LV Thạc sỹ_Reputation of multi level marketing in Herbalife Vietnam

National Economics University International School of Management and Economics Research project Title: Reputation of multi-level marketing, in the case of Herbalife in Vietnam TABLE OF CONTENTS ACKNOWLEDGEMENT EXECUTIVE SUMMARY INTRODUCTION CHAPTER – LITERATURE REVIEW I A review of theories II Past research about customers behavior in multi-level marketing 12 CHAPTER – METHODOLOGY 14 I Research methodology 14 II Data collection 15 III Limitation of research 16 CHAPTER – MAIN FINDING 17 I Overall about customers of Herbalife 17 II Factor impact on Herbalife customer behavior 21 III Review of customer: 27 IV Factor impact on Herbalife reputation: .31 CHAPTER – DISCUSSION 35 I Herbalife is legal and it is multi-level marketing company .35 II Herbalife is a pyramid scheme company – it is illegal .39 III Conclusion for discussion 42 CHAPTER – RECOMMENDATION 43 APPENDIX 45 REFERENCES 49 ACKNOWLEDGEMENT The preparation of this research has depended on generous support, insight and assistance of many people and institutions It is a great pleasure to offer our special thanks here to them We wish, first of all, to gratefully acknowledge our deep indebtedness to our supervisor, Mrs … who has always been willing and enthusiastic to give us valuable advice and instructions, as well as useful lessons, without which this study can hardly have been well accomplished We are grateful to Professor … of International School of Management & Economics of National Economics University for his assistance in our period of study and writing this research In addition, an honorable mention goes to two managers and some other members of Herbalife They gave us a lot of useful information and support us so much in contact with company customers as well as members for doing survey and seeking information Their helps are really important for us to complete high valid and reliable research Besides, it can be said that the research is a part of study we have after two year studying in BTEC program As a result, our group also want to express sincere gratitude to all lecturers, tutors, manager and staff of International Schools of Management for successful create this training program Our knowledge in term of business has been widened a lot after and apply useful to conduct the research Lastly, we want to give our gratefulness to beloved families and friend for their understandings and willing support They have been always with us and encourage us in term of spirit Without helps of the particular that mentioned above, we would face many difficulties while doing this research project EXECUTIVE SUMMARY Multi-level marketing in Vietnam is nowadays very popular This type of business is commonly accepted by retired people and housewives those want to work from home Multi-level marketing in Vietnam allows the person to work nationally and even internationally just by sitting at home This is such type of business which does not require the person to go to office and work over there He or she can sit comfortably at home and can this work either part time or full time and can earn great income Amount of commission increases as the member chin increases As there are no retailers or wholesalers or agents, the profit is directly distributed between the members Members act as owners of the company Multi-level marketing in Vietnam is one of the best type of business opportunity those who have less capital Because of those advantages, there are many different companies have joined in Vietnam market, such as Amway, Avon, Oriflame, Noni or Agel and Herbalife However, because of collapses of Agel or others as well as the exist discussions between multi-level marketing and pyramid scheme ( illegal ), customers lose their trust in this type of business After finishing this research project, we would identify the differences between Herbalife in Vietnam and other countries in the same area through analysing suitable theories and previous researches Moreover, we also can know the reputation of Herbalife in Vietnam and how much customers believe in multi-level marketing company by conducting survey and analysing the data Finally, by discussing between original idea and its objection, our group would confirm about Herbalife is a multilevel marketing company However, in United State and India his model is considered as a pyramid scheme model INTRODUCTION Rationale of study Multi-level marketing (MLM) is a marketing strategy which just appeared for short time in Vietnam There are many different companies joined in Vietnam market such as Amway, Herbalife, Oriflame or Agel However, they not have professional and specific plan and management, thus, customers have wrong view and misunderstood about this model In Vietnam, Herbalife is known as the most popular multi-level marketing company Launched in 1980 by Mark Hughes in California, Herbalife has quickly built up a reputation and become the most familiar brand of nutrition and skin care products in worldwide Herbalife is appeared in 81 countries in the world and it has certificate of Ministry of Health Herbalife has joined in Vietnam market in 2009, it is quite young but it also has strong influences Along with the development of economic, when people satisfy