Abstract

WILLIAMS, Carinda C.  and  KLEYNHANS, Marizaan. Unveiling trust as a mediator in distributor loyalty within South African multi-level marketing. S. Afr. j. econ. manag. sci. [online]. 2024, vol.27, n.1, pp.1-7. ISSN 2222-3436.  http://dx.doi.org/10.4102/sajems.v27i1.5269.

BACKGROUND: Limited research has been conducted in South Africa's multi-level marketing (MLM) sector, particularly pertaining to distributor satisfaction and its influencing factors AIM: This study aims to determine the extent to which trust mediates the relationship between distributor satisfaction and loyalty within the MLM framework in South Africa SETTING: This study was conducted among distributors within the South African multi-level marketing environment METHOD: This study adopted a descriptive research design. A total of 376 distributors from health and wellness sectors, focused on MLM companies in South Africa. They were selected through non-probability convenience sampling. Confirmatory factor analysis (CFA) was employed to validate the data's reliability, while structural equation modelling (SEM) was utilised to examine both the direct and indirect effects postulated in the study RESULTS: The analysis revealed a notable indirect positive effect, linking distributor satisfaction to distributor loyalty, with trust acting as a mediating variable. Additionally, direct positive correlations were identified between distributor satisfaction and loyalty and between distributor trust and loyalty CONCLUSION: For health and wellness MLM companies in South Africa, it is vital to enhance distributor loyalty and trust. This can be accomplished by increasing distributor satisfaction and refining the way they communicate business opportunities CONTRIBUTION: Multi-level marketing can benefit from the findings of the research as this improves insight into the direct and indirect effects of distributor satisfaction on distributor loyalty and trust and provides empirical insights into the MLM industry

Keywords : multi-level marketing; distributor; distributor satisfaction; distributor loyalty; distributor trust.

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