Direct Sellers Research Articles

Mary Kay Inc.: Direct Selling and the Challenge of Online Channels

Mary Kay is one of the best-known direct sellers of women's cosmetics in the world. Its channel strategy is to use independent beauty consultants, who are independent distributors, to sell directly to consumers. Its compensation plan is multilevel, providing commissions to distributors on their own sales as well as the sales of the distributors they recruit. At the time of the case, the company is grappling with a well-established change in consumer behavior—the decline of the stay-at-home mom as she returns to the workforce—combined with the opportunities offered by Internet selling. Focuses on the company's efforts to move with consumer demand and behavior, while remaining true to its core goal of “Improving Women's Lives.” Discusses ways Internet technology can be used throughout the company's channel and supply chain structure, not just as a route to market.

Physicochemical quality of directly sold raw milk in Hungary

The importance of short food supply chains is increasing in the food sector, and direct selling is a promising alternative to commercial chains in dairy trade. Several channels and practices of direct raw milk sales exist in Hungary. Because short food supply chains in the Hungarian dairy sector have not yet been investigated in detail, we have little or no knowledge on the composition of directly sold raw milk. For this reason, a 9-month study was undertaken from June 2013 through February 2014, wherein directly sold raw bovine milk samples were tested for fat, protein, lactose, and solids-not-fat contents and for freezing point. A total of 21 direct sellers located in Budapest, Hungary were sampled twice a month. The results were compared to the official Hungarian raw milk quality data referring to the same period. The direct milk vendors involved in this study were found to sell raw milk with reduced levels of lactose and solids-not-fat and elevated freezing points, compared to the national raw milk data. The findings of this research underline the need for stricter regulations and control with respect to direct raw milk sales in the country.

Cloud Service Evaluation and Selection Using Fuzzy Hybrid MCDM Approach in Marketplace

Cloud services are offered independently or combining two or more services to satisfy consumer requirements. Different types of cloud service providers such as direct sellers, resellers and aggregators provide services with different level of service features and quality. The selection of best suitable services involves multi-criteria nature of services to be compared with the presence of both qualitative and quantitative factors, which make it considerably more complex. To overcome this complexity, a fuzzy hybrid multi-criteria decision making approach has been proposed, which includes both qualitative and quantitative factors. Triangular fuzzy numbers are used in all pairwise comparison matrices in the Fuzzy ANP and the criteria weights are utilized by Fuzzy TOPSIS and Fuzzy ELECTRE methods to rank the alternatives. This strategy is demonstrated with selection of cloud based collaboration tool for designers. Finally, sensitivity analysis is performed to prove the robustness of the proposed approach.

An Efficiency Prediction of Mobility Solutions in Direct Selling Businesses of Mainland China

In this empirical research, the subjects were renowned direct sellers in China, and the survey was conducted with a questionnaire to (1) investigate whether adaptive marketing has any positive impact on sales performance through reliability and validity analyses, (2) analyze the comparison between direct and indirect impact and define the best analysis model, and (3) find out through reliability and validity analyses whether the introduction of mobile solutions to direct selling companies and salespeople has any positive impact on sales performance. This experiment is a theoretical and empirical investigation into the framework using the AMOS software. The model that considers the indirect impact between each dimension is better than the one that considers the direct impact. Adaptive marketing also positively impacts sales performance. The introduction of mobile solutions to the direct selling industry can improve sales capacity and benefit sales performance.

The Importance of Organisational Culture Towards Direct Sellers’ Communication Competencies

Organisational culture is very influential in the organisation’s efforts to lay the foundations and principles that can be practiced by all organisational members.In the context of direct selling business in Malaysia, artefact is the organisational culture element that has been distinguished as the element that can influence the direct sellers’ communication competencies. From observations of 33 direct selling conversations and in-depth interviews of 11 women direct sellers, this study found that trainings and storytelling are the artefact components that shaped the direct sellers communication competencies.The communication competencies that influenced by the organisational artefact are product knowledge, perspective-taking, cultural sensitivity, message delivery skills, and communication style.

