“A STUDY ON STUDENTS ATTITUDE TOWARDS MULTI-

LEVEL MARKETING WITH SPECIAL REFERENCE TO

THRISSUR DISTRICT”

Project Report submitted to

UNIVERSITY OF CALICUT

In partial fulfillment of the requirement for the award of the degree of

BACHELOR OF COMMERCE
Submitted by

NIYA JOBY

(CCASBCM099)
Under the supervision of

Mr. ASLAM P. S

DEPARTMENT OF COMMERCE

CHRIST COLLEGE (AUTONOMOUS), IRINJALAKUDA

MARCH 2021
 CHRIST COLLEGE (AUTONOMOUS), IRINJALAKUDA

UNIVERSITY OF CALICUT

DEPARTMENT OF COMMERCE
CERTIFICATE

This is to certify that the project report entitled “A STUDY ON STUDENTS

ATTITUDE TOWARDS MULTI-LEVEL MARKETING WITH
SPECIAL REFRENCE TO THRISSUR DISTRICT” is a bonafide record of
project done by NIYA JOBY, Reg. No.CCASBCM099, under my guidance
and supervision in partial fulfillment of the requirement for the award of the
degree of BACHELOR OF COMMERCE and it has not previously formed
the basis for any Degree, Diploma and Associateship or Fellowship.

Prof. K.J. JOSEPH Mr. ASLAM P.S

Co-ordinator Project Guide
 DECLARATION

I, NIYA JOBY, hereby declare that the project work entitled “A

STUDY ON STUDENTS ATTITUDE TOWARDS MULTI-LEVEL
MARKETING WITH SPECIAL REFRENCE TO THRISSUR
DISTRICT” is a record of independent and bonafide project work carried out
by me under the supervision and guidance of Mr. ASLAM P.S, Assistant
Professor, Department of Commerce and management studies, Christ College,
Irinjalakuda.

The information and data given in the report is authentic to the best of my
knowledge. The report has not been previously submitted for the award of any
Degree, Diploma, Associateship or other similar title of any other university or
institute.

Place: Irinjalakuda NIYA JOBY

Date CCASBCM099
 ACKNOWLEDGEMENT

I would like to take the opportunity to express my sincere gratitude to all

people who have helped me with sound advice and able guidance.

Above all, I express my eternal gratitude to the Lord Almighty under whose
divine guidance; I have been able to complete this work successfully.

I would like to express my sincere gratitude to Rev. Dr. Jolly Andrews,

Principal-in-Charge, Christ college Irinjalakuda for providing various facilities.

I am thankful to Prof. K.J Joseph, Co-ordinator of B.Com (Finance), for

providing proper help and encouragement in the preparation of this report.

I am thankful to Prof. Lipin Raj K, Class teacher for her cordial support,
valuable information and guidance, which helped me in completing this task
through various stages.

I express my sincere gratitude to Mr. Aslam P.S, Assistant Professor, whose

guidance and support throughout the training period helped me to complete this
work successfully.

I would like to express my gratitude to all the faculties of the Department for
their interest and cooperation in this regard.

I extend my hearty gratitude to the librarian and other library staffs of my

college for their wholehearted cooperation.

I express my sincere thanks to my friends and family for their support in

completing this report successfully.
 TABLES OF CONTENTS

CHAPTER NO. CONTENTS PAGE NO:

LIST OF TABLES

LIST OF FIGURES

CHAPTER 1 INTRODUCTION 1–4

CHAPTER 2 REVIEW OF LITERATURE 5–6

THEORETICAL
CHAPTER 3 7-10
FRAMEWORK

DATA ANALYSIS AND

CHAPTER 4 11-34
INTERPRETATION

FINDINGS, SUGGESTIONS
CHAPTER 5 35-37
& CONCLUSION

BIBLIOGRAPHY

APPENDIX
 LIST OF TABLES

TABLE
TITLE PAGE NO:
NO:

4.1 Age wise classification of respondents. 11

4.2 Gender wise classification of respondents. 12

4.3 Educational qualification of respondents. 13

4.4 Income wise classification of respondents. 14

4.5 Types of products dealing by the respondents. 15

4.6 Period of doing MLM. 16

4.7 Source of information about MLM. 17

4.8 Main reason for doing MLM. 18

4.9 Sources to invest in MLM. 19

4.10 Support from family. 20

4.11 Relationship conflicts caused by MLM. 21

4.12 Responses to join another MLM. 22

4.13 Recommendation of the products to others. 23

4.14 The support from supervisor in doing MLM. 24

4.15 Regular income from MLM. 25

4.16 Whether MLM a good source to earn extra income. 26

Comparison of products with other products available

4.17 27
in market.
4.18 Position has a high degree of pressure 28

4.19 Statement which describes continuing in MLM. 29

4.20 Response relate to company’s reputation. 30

4.21 Whether company is a fair dealing company. 31

4.22 Rating of overall performance of MLM. 32

4.23 Satisfaction of respondents in doing MLM. 33

 LIST OF CHARTS

FIGURE
TITLE PAGE NO:
NO:

4.1 Age wise classification of respondents. 11

4.2 Gender wise classification of respondents. 12

4.3 Educational qualification of respondents. 13

4.4 Income wise classification of respondents. 14

4.5 Types of products dealing by the respondents. 15

4.6 Period of doing MLM. 16

4.7 Source of information about MLM. 17

4.8 Main reason for doing MLM. 18

4.9 Sources to invest in MLM. 19

4.10 Support from the family. 20

4.11 Relationship conflicts caused by MLM. 21

4.12 Responses to join another MLM. 22

4.13 Recommendation of the products to others 23

4.14 Support from supervisor in doing MLM. 24

4.15 Regular income from MLM. 25

4.16 MLM a good source to earn extra income. 26

Comparison of products with other products available in

4.17 27
market.
4.18 position has a high degree of pressure. 28

4.19 Statement which describes continuing in MLM. 29

4.20 Company having good reputation. 30

4.21 Whether company is a fair dealing company. 31

4.22 Rating of overall performance of MLM. 32

4.23 Satisfaction of respondents in doing MLM. 33

 CHAPTER 1
INTRODUCTION
1.1 INTRODUCTION

Multi-level marketing (MLM) is a marketing strategy in which the sales force

is compensated not only for sales which are personally generated, but also for
the sales of others who are recruited, creating a down line of distributors and a
hierarchy of multiple levels of compensation. It is a kind of network or referral
marketing. A company can be termed MLM when the products or services are
distributed by independent distributors. Their compensation depends on their
own sales of other distributors they have included in the company. The term
multilevel comes from the concept of recruiting and training distributors as a
part of the sales team with in the company. Multi-level marketing (MLM), also
called network marketing or pyramid selling, is a controversial marketing
strategy for the sale of products or services where the revenue of the MLM
company is derived from a non-salaried workforce selling the company's
products or services, while the earnings of the participants are derived from a
pyramid-shaped or binary compensation commission system.

In multi-level marketing, the compensation plan theoretically pays out to

participants only from two potential revenue streams. The first is paid out from
commissions of sales made by the participants directly to their own retail
customers. The second is paid out from commissions based upon the wholesale
purchases made by other distributors below the participant who have recruited
those other participants into the MLM; in the organizational hierarchy of
MLMs, these participants are referred to as one's down line distributors. MLM
salespeople are, therefore, expected to sell products directly to end-user retail
consumers by means of relationship referrals and word of mouth marketing, but
more importantly they are incentivized to recruit others to join the company's
distribution chain as fellow salespeople so that these can become down line
distributors. According to a report that studied the business models of 350
MLMs in the United States, published on the Federal Trade Commission's
website, at least 99% of people who join MLM companies lose
money. Downline participants are encouraged to hold the belief that they can

1
achieve large returns, while the statistical improbability of this is de-
emphasised. MLMs have been made illegal or otherwise strictly regulated in
some jurisdictions as merely variations of the traditional pyramid scheme,
including mainland china.

1.2 STATEMENT OF THE PROBLEM.

Multilevel marketing through direct selling is reasonably increasing in

the Indian consumer market. In today’s world, consumption of Fast Moving
Consumer Goods (FMCG) is tremendously increasing. The multi-level
marketing companies offer household utensils, homecare products, cosmetics,
food supplements, etc. According to the American marketing association, “A
customer is the actual or prospective purchaser of product or services”. A
marketer is in a position to study the customer perception, problems and
satisfaction in order to sustain in the market with stiff and tough completion.
Hence, the emphasis of this study is on the perception, problems and
satisfaction of MLM.

1.3 SIGNIFICANCE OF STUDY

The study focuses on studying the attitude of students with Multi-Level

Marketing and the survey is conducted only in Thrissur district. From the
study, students and MLM companies may came to know the awareness,
problems, and their satisfaction which may help them to solve their problems
and can increase their satisfaction level and their performance.

1.4 OBJECTIVES OF THE STUDY

1. To study the student’s preference and awareness towards multilevel

marketing.

2. To identify the problems faced by the students in doing MLM.

3. To know the satisfaction level of students in doing MLM.

2
1.5 RESEARCH DESIGN

1.5.1 Nature of the study

Descriptive cum analytical in nature.

1.5.2 Nature of the data

For this study both primary and secondary data are used.

1.5.3 Sources of the data

The primary data were collected from the students doing multilevel marketing
through questionnaire. The questionnaire is constructed with questions relating
to preference, problems and satisfaction level of students towards multilevel
marketing or direct marketing. Secondary data were collected from the online
journals and websites.

1.6 SAMPLE DESIGN

1.6.1 Nature of population

Here the population is students doing multilevel marketing. Therefore

population is infinite.

1.6.2 Sampling Unit

Sampling unit consist of the students who doing MLM in Thrissur district.

1.6.2 Method of sampling

Under the non-probability sampling snowball sampling is used to collect

primary data.

1.6.3 Size of sample

The sample size used in this study is 50 students doing multilevel marketing or
direct marketing.

3
1.7 TOOL FOR ANALYSIS

The tool used for analysis is weighted average, Percentage analysis. Analysed
data are presented with the help of tables and charts.

1.8 LIMITATION OF THE STUDY

1. Only 50 respondents were included in this study, so it may affect the

accuracy of the results.

2. The study is limited to Thrissur district only

1.9 CHAPTERISATION

Chapter 1: Introduction

This chapter deals with the importance of the study, objectives of the study,
limitations of the study and chapter scheme are presented hereby.

