Causes of the Existence of Unappreciated Multi-Level Marketing Companies in Ho Chi Minh City

Topics: Multi-level marketing, Ho Chi Minh, Ho Chi Minh City Pages: 3 (1028 words) Published: December 9, 2012
In Vietnam, with the development of the economy, Multi-level Marketing experienced was at a particular position in business models. MLM companies, however, could not expand their brands widely because of several problems. An aim of our research was to determine what the reasons were toward attitude of consumers. We have carried out observations of MLM companies in Ho Chi Minh City, along with conducting a survey (questionnaire) on some groups of theirs customers. Participants was delivered questionnaires and interviewed. Other accurate information about the essence of MLM was collected to get the most objective point of view. Results indicated that the products’ quality versus theirs price were not balance enough to convince the consumers. To increase the numbers of people appreciated, the information of MLM model and products should be communicated properly and the products’ quality should be improved.

Since Viet Nam joined WTO, more and more merchandises from other countries have been poured into Viet Nam. There are various distribution modes to bring products to customers, among which is the Multi-Level Marketing (MLM) called as Network Marketing or Direct Sales. Several researchers have been performed in this method of delivering goods. Ross (2008), Sales (2010), Myers (2011) studied the differences between ‘pyramid structure’ and ‘pyramid schemes’. Brodsky, N. (1998) depicted how MLMs churn through human relationships. Mills, A.C. (1996) captured the "stink" of MLM pathology and culture most vividly. The exposing fraud, cult-like tendencies and deception of a particular MLM company is revealed (Scheibeler, E.; 2004). According to experience, Fitzpatrick, R.L. (2002) described ten untruths of MLM which is lurked by ten good things. However, there is little information available on the reason why MLM companies have not been appreciated despite their approval by government and some others leading networkers. This purpose of...
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