who said they would send pieces via NetPost would, in
    fact, be unable to do so, because they would lack Internet access.
    To adjust for this situation, we applied an adjustment factor equal
    to the expected penetration of Internet access among the business
    population over the next five years. The actual number of businesses
    with Internet access over the next five years was supplied to us by
    the Postal Service.

    Table 13

    [Internet Access Adjustment Factor]{.underline}

+-----------------------------------+-----------------------------------+
| 35. Year 1                        | 36. 18%                           |
+-----------------------------------+-----------------------------------+
| 37. Year 2                        | 38. 25%                           |
+-----------------------------------+-----------------------------------+
| 39. Year 3                        | 40. 35%                           |
+-----------------------------------+-----------------------------------+
| 41. Year 4                        | 42. 44%                           |
+-----------------------------------+-----------------------------------+
| 43. Year 5                        | 44. 49%                           |
+-----------------------------------+-----------------------------------+

45. 

46. **Overstatement of Intentions**: Respondents in survey research are
    known to overstate their intentions because it is difficult to gauge
    exactly what behavior will be undertaken until a product/service is
    actually marketed. Based on our experience with new product research
    across a broad range of industries, we assumed that adoption among
    those who would be aware of and have access to NetPost would be 50%
    lower than indicated by the raw estimates in the survey.

47. 

48. The raw estimates in Year 1, the most critical year, were adjusted
    downward by a factor of .0221.

49. Table 14

50. [Combined Adjustments]{.underline}

51. 

> Year 1 25% x 98% x 18% x 50% = .0221
>
> Year 2 32% x 99% x 25% x 50% = .0396
>
> Year 3 35% x 100% x 35% x 50% = .0613
>
> Year 4 39% x 100% x 44% x 50% = .0858
>
> Year 5 41% x 100% x 49% x 50% = .1005

*2. Adjusted Volume Estimates*

The final estimates of NetPost's volume under each of the price and
product configuration scenarios were derived by multiplying the raw
survey estimates of NetPost's volume by each of these four adjustment
factors. Table 15 illustrates the final, adjusted estimates, of
NetPost's volume for each of its first five years in the marketplace,
assuming the basic NetPost service offering using the 25% contribution
margin rate schedule. Tables 16 through 18 illustrate the same results
assuming the basic NetPost service offering using the 50% contribution
margin rate schedule, the enhanced NetPost offering using the 25%
contribution margin rate schedule, and the enhanced NetPost offering
using the 50% contribution margin rate schedule.

In addition, in Year 1, 38% of the total volume of the basic NetPost
service at the 25% contribution margin is likely to be incremental
pieces to the Postal Service.

Table 15

Basic NetPost Service and 25% Contribution Margin\
Rate Schedule Volume Estimate (000's)

