Multilevel marketing and pyramid schemes in the United States

2014 ◽  
Vol 6 (2) ◽  
pp. 188-210 ◽  
Author(s):  
William W. Keep ◽  
Peter J. Vander Nat
Keyword(s):  
The United States ◽  
Direct Selling ◽  
Multilevel Marketing ◽  
Content Type ◽  
Legal Decisions ◽  
Customer Base ◽  
Pyramid Scheme ◽  
The Usa ◽  
External Customer ◽  
Pyramid Schemes

Purpose – This paper aims to analyze the evolution of direct selling – a retail channel that successfully sold products ranging from cosmetics to radios to automobiles – to multilevel marketing (MLM), an industry now apparently heavily reliant on selling to itself. As the courts have found some MLM companies to be pyramid schemes, the analysis includes the overlap between the legal MLM model and an illegal pyramid scheme. Design/methodology/approach – The development of direct selling in the USA was examined, followed by the factors contributing to the design and growth of the MLM model and its non-commission-based compensation structure. Then, the key legal decisions regarding illegal pyramid schemes operating under the guise of MLM, the relative stagnation of direct selling and the state of the MLM industry were examined. Findings – As the MLM model operates on the dual premise of retailing through a network of distributors and recruiting new distributors to do the same, it was found that federal regulators and the courts consistently focus on the “retail question” – the existence and extent of sales to consumers external to the distributor network. The authors argue that without a significant external customer base, internal consumption by an ever-churning base of participants resembles neither employee purchases nor a buying club. Social implications – As the MLM model facilitated the growth of pyramid scheme fraud, creating victims rather than customers, this research highlights successful efforts to regulate this type of consumer fraud. Originality/value – Few papers have been written on MLM and pyramids schemes, and none thus far has taken an historical perspective.

Marketing Fraud: An Approach for Differentiating Multilevel Marketing from Pyramid Schemes

2002 ◽  
Vol 21 (1) ◽  
pp. 139-151 ◽  
Author(s):  
Peter J. Vander Nat ◽  
William W. Keep
Keyword(s):  
Mathematical Model ◽  
Distribution Channel ◽  
Specific Form ◽  
The Internet ◽  
Key Factors ◽  
Direct Selling ◽  
Multilevel Marketing ◽  
International Growth ◽  
Pyramid Scheme ◽  
Pyramid Schemes

A specific form of direct selling, multilevel marketing (MLM), experienced significant international growth during the 1990s, facilitated in part by the development of the Internet. A corresponding increase in the investigation and prosecution of illegal pyramid schemes occurred during the same period. These parallel activities led to increased uncertainty among marketing managers who used or wished to use the MLM approach. The authors examine similarities between the multilevel approach to marketing and activities associated with illegal pyramid schemes. A mathematical model is used to differentiate between the two on the basis of previous pyramid scheme cases and current U.S. law. The results of the model suggest key factors that marketers interested in MLM will need to consider when developing this type of distribution channel.

Driver turnover research: exploring the missing angle with a global perspective

2015 ◽  
Vol 26 (4) ◽  
pp. 648-661 ◽  
Author(s):  
Daniel Sersland ◽  
Rajan Nataraajan
Keyword(s):  
Content Analysis ◽  
Critical Issue ◽  
Global Perspective ◽  
Trucking Industry ◽  
Exploratory Research ◽  
Content Type ◽  
Customer Base ◽  
The Usa ◽  
External Customer ◽  
Trucking Sector