their selves with basic demands such as food, drink and hygiene; they would have other demands about health or education Moreover, the rate of obesity people is getting higher, thus, Herbalife is focused on nutrition care products and especially very success with “ Weight Loss “ products Herbalife has a clear vision and mission They try to change people’s lives by providing a new way to business and the best nutrition products and weight-management products Herbalife or multi-level marketing are very popular and success in many different countries in the world However, in Vietnam, along with the fame, Herbalife also has many bad scandals as well as wrong awareness of people Multi-level marketing is totally new to Vietnamese, but Herbalife does not have a specific plan and management for developing the system in this market Thus, they are losing their image and reputation in here By interviewing people, it is recognized easily that nearly 50% of them thinking that multi-level marketing or Herbalife is just a trick Moreover, there are many other competitors have joined in Vietnam market which have the same products such as Noni or Agel Hence, if Herbalife does not have any plans to fix and keep their brand’s image, they will lose the market share Research scope:  Focus on the effective of multi-marketing in Vietnam market  Recommend solutions to improving the reputation of the company  Study marketing aspect from company’s point of view Research objective Multilevel marketing have penetrated in Vietnam in some recent years There are two most famous and typical company follow this type of business is Amway and Herbalife There are a quite large amount of people are on faith of these brands However, other people still doubt about the quality and effects of their products such as health and personal care products There are many controversies of the customers, media and experts about multilevel marketing Is that a trick or not to remain the business? Therefore, we carry out this research to find out what are the problem exist behind this kind of business in Vietnam and find out the some advised and solution for them not to remain but also to develop and innovate day by day in Vietnam market Moreover, we also some investigation, survey and interview to know how the customer think about Herbalife products, it also contribute to the final solution In summary, our main objectives of this research are:  To explore the reputation of Herbalife in Vietnam by analyzing customer behavior  To explore the opinions of customers about multi-level marketing system  Giving solutions to Herbalife to improve reputation as well as gain trust of customers in Vietnam Research question Based on the background and the research problem, there are three main questions which we have to answer and focus in order to find out the problem and solve it:  What are the problems of Herbalife in Vietnam nowadays and the differences from the basic form of multilevel marketing in the beginning and other countries?  Why does Herbalife can penetrate, maintain and develop in Vietnam?  How does Herbalife have to to build the prestige and clean image to gain the belief and loyalty from Vietnamese customers It is hoped that this paper can provide possible answers and justifications for above questions This study proceed as follow: Chapter 1- Literature review: This chapter contains review and evaluation on past researches about multi-level marketing ( MLM ) companies and reaction of customers to this which this study works on This part will review previous researches on other countries but with the same field as communicating equipment Chapter 2- Methodology: This chapter introduces methodology and theories using in research Therein, Methodology part consists of data collection methods and data analysis methods There are two data collection methods applied, including interviewing and questionnaire while data is analysed by using Excel and SPSS (Statistical Package for Social Sciences) software Chapter 3- Main Finding & Analysis: Due to data collected from questionnaire, this section brings overview about customers’ awareness to Herbalife and multi-level marketing in general Chapter – Discuss: By giving objection to main finding above, we provide information that Herbalife is considered as “ pyramid scheme “ and this model is illegal Then we would reply to protect our original Chapter 5- Recommendation: In the final part, based on identifying and evaluating problem in franchise strategy of the company, some suggestions will be provided so as to help Herbalife to solve its problems CHAPTER – LITERATURE REVIEW I A review of theories Marketing mix 4Ps: The marketing mix is generally accepted as the use and specification of the 4ps: Product, Price, Place and Promotion describing the strategic position of a product in market place Figure 1: Marketing mix model ( Phillip Kotler, Principles of Marketing, 3rd edition, pg5) Herbalife can apply this model for their decision making about customer behavior For example, the survey about review and trust of consumers in Vietnam was carried out The results revealed that more than half of the responders were married women with average age of 32 years old, with bachelor’s degree, own private business The research concluded that