+--------------+----------+----------+----------+----------+----------+
|              | [        |          |          |          |          |
|              | Adjusted |          |          |          |          |
|              | Volume   |          |          |          |          |
|              | Estim    |          |          |          |          |
|              | ate]{.un |          |          |          |          |
|              | derline} |          |          |          |          |
+--------------+----------+----------+----------+----------+----------+
|              | [Year    | [Year    | [Year    | [Year    | [Year    |
|              | 1]{.un   | 2]{.un   | 3]{.un   | 4]{.un   | 5]{.un   |
|              | derline} | derline} | derline} | derline} | derline} |
+--------------+----------+----------+----------+----------+----------+
| Total        | 295,665  | 516,015  | 804,531  | 1        | 1        |
|              |          |          |          | ,127,826 | ,317,404 |
+--------------+----------+----------+----------+----------+----------+
| First-Class  | 91,745   | 160,119  | 249,646  | 349,964  | 408,790  |
|              |          |          |          |          |          |
| Standard     | 203,920  | 355,895  | 554,885  | 777,862  | 908,613  |
+--------------+----------+----------+----------+----------+----------+
| 1-2 pages    | 200,490  | 349,910  | 545,552  | 764,779  | 893,331  |
|              |          |          |          |          |          |
| 3-4 pages    | 31,547   | 55,059   | 85,843   | 120,339  | 140,567  |
|              |          |          |          |          |          |
| 5-6 pages    | 28,059   | 48,970   | 76,350   | 107,031  | 125,022  |
|              |          |          |          |          |          |
| 7-10 pages   | 9,432    | 16,461   | 25,665   | 35,978   | 42,025   |
|              |          |          |          |          |          |
| 11-15 pages  | 5,263    | 9,185    | 14,321   | 20,075   | 23,450   |
|              |          |          |          |          |          |
| 15+ pages    | 20,844   | 36,379   | 56,719   | 79,512   | 92,877   |
+--------------+----------+----------+----------+----------+----------+
| 8.5 x 11"    | 233,250  | 407,084  | 634,694  | 889,742  | 1        |
|              |          |          |          |          | ,039,300 |
| 8.5 x 14"    | 26,048   | 45,461   | 70,879   | 99,361   |          |
|              |          |          |          |          | 116,063  |
| 11 x 17"     | 36,396   | 63,521   | 99,038   | 138,835  |          |
|              |          |          |          |          | 162,172  |
+--------------+----------+----------+----------+----------+----------+
| Black &      | 164,153  | 286,491  | 446,675  | 626,169  | 731,422  |
| White Spot   |          |          |          |          |          |
| Color        | 131,512  | 229,523  | 357,855  | 501,657  | 585,981  |
+--------------+----------+----------+----------+----------+----------+
| Simplex      | 142,067  | 247,945  | 386,577  | 541,920  | 633,012  |
|              |          |          |          |          |          |
| Duplex       | 153,598  | 268,070  | 417,954  | 585,906  | 684,391  |
+--------------+----------+----------+----------+----------+----------+

Table 16

[Basic NetPost Service and 50% Contribution Margin Rate\
Schedule Volume Estimate (000's)]{.underline}

+--------------+----------+----------+----------+----------+----------+
|              | [        |          |          |          |          |
|              | Adjusted |          |          |          |          |
|              | Volume   |          |          |          |          |
|              | Estim    |          |          |          |          |
|              | ate]{.un |          |          |          |          |
|              | derline} |          |          |          |          |
+--------------+----------+----------+----------+----------+----------+
|              | [Year    | [Year    | [Year    | [Year    | [Year    |
|              | 1]{.un   | 2]{.un   | 3]{.un   | 4]{.un   | 5]{.un   |
|              | derline} | derline} | derline} | derline} | derline} |
+--------------+----------+----------+----------+----------+----------+
| Total        | 204,195  | 356,374  | 555,631  | 778,908  | 909,836  |
+--------------+----------+----------+----------+----------+----------+
| First-Class  | 24,034   | 41,945   | 65,398   | 91,678   | 107,088  |
|              |          |          |          |          |          |
| Standard     | 180,161  | 314,429  | 490,234  | 687,231  | 802,748  |
+--------------+----------+----------+----------+----------+----------+
| 1-2 pages    | 128,193  | 223,732  | 348,825  | 488,999  | 571,195  |
|              |          |          |          |          |          |
| 3-4 pages    | 45,964   | 80,220   | 125,073  | 175,332  | 204,804  |
|              |          |          |          |          |          |
| 5-6 pages    | 13,742   | 23,984   | 37,394   | 52,421   | 61,232   |
|              |          |          |          |          |          |
| 7-10 pages   | 9,475    | 16,536   | 25,781   | 36,141   | 42,216   |
|              |          |          |          |          |          |
| 11-15 pages  | 2,981    | 5,203    | 8,112    | 11,372   | 13,284   |
|              |          |          |          |          |          |
| 15+ pages    | 3,839    | 6,700    | 10,446   | 14,643   | 17,105   |
+--------------+----------+----------+----------+----------+----------+
| 8.5 x 11"    | 176,281  | 307,658  | 479,677  | 672,431  | 785,461  |
|              |          |          |          |          |          |
| 8.5 x 14"    | 12,252   | 21,382   | 33,338   | 46,734   | 54,590   |
|              |          |          |          |          |          |
| 11 x 17"     | 15,662   | 27,334   | 42,617   | 59,742   | 69,784   |
+--------------+----------+----------+----------+----------+----------+
| Black &      | 133,033  | 232,178  | 361,994  | 507,459  | 592,758  |
| White Spot   |          |          |          |          |          |
| Color        | 71,162   | 124,196  | 193,638  | 271,450  | 317,078  |
+--------------+----------+----------+----------+----------+----------+
| Simplex      | 110,000  | 191,979  | 299,319  | 419,598  | 490,129  |
|              |          |          |          |          |          |
| Duplex       | 94,195   | 164,395  | 256,313  | 359,310  | 419,707  |
+--------------+----------+----------+----------+----------+----------+

