Participation and losses in <scp>multi‐level</scp> marketing: Evidence from a Federal Trade Commission settlement

Bäckman, Claes; Hanspal, Tobin

doi:10.1002/cfp2.1137

Cited by 6 publications

(3 citation statements)

References 36 publications

(77 reference statements)

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“…On the other hand, those who do not have a secure level of spousal income or insurance may not feel comfortable with the risk associated with MLM work. This appears to align with prior research indicating that higher median household income tends to predict higher MLM participation (Backman & Hanspal, 2019). This could also hold true for individuals who are not married.…”

Section: Decent Worksupporting

confidence: 89%

Beyond "Hey Hun!" and #BossBabe: Motivations for Military Spouse Involvement in Multi-Level Marketing

Brown¹

2022

Preprint

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Military spouses are one of the most under- and unemployed groups in the United States labor market. Many attribute this to a transient lifestyle that is characterized by relocation every three to five years, disrupting the careers of many spouses. As one means of employment, some military spouses have turned to multi-level marketing (MLM) organizations. However, MLMs are known to be risky and costly, with high levels of financial failure. Why, then, are military spouses involved with MLMs at such high rates? Using a mixed methods approach, this study examined survey data (n = 161) and interview data (n = 16) from military spouses who are involved in multi-level marketing organizations in order to answer two key research questions: 1) Why do military spouses join multi-level marketing organizations? And 2) Why do military spouses remain with multi-level marketing organizations? Using data from exploratory analyses and follow up one-on-one interviews, I highlight various factors that influence a military spouse’s journey in MLMs. Experiencing the life shifts of having children, enduring military moves, and undergoing periods of self-reflection creates various needs for the military spouse. These needs merge with existing MLM product use to lead the military spouse to believe that joining the MLM organization will meet those needs. The decision to stay or leave the MLM organization ultimately comes down to the degree to which a military spouse experiences job embeddedness across four different categories: lifestyle, finances, community, and organizational practices. This study contributes data which shed light on why military spouses pursue and maintain MLM employment, concluding that MLM employment does meet the varied needs of military spouses. Additional supports for military spouses from various organizational and governmental sources are discussed to help ensure that military spouses are better equipped to make the best employment-related decisions to meet their needs.

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Section: Decent Worksupporting

confidence: 89%

Beyond "Hey Hun!" and #BossBabe: Motivations for Military Spouse Involvement in Multi-Level Marketing

Brown¹

2022

Preprint

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“…Elemental traits are the underlying predispositions that result from genetics and people's early learning experiences (Mowen, 2000). The Big Five personality traits are included in elemental traits that influence consumer behavior (Bäckman & Hanspal, 2022; Mowen, 2000): openness to experience, conscientiousness, extraversion, agreeableness, and neuroticism (McCrae & Costa, 1999). Each of these traits has a genetic origin (McCrae & Costa, 1987).…”

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

Personality, financial risk‐taking attitude, and older individuals' stock investment decisions

Liu,

Del Asebedo,

Pearson

2023

Fin Plan Rev

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This study investigates the relationship between personality traits and older individuals' stock investment decisions using structural equation modeling. The results suggest that greater openness and extraversion are associated with a higher propensity to participate in stock investments and hold a larger proportion of stock investments relative to their other financial assets. Additionally, the findings suggest that those with greater conscientiousness and agreeableness are less likely to hold stock investments and tend to hold smaller proportions of stock investments relative to other financial assets. Last, the results indicate that those with greater openness and extraversion are more willing to take financial risks, whereas those with greater conscientiousness and agreeableness display less willingness to take financial risks.

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“…At a macro level, Widmier et al (2020) submit that direct selling has higher penetration in countries with lesser economic freedom and greater income and inequality. In the US, areas with higher direct selling penetration are those with median household income and higher self-employment share (Bäckman & Hanspal, 2022). At the individual level, among the top reasons for joining include social persuasion (Bordoloi, 2019;DeLiema et al, 2021;Jyoti, 2022), peer pressure (Khare & Verma, 2016), earnings opportunity (Bordoloi, 2019;DeLiema et al, 2021;Gbadeyan & Olorunleke, 2014;Kumar & Satsangi, 2021;Oladele & Laosebikan, 2019;Oloveze et al, 2021;Srilekha & Rao, 2016), freedom of time (Kumar & Satsangi, 2021;Srilekha & Rao, 2016), low investment (Bordoloi, 2019;Gbadeyan & Olorunleke, 2014;Kumar & Satsangi, 2021), and helping others (Jain et al, 2015).…”

Section: Distributor Levelmentioning

confidence: 99%

Direct Selling a Controversial Business Model: Recent Development and Future Research Agenda

Chong¹

2022

JTMB

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Direct selling is one of the earliestdistribution models that iscurrently used in the modern commercial world. Direct selling started as a business model and subsequently evolve to becoming a global phenomenon. There are extant scholarly efforts on this research theme in recent years. However, an effort to organise the literature on this theme is lacking. This paper aims to provide insights into the recent development and future research opportunities in direct selling. This paper conducts a systematic structured literature review on the scientistic discoveries in the past ten years. Research papers are carefully synthesised, compare, and contrasted to present a state-of-the-art understanding of the research topic. The reviews conducted in this paper were categorised into four different levels, namely industry level, direct selling organisations’ level, distributor level, and consumer level. This scholarly effort makes a significant contribution to the extant literature on direct selling.

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Participation and losses in multi‐level marketing: Evidence from a Federal Trade Commission settlement

Cited by 6 publications

References 36 publications

Beyond "Hey Hun!" and #BossBabe: Motivations for Military Spouse Involvement in Multi-Level Marketing

Beyond "Hey Hun!" and #BossBabe: Motivations for Military Spouse Involvement in Multi-Level Marketing

Personality, financial risk‐taking attitude, and older individuals' stock investment decisions

Direct Selling a Controversial Business Model: Recent Development and Future Research Agenda

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