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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.

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.

Previous studies have rarely integrated the financing modes of a capital-constrained manufacturer with the choices of online sales strategies. To address this gap, the authors study how a manufacturer selects optimal financing modes under different sales strategies in three dual-channel supply chains.

This paper considers three sales strategies, namely, combining a traditional retailer channel with one of the direct selling, reselling and agency selling channels, and two common financing modes, namely, bank financing and retailer financing. The authors obtain equilibrium outcomes of the manufacturer and traditional retailer and then provide the conditions for them to select optimal financing modes under three sales strategies.

The results indicate that the manufacturer’s financing decisions rely on the initial capital and interest rates, and the manufacturer selects retailer financing only if the initial capital is relatively larger. In terms of financing mode options, the retailer financing mode is more beneficial for the manufacturer under the three sales strategies. From the perspective of sales strategies, the direct selling model is more beneficial. In addition, the higher the consumer acceptance of the online channel, the more profits the manufacturer obtains.

This paper provides suggestions on how the capital-constrained manufacturer chooses financing modes and sales strategies.

This paper integrates the financing mode and different sales strategies to investigate the manufacturer’s optimal operational decisions. These sales strategies allow us to investigate the manufacturer’s optimal financing modes in the presence of both different financing modes and sales strategies.

Faced with declining market share and sales, Natura, Brazil’s second-largest brand in the cosmetics, fragrances, and toiletries market, expanded its customer reach by moving from a direct-sales company to a multichannel company. In 2014, Natura added online catalogs, physical stores, and drugstores to its well-established direct-selling model, but the results were disappointing. Between 2014 and 2016, three different Natura CEOs attempted to lead the company in the strategic transition to focus less on the direct sales consultants and more on reaching the end consumers directly with multiple channels and touchpoints. In October 2016, the company’s board appointed its former commercial vice president, João Paulo Ferreira, as the most recent CEO. Ferreira’s challenge was to find the right balance between the direct-selling and other channel formats to market Natura, thus enabling it to thrive in the face of intense competition in the beauty and personal care market in Brazil.

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.

The purpose of this study is to explore the interplay between the selection of selling formats of remanufactured products for a third-party remanufacturer (TPR) and the quality decision of an original equipment manufacturer (OEM).

This study considers a remanufacturing supply chain, where the OEM sells new products through a platform retailer, but the products remanufactured by the TPR can be sold via a direct or indirect channel. The authors model a Stackelberg game and explore the optimal quality decision of the OEM and selling format choice of the TPR.

The OEM's optimal decision depends mainly on consumers' discounted utility coefficient and cost-scale factor of remanufactured products. A higher consumers' valuation of the remanufactured product will not result in a higher retail price, but may lead to an increase in new product's sales. Given the cost-scale factor, the TPR prefers to sell directly no matter what the value of consumers' discounted utility coefficient is. An all-win situation is achieved with selling directly when consumers' discounted utility coefficient is sufficiently large.

These results provide some support to the operational strategies of the OEM and TPR.

This study firstly endogenizes the quality decision and combines the selling format selection of the TPR and the quality decision of the OEM to explore the interplay between these two important decisions.

This paper aims to determine what impact an economic recession and recovery had on the selling and non-selling activities of trade show attendees and the subsequent marketing tactic changes.

Samples were collected from an international trade show during the recession (2009) and during the recovery (2013). The responses were analyzed using ANOVA and structural equation modeling to establish significant changes in activities between the periods and to provide a factor model.

Direct selling goals do not change during economic conditions. Intangible priorities increase during recessions.

The trade show is limited to one location; therefore, is not a representative sample. Questionnaire design issues did not allow the linking of survey respondents to specific companies; therefore, is not a true longitudinal study.

Companies should focus on prospecting, enhancing corporate image and morale, testing and introducing new products and gathering intelligence during economic downturns. Conversely, companies should focus on sales and servicing clients during economic recovery.

This is the first research to study the macroeconomic impact on marketing tactics over multiple periods in an international setting. Several accepted selling and non-selling instrument goals are measured in an international context. A new model for structuring trade show goals is developed.