Communication Competence during the Preparation Phase of the Direct Selling Communication Activities

In understanding the communication competence components in the direct marketing business, this study was performed. The objectuves of the paper are to identify the communication activities that represent communication competence components and the outcome of communication competence components in the Preparation Phase of the direct selling activities. Interview and observation method were employed. Acquiring knowledge related to the business and spirituality; and preparing to acquire savoirs have been demonstrated in the Preparation Phase. These preparations demonstrated direct sellers’ cognitive, behavioural, and spiritual-affective abilities. The outcome that emerged from the findings were the preparation in developing their self-confidence, enthusiastic feelings, understanding of savoirs; and becoming knowledgeable of the business.

ŞEBEKE YOLUYLA PAZARLAMA SİSTEMİNDE TEŞVİK PLANLARI VE GELİR HESAPLAMA YÖNTEMLERİ COMPENSATION PLANS AND INCOME CALCULATION METHODS IN MULTILEVEL MARKETING SYSTEM

The multilevel marketing system which has been mentioned frequently nowadays takes place in marketing literature at direct selling, a non-store retailing’s subsection. In the multilevel marketing system that is a type of direct selling, there are two different selling incomes promised for the direct sellers. One of them is selling income which occurs to sell products and the other is a payment income over a new member’s selling who is sponsored by an old member referred as sponsor. The multilevel marketing firms can use different compensation plans and income calculation methods when income is distributed to their members. These compensation plans and income calculation methods in multilevel marketing system have been explained in this research.

ŞEBEKE YOLUYLA PAZARLAMA SİSTEMİNDE TEŞVİK PLANLARI VE GELİR HESAPLAMA YÖNTEMLERİ

Son yıllarda adından sıkça bahsedilen şebeke yoluyla pazarlama sistemi, pazarlama literatüründe mağazasız perakendeciliğin bir kolu olan doğrudan satış konusu içerisinde yer almaktadır. Doğrudan satışın türlerinden biri olan şebeke yoluyla pazarlama sisteminde üye olan doğrudan satışçıya iki farklı satış geliri vaad edilmektedir. Bunlardan biri üyesi olduğu firmanın ürünlerinin satışından doğan satış geliridir. Diğeri ise üye kişinin firmaya yeni üye kaydı yaptığında yani yeni distribütöre sponsor olduğunda bu yeni üyenin satışlarından pay geliridir. Şebeke yoluyla pazarlama firmaları, üyelerine gelir dağıtımı yaparken farklı teşvik planları ve gelir hesaplama yöntemleri kullanabilmektedir. Bu çalışmada bu planlar ve hesaplama yöntemleri anlatılmaktadır.

ŞEBEKE YOLUYLA PAZARLAMA SİSTEMİNDE TEŞVİK PLANLARI VE GELİR HESAPLAMA YÖNTEMLERİ

The multilevel marketing system which has been mentioned frequently nowadays takes place in marketing literature at direct selling, a non-store retailing’s subsection. In the multilevel marketing system that is a type of direct selling, there are two different selling incomes promised for the direct sellers. One of them is selling income which occurs to sell products and the other is a payment income over a new member’s selling who is sponsored by an old member referred as sponsor. The multilevel marketing firms can use different compensation plans and income calculation methods when income is distributed to their members. These compensation plans and income calculation methods in multilevel marketing system have been explained in this research.

I can do better: Mexican direct sellers of beauty products

Subject area Marketing; direct sales and networking in marketing. Study level/applicability Undergraduate marketing students. Case overview What are the main problems faced by direct sellers in Mexico within a selling context based on social networking? This case has the objective to approach the difficulties direct sellers face in their operations in order to address potential bottlenecks inhibiting the flow of sales. In the present case, direct sellers expressed openly their personal views about the issues they generally had to deal with in order to survive in a highly competitive market, namely the market of cosmetic and beauty products. The decision of whether to implement changes to improve the flow of sells through the network created by direct sellers would eventually affect direct sellers performance given that they are the final appendix of the selling chain. This case helps to develop a direct seller typology for direct selling success. Accordingly, it highlights the importance of every element participating in a business. Summarizing, it strategically links direct sellers performance with the overall business performance. Expected learning outcomes The case contributes to the analysis of personality attributes of sellers and the elements affecting market penetration of cosmetic and beauty products. It is also interesting to observe how some foreign brands have become iconic in the local direct selling businesses. This case also contributes to developing tactical competition to strategic planning of marketing of direct selling in emerging markets. Particular learning objectives are as follows: analyse marketing planning from a perspective of decentralization and growth and explore creative possibilities for sustainable growth of this kind of business; stimulate strategic thinking concerning system operation and free bottle necks of selling channels by analysing the effect of system subordination of operations and training to upper levels of vendors; analyse the brand expansion process and loyalty development of customers in a competitive market of products that are sold in network. Supplementary materials Teaching notes are available for educators only. Please contact your library to gain login details or e-mail support@emeraldinsight.com to request teaching notes.

