Consumer Behavior on Amway Products

Topics: Amway, Nutrilite, Consumer behaviour Pages: 4 (1243 words) Published: August 15, 2013
Marketing starts with the needs of the customer and ends with his satisfaction. When everything revolves round the customer, then the study of consumer behaviour becomes a necessity. It starts with the buying of goods. Goods can be bought individually, or in groups. Goods can be bought under stress (to satisfy an immediate need), for comfort and luxury in small quantities or in bulk. For all this, exchange is required. This exchange is usually between the seller and the buyer. It can also be between consumers and environment; they formulate their plans for marketing. Definition of consumer behavior:

“Consumer behaviour can be defined as the decision-making process and physical activity involved in acquiring, evaluating, using and disposing of goods and services.” Today, network marketing is a multi-billion dollar business. A number of companies have adopted this business model. It has grown into one of the driving forces of the 21st century economy. Network marketing is now regarded by many business leaders as the business for future. But this marketing method was misunderstood as a get-rich-quick-scheme. It is also too common for network marketers worldwide to answer the legality and soundness of their business.

Network marketing was actually pioneered in the year 1945 by Carl Rehnborg, the first person to introduce a compensation plan to market his nutritional products. His company was originally called California Vitamin Company and on latter it was renamed as Nutrilite Products Inc.

Using a multi-tiered plan, it allowed any Nutrilite distributor to get a 3% commission from a downline on top of the regular commission from his own sales. With this system, Nutrilite Products Inc. achieved stunning results as compared to the other companies that were using direct selling method. Privately held by the DeVos and Van Andel families of U.S,...
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