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From Exhibit 2 of the case we see that the majority of purchases for this category are made in years 1 and 2. Tuscan may be able to increase per customer profits in this category by maintaining the same mailing frequency (8 catalogs per year) for the first 2 years and then decreasing the frequency (to say 4 per year) in subsequent years thereby decreasing the mailing costs while still maintaining relatively the same response rate from customers. Also we see from exhibit 2 that the number of multiple sales in a year is relatively high which seems to indicate that these may be loyal customers. A referral reward system may be used to incentivise these customers to try and rope in more customers...
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