Chapter 2: Review of literature

This chapter deals with reviews available literature related to the study.

Chapter 3: Theoretical framework

This chapter deals with the student’s attitude of multilevel marketing and
student’s satisfaction and their performance and so on.

Chapter 4: Analysis and interpretation

This chapter includes analysis and interpretation of student’s attitude towards

multilevel marketing.

Chapter 5: Finding, suggestions and conclusion

The last chapter gives the summary of the findings, suggestions and
conclusions resulting from the study.

4
 CHAPTER 2
REVIEW OF LITERATURE

5
2.1 Empirical literature

• Dave, J. (2009), this paper is an attempt to define the Indian

opportunity for harnessing the power of the knowledge revolution.
Starting from a brief account of the startling pace of discoveries in Gene
Technology (GT) and Information Technology (IT) we analyse three
critical factors that will determine the rate of success in exploiting such
opportunities.

• Constantin, C.(2009), In this paper the author writes about MLM is a

method of selling goods of distributors system and associated partner
(down line) who is always associated with bonuses and commissions,
and every MLM company has its own calculation method.

• Neti, S. (2011), this paper discusses about the concepts of social media
and social media marketing and other aspects like the growth and
benefits, role and relevance of social media in marketing, social media
strategies. It also presents an overview on social media marketing in
India.

• Mary Merlin, F. (2012), in this paper the author talks about multi-level
marketing include network marketing and referral marketing.
Commonly, the salespeople are expected to sell products directly to
consumers by means of relationship through referrals marketing. Some
people use direct selling as a synonym for MLM, although MLM is
only one type of direct selling.

• Koroth1, A. & Sarada, A.(2012), This describes the problems and sets
out a research paradigm to investigate the influence of relationship in
building network which is a prerequisite for the better performance of
distributors in multilevel marketing.

6
• Rani, R. & Kumar, R. (2013), in this paper the author talks about
good salesmanship and team building ability. The present paper deals
with this problem and attempts to differentiate MLM from pyramid
schemes and also helping the interested persons to choose legitimate
MLM companies to work with.
• Sharma, M. & Kaur, G. (2014), in this research paper authors
describes the concept of Multi-Level marketing (MLM). However, little
has been written about the ethics of MLMs. This oversight is somewhat
surprising, especially because some prominent MLMs have been
accused of being pyramid schemes.
• Arya1, K. & Arya, M. (2014), in this article author writes about the
Multi-level marketing, its limitations are as compared to the existing
system, the MLM system has been found to be much more memory,
resource and time efficient. The system is simple to maintain.
• Juman, M. & Christopher 2,J. (2015), This study is focused on the
present and upcoming marketing trends of the direct selling companies
in the Calicut area and offers suggestive measuring in order to improve
the direct selling in the study area and also to highlight the benefits and
challenges associated with direct selling in India.

• Aisuwaidan, L. Ykhlef, M. (2016), in this article author writes about

online social networks and their different social media channels. The
spread and development of the internet and mobile technology has
affected the growth of social network.

• Fah Lee, K. &Yin Loi, K. (2016), In this article author has discussed
about the factors that attract an individual to be part of direct-sales
forces is the ability to earn commission which is proportionate to sales
performance.

7
 CHAPTER 3
THEORETICAL FRAMEWORK

8
 Theoretical framework

Introduction to Multilevel marketing

Multi-level marketing (MLM), also called network marketing or

pyramid selling, is a controversial marketing strategy for the sale of products or
services were the revenue of MLM company is derived from a non-salaried
work force selling the company’s products or services, while the earnings of
the participants are derived from a pyramid- shaped or binary compensation
commission system..

In multi-level marketing, the compensation plan theoretically pays out to

participants only from two potential revenue streams. The first is paid out from
commission of sales made by participants directly to their own retail customers.
The second is paid out from commissions based upon the wholesale purchases
made by other distributors below the participant who have recruited those other
participants into the MLM; in the organizational hierarchy of MLMs these
participants are referred to as one’s down line distributors.

MLM sales people are therefore, expected to sell products directly to

end-user retail consumers by means of relationship referrals and word of mouth
marketing, but most importantly they are incentivized to recruit others to join
the company’s as fellow salespeople so that these can become down line
distributors. According to a report that studied the business models of 350
MLMs in United States, published on federal trade commission’s website at
least 99% of people who join MLM companies lose money. Downline
participants are encouraged to hold onto the belief that they can achieve large
returns while the statistical improbability of this is de-emphasised. MLMs have
been made illegal or otherwise strictly regulated in some jurisdictions as
merely variations of the traditional pyramid scheme, including in China.

9
3.1 HISTORY OF MLM

Multi-Level Marketing or network marketing as it is called world over

happens to the fast-growing phenomenon. The fact that anyone, anywhere can
become a distributor and earn income from building the network without
having to sacrifice another occupation or additional investment into this
business makes it very attractive for people from all walks of life to attempt at
joining the network. It was estimated that in US along over 70% of the direct
selling revenues come from network marketing. Though no figures are
available to confirm the revenue figures at national level, over 50 million
people are to be estimated to be engaged in Multi-Level Marketing all over the
world. The origin of multi-level marketing is often disputed; but multi-level
marketing style businesses existed in the 1920s, 1930s California Vitamin
Company, (later named Nurtralite) or California Perfume Company (renamed
as “Avon Products”).

