Who Benefits The MLM System? Case Study on Consumer Behavior Multilevel Marketing

Abstract

This research explores who really benefits from the Multi-Level Marketing (MLM) system with a case study of consumer behavior regarding Oriflame products. This research uses qualitative methods with a case study approach to understand the dynamics and motivations behind consumer participation in MLM. The focus of this research is to explore how attitudes, subjective norms, and perceived behavioral control influence consumers' intentions and actions in joining and remaining in MLM, how external stimuli and previous experiences influence consumer behavior. The locus of this research involved five different women's communities, namely posyandu administrators, gymnastics community, Beauty Community members, weekly social gathering founders, and weekly regular recitation members, who were selected through purposive snowball sampling. The results show that despite the potential for significant financial gain and personal development, distrust of the business model and challenges in product sales often hinder long-term success. This study contributes to the literature on consumer behavior in the MLM context and provides recommendations for companies to increase transparency and support for distributors.