opinions toward nutrition supplements depended on gender and marital status Promotion mix showed that consumers with different age, education, occupation, and income had different health concerns Consumer behavior Consumer behavior is the study of individuals, groups, or organizations and the processes they use to select, secure, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society ( Kuester, Sabine (2012): MKT 301: Strategic Marketing & Marketing in Specific Industry Contexts, University of Mannheim, page 110) Belch (1998) defined consumer behaviors as the process and activities people engage in when searching for, selecting, purchasing, using, evaluating, and disposing of products and service so as to satisfy their needs and desires The American Marketing Association defines the term “consumer behaviors” as the dynamic interaction of affect and cognition, behavior, and environmental events by which human beings conduct the exchange aspects of their lives (Peter & Olson, 1996, page 11) 2.1 Maslow’s hierarchy of Needs- theories consumer behavior model Abraham Maslow developed the Hierarchy of Needs model in the 1940-50s in USA, and the Hierarchy of Needs theory remains valid today for understanding human motivation, management training, and personal development Indeed, Maslow's ideas surrounding the Hierarchy of Needs concerning the responsibility of employers to provide a workplace environment that encourages and enables employees to fulfill their own unique potential (self-actualization) are today more relevant than ever In his theory, Maslow developed his hierarchy of needs based on research about what affect to consumer behavior He argues that until these most pressing needs are satisfied, other needs have little effect on an individual’s behavior In other words, people satisfied the most pre-potent needs first and then progress to the less pressing ones Figure 1: The Maslow’s hierarchy of need (Source: BBP professional, Organization and Behavior, 2010 edition, p162 ) Nowadays, the economy of Vietnam is better, especially the living standard of the Vietnamese is higher Thus, when they not have to care about basic needs such as food, drink or house, they started to care about other aspects such as education, job or their health or beauty By understanding this model, Herbalife has joined in Vietnam market with different products such as weight management, targeted nutrition, energy or personal care Those products are multiple and meet different requirements of customers Herbalife applied this model successfully, for example: A housewife in the middle age who have enough food, drink, house, a happy family, her children grown-up, she would have much more free time than people working in office or business owners Therefore, she would start to have demand for beauty or weight lost products Then, this is the opportunity for Herbalife to attract the customers 2.2 Gap model - Theories service quality model Perceived service quality can be defined as, according to the model, the difference between consumers’ expectation and perceptions which eventually depends on the size and the direction of the four gaps concerning the delivery of service quality on the company’s side Herbalife However, Herbalife allows distributors to return unsold product for up to a year, and that returns have accounted for less than 0.5% of sales in recent years The problem Herbalife has, and the main foundation of the scam accusations, is the ‘blame culture’ that presides in society today If I fail, it is someone else’s fault If I lose money, it is because the business opportunity was a scam One of the first accusations hurled at Herbalife is that it is resembles an illegal pyramid scheme To dispel this rumor it is necessary to look at precisely what an illegal pyramid scheme is, and how Herbalife differs A Pyramid scheme is defined as an unsustainable business model, with the emphasis on recruiting new people into the scheme, without any worthwhile product being delivered The lower down the pyramid you enter, the harder it becomes to make money, and the individuals at the very bottom of the pyramid end up losing money Moreover, compensation for distributors based on recruitment, not on retail sales Actually, Herbalife’s distributor compensation plan offers compensation that is directly linked to the generation of product sales It does not award any compensation for mere recruitment  Wholesale commissions on product sales of a downline distributor;  Royalty Overrides calculated as a percentage of the suggested retail price of a downline Supervisor-level distributor’s sales volume; (Royalty Override percentage is based on Total Volume for each month; if distributors produce less than 500 Volume Points, then no Royalty Overrides are earned If they produce 2,500 Volume Points or more, then a full 5% is earned on three active downline levels The Royalty Override scale shows the volume requirements that a Supervisor must meet every month to earn Royalty Overrides)  Production Bonuses calculated as a percentage of a senior-level distributor’s entire downline organization’s product sales volume, subject to meeting minimum sales levels; ranges from 2% to 7%; and  The Mark Hughes Bonuses, awarded annually to the most successful Herbalife distributors