Current Status and Future Directions for Research on Direct Selling Channels

by Gerald Albaum

• 直銷通路管理報告• 指導教授﹕陳得發教授• 學生 : 王昭雄 • 學號﹕ 8941812• 中華民國九十一年三月十三日

•Introduction

• Schultz(1992) predicts that retailing will become direct/database marketing.

• Wotuba (1992) has stated that as direct selling approaches the year 2000, if some major challenges in its customer market and its labor market.

• The purpose of this article is provide an overview of the recent empirical research in direct selling.

What is direct Selling• Personal contact between a salesperson and a

customer away from a fixed business location such as a retail store.

• Several firms are household names, including Avon, Amway, Tupperware, May Kay……

Major Management Issues in Direct Selling

• Two major areas of managerial concern in direct selling are the company itself or the selling side , and the market or the consumer side.

• Although each study has been categorized as studying some issues of either the selling or customer sides, there are some studies that deal with both areas of concern.

The Selling Side of Direct Sales

Direct Selling Association conducts a study which has three objectives

1. Estimating the total U.S. retail sales companies,

2. Determining the total number of salespeople involved in direct selling,

3. Providing basic information on industry practices.

The Selling Side of Direct Sales

• Enis(1986): The study was concerned with the four major “players”

in the industry – customers, sales, representatives companies, and society.

• Elearnor May(1991):

In this study direct selling in view as a unique channel of distribution for consumer goods, as compared with other forms of retailing.

•

The Selling Side of Direct Sales

• Wotrub(1990): A major research effort has examined the sales

force turnover problem.• Related to the issues of salesperson turnover

and job satisfaction is motivating salespeople to perform.

• Other areas of research interest on the selling side include the effect of goal-setting in the performance of independent

The Customer Side of Direct Sales

1. Determine the extent which consumers buy from direct sales companies and document the demographic characteristics of purchasers and nonpurchasers.

2. Obtain perceptions of the advantages and disadvantages of buying from a direct sales company.

3. Investigate the perceived risk of buying from a direct sales company, as compared to buying through other modes of retail selling.

Peterson, Albaum, and Ridway

The Customer Side of Direct Sales

1. The most recent broad-based study from the consumers’ perspective also looks at how a company might best integrate one or more direct marketing techniques-e.g.

2. In a major study of in-home shopping needs of mature consumers.

3. Another area of research interest has consumers involvement with the party plan method of direct selling.

The Customer Side of Direct Sales• For personal care products1. Usage rate and brand preferences of the product category.2. Travel time to a party and to the retail store

where personal care products were normally purchased.

3. Social relationships between hosts and guests and between guest and the sales representative.

4. Amount purchased at the party.5. Prior home party attendance.

Is the Research Useful1. What are the most three important issues facing

sellers in general today? (a) Legal/regulatory issues (b) Recruiting/turnover (c) Unethical behavior2. What are the three most important problems facing your company today in its direct selling operation? (a) Recruiting (b) Maintaining independent contractor status (c) Negative image of distribution method