Enhancing Channel Performance: The Moderating Effect of Soft Skills Training Programs in the Relationship Marketing Context for MLM Sales Leaders in Malaysia

Abstract

Multi-level Marketing (MLM) business revolves largely around people due to its business concept connecting large groups of downlines' network business activities. In MLM industry, people costs are much higher than capital costs. This people-based business requires the influence of relationship marketing, which requires the initiative of showing trust and commitment between MLM sales leaders and their downlines to ensure long-term cooperation. This study intends to understand the consequences of relationship marketing amongst MLM sales leaders towards channel performance. The achievement of channel performance depends on the loyalty and retention between MLM sales leaders and downlines. The study also employs a soft skills training program as a moderator to examine the intensity between relationship marketing and channel performance. Cluster sampling is employed, and 64 Multi-level Marketing Organizations (MLMOs) are selected as the study sample. 320 sets of questionnaires were mailed out to the targeted downlines, and 210 duly answered the questionnaires (65% response rate). The study reveals that trust and commitment positively influence channel performance. Soft skill training is also found to moderate the relationship between trust, commitment and channel performance.