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Measurement of effectiveness of Implementation of Non-pyramid network Marketing (Case study: Zarnegah Parsian Co.)

Author Affiliations

  • 1Payam Noor University, Tehran, IRAN

Res. J. Recent Sci., Volume 3, Issue (5), Pages 121-127, May,2 (2014)

Abstract

Unconformity between manís needs and the available resources , the principle of competitive market and increasing changes in organizationsí environments, have moved man toward new commercial horizons like network marketing. Therefore, understanding network marketing and measurement of its effectiveness is highly important. The present research is a type of descriptive study aims to examine the impact of network marketing on rate of effectiveness among employees and customers of Zarnegah Parsian Co. in 2010. The research instrument is a researcher- made questionnaire and the Cronbach alpha and expertsí comments were used to verify validity and reliability. The obtained data was analyzed via descriptive and inferential statistics methods. The obtained findings on network marketing for four effectiveness criteria of 400 samples including decrease of cost effective, customerís satisfaction, speed of services and collective knowledge showed a significant value for the impact of network marketing 12.724,9.818,9.293,and 9.293 respectively. According to the impact of network marketing on increase of the company effectiveness, this type of marketing can be a good alternative for common and traditional methods in all public and private Iranian companies for increase of the rate of effectiveness. The main result of the current research is that the network marketing has a direct impact on affectedness. The structural equations modeling measurement showed that the impact of network marketing on decrease of cost effective, speed of services, collective knowledge and customerís satisfaction is meaningful. Also, the results indicated that rating research variables in descending order includes cost effective, speed of services, customerís satisfaction and collective knowledge.

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