who have demonstrated superior leadership and motivation in the past year; up to percent of product retail sales is given annually, with $52.3 million in awards in 2012 ( Anne T Coughlan (2011) Assessing   an   MLM   Business: Herbalife as a Legitimate MLM, Page 1)  None of these components are earned without product sales behind them, and all are directly linked to the amount of product sales Moreover, because of some 36 complains from weight management products that they are gradually relying too much on products and it’s not work anymore without stopping to take the meals Replying to that feedback, Herbalife spend $25 million combined on research and development, technical operations, scientific affairs, quality assurance and quality control, product safety They also spend $11 million to have products affairs and products license It proves that Herbalife products making process is absolutely safe and high guarantee Moreover, the volume of sales is not only calculated by the consumption of the Herbalife distributor, but also the consumption of non-distributor end user Beyond other traditional direct sales methods for in-home consumption, the figure 17 proves that 38 % of people surveyed are driven by daily consumption methods, mainly consumption at Nutrition Clubs The development and spread of Nutrition Clubs is a notable indicator of the attractiveness of Herbalife products at retail These are locations (either a distributor’s home or a commercial location) where a Herbalife distributor provides single-serve product(s) (e.g the Formula Shake) Thus, not only does Herbalife’s compensation plan fail to reward mere recruitment, but its products are in fact sold broadly to non-distributor end-users as well as to distributors for personal consumption Herbalife is not an illegal scheme It is 100% legitimate, and is listed on the New York Stock Exchange It is an example of a multi-level marketing company, NOT a fraudulent pyramid scheme Critics of multi-level marketing often claim that, despite its legality, it is nothing more than an effectively disguised pyramid scheme, but these tend to be people who have failed in the business, and are looking for somebody to blame Herbalife offers genuine money-making opportunities to those people who are prepared to take the time to learn how to market and sell their products effectively However, Herbalife still exist many shortcomings from the direct selling systems and professional skill of the distributors who will provide nutrition awareness for customers How Herbalife retain and build belief in customers The trust and loyalty of customers for Herbalife were mostly based on the effectiveness of products This is one of examples: 37 “I have never been one of those people who diet Just eat right and exercise and I would lose weight Well, after my 2nd child at 41, its not that easy I tried all my normal tricks Nothing worked I was sad depressed and was embarrassed of my body I really take a mental toll on you when you not feel and look the way you used to My knees and hips were killing me Stairs!!!Ugg!! Killed me Started going to the doctor for my knees and then I relieved they only started hurting after I put on all the weight from the baby I was exhausted all the time even though I have the best baby, she has been sleeping through the night since months This pregnancy really took a toll on my body, in every way, shape an form Then some friends told me they have been doing Herbalife and they looked incredible and had all the energy that I desired I procrastinated like I always Finally I ordered it I lost 2kg my first week On the 3rd day of taking Herbalife I felt different I had lots of energy and I wasn't starving all the time.” Herbalife product helps many people to lose their weights, improve their health so that they are always trust and still use Herbalife products although know about bad rumors and scandal about Herbalife Beside, the Golden Dragon Award 2012 record of success when Hiberlife to 97% of consumers surveyed had 14.066 votes Herbalife is rated "Food Brands leading nutritional supplement." The record number of votes that many dreams have now demonstrated the ability to conquer the market and build credibility with customers Herbalife few years ago was pretty far back to the concept of "food supplements maintenance " In the Vietnam market since 2009, Herbalife was quickly established his name with quality products of international standards based on diverse development platform edge nutritional science The product is typical not to mention mixtures Nutrition Formula (Shake), vitamin mixture, flour protein helps build healthy meals, personalized, Joint Support Advance products and Xtra-Cal provides care osteoarthritis comprehensive or specialized products for cardiovascular care has and continues to receive high marks from consumers All of that improved real quality 38 of Herbalife, and at the meeting between company and customers, many people stood up and said that Herbalife changed their life so now they are very happy and ready to bring their own evidence to support and save image brand of company by being willing to introduce the products to family and friends (e.g figure 15) Moreover, the distributors of Herbalife are always close and stand together at every