PERCEPTION IN MULTI-LEVEL MARKETING ON CUSTOMER

SATISFACTION OF AVON PHILIPPINES

IN VALENZUELA CITY

Chapter I
INTRODUCTION

Multi-Level selling is what percentage Avon representative do well associated you’ll learn

to follow the steps needed to become eminent in direct sales online as an Avon representative or

the other Multi-Level Marketing Company out there. As the net becomes a lot of a central part of

our lives, Multi-Level Marketing corporations and huge home primarily based corporations like

Avon are churning out a lot of six figure earners as they learn to harness the ability of the net and

online selling. Avon, if you didn’t already understand, may be a Multi-Level Marketing Company

that falls into the cosmetic multi-level promoting niche. Together with make-up and aid, you’ll

expect to seek out care things and seasonal vacation gift sort things that are used worldwide. Avon

has such a big amount of product and therefore well-known that they create run over ten billion a

year. For multi-level promoting consultants worldwide. Most consultants are ladies, however,

there are men and girls alike who humbly begin associate Avon Company and notice success. A

lot of ways of earning financial gain with Avon is by having home parities or dropping off

catalogue within the work break area or within the waiting room of acquainted offices. The success

you’ve got with Avon is de facto obsessed with the efforts you place forth in your advertising and

obtaining your name out there because the Avon advisor in your space. Consumer already trust

Avon so is unquestionably and if you’re unaccustomed the Multi-Level Marketing world.

 Multi-Level Marketing is not simply another company promoting product or one thing.

MLM could be a new system to urge a lot of financial gain not like employment. In short, this can

be an investment methodology. They have a tendency to understand that investors are the richest

individuals within the world, like Lucio Tan, Henry Sy, Robert Kiyosaki, and other different

investors doing the identical concept. The concept of “Network”. They have a tendency to invest

with a capital to the corporate to begin the business. In return, the corporate offers the Business

Kit Package or so called “Return of Investment”.

Consumer feel believe and happy using the actual product cosmetic. Moreover, once the

consumer used the cosmetic product will fell that cosmetic product can perform higher than

alternative product aren’t acquainted even consumer to induce message concerning the cosmetic

product within the level of recognition.

In the Philippines, Avon started in 1978 with the acquisition of Aura Laboratories, Inc.,

The manufacturer of Beautifont products and its cosmetics distribution company Beautifont

Products, Inc. In 1983, Aura Laboratories became Avon Manufacturing Inc. and Beautifont

Products, Inc. was renamed Avon Cosmetics, Inc. In 1886, thirty two years before ladies within

the U.K earned the correct to vote, Avon founder, David H. Mc Connell, helped offer them the

possibility to earn associate degree freelance financial gain. It was an absolutely imaginative idea,

ladies had a passion for his merchandise and idolised networking with different women, and thus

it clothed to be a superb business model that works even as well nowadays. Avon Company is the

corporate that puts make-up on lashes and food on the tables. That fights wrinkles with one hand

and carcinoma with the opposite. That is aware of the worth of an ideal lip, however still opens its

mouth and speaks out against violence and for women’s monetary independence. This is often
Avon. The corporate that for quite a hundred twenty five years has stood for beauty, innovation,

optimism and especially for ladies.

In addition, in terms of customer’s loyalty, the customer’s satisfaction is additional vital

than image for glad and discontent customers. Consumer feel believe and glad used the actual

whole of product cosmetic. Moreover, once customer used the cosmetic product will they’ll feel

that cosmetic product can perform higher than alternative product don’t seem to be acquainted

even consumer to induce message concerning the cosmetics product within the level of

recognition. Order to satisfy the consumer wants, the eye play a job to satisfy the consumers.

This chapter proposes a research that may offer associate comprehensive understanding of

customer’s satisfaction towards the multi-level selling firms. This study is specifically aim to look

at the factors on customer’s satisfaction toward multi-level selling business. The factor is the

customer’s satisfaction on product/services. These factor is tested and discussed within the

returning chapters on its result to work out the customer’s satisfaction of Avon products.

