Determinants of income for multilevel distributors in Cuenca (Ecuador)
DOI:
https://doi.org/10.5585/remark.v19i3.13343Keywords:
Multilevel marketing, Distributors, Income, Commissions.Abstract
Objective: This paper analyses the variables that significantly influence the income for the distributors of a multilevel marketing company in Cuenca (Ecuador), an activity that has grown in recent years in terms of workers and income in the country.
Methodology: A cross-sectional descriptive study was conducted with 92 distributors and a multiple regression was applied to optimize the variables that impact the income they obtain from multilevel direct sales.
Results: The results indicate that the majority of multilevel distributors are female, their level of education corresponds to basic and intermediate level, with moderate experience in business. Moreover, it is clear that seniority in the company, purchases and training are positively related to the income for the distributors.
Originality/relevance: The research is relevant for multilevel distribution entrepreneurs to design more specific strategies that have an impact on distributor sales.
Theoretical/methodological contributions: This analysis contributes to the empirical literature on the nature of multilevel selling in Ecuador, and also provides an analysis of this retail business in the third largest city in the country.
Downloads
References
AEVD - Asociación Ecuatoriana de Empresas de Venta Directa (2015). Estudio de Impacto Sector de Venta Directa. Ecuador: Mind Marketing. Recuperado el 9 de julio de 2020 de: https://mydokument.com/queue/estudio-de-impacto-sector-venta-directa-enero-2015.html
AEVD - Asociación Ecuatoriana de Empresas de Venta Directa (2020). Website. Recuperado el 9 de julio de 2020 de: http://aevd.ec/
AEVD-Asociación Ecuatoriana de Empresas de Venta Directa (2020). Estatuto de la Asociación Ecuatoriana de Empresas de Venta Directa. Recuperado el 9 de julio de 2020 de: http://aevd.ec/estatutos-aevd/
Barreiros Porto, R., Da Rocha Costa, R. & Alberto De Morais Watanabe, E. The multilevel effect of marketing activities on sales, revenue and profitability in a micro-enterprise. Review of Business Management, 19 (65), p. 432-452.
Barreto, M. H. (2015). La industria del network marketing y la producción de nuevas subjetividades. Nómadas, (43), 75-93.
Boada, A. J., & Mayorca, R. (2011). Planificación de demanda, en empresas con estilo de venta por catálogo. Revista Lasallista de Investigación, 8(2), 124-135.
Brodie, S., Stanworth, J., & Wotruba, T. R. (2002). Comparisons of salespeople in multilevel vs. single level direct selling organizations. Journal of Personal Selling and Sales Management, 22(2), 67-76.
Brodie, S., & Stanworth, J. (1998). Independent contractors in direct selling: self-employed but missing from official records. International Small Business Journal, 16(3), 95-101.
Cahn, P. S. (2007). Ventas directas en Morelia, Michoacán. Alteridades, 17(33), 53-61.
Chen, J. S., Weng, H. H., & Huang, C. L. (2016). A multilevel analysis of customer engagement, its antecedents, and the effects on service innovation. Total Quality Management & Business Excellence, 29(3-4), 410-428.
Ciongradi, I. M. (2017). Multilevel Marketing for everybody is not forever. Bulletin of the Transilvania University of Brasov. Series V: Economic Sciences, 10(59).
Coughlan, A. T., & Grayson, K. (1998). Network marketing organizations: Compensation plans, retail network growth, and profitability. International Journal of Research in Marketing, 15(5), 401-426.
Dai, F., Wang, K. Y., & Teo, S. T. (2011). Chinese immigrants in network marketing business in Western host country context. International Business Review, 20(6), 659-669.
De Vicuña Ancín, J. M. S. (2001). La distribución comercial: opciones estratégicas, Madrid: ESIC Editorial.
Ekos (2016). Ranking 2016 de las 100 mejores empresas de venta directa y multinivel del mundo. Recuperado el 1 de diciembre de 2018 de: https://www.ekosnegocios.com/articulo/ranking-2016-de-las-100-mejores-empresas-de-venta-directa-y-multinivel-del-mundo
García Sánchez, M. (2004). Marketing multinivel. Madrid: Editorial ESIC.
González Benito, J. (2006). Efectos competitivos de la integración estratégica de la gestión de compras. Universia Business Review, 4(12).
