Скачать презентацию Consumers who buy from direct sales companies Daisy Скачать презентацию Consumers who buy from direct sales companies Daisy

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Consumers who buy from direct sales companies Daisy Lam & Eric Sin Consumers who buy from direct sales companies Daisy Lam & Eric Sin

Content • Introduction • Figures • Conclusion Content • Introduction • Figures • Conclusion

Major modes of DS • One-on-one selling in a home • One-on-one selling at Major modes of DS • One-on-one selling in a home • One-on-one selling at a workplace • A sales party at a consumer’s home • Sales party at a workplace, church or other workplace

Companies with household names 1989 2006 • Amway • Avon • Tupperware international • Companies with household names 1989 2006 • Amway • Avon • Tupperware international • • • Amway Avon Herbalife Nuskin Tupperware international • And many more…. .

Purpose of the study • Determine the extent to which consumers buy from DS Purpose of the study • Determine the extent to which consumers buy from DS companies and document characteristics of purchasers • Obtain perceptions of the advantages and disadvantages of buying from a DS company • Investigate the perceived risk of buying from a DS company

Method • August 1987 • Consumers drawn from national consumer mail panel • > Method • August 1987 • Consumers drawn from national consumer mail panel • > 18 years • 50% male, 50% female • 1600 988 responded, 62% • Middle-class America

They were asked: • Whether they had purchased a product or service from any They were asked: • Whether they had purchased a product or service from any of the four major modes; • By open-end questions, their perceptions of the three major advantages and disadvantages of buying from direct sales companies; • And their perceptions of the risk in buying from direct sales.

Analysis and results Analysis and results

Purchase Incidence Number of Direct Selling Modes used in past 12 months Percentage of Purchase Incidence Number of Direct Selling Modes used in past 12 months Percentage of survey participants 0 43. 4 1 28. 4 2 20. 2 3 6. 2 4 1. 8

An examination of the four major direct selling modes indicates that: • One-on-one selling An examination of the four major direct selling modes indicates that: • One-on-one selling in a home is the most popular (36%). • 27% purchased at work; • 27% purchased at a sales party; • 10% purchased somewhere else.

Demographic profiles of DS Characteristic Purchaser in past 12 months Nonpurchaser in past 12 Demographic profiles of DS Characteristic Purchaser in past 12 months Nonpurchaser in past 12 months Education 14. 3 19. 6 19. 7 72. 3 71. 3 Not Married 49. 5 18. 5 Married 54. 8 35. 1 27. 7 28. 7 Less than $10, 000 15. 4 19. 3 $10, 000 - $19, 999 24. 3 29. 8 $20, 000 - $29, 999 21. 8 15. 4 $30, 000 - $39, 999 16. 7 22. 6 $40, 000 or more 21. 8 12. 9 50. 5 Female 42. 3 College graduate 45. 2 30. 9 Some college Male 19. 6 High school graduate Sex Not high school graduate Age 19 -29 18. 8 5. 8 30 -39 25. 5 17 40 -49 18. 2 12. 4 50 -59 15. 3 18. 1 60 or older 22. 2 46. 7 Marital Status Household Income

Demographic profiles of DS purchasers and nonpurchasers Demographic profiles of DS purchasers and nonpurchasers

Perceived advantages and disadvantages of buying from Direct Sales company Perceived advantages and disadvantages of buying from Direct Sales company

Survey participants buying from a direct sales company: On average, perceived more advantages than Survey participants buying from a direct sales company: On average, perceived more advantages than did non-buyers, whereas non-buyers perceived slightly more disadvantages than buyers.

Perception Purchaser in past 12 months Nonpurchaser in past 12 months Convenience 55. 7 Perception Purchaser in past 12 months Nonpurchaser in past 12 months Convenience 55. 7 54. 1 Lower price 35. 5 Ability to examine products 43. 8 39. 8 Personal attention 45. 9 33. 6 Atmosphere 10. 6 15. 4 Good selection 2. 3 4. 6 Other 43. 3 39. 0 Nothing 8. 0 26. 3 Pushy salespeople 52. 1 45. 7 Expensive products 23. 7 26. 3 Poor selection 20. 8 26. 6 Low reliability 27. 9 35. 6 Difficult to return 16. 8 18. 3 Service problems 32. 1 29. 1 Bothersome 38. 7 36. 0 Takes time 11. 6 9. 0 Other 29. 5 33. 5 Advantages Disadvances

Perceived risk of buying from a Direct Sales company Perceived risk of buying from a Direct Sales company

Risk in purchasing a product through the five alternatives sales modes: • Retail store Risk in purchasing a product through the five alternatives sales modes: • Retail store (13) • Mail-order catalog (32) • Direct selling sales party (37) • Direct selling in home (44) • Unsolicited telephone call (74) (100 is very risky and 0 Not risky at all)

Risk perception index values by purchase behavior Risk perception index values by purchase behavior

Conclusion • ~57% purchased from DS in 12 months preceding survey. • Consumers DS Conclusion • ~57% purchased from DS in 12 months preceding survey. • Consumers DS differ from nonpurchasers in: demographic characteristics, perceived advantages and disadvantages of buying from DS company, and risk perceptions. • DS purchasers are younger, more educated and more affluent than nonpurchasers. • DS purchasers perceived more advantage in buying from a DS company than the nonpurchasers.

Final thoughts (1988) • For example, constructing a buyer typology would permit categorizing consumers Final thoughts (1988) • For example, constructing a buyer typology would permit categorizing consumers according to their shopping/purchasing propensities for various forms of in-store and non-store retailing (e. g. , catalog, direct mail, telephone). • Consumers buying from direct sales companies warrant individual study, little is known about the attitudes of direct sales buyers.

Direct selling customers are compare to non-customers : Demographic: Personality: • • More likely Direct selling customers are compare to non-customers : Demographic: Personality: • • More likely to be female; Younger; Posses more education; Higher income; • • Less talkative; Sensitive; Sociable; Religious.

Our own thoughts • Teacher: Compared to the information from 1988, what is different Our own thoughts • Teacher: Compared to the information from 1988, what is different now in 2006?