The concept of Multi Level or network selling emerged accidently when

the distributors discovered that they were generating more sales for the
company by referring their friends and known people to the business
opportunity available with Nurtralite. At this point of time, there was no system
in place to recognize and reward the distributors for their efforts in recruiting
other distributors for the company. With the realisation dawning on the
distributors and the company, the system of paying 2 percentage bonuses to the
sponsor distributor on the sales that were achieved by the distributor and the
network that he sponsored or built was introduced. This then led to the birth of
modern day system of “pyramid selling”. Today there are several hundreds of
companies that are practicing pyramid selling or Multi Level Selling and
compensation methods to sell their products. Numerous brands such as Avon,
Tupperware, Electrolux, Discovery Toys, and Herbal life, Kleenez, Oriflame
and Relive etc. have been highly successful in growing their business globally
using this concept of sales.

10
LAWSUITS

Companies that use the MLM business model have been a frequent subject
of criticisms and lawsuits. Legal claims against MLMs have included, among
other things:

 Price fixing of products or services.

 False product claims.
 Complex and exaggerated compensation schemes.
 High initial entry cost (for marketing kit and first products).

SETUP

Independent non-salaried participants, referred to as distributors are

authorized to distribute the company’s products or services. They are awarded
their own immediate retail profit from customers plus commission from the
company, not down lines, through a multilevel marketing compensation plan,
which is based upon the volume of products solved through their own sales
efforts as well as that of their down line organization.

Independent distributors develop their organization by either building an

active consumer network, who buy direct from the company, or by recruiting a
down line of independent distributors who also build a consumer network base,
thereby expanding the overall organization.

The combined number of recruits from these cycles is the sales force
which is referred to as the salespersons “down line”. This down line is the
pyramid in MLM’s multiple level structure of compensation.

11
MULTI-LEVEL MARKETING IN INDIA

Multi-level market in India is a broad terminology given to marketing

which takes place through a distributor network such as a pyramid scheme or a
direct selling scheme in India.

It is employed by companies employing direct sales strategy under

direct selling guidelines 2016 to encourage their existing distributors a
commission on the sales of the new distributors. Some of the famous network
marketing companies such as Tupperware use a network marketing strategy.
MLM COMPANY in India as per DSN report includes:

Rank company Revenue

1. Amway $8.60B
2. Avon Products Inc. $5.70B
3. Herbalife $4.40B
4. Vorwerk $4.19B
5. Infinites $3.92B
6. Mary Kay $3.25B

The scheme of earning commission- based remuneration and perks

depending upon the performance of the network marketer was seen as a cost-
effective method of earning from home and has provided for opportunities
under the MLM business in India. This business works on the direct selling
model where the buyer directly purchases a product from the company, instead
of involvement of middleman.

12
 CHAPTER 4

DATA ANALYSIS AND

INTERPRETATION

13
Table 4.1 showing age wise classification of respondents

Particulars No of respondents Percentage

17-20 23 46

21-23 20 40

24-29 6 12

Above 30 1 2

Total 50 100

(Source: Primary data)

Figure 4.1 showing age wise classification of respondents

50%
40%

46%
35% 45% 40%
30%
Percentage

25%

20%

15% 12%

10%

5% 2%

0% 17-20 21-23 24-29 Above 30

INTERPRETATION:

Table 4.1 shows the age wise classification of respondents. It reveals that 46%
of respondents aged between17-20, 40% of respondents are aged between 21-
23, 12% of respondents are aged between 24-29 and 2% of respondents are
aged above 30.

14
Table 4.2 showing gender wise classification of respondents

Particulars No of respondents Percentage

Female 17 34

Male 33 66
Others 0 0

Total 50 100

(Source: Primary data)

Figure 4.2 showing the result of gender wise classification of respondents

34%

66%

Female Male Others

INTERPRETATION:

Table 4.2 show that the gender wise classification of respondents. It reveals
that the 66% of respondents are male and 34% of respondents are female.

15
Table 4.3 showing the educational qualification of respondents

Particulars No of respondents Percentage

SSLC 1 2

Higher Secondary 12 24

Graduation 34 68

Post Graduation 3 6

Total 50 100

(Source: Primary data)

Figure 4.3 showing the educational qualification of respondents

80%
68%
70%
60%
Percentage

50%
40%
30% 24%
20%
10% 6%
2%
0%
SSLC Higher Graduation Post
Secondary Graduation

INTERPRETATION:

Table 4.3 shows the educational qualification of the respondents. It reveals that
2% of respondents are qualified SSLC, 24% of respondents are qualified higher
secondary, 68% of respondents are graduates and 6% of respondents are post
graduates.

16
Table 4.4 showing income wise classification of respondents

Particulars No of respondents Percentage

Less than 5000 20 40
5000-15000 9 18
15000-20000 6 12
Above 20000 15 30
Total 50 100

(Source: Primary data)

Figure 4.4 showing income wise classification of respondents

45%
40%
40%
35%
30%
30%
25%
20% 18%
15% 12%
10%
5%
0%
Less than 5000-15000 15000-20000 Above 20000
5000

INTERPRETATION:

Table 4.4 shows the monthly income of respondents. It reveals that the 40% of
respondents earning monthly income less than 5000, 18% of respondents are
earning income between 5000-15000, 12% of respondents are earning monthly
income between 15000-20000, and 30 % of respondents are earning monthly
income above 20000.

