Business Commons^™

To assist the social entrepreneur with direct marketing decision, the authors examine the relationship between the risks and costs associated with direct marketing for nonprofit organizations. This is done by developing and presenting a framework centered on two uncertainty factors – the cost to implement a direct marketing solution and control over (e.g., ability to manage) resources. A transaction cost analysis (economic) argument is used to rationalize the importance for entrepreneurs to effectively manage these two uncertainty factors when implementing a direct marketing program. This is illustrated using a perceptual mapping of each direct marketing channel relative to the two …