This Case is about PERSONNEL POLICIES
PUBLICATION DATE: July 15, 2015 PRODUCT #: BH684-PDF-ENG
The misplaced controversy about internal consumption Not just a direct selling phenomenon case solution
Internal consumption in the direct selling business has been at the core of several discussions in the past couple of decades. In this informative article, we argue that internal consumption is a prevalent practice at all rates of the distribution channel and not something limited to the direct selling or the multilevel marketing (MLM) retail area. The results presented here provide evidence of the prevalent usage of internal consumption in all facets of retailing while authorities’ regulators in certain states try to utilize this practice in MLM as prima facie evidence of illegal pyramiding. Therefore, to impute internal consumption as a negative facet only within the direct selling market reveals a misplaced understanding regarding business recruiting attempts, reductions, and private use. At the same time, nevertheless, our research suggests that marked down buying of merchandise for private use probably brings little worth to the organization since it doesn’t seem to result in increased job satisfaction or organizational commitment from the customer base or the affected workers.