activities of company like house party, sport events…It makes Herbalife seem like a big house when distributors-customers are the members of one family With this strong spirit, it is hard to separate the loyalty of customers spend on company II Herbalife is a pyramid scheme company – it is illegal Even Herbalife built trust and their reputation in many countries including Vietnam, however, there are lots of people still doubt about this new business system Besides multi-level marketing which is considered as a legal system, there is a pyramid scheme which is known as illegal system In which, profits are not actually derived from products introduced from recruiting new members Objects of the network marketing is the product, and the object of the pyramid is money, whether it is usually converted into products or services, it is certain that when the pyramid quantity food consumption will always be commensurate with the number of participants The table below would clarify more clearly: Multi-level marketing ( MLM)  Legal and voluntary  Sell their products in the Pyramid scheme  Illegal  network (the retail price), Method and recruit others into the to join  network (wholesale selling  Joining fees Subjects  price) Not much and this cost is not Kind of forcing people No selling products, just recruiting people  for the network is the money to buy included in the commission products, used to split Products commissions Money from  new 39 working  Commissio n Depends on the products you  sell  members Receive when you recruit new people Depends on your positions  Depends on where you and your network are: the top of network  Clear and unite  or the bottom Vague, unclear  provisions of the new policy  Project sketchy, flawed for new entrants clearly and  Unfair even  inheritance and The down line are located marriage on the bottom and can FAIR, does not depend on not the participants sooner or independently later There have been many Policy Policy:  get Required out contributed distributors involved in a large sums to be join in company, or arrested participants when it was formed 10 years, 20 years or more, but successful all the purchase products more participants before him, including those in the top line   Products No force to buy products Purchased because of their  Just for joining in the demands network even not  Good quality have demand  Selling for both in and out of  Low quality network  Just  Distributors have knowledge and  consult well about sell inside the network  Distributors not products focus on functions but Guarantee of take back and talk refund benefit when you join lots about the in the network  No refund or guarantee 40  Distributors Trained to be expert of  Do not have any skills products as well as other skills: sale, communication, presentation skill, etc However, the distinction is very difficult for most people, especially those who are not aware of the multi-level business People often understand the multi-level business different ways and wrong There are few people understand pyramid scheme and multi-level marketing are two different forms There are many countries, especially in United State, they always consider Herbalife as “ pyramid scheme “ company This influent badly to image brand of Herbalife in other countries such as South East Asia and India Moreover, Bill Ackman – CEO of Herbalife claims that Herbalife is a "pattern of illegal pyramid" He alleges, Herbalife profits primarily through unclear deal with salespeople network - the network participation fee of Herbalife sales rather than sales through implementation Ackman said Herbalife products are sold in high price compared to the actual value The price of vitamin products times higher retail, wholesale times higher than other products of the same type on the market Ackman also pointed out another proven model of illegal pyramid selling Herbalife is the product for more suppliers directly to consumers and earn more profit from the sales recruitment network instead for sale However, Herbalife only seeks to protect themselves, but there was no action taken William A Ackman to court on charges of slander This contrasts with the way that many businesses in the U.S often do, is knock on the door when they see the court sufficient legal basis in hand This more confirm that what Ackman said is true It leads to the doubt of customers of Herbalife The evidence that the revenue of Herbalife decreased in the first months in 2013 Although no official statistics but sales network marketing company food functions, in Vietnam in late 2009, has created a network of 25,000 distributors Herbalife's sales in Vietnam last year (according to a distribution branch manager of the firm does not want to be named) is 40 billion VND However, by accessing the internal data of Herbalife unofficially, we found out that the number of new members are nearly 700 customers Moreover, in US, Herbalife shares fell 1.8% to $ 39.24 in late trading on the same day, after the share price fell 7.7% from June 18/12 41 By providing different article from trusted newspaper, data and number from Herbalife, we believed that Herbalife’s reputation is become worse and worse in customer Even in Vietnam, Herbalife are losing their customers and their market III Conclusion for discussion