17
Table 4.5 showing the types of products which dealing by the respondents.

Particulars No of respondents Percentage

Gadgets 6 12
Ayurvedic medicines 3 6
Home appliances 5 10
Hand wash 9 18
Electronics 2 4
T-Shirts 20 40
creams 5 10
Total 50 100
(Source: Primary data)

Figure 4.5 Showing the types of products which are dealing by the
respondents

10% 12%

Gadgets
6%
Ayurvedic medicines
Home appliances
10%
Hand wash
Electronics
40%
T-Shirts

18% creams

4%

INTERPRETATION:

Table 4.5 shows the types of products which are dealing by the respondents. It
reveals that the 12% of respondents selling gadgets, 6% of respondents selling
ayurvedic medicines, 10% of respondents selling home appliance, 18% of
respondents are selling hand wash, 4% of respondents are selling electronic
products, 40% of respondents are selling T-shirts, and 10% of respondents are
selling creams.

18
Table 4.6 showing period of doing MLM

Particulars No of respondents Percentage

Less than 1 year 30 60

1-2 year 9 18

2-4 year 8 16

Above 4 years 3 6

Total 50 100

(Source: Primary data)

Figure 4.6 Showing period of doing MLM

70%
60%
60%
50%
40%
30%
18% 16%
20%
10% 6%
0%
Less than 1 1-2 year 2-4 year Above 4 years
year

INTERPRETATION:

Table 4.6 shows the experience in doing MLM. It reveals that the 60% of
respondents doing MLM for 1 year, 18% of respondents are in this field for 1-2
years, 16% of respondents are in this field for 2-4 years and 6% of respondents
are in the field for above 4 years.

19
Table 4.7 showing the source of information about MLM

Particulars No of respondents Percentage

Family 3 6
Friends 28 56
Relatives 4 8
Social media 14 28
Others 1 2
Total 50 100
(Source: Primary data)

Figure 4.7 showing the source of information about MLM.

2% 6%
28%
Family
Friends
Relatives
Social media
8% 56% Others

INTERPRETATION:

Table 4.7 shows the source of information to respondents about MLM. It

reveals that the 56%of respondents got information from their friends,28% of
respondents got information from social media,8% of respondents got
information from their relatives, 6% of respondents got information from their
family, and 2% of respondents got information from sources.

20
Table 4.8 showing main reason for doing MLM

Particulars No of respondents Percentage

Pay off debts 3 6
Pay for basic bills 9 18
Have extra spending 11 22
money
To build up my saving 22 44
account
Others 5 10
Total 50 100
(Source: Primary data)

Figure 4.8 showing the main reason for doing MLM

50% 44%
45%
40%
35%
Percentage

30%
25% 22%
20% 18%
15% 10%
10% 6%
5%
0%
Pay off Pay for Have To build Others
debts basic bills extra up my
spending saving
money account

INTERPRETATION:

Table 4.8 show the main reason for doing MLM by the respondents. It reveals
that 44%of respondents doing MLM for their savings, 22% of respondents
doing MLM for extra spending, 18% of respondents doing MLM for paying
their basic bills, 10 % of respondents earn money for their other uses, and 6%
of respondents doing MLM for pay off their debts.

21
Table 4.9 showing the sources to invest in MLM

Particulars No of respondents Percentage

Family 26 52
Friends 8 16

Relatives 5 10
Loan 4 8

Savings 5 10
Others 2 4

Total 50 100

(Source: Primary data)

Figure 4.9 showing the sources to invest in MLM

60%
52%
50%
40%
Percentage

30%
20% 16%
10% 8% 10%
10% 4%
0%

INTERPRETATION:

Table 4.9 shows the main sources of income to invest in MLM. It reveals that
52% of the respondents get money to do MLM from their family, 16% of
respondents get money from friends, 10% of respondents get money from their
relatives, 8% of respondents took loan, 10% of the respondents invest in MLM
business by using their savings, and 4% of respondents get money from other
sources.

22
Table 4.10 showing the support from family

Particulars No of respondents Percentage

Yes 38 76

No 12 24

Total 50 100

(Source: Primary data)

Figure 4.10 showing the support from family

24%

Yes
No

76%

INTERPRETATION:

Table 4.10 shows the family support for doing MLM. It reveals that the 76% of
respondents receive support from their family for doing MLM and 24% of
respondents didn’t receive support from their family.

23
Table 4.11 showing relationship conflicts caused by MLM.

Particulars No of respondents Percentage

Yes 9 18

No 20 40

Sometimes 21 42

Total 50 100

(Source: Primary data)

Figure 4.11 showing relationship conflicts caused by MLM

45 42%
40%
40

35

30

25

20 18%

15

10

0
Yes No Sometimes

INTERPRETATION:

Table 4.11 shows the relationship conflicts caused by MLM. It reveals that the
18% of respondents says that MLM creates conflicts in relationships, 40% of
respondents says that MLM didn’t creates conflicts in their relationships, and
42% of respondents says that MLM sometimes creates conflicts in their
relationships.