Table 17

[Enhanced NetPost Service and 25% Contribution Margin\
Rate Schedule Volume Estimate (000's)]{.underline}

+--------------+----------+----------+----------+----------+----------+
|              | [        |          |          |          |          |
|              | Adjusted |          |          |          |          |
|              | Volume   |          |          |          |          |
|              | Estim    |          |          |          |          |
|              | ate]{.un |          |          |          |          |
|              | derline} |          |          |          |          |
+--------------+----------+----------+----------+----------+----------+
|              | [Year    | [Year    | [Year    | [Year    | [Year    |
|              | 1]{.un   | 2]{.un   | 3]{.un   | 4]{.un   | 5]{.un   |
|              | derline} | derline} | derline} | derline} | derline} |
+--------------+----------+----------+----------+----------+----------+
| Total        | 354,275  | 618,305  | 964,014  | 1        | 1        |
|              |          |          |          | ,351,397 | ,578,555 |
+--------------+----------+----------+----------+----------+----------+
| First-Class  | 90,340   | 157,668  | 245,824  | 344,606  | 402,531  |
|              |          |          |          |          |          |
| Standard     | 263,935  | 460,637  | 718,191  | 1        | 1        |
|              |          |          |          | ,006,791 | ,176,023 |
+--------------+----------+----------+----------+----------+----------+
| 1-2 pages    | 239,136  | 417,356  | 650,710  | 912,193  | 1        |
|              |          |          |          |          | ,065,524 |
| 3-4 pages    | 48,146   | 84,028   | 131,010  | 183,655  |          |
|              |          |          |          |          | 214,526  |
| 5-6 pages    | 28,484   | 49,712   | 77,507   | 108,652  |          |
|              |          |          |          |          | 126,916  |
| 7-10 pages   | 12,152   | 21,208   | 33,066   | 46,353   |          |
|              |          |          |          |          | 54,144   |
| 11-15 pages  | 5,385    | 9,398    | 14,653   | 20,541   |          |
|              |          |          |          |          | 23,994   |
| 15+ pages    | 20,973   | 36,604   | 57,070   | 80,003   |          |
|              |          |          |          |          | 93,450   |
+--------------+----------+----------+----------+----------+----------+
| 8.5 x 11"    | 269,710  | 470,716  | 733,904  | 1        | 1        |
|              |          |          |          | ,028,818 | ,201,754 |
| 8.5 x 14"    | 25,402   | 44,332   | 69,120   |          |          |
|              |          |          |          | 96,895   | 113,182  |
| 11 x 17"     | 59,164   | 103,257  | 160,990  |          |          |
|              |          |          |          | 225,683  | 263,619  |
+--------------+----------+----------+----------+----------+----------+
| Black &      | 179,653  | 313,543  | 488,852  | 685,293  | 800,485  |
| White Spot   |          |          |          |          |          |
| Color        | 174,622  | 304,763  | 475,163  | 666,103  | 778,070  |
+--------------+----------+----------+----------+----------+----------+
| Simplex      | 168,493  | 294,066  | 458,485  | 642,724  | 750,761  |
|              |          |          |          |          |          |
| Duplex       | 185,782  | 324,239  | 505,529  | 708,672  | 827,794  |
+--------------+----------+----------+----------+----------+----------+

