A development of Network Marketing Business Model Based on Isan Culture

  • Sumatha Phoprasart Faculty of Cultural Science, Mahasarakrm University
  • Sastra Laoakka Faculty of Cultural Science, Mahasarakrm University
  • Kosit Phaengsoi Faculty of Cultural Science, Mahasarakrm University
Keywords: network marketing, Isan culture, independence business model

Abstract

The objectives of this study were to investigate network marketing business (NMB) regarding background, current situation, and problem to develop a suitable business management model for network marketing business based on lower northeastern region (Isan) culture. The research area was lower northeast (i.e., Nakhon Ratchasima province, Surin province, and Ubon Ratchathanee Province)’s network marketing business. The main participants of this study 166 participants, which can separate into 3 groups consist of key informant group, casual informant group, and general informant group. A semi-structured interview as tool to collect data in this
qualitative research. Regarding validity measurement using triangular method. The results indicated that network marketing business is one of business, which established as alternative way for people who want to increase their income and achieve work performance. Low cost strategy was used through social media communication channel and distributors for reducing advertisement cost. For current situation and problems, the subject concerning human resource
management aspect (i.e., teamwork, distributors’ self-confidence, time management, and conflict management) was main problem in NMB, and followed by financial management factor, and product and marketing management problems. To increase distributors’ performance, the firm’s managers should emphasize in creating a suitable activity and environment to support learning organization, teamwork, motivation system, and corporate governance especially. Moreover, an
establishing proper key performance indicator is also key factor to increase their productivity and efficiency that fit for Isan cultural context.

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Published
2019-12-28
Section
Research Article