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“Building Up personal Level Relations: Case of Russian Direct Sales and Industry ”

“Building Up personal Level Relations: Case of Russian Direct Sales and Industry ”. 28 Sep 2011, Saunders College of Business, Rochester Institute of Technology. Introduction and research background. Direct selling includes person-to-person relations

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“Building Up personal Level Relations: Case of Russian Direct Sales and Industry ”

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  1. “Building Up personal Level Relations: Case of Russian Direct Sales and Industry” 28 Sep 2011, Saunders College of Business, Rochester Institute of Technology

  2. Introduction and research background • Direct selling includes person-to-person relations • Direct sales industry shows quite stable growth rates • Modern media channels are not that frequent in certain regions (low Internet penetration rates)

  3. Research • Main research purpose – define most common sales practices is Direct Sales Industry • Goals: • Identify distributor relations with customers and motivation • Identify customer communication channels and objectives • Identify the most common problems in relationship development

  4. Theoretical background • Person-to-person connections are considered to be very important on B2C (Saxe, Weitz 1982, Beatty et al., 1996, Verbeke et al. 2011) as well as B2B markets (Singh, Koshy 2011). • Community influence on consumer behavior (Dellarocas 2003) • Emerging media channels use

  5. Research design

  6. Russian Direct Sales Industry Research project • Data collection Feb – April 2011 • Over 6500 respondents fill in the questionnaire • Over 65 regions of Russian Federation • 16 companies

  7. Several descriptive outtakes • Gender

  8. Several descriptive outtakes (2) • Distributor age

  9. Main results

  10. Distributor motivation: why they do it.

  11. Major problems in customer relations

  12. Problems in starting customer relations

  13. Benefits for customers (perceived)

  14. Customer communication channels

  15. Conclusions • Customer relations are in high priority for most distributors. • Customer benefits are connected with relational, not transactional features. • In general distributor performance depends on Company-consumer relations. • Most distributors fail to use modern media and communication channels.

  16. “Building Up personal Level Relations: Case of Russian Direct Sales and Industry” THANK YOU FOR YOUR ATTENTION! Alexander Rozhkov arozhkov@hse.ru

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