Previous studies on client shopping for expertise with sellers of network selling companies

indicate that customer’s attitudes and satisfaction vary remarkably. The varied customer’s

satisfaction and attitudes haven’t been restricted very well in the analysis papers on multi-level

marketing. Hence a trial of this paper is towards learning the varied customer’s satisfaction

concerning the genuineness of the product and therefore the price quality relationship together

with associate overall satisfaction concerning these network marketing organizations amongst the

Avon customer’s.
BACKGROUND OF THE STUDY

AVON

Avon was a based by David H. Mc Connell in 1886. Throughout the nineteenth century,

his goal was to allow ladies an opportunity at money independence previously on 1886, “it was

abundant distinctive for a lady to run her own business. Only about five million women among the

U.S were in operation outside the house, let alone climbing the ranks of any company ladder”.

Throughout this point amount, the industrial revolution influenced ladies who were usually kept

to sure occupations of financial limitations, specifically within the United States. Ladies were

primarily “limited to jobs in agriculture, domestic service and producing, not exactly exciting lines

of work; the manufacturing sector, in specific, was well-known for its dangerous working

conditions. In addition to the unsafe operating conditions, women’s wages were quite less than the

men’s. Ladies were doing the identical quantity of work as men however weren’t being rewarded

likewise. This perspective created Mc Connell determined to vary this example within the

workplace. He desired to look out ladies given permission to move up in power, both in society

and within the business world.

As a result, Mc Connell had a vision to change eventualities like such within which ladies

were concerned. Mc Connell, it absolutely was this young boy from rural New York, a visionary

leader decades would become a pioneer in empowering ladies. Who would have ever thought that

a person would need to empower the lives of such a large amount of women? Mc Connell, who at

first began his business as a fragrance salesman, would supply a chance for girls to form and

manage their own business through direct commercialism.

THE BEGINNING OF AVON

Mc Connell created two crucial discoveries in his travels as a book sales person. The

primary discovery enclosed his feminine customer’s being interested in his fragrance samples than

the book he was endorsing. Fragrance samples were created entirely to captivate ladies to his book

selling business. Fragrance became his initial selling point to ladies that created a process for him

to share each of the products and career chance of his firm. Secondly, Mc Connell look out after

women who were struggling to pay their bills. A majority of those females had relatable qualities

that created them approachable. Theses apparent characteristics allowed Mc Connell to foresee

future Avon consultants’ endorsing the perfume.

MC CONNELL’S FIRST SALES REPRESENTATIVE

MC Connel encountered several problems to start his business within the beginning,

however, once the word began to unfold concerning his business, ladies flocked to him for a job

opportunity. The foundation of the company’s representatives began with Mc Connell’s first

recruit, Mrs. P.F.E Albee. Not just did he gave Mrs. Albee and further early representatives with

earnings chance when employment privilege for ladies were extremely limited, he encouraged a

supportive environment with a familial feel. In just 13 short years Mc Connell developed his

representative size to five thousand. Such growth comes from appropriate treatment and

appreciation toward employee. As an example, once representative met a different goal or

stimulated the career passage quickly, he would reward them with gifts. Whereas workers

rewarded for doing their job with excellence, they were influenced to figure more durable for the

company. When hard work and achievement took place, the individual not particular prospered,
but the firm did too. In return, the individual enlightened others of however the corporate treats its

representatives. This treatment respond as an incentive for others to accompany. So, proper

treatment not just helped increase the dimensions of Avon’s representatives, but increased Avon’s

standing as a company. It’s value to figure that the structure of Avon consists of multi-level

networking. When a representative of the corporate recruits another person to sell Avon on his/her

team, a pyramid-like structure is made regarding the manner which the recruiting occurred; but,

the position during which one sits on the pyramid isn’t essential. Although a pyramid-like system

is current within the thick of recruiting, a scheme is not present because the money one makes isn’t

afflicted by one’s position on the pyramid.

POWER OF THE PRODUCT AND THE PEOPLE

To Mc Connell, the products and the people of the corporate were the middle of success.

He dedicated his life to making sure that the both business and workers would achieve success.

