Determinants Influencing Success in Sales Performance of Multilevel Marketing Agents in Thailand

Authors

  • Roongthiwa Sivachan
  • Kitti Phothikitti
  • Rawin Vongurai

Keywords:

Customer Orientation, Adaptive Selling, Up-Line Support, Perception on Products/ Services, Satisfaction, Compensation, Organizational Commitment, Sales Performance

Abstract

The purpose of this study is to investigate the determinants influencing success in sales performance of multilevel marketing agents in Thailand. The seven variables used in this research are customer orientation, adaptive selling, up-line support, perception on products/services, satisfaction, compensation, organizational commitment and sales performance. The population and sample size (n=1,000) were chosen to test two different groups of direct sales agent in the top ten companies which are 500 participants who are below bachelor’s degree and 500 participants who are bachelor’s degree and above. The quantitative method was applied for the data collection. Before collecting the data, Item-Objective Congruence (IOC) validity test and Cronbach’s Alpha (CA) reliability test were employed. The multistage sampling technique was conducted by using purposive, quota and convenience sampling. After collecting the data, confirmatory factor analysis (CFA) was used to analyze factor loadings, convergent validity, discriminant validity and goodness of fit indices. Afterward, structural equation model (SEM) was carried out to test the hypotheses and relationships between variables. The findings revealed that adaptive selling has the strongest significant influence on sales performance in below bachelor’s degree group followed by compensation on sales performance, customer orientation on adaptive selling and organizational commitment on sales performance. For the group of bachelor’s degree and above, customer orientation had the strongest influence on adaptive selling, followed by organizational commitment on sales performance, perception on products/services on satisfaction and satisfaction on sales performance. For recommendations and implications, human resources practitioners and sales and marketing strategists are required to customize salespersons’ development plan according to significant factors that enhance the sales performance in each group.  

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Published

2024-02-29