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Antecedents of Distributors Turnover in Multilevel Marketing

Author

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  • Dr. Abdul Assis Koroth

    (Associate Professor, Dept.of Commerce, Govt. College Madappally, Kerala, India.)

Abstract

The concept of Multilevel Marketing or referral marketing is a method of product distribution. The products are moved through independent distributors. The distributors are given an opportunity to introduce other distributors to the business. Instead of incurring massive media advertising and sales promotion cost, the savings are passed on to distributor consumers. At the same time products are available to consumers at wholesale prices. Despite the worldwide growth in direct sales, sales force turnover continues to constitute a major problem for direct selling organisations. The level of attrition comes at a significant cost, not only in terms of recruiting, but also in terms of customer dissatisfaction at losing their direct seller contact with whom they have possibly built a valued relationship. This paper describes the problems and sets out a research paradigm to investigate the issue of distributor’s turnover in multilevel marketing in Kerala’s environment. This study focuses in particular on the following key areas of research: unmet expectations, job image, job satisfaction, and stated intention to quit as antecedents of distributor turnover in multilevel marketing.

Suggested Citation

  • Dr. Abdul Assis Koroth, 2014. "Antecedents of Distributors Turnover in Multilevel Marketing," Indian Journal of Commerce and Management Studies, Educational Research Multimedia & Publications,India, vol. 5(1), pages 62-69, January.
    • Handle: RePEc:aii:ijcmss:v:5:y:2014:i:1:p:62-69
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    References listed on IDEAS

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    1. Cohen, Aaron, 1993. "Work commitment in relation to withdrawal intentions and union effectiveness," Journal of Business Research, Elsevier, vol. 26(1), pages 75-90, January.
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