Spirit of success: dynamics of multi-level marketing and its influence on customer loyalty

Abstract

Multi-level marketing is a growing industry. It is a field that thrives on working together and the people involved understand how important it is to forge bonds within the group and amongst their customers. One good example of such company is Avon where its dealers have the opportunity to earn through the purchases of their customers and/or the sales made by their recruits as well. This study aims to understand the overall integrated perception of team oneness of customers, dealers, and managers, and how these are all related to customer loyalty. Through a descriptive research design, the study utilized both surveys and interviews. 100 customers and 124 dealers were surveyed while seven managers were interviewed. The results showed a strong correlation between customer perception on team oneness and customer loyalty and a moderate correlation between dealer perception on team oneness and customer loyalty. It showed that there is no significant difference between the two groups. The interviews also proved that there is overall positive and good-natured relationship between managers and dealers. In addition, managers strive to ensure that their dealers are familiar of each other. It would be more helpful if managers could promote regular meetings. Also they could delineate the line between them and dealers. More studies should be done in this topic and help customers discover that legitimate MLMs actually exist.