24
Table 4.12 showing the responses to join another MLM

Particulars No of respondents Percentage

Yes 23 46

No 27 54

Total 50 100

(Source: Primary data)

Figure 4.12 showing the responses to join another MLM.

56
54%
54

52

50

48
46%
46

44

42
Yes No

INTERPRETATION:

Table 4.12 show the respondent’s willingness to join in another MLM. It

reveals that the 46% of respondents are willing to join in another MLM, and
54% of respondents are not willing to join in another MLM.

25
Table 4.13 showing the recommendation of the products to others

Particulars No of respondents Percentage

Yes 33 66

No 6 12

sometimes 11 22

Total 50 100

(Source: Primary data)

Figure 4.13 showing the recommendation of the products to others

22%

Yes
No
12%
Sometimes
66%

INTERPRETATION:

Table 4.13 shows the responses relating to recommendation by respondents to

others. It reveals that the 66% of respondents are ready to recommend products
to others, 12% of respondents are not ready to recommend their products to
others, and 22% of respondents rarely recommend products to others.

26
Table 4.14 showing the support from supervisor in doing MLM

Particulars No of respondents Percentage

Yes 32 64
No 6 12
Sometimes 12 24
Total 50 100
(Sources: Primary data)

Figure 4.14 showing the support from supervisor in doing MLM.

70% 64%
60%
50%
40%
30% 24%
20% 12%
10%
0%
Yes No Sometimes

INTERPRETATION:

Table 4.14 shows the support received by the respondents from their
supervisor. It reveals that 64% of respondents receive support from supervisor
for their professional development, 12% of respondents didn’t receive support
from supervisor for their professional development, and 24% of respondents
sometimes receive support from their professional development.

27
Table 4.15 showing regular income from MLM

Particulars No of respondents Percentage

Yes 26 52

No 24 48

Total 50 100

(Source: Primary data)

Figure 4.15 showing regular income from MLM

48%
yes
52%
No

INTERPRETATION:

Table 4.15 shows the regularity of income by doing MLM. It reveals that 52%
of respondents receive regular income from MLM and 48 % respondents didn’t
receive regular income from MLM.

28
Table 4.16 showing whether MLM a good source to earn extra income

Particulars No of respondents Percentage

Yes 26 52

No 18 34

Sometimes 6 4

Total 50 100

(Source: Primary data)

Figure 4.16 showing whether MLM a good source to earn extra income

60
52%
50

40
34%

30

20

10
4%

0
Yes No Sometims

INTERPRETATION:

Table 4.16 shows that whether MLM a good source to earn extra income. It
reveals that 52% of respondents say that MLM a good source to earn extra
income, 34% of respondents say that MLM is not a good source to earn extra
income and 4% of respondents said that sometimes MLM is a good source to
earn extra income.

29
Table 4.17 showing comparison of products with other products available
in the market

Particulars No of respondents Percentage

yes 28 56

No 20 40

sSometim 2 4
es
Total 50 100

(Source: Primary data)

Figure 4.17 showing comparison of products with other products available

in the market

60 56%

50
40%
40

30

20

10
4%
0
Yes No Sometimes

INTERPRETATION:

Table 4.17 shows the comparison of products with other products available in
the market. It reveals that 56% of respondents say that their products gave
better performance than other products available in the market, 40% of
respondents say that their products didn’t give better performance than other
products and 4% of respondents say that their products sometimes gave better
performance than other products.

30
Table 4.18 showing position has a high degree of pressure

Options No of Percentage
respondents
Strongly agree 8 16
Agree 19 38
Neutral 17 34
Disagree 4 8
Strongly 2 4
disagree
Total 50 100
(Source: Primary data)

Figure 4.18 showing position has a high degree of pressure

40 38%
34%
35

30

25

20
16%
15

10 8%
4%
5

0
Strongly Agree Agree Neutral disagree Strongly disagree

INTERPRETATION:

Table 4.18 shows degree of pressure in their position in doing MLM. It reveals
that 16% of respondents are strongly agreed that they have high degree of
pressure in their position, 38% of respondents are agree that they have high
degree of pressure, 34% of respondents have neutral opinion about pressure in
their position, 8% of respondents are disagreed that they have high degree of
pressure in their position, and 4% of respondents are strongly disagreed that
they have high degree of pressure in their position.

31
Table 4.19 showing statement which describes continuing in MLM

Particulars No of respondents Percentage

I have never thought 18 36
about quitting
I sometimes think of 29 58
quitting

I am just about ready 3 6

to quit
Total 50 100
(Source: Primary data)

Figure 4.19 showing statement which describes continuing in MLM

6%

36%

I have never thought

about quitting
I sometimes think of
quitting
I am just about ready to
quit
58%

INTERPRETATION:

Table 4.19 shows that 36% of respondents says that they never thought about
quit from MLM, 58% of respondents says that they sometimes thought about
quitting from MLM, 6% of respondents says that they are just ready to quit.

32
Table 4.20 showing company having good reputation

Particulars No of respondents Percentage

Reputed 29 58
Not Reputed 10 20
Don’t know 11 22
Total 50 100
(Source: Primary data)

Figure 4.20 showing company having good reputation

70

60 58%

50

40

30
22%
20%
20

10

0
Reputed Not reputed Don't Know

INTERPRETATION:

Table 4.20 shows reputation of the company in which the respondents were
joined. It reveals that 58% of the respondents say that their company is a
reputed one, 20% of the respondents say that their company is not reputed one,
22% of the respondents say that they don’t know about company reputation.

