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The paper aims to describe the application of direct selling, the process of selling a consumer product or service from one person to another, in an environment that is not a permanent retail location.

The paper explores the application of direct selling from the perspective of companies that have built their business around direct selling and those who are evolving into direct selling. The paper focuses the examination on three companies participating in the direct selling category: The Longaberger Company, The Pampered Chef and The Tupperware Corporation.

The paper finds that direct selling is an increasingly important component of the marketing mix for many traditional, successful companies and presents some keys to success.

Successful direct selling companies in the future will help to maximize growth and optimize customer loyalty at all levels.

This chapter deals with the principal features of the International Code of Direct Selling 2013 prepared by the International Chamber of Commerce on Marketing and Advertising. Having identified the Basic Principles of Direct Selling and the Ideal Conduct towards Consumers, this Code also details the conduct which should be shown towards direct sellers; in addition to their responsibility to and in the event of any breach thereof, the responsibility to be discharged by the direct sellers. That is why this Code of Conduct provides for special training for familiarisation of the important provisions of this Code. This Code intends to achieve a number of objectives, namely (a) the importance of responsibility and good practice in direct selling in any jurisdiction; (b) to respect consumer preferences and privacy and the need for consumer protection – as the days of caveat emptor are over – the onus of consumer protection has been passed on to the sellers of products and services; and (c) direct selling should be done with social and professional responsibilities.

Direct selling was founded on the philosophy of coaching people on how to successfully build a business from the ground up, and women comprise a large percentage of these direct selling entrepreneurs. In this chapter, we highlight the empowering benefits of direct selling. First, we focus on women micro-entrepreneurs who want to build their own small businesses, but on a limited scale while maintaining flexible schedules and work-life satisfaction. These women can benefit from the direct selling opportunity in terms of capitalization, formal structures, mentoring, income, self-efficacy, social capital, and life skills. Second, we profile women entrepreneurs who are building their own product organizations and have chosen direct selling as a go-to-market strategy for access to consumers. Three consistent attributes observed across these women are authenticity, affective commitment, and passion.

The purpose of this paper is to use a theoretical framework (institutional theory) to predict international market selection (IMS) for the direct selling industry.

The authors use independent variables taken from institutional theory to predict IMS for the direct selling industry, allowing the authors to show the relationship between institutional theory – defined independent variables and the relative attractiveness of international markets. The model is applied to a broad sample of 51 developed and emerging nations that comprise 91 percent of worldwide GDP.

The authors found that the hypotheses were confirmed. Institutional theory – defined independent variables did a good job of predicting the relative attractiveness of international markets.

The authors used cross sectional country level data to validate their model. One major implication: institutional theory appears to do an excellent job of predicting IMS in contrast to geographic proximity or cultural similarity for the direct selling industry.

Managers should consider formal and informal aspects of the institutional environment, when selecting new international markets.

In contrast to most IMS papers, the authors apply a theory to predict IMS outcomes, helping to provide greater potential generalizability. The authors show that selected dimensions of institutional theory do a good job of predicting IMS for the direct selling industry. Future efforts may wish to apply institutional theory to new IMS contexts. The authors conclude with managerial implications.

This paper aims to analyze the evolution of direct selling – a retail channel that successfully sold products ranging from cosmetics to radios to automobiles – to multilevel marketing (MLM), an industry now apparently heavily reliant on selling to itself. As the courts have found some MLM companies to be pyramid schemes, the analysis includes the overlap between the legal MLM model and an illegal pyramid scheme.

The development of direct selling in the USA was examined, followed by the factors contributing to the design and growth of the MLM model and its non-commission-based compensation structure. Then, the key legal decisions regarding illegal pyramid schemes operating under the guise of MLM, the relative stagnation of direct selling and the state of the MLM industry were examined.

As the MLM model operates on the dual premise of retailing through a network of distributors and recruiting new distributors to do the same, it was found that federal regulators and the courts consistently focus on the “retail question” – the existence and extent of sales to consumers external to the distributor network. The authors argue that without a significant external customer base, internal consumption by an ever-churning base of participants resembles neither employee purchases nor a buying club.