Also, he committed himself to a life of “inspiring the Representative of Avon. Mc Connell

additionally needed to encourage the company’s workers, who were the developers of the product,

with the similar positive spirit”. Mc Connell, being the motivational leader he was, created a set

of guiding principles to make sure that each of every Avon workers were happy, motivated and

productive. The guidelines are first is providing an earning opportunity thus people able to do

monetary independence and enjoy in all that comes with such an achievement. Second is

recognizing everyone’s unique improvement. Third is giving back to the communities Avon

serves. The fourth is providing the highest-quality product’s with a guarantee of satisfaction. And

the last one is sustaining and embracing the ‘friendly spirit of Avon’. Mc Connell believed that

every person had the potential to be comfortable with this company. Making the possibility for
one to pursue prosperity was the gift Mc Connell gave to underappreciated ladies throughout the

Industrial Revolution Era.

NOW

Avon has “been one of the most leading admired companies in the world, with a legacy for

forceful corporate social responsibility programmes, empowering women by making their own

financial gain streams and constructing their sense of self-worth”. The message Avon declares is

that a women will do anything to which they set on their minds. However, Avon is learning

difficulties reaching out to teenagers and the “emerging male market”. The company is in extreme

need of teens and males in order to attract to additional crowd because some company of people

are hard to attract. For instance, Avon desires teenager representative to market younger products,

like bright eye shadows and trendy clothing. Bachelor are essential to the business in order to invite

male customers because men could also be afraid to speak to a female representative concerning

about personal skin care issues. Avon wants male customer to sell its men products that embody

skin care, colognes, clothing, etc. Avon is looking forward into expanding globally. If this were to

occur, the corporate would be ready to introduce American influenced brands, like cosmetics and

clothing, to any foreign land. Presently, Avon is reaching out to people considered on this class. ,

who includes males, teens and foreign people as they represent an unreachable area. When these

avenues of opportunity are reached, the corporate is ready to appeal to people of all kinds. As a

result, many products are going to be sold and revenue can increase.

REVIEW OF RELATED LITERATURE

 Multi-level selling could be a highly regarded business model within the Western countries.

The aim of the study was, initial of all, to explain multi-level selling to point sensible edges of this

business model as well on present basic systems of hard a commission, that are utilized in selling

plans of corporations. He launched Marketing of Scientific and Researh Organizations. (Prof.

Bogdan Gregor, Aron-Axel Wadlewski, 2013)

The analysis of the business model called multi-level marketing they conclude that tens of

millions of consumers lose tens of at the outset it should be noted that multi-level marketing

unmasked is not strictly a report of legal arguments against any multi-level marketing. He launched

a Complete and Compelling Case against Multi-Level Marketing as an Unfair and Deceptive

Practice. (Jon M. Taylor, 2014)

He realize conditions beneath that a theme organizer is in a position to style a pyramid

scams within such agents would be willing to participate. He launched Multi-Level marketing:

Pyramid-Shaped Schemes or Exploitative Scams? (Yair Antler, 2017)

According to Philstar Global the exploitative cheat scams masquerading as legitimate

structure selling schemes have another time to elicit the eye of our government regulators and law

makers. They tend to found an agent-based model of the system from the individual recruiting

agents to their relationships and interactions that basically ruled the accomplishment rules in their

study. (Erika Fille T. Legara, 2013)

After a thorough review of the literature, there has a relevant and significant study

developed about controversial phenomenon underlined millions of people judging by the number

of distributor’s towards satisfaction, he launched Public Perceptions Toward’s Network Marketing

in Bulgaria. Similarly, attitudes towards multi-level marketing. (Valentin Makni, 2015)

 Similarly, attitudes towards multi-level marketing it is the motivational strategies towards

developing their down line which involves the factors influences to distributor, they launched

Malaysia Generation Y’s Perception and Attitudes towards Multi-level Marketing (MLM) Career

Option. According to MacKenzie and Lutz (1989), consumer attitude towards online advertising

can be indicated through consumer’s favourable or unfavourable response towards a particular

online advertisement. (Alexander Tay Guan Meng, 2018)

However, thorough review of the literature, about how they provide direction for the clear

understanding concerning theoretical framework and discussing concerning the previous analysis

already done and it’ll provide relevant info for the secondary information for their analysis study,

they launched Consumer Buying Perception towards the effectiveness of Avon products. (Hayati

BT Bakeri, 2016)

Hil Davis, a co-founder and a very successful custom-made men clothes company, was

once a sceptical when it comes on the direct sales model (Foster, 2013). He was forced by Warren

Buffet. David has changed his perception and converted his firm from direct selling model. He has

his own direct seller - style specialist who does measurement for the client. He paid commissions

and bonus to the specialist who has make sale and recruit other specialist. He has motivational

training continuing-education program and interactive sales tools to the style specialists. Naturally

a direct selling firm, he is emphasized in interpersonal skill between sales individual and client.