33
Table 4.21 showing whether company is a fair dealing company

Particulars No of respondents Percentage

Yes 27 54

No 5 10

May be 18 36

Total 50 100

(Source: Primary data)

Figure 4.21 showing whether company is a fair dealing company

36%

Yes
No

54% May be

10%

INTERPRETATION:

Table 4.21 shows the fairness dealing in the company.54% of respondents say
that their company is a fair dealing company. 10% of the respondents say that
their company is not a fair dealing company and 36% of the respondents say
that they don’t know about the fairness dealings of the company.

34
Table 4.22 showing the rating of overall performance of MLM

Particulars No of respondents Percentage

1 3 6
2 1 2
3 18 36
4 24 48
5 4 8
Total 50 100
(Source: Primary data)

Figure 4.22 showing the rating of overall performance of MLM

60

50 48%

40 36%

30

20

10 8%
6%
2%
0
1 2 3 4 5

INTERPRETATION:

Table 4.22 shows the rating of overall performance of MLM by the

respondents. It reveals that 6% of respondents rated 1 star, 2% of respondents
rated 2 star, 36% of respondents rated 3star, 48% of respondents rated 4star,
and 8% of respondents rated 5star.

35
Table 4.23 showing the satisfaction of respondents in doing MLM

Options Highly Satisfied Neutral Dissatisfied Highly

Satisfied Dissatisfied
Regular Income 11 18 16 9 3
Family Support 6 22 18 5 2
Annuities 8 18 17 8 3
Customer 8 13 19 10 3
Satisfaction
Reputation 5 15 16 11 3
Purchased 4 20 16 12 3
Products
Personal 16 18 14 8 4
relationship

Particulars Highly Satisfied Neutra Dis- Highl Tota Avera Rank

Satisfi l satisfie y Dis- l ge
ed d satisfi
ed
Regular 55 72 48 18 3 196 3.92 2
Income
Family 30 88 54 10 2 184 3.68 3
Support
Annuities 40 72 51 16 3 182 3.64 4
Customer 40 52 57 20 3 172 3.44 6
Satisfaction
Reputation 25 60 48 22 3 158 3.16 7
Purchased 20 80 48 24 3 175 3.5 5
Products
Personal 80 72 42 16 4 214 4.28 1
Relationship

36
Figure 4.23 showing the satisfaction of respondents in doing MLM

4.5
3.92
4 3.68 3.64
3.44 3.5
3.5 3.16
3

2.5

1.5

0.5

0
Regular Family Support Annuities Customer Reputation Purchased
Income Satisfaction products

INTERPRETATION:

Table 4.23 shows the satisfaction of respondents in doing MLM. It

reveals that respondents have more satisfaction in building and keeping
personal relationship which shows an average 4.28. Next level of satisfaction
regard to regular income with average of 3.92, then to family support with
average of 3.68, then to annuities availed with an average of 3.64, then to
purchased product with an average of 3.5, then to satisfaction as customer with
an average of 3.44, then to satisfaction of companies reputation with an
average of 3.16 respectively.

37
 CHAPTER 5
FINDINGS, SUGGESTIONS AND
CONCLUSION

38
5.1 Findings

• 46% of respondents belong to the age category of 17-20.

• Majority respondents doing multi-level marketing are malesi.e. 66% and 34%
are female.
• Majority of the respondents are graduates.
• Majority of the respondents have income less than 5000.
• Majority i.e.40% of respondents is selling T-shirts.
• 60% of respondents have been in this field for less than 1 year.
• 56% of respondents got the information about MLM from their friends.
• 44% of respondent’s doing MLM to build up their savings.
• 52% of respondent’s got money from their family to doing MLM
• 76% of respondents got support from their family.
• 42% of respondents say that sometimes MLM creates conflicts in their
relationship.
• Majority i.e.54% of respondents is not willing to join in another MLM.
• Majority i.e.66% of respondents recommends their products/MLM to others.
• Majority i.e.64% of respondents receives support from supervisor and they
helped in their professional development.
• 52% of respondents receive regular income from MLM.
• 52% of respondents say that MLM is a good source to earn extra income.
• Majority i.e.56% of respondents say that their products better performance
than others.
• 38% of respondents agreed that they have high degree of pressure in their
position.
• 58%of respondents sometimes thought about quit from MLM.
• Only 42% of respondents reveal that their companies are reputed.
• 54% of respondent say that their companies are fair dealing companies.
• 48% of respondents rated 4/5 rating for the overall performance of MLM.
• Higher satisfaction is for the personal relationship attribute of satisfaction,
comparing to other attributes of satisfaction in MLM.

39
5.2 Suggestions

 Illegal Multi-level marketing should be discouraged through strict rules and

regulations by government. In this regard, the public should be educated and
given more enlightenment about Multi-level marketing that would make them
distinguish the legal from the illegitimates.
 The members of Multi-level marketing companies should not exploit their
social relationship for business gaining in unethical practices.
 A recommendation for practical action is the need for the stricter regulation of
MLM companies.
 This would involve necessitating them to trade fairly and ethically, and abstain
from any of the practices of pyramid schemes.
 All pay-outs should be done compulsory as per schedule.
 Instead of hard sell need based, marketing should be adopted.