It is obviously that Herbalife has existed in Vietnam market for long time and it has many loyal customers Moreover, Herbalife still develops their system better There are many companies which run as pyramid scheme such as Noni, muaban24, Phu Hung Thinh company or Kim Do company; all those companies are investigated and banned by Government Thus, it is easy to see that Vietnam’s government is very strict to manage all business activities So if Herbalife runs illegal model, they should have banned for long time ago Besides that, products of Herbalife are really useful and there are lots of experience and true stories are shared even public on Internet Not only normal customers shared about their stories but also many famous people such as famous athletes or famous football player – Messi did talk about their own experience with Herbalife’s products Even there are some articles and bad rumour about Herbalife in United State and even CEO of Herbalife – Bill Ackman made a statement that Herbalife is a pyramid scheme However, it did not affect to Herbalife in Vietnam Herbalife is a big company that in each country, they have different director to manage and run the company Some of them well and follow the rules but others wrong and break the rules It not mean that every agents of Herbalife in different 88 countries have the same results and the same system CHAPTER – RECOMMENDATION Herbalife is known as the most popular multi-level marketing company, launched in 1980 by Mark Hughes in California, Herbalife has quickly built up a reputation and become the most familiar brand of nutrition and skin care products in worldwide Herbalife has joined in Vietnam market in 2009, it is quite young but it also has strong influences However, in recent period, the market of Herbalife seems If the situation is not improved soon, Herbalife will have big difficulties in order to continue operating in Vietnam and keeps it position There are some reasons for the decrease of Herbalife market in Vietnam but base on our group research, we strongly recommend that the company should concentrate on some below main factors: Improve public relation: 42 Public relation activities play the most important role in image of a company Because of some scandal about multi level marketing company such as Agel and also some bad information about this business model, the reliability of consumer to Herbalife is reduced significantly Therefore, company needs to have some campaign to reverse this situation If Herbalife want to gain customer trust, they have to prove that most of the income generated through sales of the product rather than recruitment of other sales associates and prove that multi level marketing is not a trick Therefore, they should have some clear report about company revenue to the public, report about feedback of customer and certificate about the product quality.In order to get attention and attract customer, Herbalife should participate in some social activities to create a good image about company ethics Improve the staff quality: Base on the survey result, most of customer say that they not feel satisfied with sales force of herbalife because of their attitude, knowledge and skills whereas the successful of a MLM business like Herbalife depend a lot on their sales force Each seller is an independent representative which may take many business opportunity of the company What if that seller totally misrepresent it? A proper training program could save your company from extreme legal fees and regulatory review that can bring sales to an end Normally, Herbalife recruit a lot of staff which maybe never learn any selling skill before, because the requirements of the company are not so high and people think that it is an easy opportunity to earn money This can lead to problem that Sales Force delivers the details of Herbalife product and information of company incorrectly to the public Instead of focusing on recruiting a lot of people, Herbalife should concentrate more the quality of them in order to guarantee the quality buying process and satisfy customer and also avoid the scam This is our group recommendation about what Herbalife should get attention about to improve the current situation However, the future of multi level marketing in Vietnam is really unpredictable Although in 2011, for several reasons, the multi-level business has a boom and create a wave in Vietnam, becoming one of the main channels of distribution, in addition to other distribution methods such as semi-goods through agents, sales by catalogs, television sales but the scandal Agel Vietnam (7/2011) and muaban24 (2012) has create a strong opposing wave of society Therefore, it is very hard to recover the faith of the consumer to MLM companies 43 44 APPENDIX Chapter 2: methodology and data Data collection result No Question Gender Frequency 66 34 18-25 17 25 – 40 25 41 – 55 36 Above 55 22 Students 15 Work in office 27 Business owners 26 Wife house 35 < 6,000,000 VND 31 7,000,000 – 15,000,000 24 16,000,000 – 30,000,000 34 Above 30,000,000 11 Friends/ Relatives/ Family 50 Internet 23 Seminars 21 Others Age Occupation Income How you know about Herbalife Answer Female Male ? 