He taught his specialist well in order to provide good and services and quality products. With the

track record of J. Hilburn, he has begun to venture his BeautyKind firm with the same business

model. (Chafkin, 2014)

The thorough review of the literature, the improvement on sure things ought to be drained

order to extend the extent of client satisfaction. Recommended that the corporate ought to improve
its service concerning feedback system, implement employees coaching furthermore as conduct

regular ad campaign to draw in new customers and to tell existing customers regarding coming

events the launched Customer Satisfying and Customer Loyalty. (Kabu Khadka & Soniya

Maharjan, 2018)

In analysis of quality customer satisfaction and business performance in food industry.

Customer satisfaction is defined as the satisfaction of the customer with a product and the business

performance as a capability to generate profit they launched Customer Satisfaction, product

Quality and Performance of Companies. (Petr Suchanek, Maria Kralova and Jiri Richter, 2015)

In 2016, Ecovia Intelligence (organic Monitor) – a globally recognized consulting

institution for the natural and organicbaeuty industry – gave Human Nature the sustainability

pioneer award for its social entrepreneurship work, a first for any Asian beauty band. Established

in 2014 with the commitment to providing top-quality, natural goodness in every product, the

Human Nature manufacturing plant in Laguna, Philippines serves as the operatonal heart of

Human Nature. (Human Nature, 2018)

As young company, Frontrow has already received recognition within the sectoe due to its

competence and increasing membership of over 5000 members everywhere the Philippines. Staff

with potentials of self-growth and company’s future growth, Frontrow’s members is hospitable

transformation and are committed to attain money freedom and success by nurturing a positive

perspective and increased self-image. Driven to dominate on a multi-level platform, Frontrow

elevates a replacement breed of entrepreneurs for the challenges of self-growth and money

freedom. (FrontrowInternational, 2015)

THEORETICAL FRAMEWORK

According to Management study guide that the figures square measure showing

progressive trends and therefore the corporations typically promote the success stories of people

who became millionaires within the business, it’s to be noted that there’s growing concern within

the trade and Governments of varied countries that are raising questions on the believability of the

pyramid compensation methodology that they believe is inherently faulty model which the revenue

or financial gain generation doesn’t happen because of sales of the product however is because of

the enlisting of distributors.

Conceptual Framework

AVON

AREA MANAGER

OUTLET

MEMBER

CONSUMER
As shown in the initial discussion above, the flow of the research process began with getting the

response through surveying different selected respondents with regards to their position, age,

gender, legal status and socio-economic status.

INPUT THROUGHPUT OUTPUT

SURVEY Recommendations
INTRUMENT MEASURING to
THE
PERCEPTIONS Increase in NET
Sales, OF SALES
Customer,
Satisfaction, Enhanced
Marketing Customers, CUSTOMER
Strategy Distributors, SATISFACTION
Managers
INNOVATION IN
MARKETING
STRATEGY

STATEMENT OF THE PROBLEM

The research study about Perception in Multi-level Marketing on Customer Satisfaction of Avon

Philippines in Valenzuela City is specifically seeks to answer the following:

 1. What is the demographic profile of the respondents in terms of position, age, gender, legal

status and socio-economic status?

2. What is the multi-level marketing of Avon Philippines in Valenzuela City?

3. What is the level of customer satisfaction?

4. Is there a significant relationship between multi-level marketing and customer satisfaction

with area manager, outlet supervisor, member and consumer?

Hypothesis of the Study

1. There is no significant difference between demographic variables in terms of position, age,

gender, legal status and socio-economic status.

2. There is no significant between the monthly income of the respondents and multi-level

marketing perception.

SIGNIFICANCE OF THE STUDY

This study is a trial to analyse and obtain info concerning the customer’s satisfaction

towards the effectiveness of their product. The Avon Company will specialize in their consumer’s

desires and needs.

DEFINITION OF TERMS
Multi-level Marketing (MLM) – is a system for selling goods or services through a network of

distributors. The standard Multi-level Marketing work through recruitment.

Perception -