The psychology of attraction to multi-level marketing

Lucas Dixon; Matthew J. J. Hornsey; Nicole Hartley; Cassandra M. M. Chapman; Justin P. P. Brienza

doi:10.1111/joca.12526

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The psychology of attraction to multi-level marketing

Journal article

Open access

Peer reviewed

The psychology of attraction to multi-level marketing

Lucas Dixon, Matthew J. J. Hornsey, Nicole Hartley, Cassandra M. M. Chapman and Justin P. P. Brienza

Journal of Consumer Affairs, Vol.57(3), pp.1213-1235

2023

DOI: https://doi.org/10.1111/joca.12526

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Abstract

consumer protection

decision making

direct selling

entrepreneurship

multi-level marketing

network marketing

pyramid schemes

Despite being a risky and controversial business model, little research has investigated personal characteristics that increase attraction to multi-level marketing business opportunities like Amway and Herbalife. A two-wave survey (N-total = 1503) revealed that attraction to multi-level marketing opportunities was associated with stronger extrinsic life goals (for becoming rich, famous, and attractive), belief systems related to spirituality and thought-action fusion (i.e., the belief that thoughts alone create reality), and a cognitive decision-making style that emphasizes intuitive over rational thinking. Intrinsic psychological needs (e.g., for control and meaning) showed the least consistent associations. Based on these findings, we provide guidance for consumer advocates and policy makers to consider individual psychological factors in education campaigns to improve decision making and participant wellbeing.

Details

Title: The psychology of attraction to multi-level marketing
Authors: Lucas Dixon (Corresponding Author) - The University of Queensland
Matthew J. J. Hornsey - The University of Queensland
Nicole Hartley - The University of Queensland
Cassandra M. M. Chapman - The University of Queensland
Justin P. P. Brienza - The University of Queensland
Publication details: Journal of Consumer Affairs, Vol.57(3), pp.1213-1235
Publisher: Wiley-Blackwell Publishing, Inc.
Date published: 2023
DOI: 10.1111/joca.12526
ISSN: 1745-6606
Copyright note: © 2023 The Authors. Journal of Consumer Affairs published by Wiley Periodicals LLC on behalf of American Council on Consumer Interests. This is an open access article under the terms of the Creative Commons Attribution-NonCommercial-NoDerivs License, which permits use and distribution in any medium, provided the original work is properly cited, the use is non-commercial and no modifications or adaptations are made.
Grants: Australian Government Research Training Program (RTP) Scholarship, RTP, Department of Education (Australia, Canberra)
Organisation Unit: School of Business and Creative Industries
Language: English
Record Identifier: 991217451802621
Output Type: Journal article

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