5.3 Conclusion

Multilevel marketing as an alternative to traditional marketing is no doubt

becoming popular as another means of getting goods and services to customers. The
results of the study reveal that the female respondents have less knowledge and
participation in multilevel marketing than male respondents. The respondents have
favourable attitude towards multilevel marketing. The study also reveals that social
relationship among members make it easier for the expansion of the network formed
and this means better performance for the multilevel marketing. It offers some
benefits which make it a suitable alternative to the traditional marketing of the
products. From the study we can conclude that respondents are satisfied in Multi-
Level Marketing.

40
BIBLIOGRAPHY

41
 BLIOGRAPHY
Books:

1. Nandkishore Sharma and Sarita Sharma, Research Methodology, RBSA

publishers, Jaipur 1996.
2. C.R. Kothari, Research Methodology, Methods and techniques (second
revised edition), New age International publishers, New Delhi, 2019.
3. Dr. CN Sontakki, Marketing Management, Kalyani publishers, New Delhi,
2006.

References:

 Dave, j. (2009), “A study on buyers preference on selling products in

multi-level marketing, International journal of research granthaalayah”,
4(6), 2394-3629.
 Mary Merlin, F. (2012), “A study on customer satisfaction towards
multilevel products in erode city”, International journal in management and
social science, 4(3).
 Rani, R. &Kumar, R. (2013), “A study on Amway ltd in India: A case
study of Calicut district of Kerala”.
 Arya1, K. & Arya2, M. (2014), “An analytical study of independent
business owner’s involvement in Multi-Level marketing business.
 Koroth1, A. & Sarada, A. (2012), “Relevance of multi -level marketing in
Kerala.
 Juman, M. & Christopher 2,J. (2015), The socialisation communication,
organizational citizenship behaviour and sales in a multilevel marketing
organization, The journal of personal selling and sales management, 14 (2).

Websites

1. www.main.trai.gov.in
2. www.shodhganga.inflibnet.ac.in
3. www.googlesir.com
4. www.m.grin.com
5. www.investopedia.com

42
APPENDIX

43
Questionnaire

1. Age

2. Gender
[ ] Male [ ] Female [ ] Transgender

3. Educational qualification

[ ] SSLC [ ] Higher secondary [ ] Graduation

[ ] Post Graduation

4. Monthly Income

[ ] Less than 5000 [ ] 5001-15000 [ ] 15001-20000

[ ] above 20000

5. What are the types of products you are selling?

[ ] Gadgets [ ] Ayurveda Medicines [ ] Home appliances

[ ] Hand Wash [ ] Electronics [ ] Others
6. How many years have you been in this field?

[ ] Less than 1 year [ ] 1-2 years [ ] 2-4 years

[ ] above 4years
7. From where did you get the information about MLM?
[ ] Family [ ] Friends [ ] Relatives [ ] Social Media

[ ] Others

8. What is the main reason you wanted to earn money through

MLM?

[ ] Pay off Debts

[ ] Pay for basic bills

44
 [ ] Have extra spending money
[ ] to build up my savings account
[ ] Other

9. Where did you get the amount to invest in MLM?

Family Friends Relatives Social Media

Others

10. Have you got enough support from family?

[ ] Yes [ ] No
11. Do you think MLM will create any conflicts in your relationship?
[ ] Yes [ ] No [ ] Sometimes
12. Are you ready to join another MLM?
[ ] Yes [ ] No
13. Would you like to recommend these products to others?
[ ] Yes [ ] No [ ] Sometimes
14. Has the support from your supervisor helped in doing MLM?
[ ] Yes [ ] No [ ] Sometimes
15. Do you receive regular income from MLM?
[ ] Yes [ ] No
16. Is MLM a good source to earn extra income?
[ ] Yes [ ] No [ ] Sometimes
17. Does your products give better performance than other products?
[ ] Yes [ ] No [ ] Sometimes
18. Do you agree that your position have a high degree of pressure?

[ ] Strongly Agree [ ] Agree [ ] Neutral [ ] Disagree

[ ] Strongly Disagree
19. Which of these statements best describe your feeling right now about
continuing in MLM?
[ ] I have never thought about quitting
[ ] I sometimes think of quitting
45
 [ ] I am just about ready to quit

20. Does your company have a good reputation?

[ ] Highly Reputed [ ] Reputed [ ] Neutral

[ ] Slightly Reputed [ ] Not Reputed

21. Does your company have a fair dealing company?

[ ] Yes [ ] No [ ] Maybe
22. How much you rate the overall performance of MLM?
[ ]1 [ ]2 [ ]3 [ ]4 [ ]5

23. Are you satisfied in the following benefits offered by MLM?

Regular Income ()1 ()2 () ()4 ()5

3

Family ()1 ()2 () ()4 ()5

3
Benefits/ Annuities ()1 ()2 () ()4 ()5
3

Customer Satisfaction ()1 ()2 () ()4 ()5

3
Reputation ()1 ()2 () ()4 ()5
3

Purchased Products ()1 ()2 () ()4 ()5

3

Personal Relationship ()1 ()2 () ()4 ()5

3

46
47
48