At the 2017 Global Sales Science Institute (GSSI) Conference held in Mauritius in June, Julian Allendorf (Ph.D. Candidate, Institute of Marketing, University of Muenster, Germany) received the GSSI 2017 Best Doctoral Student Paper Award for his paper on “Direct Selling Distributors – Why Do They Stay or Leave!”, developed through a grant and data provided by DSEF. The prize-winning paper is based on Allendorf’s joint work with DSEF Fellows Dr. Anne T. Coughlan, PhD (Northwestern University) and Dr. Manfred Krafft (University of Muenster, Germany), and demonstrates how DSEF ‘s academic partners are producing data-driven research that validates the channel. The award was presented to Manfred Krafft by the President of the island nation of Mauritius, Ameenah Firdaus Gurib-Fakim, during a conference reception on June 8.
“Being awarded the GSSI Best Doctoral Student Paper Award for the work we have done so far feels like a great honor to us and provides the motivation for future endeavors,” said Allendorf.
In their joint research, the authors highlight similarities and differences between traditional sales and direct selling, and build on Agency Theory to develop predictions about the ways in which individuals stay in the direct selling distributorship, and what explains their intention to leave.
The authors analyzed a unique dataset of over 13,000 individual direct-selling distributors from 68 firms and asked the the “nature vs. nurture” question: does a “stayer” retain the same motivations as a “joiner,” or do distributors develop and change their motivations over time? Nurture doesn’t refer only to environment. Joiner-Stayers do indeed receive support and training from their companies and uplines, but they also learn about themselves (personal development).
The Stay-Leave decision is represented by the question, “How likely are you to continue representing the company for the next year?” Dr. Coughlan and Dr. Krafft used regression analysis to determine which factors are most likely to have a positive or negative impact on the decision to stay versus the decision to leave.
The drivers of income identified in the study, also called predictor variables, are consistent with those used in academic research and the long history of research on selling. The incremental effect, in dollars, of a change in a predicted variable – either positive or negative – is explained in the study. All effects assume that other drivers are held constant and should be interpreted for changes on the margin.
The results are consistent with the authors’ modified Agency Theory model and suggest academic, managerial and policy implications regarding direct selling investments and assessments.