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Research Outline
Prepared for Amanda K. | Delivered January 7, 2020
Perceptions of Multi-level Marketing Companies
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Goals
To determine how consumer perceptions of multi-level marketing influence purchase decisions and the factors that influence consumer attitudes to multi-level marketing to assist in developing a business model and go to market strategy.
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Early Findings
Consumer Perceptions of Multi-Level Marketing
A popular new series on Showtime, "On
Becoming a God
in Central Florida," has influenced consumer perceptions of multi-level marketing companies. The show depicts multi-level marketing companies as being "
s
c
a
m
m
y
pyramid schemes," and there is now a suggestion that the brand is being "ridiculed, discredited, and widely viewed as socially harmful" as a result. The industry itself is publicly reacting to the show urging multi=level marketing companies not to respond amidst fears that a reaction will create a perception that the show is close to the truth.
A study of
12 multi-level
companies throughout 2019 found that 10 of the companies lost over one-third of their value.
Wall Street has become increasingly
uncomfortable
with these companies due to perceptions of deceptive practices and consumer losses.
There is a new and growing perception on "
Main Street
" that multi-level companies are deceptive, illegal, and come with a range of negative social costs.
A further
perception
is that multi-level companies are not about the product, company culture, customer loyalty, or values. Instead, they are about recruiting competitors and being your own customer.
Consumers do not actually seek out the goods of multi-level marketing companies. Many do not see the products as
distinctive
. Often the products are considered to be
overpriced
, lack efficacy, and of poor quality.
R
e
d
d
i
t
has an
anti-MLM channel
, which has grown in popularity recently. The channel contains numerous comments of outrage regarding multi-level marketing companies.
YouTube
has channels of anti-multi-level marketing videos telling stories of poor experiences with multi-level marketing companies.
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