The misplaced controversy about internal consumption: Not just a direct selling phenomenon Harvard Case Solution & Analysis

Internal consumption in the  industry has been at the core of several arguments over the last couple of decades. In this article, we argue that internal consumption is a prevalent practice at all degrees of the channels and not limited to the direct selling or the MLM arena. The numbers presented here give evidence of the prevalent usage of internal consumption in all aspects of retailing while government regulators in certain nations try to utilize this practice in MLM as prima facie evidence of illegal pyramiding. Consequently, to attribute internal consumption as a negative facet entirely within the direct selling marketplace shows a misplaced understanding with regard to discounts, personal use, and business recruiting efforts. At the same time, however, our research suggests that discounted buying of merchandise for private use likely brings little worth to the business since it does not seem to result in organizational loyalty from the customer base or the affected workers or increased job satisfaction.

This is just an excerpt. This case is about SALES & MARKETING

PUBLICATION DATE: July 15, 2015 PRODUCT 2015 PRODUCT #: BH684-PDF-ENG

 

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The misplaced controversy about internal consumption: Not just a direct selling phenomenon

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