Hatchaleelaha, S., & Wongsurawat, W. (2016). Multilevel marketing and entrepreneurship in Thailand: A case study. Journal of Research in Marketing and Entrepreneurship, 18(1), 146-160.
Jain, S., Singla, B., & Shashi, S. (2015). Motivational factors in multilevel marketing business: A confirmatory approach. Management Science Letters, 5(10), 903-914.
Keep, W., y Vander Nat, P. (2014). Multilevel marketing and pyramid schemes in the United States: An historical analysis. Journal of Historical Research in Marketing, 6(2), 188-210.
Kishel, G., & Kishel, P. G. (1993). Marketing de rede de vendas – Network sales. A evolução da venda porta-a-porta. São Paulo: Makron Books.
Koroth, A. A., & Sarada, A. K. (2012). Significance of relationship in multi-level marketing and its effect on business outcome. Journal of Business and Management, 3(6), 26-36.
Kotler, P., & Armstrong, G. (2003). Fundamentos de marketing, México: Pearson Educación.
Lee, K. F., y Loi, K. Y. (2016). Towards satisfying distributors in multilevel marketing companies. International Journal of Management and Applied Research, 3(1), 48-64.
Legara, E.F., Monterola, C., Juanico, D. E., Litong-Palima, M., & Saloma, C. (2008). Earning potential in multinivel marketing enterprises. Phyisca A: Statical Mechanics and its Applications, 387(19-20), 4889-4895.
Maisterrena González, M. (2014). Las empresas multinivel como modelo distópico: estudio de representaciones sociales. Aposta. Revista de Ciencias Sociales, (62), 1-27.
Makni, V. G. (2014). Potential of earnings in network marketing and some factors influencing commissions rates: evidence from Bulgaria. Regional Science Inquiry, 6(2), 23-31.
Masi de Casanova, E. (2011). Multiplying themselves: Women cosmetics sellers in Ecuador. Feminist Economics, 17(2), 1-29.
Miquel, S., Parra Guerrero, F., Lhermie, C., & Romero, M. J. (2008). Distribución comercial, Madrid: ESIC Editorial.
Molinillo Jiménez, S. (2014). Distribución comercial aplicada, 2ª ed. Madrid: Esic Editorial.
Ong, C. K., & Ciryl, D.R. (2007). Why Malaysians Join and Stay on in a Multi-Level Marketing Company. ICFAI Journal of Services Marketing, 5(4).
Ongallo, C. (2012). Qué es la venta directa. Madrid: Ediciones Díaz de Santos.
Robledo-Giraldo, S., & Osorio-Zuluaga, G. (2012). Potencial de ingresos pasivos para los distribuidores en empresas de mercadeo multinivel con un plan de compensación binario. Respuestas, 17(2), 13-20.
Rodríguez Salazar, T., & García Curiel, M. (2007). Representaciones sociales: teoría e investigación. Universidad de Guadalajara: Editorial CUCSH-UDG.
Santos, B. V., Spers, V. R., & Graziano Cremonezi, G. O. (2017). As Diferenças entre Marketing Multinível e as Pirâmides Financeiras ou “Esquema de Pirâmides”. Revista Brasileira de Marketing, 16(2), 243-251.
Sparks, J. R., & Schenk, J. A. (2006). Socialization communication, organizational citizenship behaviors, and sales in a multilevel marketing organization. Journal of Personal Selling & Sales Management, 26(2), 161-180.
Villagómez Morales, V. (2019). Ventas directas o de marketing multi nivel: ¿Explotación de mujeres o camino hacia el empoderamiento económico. Economía Coyuntural. Revista de temas de perspectivas y coyuntura, 4(1) (1), 77-97.
Viltard, L.A. 2018. El marketing multinivel: una herramienta para el desarrollo de los mercados de menores recursos. Apuntes Contables. 23, 107-126.
WFDSA- World Federation of Direct Selling Associations (2018). Reporte de Ventas globales y venta por categoría de producto. Recuperado el 1 de marzo de 2019 de: https://wfdsa.org/global-statistics/?lang=es.
WFDSA- World Federation of Direct Selling Associations (2019). Website. Recuperado el 1 de marzo de 2019 de: https://wfdsa.org/los-beneficios-de-la-venta-directa/?lang=es.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2020 Revista Brasileira de Marketing – ReMark
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