Table 18

[Enhanced NetPost Service and 50% Contribution Margin\
Rate Schedule Volume Estimate (000's)]{.underline}

+--------------+----------+----------+----------+----------+----------+
|              | [        |          |          |          |          |
|              | Adjusted |          |          |          |          |
|              | Volume   |          |          |          |          |
|              | Estim    |          |          |          |          |
|              | ate]{.un |          |          |          |          |
|              | derline} |          |          |          |          |
+--------------+----------+----------+----------+----------+----------+
|              | [Year    | [Year    | [Year    | [Year    | [Year    |
|              | 1]{.un   | 2]{.un   | 3]{.un   | 4]{.un   | 5]{.un   |
|              | derline} | derline} | derline} | derline} | derline} |
+--------------+----------+----------+----------+----------+----------+
| Total        | 261,837  | 456,975  | 712,481  | 998,786  | 1        |
|              |          |          |          |          | ,166,674 |
+--------------+----------+----------+----------+----------+----------+
| First-Class  | 27,807   | 48,531   | 75,665   | 106,071  | 123,901  |
|              |          |          |          |          |          |
| Standard     | 234,030  | 408,445  | 636,815  | 892,715  | 1        |
|              |          |          |          |          | ,042,773 |
+--------------+----------+----------+----------+----------+----------+
| 1-2 pages    | 156,762  | 273,591  | 426,562  | 597,973  | 698,487  |
|              |          |          |          |          |          |
| 3-4 pages    | 54,357   | 94,868   | 147,911  | 207,348  | 242,201  |
|              |          |          |          |          |          |
| 5-6 pages    | 25,215   | 44,007   | 68,612   | 96,183   | 112,351  |
|              |          |          |          |          |          |
| 7-10 pages   | 14,741   | 25,728   | 40,113   | 56,232   | 65,684   |
|              |          |          |          |          |          |
| 11-15 pages  | 4,713    | 8,226    | 12,825   | 17,978   | 21,000   |
|              |          |          |          |          |          |
| 15+ pages    | 6,022    | 10,510   | 16,387   | 22,972   | 26,833   |
+--------------+----------+----------+----------+----------+----------+
| 8.5 x 11"    | 228,741  | 399,214  | 622,423  | 872,540  | 1        |
|              |          |          |          |          | ,019,206 |
| 8.5 x 14"    | 13,197   | 23,032   | 35,909   | 50,339   |          |
|              |          |          |          |          | 58,800   |
| 11 x 17"     | 19,900   | 34,730   | 54,149   | 75,908   |          |
|              |          |          |          |          | 88,667   |
+--------------+----------+----------+----------+----------+----------+
| Black &      | 174,409  | 304,391  | 474,583  | 665,292  | 777,121  |
| White Spot   |          |          |          |          |          |
| Color        | 87,427   | 152,584  | 237,897  | 333,495  | 389,552  |
+--------------+----------+----------+----------+----------+----------+
| Simplex      | 143,303  | 250,103  | 389,941  | 546,636  | 638,520  |
|              |          |          |          |          |          |
| Duplex       | 118,533  | 206,873  | 322,540  | 452,151  | 528,153  |
+--------------+----------+----------+----------+----------+----------+

The number of NetPost adopters is equal to 2.5% x Number of Business
with Internet Access x Awareness Factor (see Table 11) x Access to
Compatible Hardware and Software (see Table 12) x Overstatement of
Intentions (see page 33). The number of businesses with Internet access
was provided to us by the Postal Service.