45 Weight management What kind of products did you buy Targeted nutrition ? Energy and Fitness 32 29 25 Personal care 24 For better health 36 Motivation from media 14 Doctor’s advice 15 Follow the trend 11 Others 24 Internet 33 Magazine 27 Celebrities Others 26 10 How you buy herbalife Direct from warehouse 31 products ? Through distributors 69 Yes 73 No 27 Yes 55 No 14 Not sure 31 Yes 68 No 32 Keep buying products Stop buying products Tell friends/relatives/family Others 47 24 29 Why you buy Herbalife products ? Which promotions affect to you most ? Do you introduce Herbalife 10 products to your friends or family members? Do you think Multi-level 11 marketing as Herbalife’s model is legal ? Do collapses of other MLM 12 companies affect to your trust in Herbalife? 13 What did you after knowing about those news? Review of customers 46 Extremely Satisfy Neutral Dissatisfy satisfy 26 18 20 52 49 27 49 27 23 17 16 10 13 32 35 15 36 Extremely dissatisfy Chapter 3: Main finding Factor impact on Herbalife customer behavior Combining with Figure that we deal with before, the sex of customer has strong relationship with the kind of products they buy 47 Chapter : Discussion Herbalife has good reputation and gain trust from customers in Vietnam Beyond other traditional direct sales methods for in-home consumption, the figure 17 proves that 38 % of people surveyed are driven by daily consumption methods, mainly consumption at Nutrition Clubs How Herbalife retain and build belief in customers All of that improved real quality of Herbalife, and at the meeting between company and customers, many people stood up and said that Herbalife changed their life so now they are very happy and ready to bring their own evidence to support and save image brand of company by being willing to introduce the products to family and friends (e.g figure 15) 48 REFERENCES Belch, George E.; & Belch, Michael A (1998), Advertising and Promotion: An Integrated Marketing Communications Perspective, 4th edition, Boston : McGraw-Hill Clow, Kenneth E.; & Baack, Donald, (2001), Intergrated Advertising, Promotion, & Marketing Communication New Jersey : Prentice-Hall Hardesty, David M.; & Bearden, William O (2003), Consumer Evaluations of Different Promotion Types and Price Presentations: The Moderating Role of Promotional Benefit Level Journal of Retailing, 79 : 17 Hawkins, Del I., Roger J Best, and Kenneth A Coney (1998) Consumer Behavior: Building Marketing Strategy 7th editionUSA: McGraw-Hill Krech, David.; Crutchfield, Richard S., and Ballachey, Egerton L (1999), Individual in Society New York: McGraw-Hill Krigjsman (2007) Available: http://www.bizcovering.com/Marketing-and6 Advertising/Characteristic-Affecting-Consumer-Purchase-Behavior.34983 Retrieved August 2007, Lamb, Charles W.; Jr., Hair, Joseph F., Jr.; & McDaniel, Carl (2004), Marketing 7th edition, Canada: Thomson SouthWestern http://www.myherbalife.com/ Retrieved August 2007 Paul, Peter J.; & Olson, Jerry C (1996), Consumer Behavior and Marketing Strategy, Th edition, New York: McGraw-Hill Kotler, Philip, Swee Hoon Ang, Siew Meng Leong, and Tiong Tan (2003) Marketing Management: An Asian Perspective Singapore: Prentice Hall 10 Schiffman; & Kanuk (2000), Consumer Behavior, New York: Prentice Hall 11 Alnaimi, H., Jones, R and Perkins, H Inclusion of Switching Behaviour into Relationship Marketing Model: A Theoretical Model 12 Ajzen, I (1991) The Theory of Planned Behavior Organizational Behavior and Human Decision Processes, 50, p.179 49 13 Bansal, H.S (1997), “Service Switching Model (SSM): A Model of Customer 14 Engel, J F., Blackwell, R D., and Miniard, P W (1986), “ Consumer Behaviour, 5th ed., Dryden 15 J Scott Armstrong (1991) "Prediction of Consumer Behavior by Experts and Novice" Journal of Consumer Research (Journal of Consumer Research Inc 18th edition, p251 ) 16 Kuester, Sabine (2012): MKT 301: Strategic Marketing & Marketing in Specific Industry Contexts, University of Mannheim, p 110 17 Đặng Vỹ/CAND ( 2011), Vụ Agel Việt Nam: "Ngọt ngào man trá", available on: www.vtc.vn/1-293253/kinh-te/vu-agel-viet-nam-ngot-ngao-va-man-tra.html ( accessed :12th July 2011) 18 AP (2013) Herbalife defend itself against short seller’s claim Available from: http://www.cbsnews.com/8301-34227_162-57563324/herbalife-defends-itselfagainst-short-sellers-claims/ ) [ access: 10/1/2013) 19 Ted Nuyten,2012 Herbalife’s Nutritional Club Sales is Booming Available from: http://www.businessforhome.org/2012/10/herbalifes-nutritional-club-sales-isbooming/ [Accessed October 15, 2012] 20 Professor Ken Homa, available from: http://faculty.msb.edu/homak/homahelpsite/webhelp/HomaHelp.htm#Loyalty_Model htm 21 Anne T Coughlan (2011) Assessing   an   MLM   Business:   Herbalife   as   a Legitimate MLM, Page 1 50 ... future of multi level marketing in Vietnam is really unpredictable Although in 2011, for several reasons, the multi- level business has a boom and create a wave in Vietnam, becoming one of the main... effective of multi- marketing in Vietnam market  Recommend solutions to improving the reputation of the company  Study marketing aspect from company’s point of view Research objective Multilevel marketing. .. SUMMARY Multi- level marketing in Vietnam is nowadays very popular This type of business is commonly accepted by retired people and housewives those want to work from home Multi- level marketing in Vietnam