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Abstract ▼ AI-Helper

After 1990's, many multi-level marketing companies lave been introduced in Korea. These MLM companies operate their stores as same way as general retailing stores. The major characteristics of these MLM companys' store is that their main customers are distributors who sell the purchased merchandise ...

After 1990's, many multi-level marketing companies lave been introduced in Korea. These MLM companies operate their stores as same way as general retailing stores. The major characteristics of these MLM companys' store is that their main customers are distributors who sell the purchased merchandise to another customers. Many studies about merchandise display in general retailing stores were reported. But, there was less research about merchandise display in these special type stores such as MLM companys' stores. This paper investigates the effects of merchandise display on distributor's merchandise selection in channel flow of multi-level marketing company. For this purpose, we formulated four hypotheses about display variance in quantity, height, location, and related merchandise to analyze the effect of merchandise display methods in MLM companys' stores. The experiment had been proceeded in three stores in a MLM company for 6 weeks and the sales data were collected by POS. The methods to analyze the data were used ANOVA and T-test. Findings of this study are as follows; First, there was no effect to store sale by the interaction effect between merchandise display method and scale of store. Second, scale of store affected considerably the volume of sales of each store according to main effect analysis. Third, display variance in quantity, height, and location did not affect store sale. In the related merchandise display, however, sale in all store was increased. Fourth, in additional analysis considering merchandise display only, display variance in both height and location affected their sale in large scale store. Based on the above results, we may predict merchandise display can affect sale in MLM companys' store as well as general retailing stores. Therefore if MLM company has large scale store, it should consider merchandise display methods in its stores.

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