An inquiry into direct selling practices in Mexico: analysis of internal and external fit

This is a qualitative research paper based on in-depth interviews which were conducted to explore qualitative dimensions of direct marketing: sellers’ networking and indirectly consumers’ preferences on direct sales. The paper describes direct selling for the marketing of beauty products supported by social networking among sellers. The objective and originality of this work is to approach qualitatively the difficulties Mexican direct sellers face in order to address potential bottlenecks in their current business operations.

Redirecting direct selling: High-touch embraces high-tech

Direct selling, defined as a sales channel without a fixed retail location, was built on the premise of leveraging an individual's social networks. This industry is being redirected by embracing social media; here, the challenge lies in providing the benefits of face-to-face selling, augmented by social media. An examination of the Direct Selling News ‘Global 100 Top Direct Sellers’ found that Facebook, YouTube, and Twitter represent the most widely employed social networks in the industry. While 76% of direct sellers utilize social media for promotional purposes, 55% use it for recruiting new distributors and 42% use it for reactive purposes. Consumers are the most popular target for social media, followed by distributors and communities. Social media has evolved as a driver of strategy, and will become even more important in the future. Improved customer relationships are developing by listening and reacting to concerns. The transparency created by social media is enhancing trust and ethical organizational cultures. Finally, consumer brand communities are emerging that increase brand value.

Making up exploitation: direct selling, cosmetics and forms of precarious labour in modern Brazil

This paper integrates an analysis of the direct selling system for cosmetics with the debate on precarious labour. Labour flexibility and precarious employment represent very important employment forms in Brazil. The paper focuses on a Brazilian cosmetic company with one million direct sellers. These sellers, nominated as 'consultants', are not publicly recognised as workers. Their activity of selling is highly connected with their own consumption of the products. The paper analyses the growth of this kind of activity over the last 20 years and relates economic transformation to the pattern of labour exploitation. It discusses how the loss of boundaries between work and consumption allows these women to handle all the risks of the distribution of the products. It explores how the contemporary direct selling system benefits from new forms of old precarious labour relations evident in the past.

Empirical study on personality traits, job satisfaction, and reward system preferences

This paper empirically examines the relationship among personality traits, job satisfaction, and preference for reward system using a sample of direct selling employees. A survey is administered to 318 salesmen of direct selling in Taiwan. These findings include 1. If a direct seller’s personality trait is more agreeable, he/she will have higher job satisfaction. 2. If the direct seller’s personality trait tends to be more neurotic then job satisfaction will be lower. 3. If a direct selling company uses social rewards to reward direct sellers, both their intrinsic and extrinsic job satisfaction will increase significantly. 4. If a direct selling company uses material rewards, the extrinsic satisfaction significantly increases only. 5. Direct sellers who are more agreeable tend to prefer social rewards. From a psychological perspective, the understanding of reward system preference assists companies in designing a proper motivation system to meet the actual needs of employees and enhance their job satisfaction. Furthermore, these empirical evidences can facilitate companies’ human resource management strategy. Key words: Personality traits, job satisfaction, reward system, human resource management.

Multiplying Themselves: Women Cosmetics Sellers in Ecuador

With the “feminization of labor,” more women in developing countries are working for pay, but that work is precarious and often exists in the informal economy. This paper examines the situation of Ecuadorian women selling cosmetics through a multilevel direct sales organization in which earnings are dependent on the amount of product sold and the number of sellers recruited. This relatively new type of gendered, paid employment promises to help women achieve balance between paid work and family responsibilities. Using ethnographic methods to explore direct-selling mothers' identities, strategies, and struggles, this study finds that such a balance remains elusive for these women sellers, despite the purported flexibility of direct sales work. It discusses the finding that women think about their paid work and family roles as connected and examines the myth prevalent among direct sellers that successfully balancing paid work and family comes from “organizing yourself.”

