Consumer Responses to Direct Selling: Love, Hate … Buy ? by J. Thad Barnowe and David E. McNabb

Consumer Responses to Direct Selling:Love, Hate … Buy ?by J. Thad Barnowe and David E. McNabb 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 中華民國九十一年五月二十二日

Summary • The paper describes finding from an investigation of consumers’ experiences with a attitudes toward direct selling method. • Demographic differences in purchase behavior and preference for different selling methods are reported. • Along with consumers’ responses to open-ended questions concerning what they like and dislike about direct selling, and their ideas for improvement of direct selling methods.

Introduction • The academic research literature on direct selling is still relatively sparse. • Consumers hold generally negative view about very idea of direct selling. • This study was designed to update and extend the findings of the surveys by Louis Harris and Associates (1977) and the Nowland Organization (1982)concerming consumers’ attitudes toward direct selling. • According to Louis Harris, DS are: 1. represents an intrusion 2. high sales pressure and unfair sales tactics 3. paying a an unfair price for products • According to Nowland, DS are: 1. Overly aggressive 2. capitalize on friendships 3. emphasize selling business opportunities and premiums rather than merchandise and delivery

Method • Sample: • Data were collected through face to face interview with 491 residents in Pacific Northwest metropolitan [Seattle/Tacoma(165), Spokane(150), Portland(176)]. • Survey Instrument • 1. Preferences for alternative selling methods. • 2. Direct selling purchase behavior. • 3. Reactions to direct selling.

Result • Consumers’ Preferences for Selling Methods 97% 83% 57%

Result • Direct Selling Events and Purchases An affirmative answer in suggested by two observations. 1. A vast majority of this study’s 491 respondents (91.9%) had experienced a direct selling encounter in which someone had tried to sell to them door to door, in their own home, at a party in else’s home. 2.More than half of the respondents (58.5%) indicated that they or someone had purchased a product or service sold directly during the past three years.

Result Direct Selling Events and Purchases

Result • Products/Services Purchased Through Direct Selling

Result • Perceived Attributes of Direct Selling

Result

Result • Consumers’ Suggestions for Improvements in Direct Selling

Discussion • Food products, cosmetics, cooking and cleaning items and books and magazines are the leading products bought through direct selling. • The study’s findings also reinforce previous studies which have indicated that women make more purchase through direct selling than do men. • This study’s respondents have provided potentially useful practical advice to the direct selling industry regarding the training and development of salespersons and about the process of direct selling itself.

Discussion • Improving the image of the direct selling industry remains a challenge, especially in light of two development: 1. There are signs that the industry is plateauing at approximately $9 billion in total sales. 2. Direct sellers continue to experience difficulties in recruiting and retaining direct sales persons as women, who traditionally have dominated the industry’s salesforces, increasingly enter more conventional occupations. • The authors’ advice: Listen to the marketplace by maintaining ongoing programs of research. The best ideas for meeting consumers’ needs often come from consumers themselves

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Consumer Responses to Direct Selling: Love, Hate … Buy ? by J. Thad Barnowe and David E. McNabb