The purpose of this study is to examine four factors of Herzberg Two Factors Theory (HTFT) that could influence the satisfaction of independent distributors in Multilevel Marketing (MLM) companies. This study examines the relationship amongst compensation plan, up-line support, advancement, recognition toward satisfaction. This study also examines the mediating effect of distributor satisfaction in the proposed framework model. The data were collected from 391 independent distributors of MLM. The data were analyzed using the Smart PLS and SPSS tools. Previously, several research have been focused on the Hygiene Factors of HTFT in examining distributors’ satisfaction but limited of them have yet included Motivational factors together in research or looked at them in the MLM context. This study offers valuable practical and new theoretical insights into how to apply the four factors of HTFT that industrial and organization leaders should adopt in their decision-making evaluation. This study also outlines how companies can make better decisions via four factors of HTFT. The finding of this study reveals that Hygiene and Motivational factors of HTFT positively impact distributor satisfaction and loyalty toward MLM. Besides, distributor satisfaction also plays a mediator role in the relationship between compensation plan, up-line support, advancement, recognition and satisfaction.

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The Influence of Hygiene and Motivational Factors on Independent Distributor’s Satisfaction and Loyalty in Multilevel Marketing Businesses

  • Teh Chun Yen,
  • Shaizatulaqma Kamalul Ariffin

摘要

The purpose of this study is to examine four factors of Herzberg Two Factors Theory (HTFT) that could influence the satisfaction of independent distributors in Multilevel Marketing (MLM) companies. This study examines the relationship amongst compensation plan, up-line support, advancement, recognition toward satisfaction. This study also examines the mediating effect of distributor satisfaction in the proposed framework model. The data were collected from 391 independent distributors of MLM. The data were analyzed using the Smart PLS and SPSS tools. Previously, several research have been focused on the Hygiene Factors of HTFT in examining distributors’ satisfaction but limited of them have yet included Motivational factors together in research or looked at them in the MLM context. This study offers valuable practical and new theoretical insights into how to apply the four factors of HTFT that industrial and organization leaders should adopt in their decision-making evaluation. This study also outlines how companies can make better decisions via four factors of HTFT. The finding of this study reveals that Hygiene and Motivational factors of HTFT positively impact distributor satisfaction and loyalty toward MLM. Besides, distributor satisfaction also plays a mediator role in the relationship between compensation plan, up-line support, advancement, recognition and satisfaction.