Examining stability of multi-level marketing systems

Research output: ThesisMaster's Thesis

Abstract

This study is about the stability of Multi-Level Marketing (MLM) systems.
MLM is an alternative selling method, not more or less ethical than any other ones.

This is not the possibility of getting rich quickly without work neither for MLM company nor for the involved entrepreneurs. But it is also not a swindle for ripping off the customer.

An MLM system is a network of independent entrepreneurs, each of whom builds his own network. They convey the product from manufacturer to customer. MLM uses a method of personal selling, and in this meaning it is a version of direct marketing, but it is certainly not a direct marketing channel.
It is a prefabricated business, which requires no starting capital, and no commercial experience.

In the first part of my thesis I have analyzed MLM by marketing-mix components. In addition having made a review of most common illegal MLM forms, I have examined the situation of MLM in Hungary.

The second part is about the possibilities of modeling MLM systems. Having taken a review of existing models, and I have made a suggestion for mathematical model based on psychological and sociological parameters of a person.

Building the model I have used statistical methods and Fuzzy-logic. The purpose is to answer the question, how successful would be a particular person in a particular MLM system.

The third part contains a review of applied mathematical methods (statistics and Fuzzy-sets), a table of MLM companies in Hungary, and a questionnaire used for building the model.

My most important conclusion is that MLM is an extraordinary efficient selling method which could become a remarkable factor in our country. Achieving this it is necessary to codify the activity of MLM systems.
Translated title of the contributionExamining stability of multi-level marketing systems
LanguageOther
Awarding Institution
  • Budapest University of Technology and Economics
Place of PublicationBudapest
Publication statusPublished - 1995

Fingerprint

Marketing systems
Marketing
Selling methods
Entrepreneurs
Hungary
Direct marketing
Fuzzy logic
Statistical methods
Multilevel modeling
Marketing mix
Mathematical model
Marketing channels
Psychological
Factors
Personal selling
Fuzzy sets
Statistics
Questionnaire

Keywords

  • multi-level marketing
  • marketing

Cite this

@phdthesis{24937f579cbb4f3b99847d004d546d15,
title = "Multi-level marketing rendszerek stabilit{\'a}svizsg{\'a}lata",
abstract = "This study is about the stability of Multi-Level Marketing (MLM) systems.MLM is an alternative selling method, not more or less ethical than any other ones.This is not the possibility of getting rich quickly without work neither for MLM company nor for the involved entrepreneurs. But it is also not a swindle for ripping off the customer.An MLM system is a network of independent entrepreneurs, each of whom builds his own network. They convey the product from manufacturer to customer. MLM uses a method of personal selling, and in this meaning it is a version of direct marketing, but it is certainly not a direct marketing channel.It is a prefabricated business, which requires no starting capital, and no commercial experience.In the first part of my thesis I have analyzed MLM by marketing-mix components. In addition having made a review of most common illegal MLM forms, I have examined the situation of MLM in Hungary.The second part is about the possibilities of modeling MLM systems. Having taken a review of existing models, and I have made a suggestion for mathematical model based on psychological and sociological parameters of a person.Building the model I have used statistical methods and Fuzzy-logic. The purpose is to answer the question, how successful would be a particular person in a particular MLM system.The third part contains a review of applied mathematical methods (statistics and Fuzzy-sets), a table of MLM companies in Hungary, and a questionnaire used for building the model.My most important conclusion is that MLM is an extraordinary efficient selling method which could become a remarkable factor in our country. Achieving this it is necessary to codify the activity of MLM systems.",
keywords = "multi-level marketing, marketing",
author = "Viktor D{\"o}rfler",
note = "Published in Hungarian",
year = "1995",
language = "Other",
school = "Budapest University of Technology and Economics",

}

Dörfler, V 1995, 'Multi-level marketing rendszerek stabilitásvizsgálata', Budapest University of Technology and Economics, Budapest .

Multi-level marketing rendszerek stabilitásvizsgálata. / Dörfler, Viktor.

Budapest , 1995. 116 p.

Research output: ThesisMaster's Thesis

TY - THES

T1 - Multi-level marketing rendszerek stabilitásvizsgálata

AU - Dörfler, Viktor

N1 - Published in Hungarian

PY - 1995

Y1 - 1995

N2 - This study is about the stability of Multi-Level Marketing (MLM) systems.MLM is an alternative selling method, not more or less ethical than any other ones.This is not the possibility of getting rich quickly without work neither for MLM company nor for the involved entrepreneurs. But it is also not a swindle for ripping off the customer.An MLM system is a network of independent entrepreneurs, each of whom builds his own network. They convey the product from manufacturer to customer. MLM uses a method of personal selling, and in this meaning it is a version of direct marketing, but it is certainly not a direct marketing channel.It is a prefabricated business, which requires no starting capital, and no commercial experience.In the first part of my thesis I have analyzed MLM by marketing-mix components. In addition having made a review of most common illegal MLM forms, I have examined the situation of MLM in Hungary.The second part is about the possibilities of modeling MLM systems. Having taken a review of existing models, and I have made a suggestion for mathematical model based on psychological and sociological parameters of a person.Building the model I have used statistical methods and Fuzzy-logic. The purpose is to answer the question, how successful would be a particular person in a particular MLM system.The third part contains a review of applied mathematical methods (statistics and Fuzzy-sets), a table of MLM companies in Hungary, and a questionnaire used for building the model.My most important conclusion is that MLM is an extraordinary efficient selling method which could become a remarkable factor in our country. Achieving this it is necessary to codify the activity of MLM systems.

AB - This study is about the stability of Multi-Level Marketing (MLM) systems.MLM is an alternative selling method, not more or less ethical than any other ones.This is not the possibility of getting rich quickly without work neither for MLM company nor for the involved entrepreneurs. But it is also not a swindle for ripping off the customer.An MLM system is a network of independent entrepreneurs, each of whom builds his own network. They convey the product from manufacturer to customer. MLM uses a method of personal selling, and in this meaning it is a version of direct marketing, but it is certainly not a direct marketing channel.It is a prefabricated business, which requires no starting capital, and no commercial experience.In the first part of my thesis I have analyzed MLM by marketing-mix components. In addition having made a review of most common illegal MLM forms, I have examined the situation of MLM in Hungary.The second part is about the possibilities of modeling MLM systems. Having taken a review of existing models, and I have made a suggestion for mathematical model based on psychological and sociological parameters of a person.Building the model I have used statistical methods and Fuzzy-logic. The purpose is to answer the question, how successful would be a particular person in a particular MLM system.The third part contains a review of applied mathematical methods (statistics and Fuzzy-sets), a table of MLM companies in Hungary, and a questionnaire used for building the model.My most important conclusion is that MLM is an extraordinary efficient selling method which could become a remarkable factor in our country. Achieving this it is necessary to codify the activity of MLM systems.

KW - multi-level marketing

KW - marketing

M3 - Master's Thesis

CY - Budapest

ER -