IMPACT OF MOTIVATIONAL FACTORS ON THE WILLINGNESS TO ADOPT MULTILEVEL MARKETING AS A SOURCE OF INCOME

The Indian direct selling industry has been beating the economic slowdown, notching up remarkable growth over the years and has been expanding its horizons in India as a rapidly emerging alternate distribution channel. Indian direct selling industry has provided employment to 40.31 lakh distributors in 2015-16. In FY 2015-16, the direct selling industry had sales of Rs 8,308.5 crore as against Rs 7,958.3 crore of FY 2014-15 by registering a growth rate of 4.4 per cent and are expected to grow to Rs. 2,58,261 million by 2024-25. Multilevel marketing (subset of direct selling) is the most merest and powerful way of setting up own business and to create sales revenue and profits. It offers true wealth, financial independence, and personal time freedom. This research paper proposes to examine the influence of motivational factors on the willingness to adopt Multilevel marketing as a source of income. The present research work follows descriptive research design. The sample of the research work consisted 381 registered distributors of different Multilevel marketing companies like Amway, Modicare, Oriflame, Tupperware, Avon etc. from Delhi/NCR. which have been chosen by applying purposive judgmental sampling design The findings designate that Multilevel marketing products attributes, personal and social factors have a significant positive influence on the willingness to adopt Multilevel marketing as a source of income. Multilevel marketing company attributes do not have a significant positive influence on the willingness to adopt multilevel marketing as a source of income. IndexTerms Direct Selling, Multilevel Marketing, Multilevel Marketing Distributors, Motivational Factors. Introduction Whilst the economy is showing signs of slowdown, Multilevel marketing industry is gearing up on its mission to make its presence felt in the global arena. Multilevel marketing industry is spreading its wings to one of the world’s leading business economies. In the light of growing health concerns in the world, Multilevel marketing industry is also working extensively to expand its product range to give the consumer the best in terms of health and product satisfaction. Multilevel marketing is a paradigm shift in terms of distribution of products; bypassing the intermediaries in the traditional channels by going direct to the ultimate consumers. It is a process of working up a Multilevel of consumers getting unique and better quality products at a reasonable price. Multilevel marketing industry is seen as an opportunity to shift wealth from the hands of the big giant conglomerates to the hands of the man in the street. Multilevel marketing industry aims to build a long-term asset that will provide participants with a residual and passive income for a long time to come (Tan and See, 2005). The success of any Multilevel marketing company depends on its strong background and sound system. The low joining amount and the potential to earn as much as one wants attracts the distributors. A Multilevel marketing system that has a perfect balance between quality and price in product range, best in the industry marketing plan, wonderful education system and a highly supportive management on a single platform, ensures the stability as well as growth of a Multilevel marketing company. Direct Selling Direct selling is the marketing and selling of products directly to consumers away from a fixed retail location (Peterson et al., 1989). According to the World Federation of Direct Selling Association (WFDSA), consumers get benefits from direct selling because of the convenience and services it provides, including personal demonstration and explanation of products, home delivery, and generous satisfaction guarantees. Direct selling benefits individuals who desire to get an opportunity to earn income and also build their own business, and it benefits customers who seek an alternative to regular shopping methods. Direct selling companies market their products through person to person method, away from fixed retail locations, through a Multilevel of independent sales people. Some common types of direct selling methods are telemarketing, direct mail, and direct response (www.idsa.co.in retrieved on 19 August, 2015). Growth Outlook of Direct Selling Industry in India The Indian direct selling industry is expanding and flourishing at a very fast speed. It has been beating the economic slowdown, notching up remarkable growth over the years and has been expanding its horizons in India as a rapidly emerging alternate distribution channel, boosting self employment and holds immense importance to the economic system, contributing to the exchequer, providing financial stability and encouraging women empowerment. Over the last two decades, direct selling industry has made it approach to every turn and strata of the country and it is becoming trendy with every passing day. According to the survey conducted by IDSA and PHD Chamber, Indian direct selling industry has provided employment to 40.31 lakh distributors in 2015-16. In FY 2015-16, the direct selling industry had sales of Rs 8,308.5 crore as against Rs 7,958.3 crore of FY 2014-15 by www.ijpub. org © 2018 IJCRT | Volume 6, Issue 1 February 2018 | ISSN: 2320-2882 IJPUB1801245 International Journal of Creative Research Thoughts (IJCRT) www.ijpub. org 1525 registering a growth rate of 4.4 per cent and are expected to grow to Rs. 2,58,261 million by 2024-25 (http://timesofindia.india times.com/business/india-business/direct-selling-industry-to-grow-around-3-folds-by-fy25/artic leshow/57294768.cms). Direct selling companies include two types: Single level marketing (SLM) and Multilevel Marketing (NM) or Multilevel marketing (MLM).  Single Level Marketing – This type of marketing rewards the sellers for their personal sales activity. They are not permitted to sponsor any other distributorship or sales personnel. The income comes only in the form of commission or bonus.  Multilevel Marketing or Multi Level Marketing Multilevel marketing is a subset of direct selling and is also known as ‘multilevel marketing’ or ‘multilevel direct selling’ (Muncy, 2004). It is a method of distribution of products or services from manufacturer to end users directly through distributors using word of mouth marketing (Coughlan and Grayson, 1998). It includes both selling of products or services as well as recruitment of other sales people as down line (Clements, 2002). Under Multilevel marketing, distributors get commission at multiple levels. They get commission on their individual sales as well as on the sales made by their recruits and their recruits’ recruit (Brodie et al., 2002). It is not only for those who need the products, but also for who need an additional income (Bloch, 1996). Focus of the Study The key participants for the existence, success, and growth of Multilevel marketing organizations are the distributors. There is currently lack of studies related to the impact of motivating factors on the willingness to undertake Multilevel marketing as a source of income. Therefore, an exploratory research work has been done with a sample of 381 active distributors working in different Multilevel marketing companies in Delhi/NCR to answer the following research questions: RQ1) What is the influence of the perception of Multilevel marketing company attributes/characteristics on the willingness to undertake Multilevel marketing as a source of income? RQ2) What is the influence of the perception of Multilevel marketing company products on the willingness to undertake Multilevel marketing as a source of income? RQ3) What is the influence of the personal factors on the willingness to undertake Multilevel marketing as a source of income? RQ4) What is the influence of the social factors on the willingness to undertake Multilevel marketing as a source of income?