A Case Study: The Significant of Word-of-Mouth and Internet to Direct Selling

Abstract

The increase in distribution channels and internet marketing result in health competitive in the business environment and the companies are forced to push themselves to a very edge of their capabilities. Ultimately the success of the companies relies on their human resources and business and marketing strategies. So the concept and statuaries of the direct selling have become an increasingly used method in order to enhance the business to customer market. The purpose of this study is to provide an understanding of direct selling and used in market strategy and tool to develop a marketing strategy in the future. To reach this purpose, the researchers have researched on Q-NET Company. In today's world human interactes with each other on daily base and the internet and other social media increases the interaction, and to creating a positive “Word of Mouth” as promotion tool is task as it plays an important role.The researcher explains the individual sources of “Word of Mouth” on the purchasing decision about the product. The researcher had tried to explain the dismal performance of direct selling, as compared to the normal selling process. In recent year the direct selling have seems some down due to increase in internet buying and selling, the past experience of individuals with the different direct selling companies and the scams. The research design employed a quantitative approach. This study used the survey research via questionnaire to collect the data of participants’ attitudes on each identified factors. The questionnaire used 15 closed-ended questions on survey instruments. Participants rated the questions based in a closed-ended 1-to-5 likert scale format .The survey was distributed by the researcher to current employees of “Q-Net”. The sample size of this study was 284 respondents. In this study, the multiple regression analysis was employed to measure the relationship between 9 independent variables and receptivity to direct selling experience. The score of Beta weight presented that all independent variables had positive statistical significant effect to direct selling acceptation. Among the 9 factors, the strongest influencers of the highest to lowest were creditability, trust, personal reference, search engine, online user reviews, price, brand, security issues and refund policy. As per the independent t-test analysis for gender. There are significant differences means between males and females among the factors. This study might contribute not only to a better understanding on what and how strongly the factors are involved consumer purchasing decisions but also this study provides a direct selling company standpoint such the effectively manage and recommendations. However, direct selling companies should keep in mind that the consumers behavior might change in time to time especially in the direct selling market. Should investigate the consumer behavior in time to time and adapt the product and services to serve as the customer requires.