As the MLM model facilitated the growth of pyramid scheme fraud, creating victims rather than customers, this research highlights successful efforts to regulate this type of consumer fraud.

Few papers have been written on MLM and pyramids schemes, and none thus far has taken an historical perspective.

The purpose of this paper is to examine the dimensions of interpersonal trust which would affect the buyer-salesperson relationship in a direct selling situation. It also investigates consumers’ perceived risk and advantages of direct selling.

A questionnaire survey of consumers (and also non-consumers) of direct selling companies in Hong Kong was performed by means of mall-intercept interview. The major measurements were perceived risk, perceived advantages, trust dimensions, and repurchase intention.

The results show that there are six dimensions of interpersonal trust in the buyer-seller relationship in direct selling, but only one dimension (i.e. honesty) has a significant relationship with repurchase intention. The ability to shop at home is found to have the highest advantage rating of direct selling. In addition, direct selling is perceived to have a lower level of risk than unsolicited telephone call such as telemarketing.

This is the first study to investigate the effects of different dimensions of interpersonal trust on consumer buying behavior under a direct selling situation in Asia. The study also serves as a foundation for studying the applicability and usefulness of all trust measures in other western or non-western cultures/nations.

To achieve a full understanding of the role of marketing from plan to profit requires a knowledge of the basic building blocks. This textbook introduces the key concepts in the art or science of marketing to practising managers. Understanding your customers and consumers, the 4 Ps (Product, Place, Price and Promotion) provides the basic tools for effective marketing. Deploying your resources and informing your managerial decision making is dealt with in Unit VII introducing marketing intelligence, competition, budgeting and organisational issues. The logical conclusion of this effort is achieving sales and the particular techniques involved are explored in the final section.

The purpose of this paper is to investigate trust in salespersons of direct selling companies. The major purpose of the study is to examine three alternative measures of trust and to assess the effects of consumer trust in the direct selling salesperson on intended purchase behavior in a non‐Western culture, Hong Kong.

The research was designed as a personal interview survey of purchasers and non‐purchasers of product from direct selling companies in Hong Kong. A street‐intercept method of personal interview was used in three major shopping areas. The major measurement was of three different measures of trust in buying behavior from direct selling companies.

Survey results show that the measures of trust are not equally significant in being related to intention to repurchase. Only one measure, “Affect Trust”, is statistically correlated to repurchase intention. This measure is based on emotions which are affective in nature.

Gaining trust is crucial to all salespeople, industrial and consumer alike, as trust facilitates an exchange relationship while mistrust hinders it. Consequently, having valid measures of trust is essential to ensuring that exchange relations are positive. The research to date has been in the context of Western cultures and is dated (ten or more years ago). The paper examines trust in a non‐Western culture. In addition, the sales relationships studied in the past have been non‐direct selling. The paper expands this domain as it looks at direct selling to consumers in a non‐fixed business location.

Considering the network externalities of online selling, this paper builds three different online direct selling models: manufacturer direct selling (MN model), network platform direct selling (NN model) and retailer direct selling (RN model). The optimal advertising and pricing decision and corporate profits under each selling model are investigated.

Combining the characteristics of online direct selling, this paper formulates direct selling models that are dominated by different companies as Stackelberg game models. Numerical analyses are carried out, along with the comparison of the equilibrium solutions for each model.

The authors' research shows that increasing network externalities is conducive to the development of enterprises. The network platform's profit is the lowest in the RN model and the highest in the NN one. The comparison of manufacturers' profits between the MN model and the NN model primarily depends on consumers' sensitivities for sales price and advertising promotion level. The manufacturer does not benefit from the RN model due to the lowest efficiency.

Coupled with three different online direct selling models and detailed analyses of the optimal solutions, this study has enriched the theoretical foundation of online direct selling. Moreover, this study extends the research of network externalities to the field of e-commerce, revealing the network externalities' influence on the decision-making of the e-supply chain.