Table 19a

[Businesses with Internet Access]{.underline}

  ---------------- ---------------- ---------------- ---------------- ----------------
  [Year            [Year            [Year            [Year            [Year
  1]{.underline}   2]{.underline}   3]{.underline}   4]{.underline}   5]{.underline}

  1,953,000        2,636,000        3,720,000        4,680,000        5,200,000
  ---------------- ---------------- ---------------- ---------------- ----------------

Table 19b

####### NetPost Adopters

  ---------------- ---------------- ---------------- ---------------- ----------------
  [Year            [Year            [Year            [Year            [Year
  1]{.underline}   2]{.underline}   3]{.underline}   4]{.underline}   5]{.underline}

  5,981            10,439           16,275           22,815           26,650
  ---------------- ---------------- ---------------- ---------------- ----------------

*3. Standard Error Calculations*

Because of the fact that weights are used in the estimates of NetPost
volumes, and because the volumes being estimated are somewhat complex
functions, there are no closed-form approaches to estimating standard
errors. To precisely estimate the standard errors associated with such
variables, "bootstrapping" is the customary, and preferred, technique to
use. Bootstrapping is a procedure in which repeated sub-samples are
drawn from the study sample, the study's weighting model is applied to
each, and the standard error of the resulting estimate is
calculated.[^13] The computer programming and run time required for
bootstrapping are substantial. Therefore, it was decided that an
approximation of the standard error estimates, which could be produced
with minimal effort, would suffice.

A standard formula for estimating weighted variance was used. In most
statistical textbooks, the standard formula for estimating the sampling
variability of a total assumes that the observations contained in the
sample are selected by simple random sampling; that is, all observations
in the sample have an equal probability of being selected, and thus have
an equal weight. On the other hand, respondents in this survey were
selected using a complex stratified sampling scheme and, therefore, had
an unequal probability of being selected in the sample. To account for
this disproportionate sampling, weights were assigned to each respondent
in order to project the estimates to the correct eligible universe. The
disproportionate sampling and accompanying weights must also be taken
into account the by procedure used to estimate sampling variance or
standard errors:

Let N: total population size

n: sample size

W~i~: weight for respondent i (note N = ∑*w~i~*)

Y~i~: measure of a variable for respondent i

Define T~y~ = ∑*w~i~y~i~* where T~y~ represents the estimated population
total for y

Define a new variable: t~yi~ = nw~i~y~i~

If we want to estimate the variability associated with the statistic
T~y~, one can show that the approximate variance of T~y~ is given by:

1.  $$\text{Var}(T_{y}) = \frac{(N - n)}{N}\left( \frac{1}{n} \right)\frac{\sum_{i = 1}^{n}{(t_{\text{yi}} - T_{y})^{2}}}{n - 1}$$

The standard error estimates for adjusted NetPost volume for each of its
first five years in the marketplace, under each price and product
configuration scenario, are displayed in Table 20:

Table 20

####### Standard Error and Coefficient of Variation Estimates for NetPost Volume

[(in 000,000)]{.underline}

+--------------------+-----------+-----------+---+-----------+-----------+
|                    | 25%       |           | 5 |           |           |
|                    | Con       |           | 0 |           |           |
|                    | tribution |           | % |           |           |
|                    | Margin    |           | C |           |           |
|                    | Rate      |           | o |           |           |
|                    | Schedule  |           | n |           |           |
|                    |           |           | t |           |           |
|                    |           |           | r |           |           |
|                    |           |           | i |           |           |
|                    |           |           | b |           |           |
|                    |           |           | u |           |           |
|                    |           |           | t |           |           |
|                    |           |           | i |           |           |
|                    |           |           | o |           |           |
|                    |           |           | n |           |           |
|                    |           |           | M |           |           |
|                    |           |           | a |           |           |
|                    |           |           | r |           |           |
|                    |           |           | g |           |           |
|                    |           |           | i |           |           |
|                    |           |           | n |           |           |
|                    |           |           | R |           |           |
|                    |           |           | a |           |           |
|                    |           |           | t |           |           |
|                    |           |           | e |           |           |
|                    |           |           | S |           |           |
|                    |           |           | c |           |           |
|                    |           |           | h |           |           |
|                    |           |           | e |           |           |
|                    |           |           | d |           |           |
|                    |           |           | u |           |           |
|                    |           |           | l |           |           |
|                    |           |           | e |           |           |
+--------------------+-----------+-----------+---+-----------+-----------+
|                    | [Basic    | [Enhanced |   | [Basic    | [Enhanced |
|                    | Ne        | Ne        |   | Ne        | Ne        |
|                    | tPost]{.u | tPost]{.u |   | tPost]{.u | tPost]{.u |
|                    | nderline} | nderline} |   | nderline} | nderline} |
+--------------------+-----------+-----------+---+-----------+-----------+
| Year 1             | 68        | 72        |   | 43        | 51        |
|                    |           |           |   |           |           |
| Standard Error     |           |           |   |           |           |
+--------------------+-----------+-----------+---+-----------+-----------+
| Year 2             | 118       | 125       |   | 76        | 89        |
|                    |           |           |   |           |           |
| Standard Error     |           |           |   |           |           |
+--------------------+-----------+-----------+---+-----------+-----------+
| Year 3             | 184       | 195       |   | 118       | 139       |
|                    |           |           |   |           |           |
| Standard Error     |           |           |   |           |           |
+--------------------+-----------+-----------+---+-----------+-----------+
| Year 4             | 258       | 274       |   | 166       | 195       |
|                    |           |           |   |           |           |
| Standard Error     |           |           |   |           |           |
+--------------------+-----------+-----------+---+-----------+-----------+
| Year 5             | 301       | 320       |   | 194       | 228       |
|                    |           |           |   |           |           |
| Standard Error     |           |           |   |           |           |
+--------------------+-----------+-----------+---+-----------+-----------+

Thus, if the total basic NetPost volume for the 25% price point is
296,000,000 pieces and the standard error is 68,000,000, then, for a 95%
confidence interval, the range for the basic NetPost volume would be
163,000,000 to 429,000,000 pieces (296,000,000 ±1.96 x 68,000,000).

[^1]: \*At the time the research was performed, the tentative name
    assigned to the product was "NetPost." Since this was the name given
    to respondents during the survey, we will continue to refer to the
    Mailing Online service, as it is now called, as "NetPost."

[^2]: \*\*That is, \[(Total price for a given piece) − (Postage for the
    piece given its mail class and weight) − (costs related to printing
    and producing the piece)\]/\[(Total price for the piece) − (Postage
    for the piece given its mail class and weight)\] = 25% for one fee
    schedule, and 50% for the other fee schedule.

[^3]: \*Non-four-color means either black and white or spot color.

[^4]: \*Standard Industrial Classification

[^5]: \*See page 5 for definitions of employee size and SIC group
    categories.

[^6]: \*For example, if a respondent was responsible for the production
    of 20% of the location's forms which represented 200 pieces then the
    location's total volume of forms was uplifted to 1,000 pieces.

[^7]: \*Simplex means printed on one side of a page; duplex means
    printed on both sides of a page.

[^8]: \*Computer Assisted Telephone Interviewing.

[^9]: \*See page 5 for definitions of employee size and SIC group
    categories.

[^10]: \*See page 5 for definitions of employee size and SIC group
    categories.

[^11]: \*Note that the range of weights was inflated by the use of the
    Organization Projection Factor in the weighting process.
    Alternatively, the Organization Projection Factor could have been
    applied to each respondent prior to weighting, to derive a set of
    "total organization" variables, which would have then been weighted
    by the Universe Projection Factor alone.

[^12]: \*Given the number of permutations of applications produced and
    the impracticality of obtaining full eligibility information on all
    applications in multiple application organizations, no attempt was
    made to measure the full extent of overlapping eligibility and,
    consequently, no total market weight was produced.

[^13]: \*More information on bootstrapping can be found in [An
    Introduction to Bootstrap]{.underline}, G. Efron and R. Tibshirani,
    1993, Chapman & Hall