Impact of product development and innovation on market share

This study was conducted to identify the relationships between increase in market share through product development and innovation. Many studies have been done on the concept of product development and innovation and much of what has been written tends to discuss this concept as a veritable tool for improving the life cycle of a product without substantial relation to market share enhancement. The population from where samples (respondents) were drawn included product developers, marketers, advertising practitioners, and salespersons in organisations and direct sellers of commodities. There was need to visit the salespersons of organisations and direct sellers so as to ascertain if motivation existed in selling, and if selling more arises from the introduction of a new product or new uses for a product. Direct sellers were interviewed to ascertain if there was any correlation between higher profits and the introduction of a new product and/or new uses for a product. Questionnaires, interviews and direct observation (when new products are brought to the attention of direct sellers and salespersons) were the techniques used for data collection in this study. Direct sellers were observed to underscore their joys and/or disappointment at new products. The results of the survey were interpreted using the Likert model through SPSS analysis, as it is the case with this type of investigative research. Also, recommendations and conclusions were made based on the findings, and conclusions were drawn highlighting the main issues of the study.

An Assessment of the Use of Technology in the Direct Selling Industry

Although research exists on the use of technology in sales, very little addresses the adoption, use, and success of technology in the direct selling industry. In response to this dearth of knowledge, we conducted an exploratory study to examine how direct sellers use technology to link the firm to its customers and its sales force, as well as how technology is used to facilitate interactions between the sales force and customers. In an industry that has historically differentiated itself by face to-face, personal relationships, we explore the possibly new direct selling environment brought on by the technology revolution. Through in-depth, open-ended interviews, we provide the groundwork for understanding how direct selling firms use technology to develop a competitive advantage while still maintaining strong personal relationships with consumers.

DIRECT SELLING ETHICS: AN EXPLORATORY INVESTIGATION ON TURKISH DIRECT SELLERS

This study investigates the ethical evaluations of Turkish direct sellers of ethical dilemmas involving consumer complaints. In addition, the effects of market competition as well as some individual factors such as demographics, ethical ideology, locus of control, and Machiavellianism on direct sellers’ judgments are also examined. The results suggest that the level of perceived market competition, formal education, external locus of control, relativism, and Machiavellianism explain the ethical evaluations of Turkish direct sellers.

Building down and dreaming up

Scholars and journalists have heralded the spread of direct sellers like Avon and Amway in the developing world as providing a training ground for capitalist entrepreneurs. By examining ethnographic evidence from Omnilife, a Mexican producer of nutritional supplements, I argue that person-to-person marketing is not a rationalist response to neoliberal economic reforms but, rather, a spiritual one. Quasi-religious organizations like Omnilife promise workers a renewed self-image that restores the balance between individual interests and obligations to others that has been disrupted by neoliberal economic reforms. In pursuing this total transformation, workers accept mechanisms of control that mask the company's overriding profit motive.

Gender differences in the distribution of cocaine and heroin in Central Harlem

Objective: This article investigates the extent to which users of crack, powder cocaine and heroin in Central Harlem participate in various roles involved in distributing these drugs, examining gender differences among distribution roles. Methods: Several strategies were combined to acquire a sample of 655 hard drug users and sellers who self-reported demographics, drug use and other factors in a face-to-face interview. Chi-square analyses were used to examine factors associated with having drug distribution roles. Results: More than two-fifths ( N = 269) of all respondents self-reported participation in at least one current distribution role. The most common roles were acting as a middleman, steering buyers, holding drugs or money, and transporting drugs. Distributors were more likely to have HIV, previous drug treatments, and less education, employment or housing, but had higher incomes than users. A higher proportion of women reported drug distribution roles, but among distributors, men were twice as likely women to be direct sellers and transporters of drugs, and to perform more distribution roles. Conclusions: Gender contrasts support previous research indicating male dominance of drug distribution roles. Previous studies may underestimate women's participation in distribution roles. Drug treatment programs are encouraged to augment existing relapse prevention activities with distribution prevention efforts.