Consumer Motivation and Multilevel Marketing on Health Products

Abstract

Multi Level Marketing (MLM) for healthcare product is one of the dramatic transformations that have emerged in contemporary times with varying behavioral responses. Its increasing acceptance in Nigeria is because people find it an alternative option to addressing diverse health concerns amidst other economic benefits. The study considered multilevel marketing in health with a key focus on the relationship between multilevel health products and continuance intention. Descriptive statistics and SEM statistical tool was employed in the analysis. This study therefore examines the issue of MLM and motivating factors and continued intention to engage in MLM in the health related product categories. An online survey was administered on 227 networkers of MLM in South-East, Nigeria. The data was analyzed using Structural Equation Modeling (SEM) and descriptive statistics. Result shows that Nature Renascence International (NRI), Longrich, and Norland are the major MLM brands. Other not popular brands are Edmark, Tianshi, AIM Global, Forever Living Products, Oriflame, and Neolife. However, the major challenge lies in getting down-liners / new people to register and be part of the MLM business. Analysis shows that wealth benefit is the major motivation to join an MLM despite the promises of health benefits. Specifically, wealth benefit is found to be significantly related to health benefit. The study also provides evidence that there is a nexus between wealth benefit and ethical concern. Also, wealth benefit has a significant effect on continued intention. The recommendation centers on policy-drive and regulation. An appropriate policy that addresses the establishment and operation of businesses that engages in MLM of health products is required. This is paramount in other to curtail unethical practices and sharp practices from MLM businesses. In addition, there is a need for proper regulation. The regulation is required to control the use of unprofessional healthcare personnel in counseling and prescribing health drugs as well as targeting issues of false claims.