Purpose – The purpose of this paper is to investigate and contribute to the understanding of the critical issue of “driver turnover” in the USA long-haul trucking environment which is becoming a malaise in the transportation sector not only in the USA but also worldwide. Most importantly, it accomplishes this through an exploration of the perceptions of the “drivers” themselves regarding the external customer-base in the trucking industry. This, to the best knowledge of the authors, has not yet been done and so becomes the missing angle in focus on driver turnover research. Design/methodology/approach – This exploratory study employs a qualitative research methodology via in-depth interviews of a select sample of drivers in a field setting followed by content analysis of the responses. This methodology, by and large, is the most suitable for this type of exploration. Findings – A content analysis of the perceptions of drivers reveals several important reasons (or causes) for driver turnover. This paper elaborates on those and offers customer-centric solutions to alleviate the plight of the driver and improve overall performance in the trucking sector. Research limitations/implications – Needless to say, this exploratory research should be replicated in several other locations within the USA, other settings (e.g. trucking in extreme conditions), and other countries in order to enhance the external validity of the findings and recommendations. Practical implications – All implications of this research are practical as they have direct managerial significance. Originality/value – The value of this research lies in the fact that, to the best knowledge of the authors, this is the first study that explores the perceptions of long-haul drivers regarding the external customer-base of the trucking industry. The findings have direct implications for management in the trucking sector.

Cold War consumption and the marketing of childhood in the Soviet Union and the United States, 1950-1960

2016 ◽  
Vol 8 (1) ◽  
pp. 83-98 ◽  
Author(s):  
Margaret Peacock
Keyword(s):  
Cold War ◽  
Soviet Union ◽  
The United States ◽  
Content Type ◽  
The Soviet Union ◽  
The Status ◽  
The Usa ◽  
History Of ◽  
Global Discourse ◽  
The Cold War

Purpose – This paper aims to explore the relationship between childhood, consumption and the Cold War in 1950s America and the Soviet Union. The author argues that Soviet and American leaders, businessmen, and politicians worked hard to convince parents that buying things for their children offered the easiest way to raise good American and Soviet kids and to do their part in waging the economic battles of the Cold War. The author explores how consumption became a Cold War battleground in the late 1950s and suggests that the history of childhood and Cold War consumption alters the way we understand the conflict itself. Design/Methodology/Approach – Archival research in the USA and the Russian Federation along with close readings of Soviet and American advertisements offer sources for understanding the global discourse of consumption in the 1950s and 1960s. Findings – Leaders, advertisers, and propagandists in the Soviet Union and the USA used the same images in the same ways to sell the ethos of consumption to their populations. They did this to sell the Cold War, to bolster the status quo, and to make profits. Originality/Value – This paper offers a previously unexplored, transnational perspective on the role that consumption and the image of the child played in shaping the Cold War both domestically and abroad.

Examining the influence of transculturation on work ethic in the United States

2015 ◽  
Vol 22 (1) ◽  
pp. 145-162 ◽  
Author(s):  
Dwight M. Hite ◽  
Joshua J. Daspit ◽  
Xueni Dong
Keyword(s):  
Ethnic Groups ◽  
Work Ethic ◽  
Ethnically Diverse ◽  
The United States ◽  
Convenience Sample ◽  
Content Type ◽  
Significant Difference ◽  
The Usa ◽  
Generational Groups ◽  
Survey Responses

Purpose – The purpose of this paper is to explore the influence of cultural assimilation – termed “transculturation” – on work ethic perceptions, thus this study examines trends in work ethic across ethnic and generational groups within the USA. Design/methodology/approach – Following a literature review on work ethic, ethnicity, and transculturation, an analysis of variance based on 873 survey responses is presented. The sample includes undergraduate and graduate students at several public universities within the USA. Findings – An empirical analysis supports the hypothesis that the variation of work ethic perceptions within the Millennial generation is significantly less than the variation among older generations. The authors find no significant difference in general work ethic perceptions among Millennial ethnic groups. Research limitations/implications – While the study is conducted using a convenience sample, the demographics are closely representative of the USA labor force. The results suggest that Millennials, while a more diverse ethnic population, exhibit less variation among work ethic perceptions than earlier generational groups. Practical implications – Understanding differences in work ethic perceptions across various ethnic groups is valuable for managers interested in designing jobs that appropriately exploit the full value of a multi-generational workforce. Originality/value – The findings of this study offer new insights into how more recent generations, while more ethnically diverse, exhibit a convergence in perceptions of work ethic.

Financial accounting scandals and the reform of corporate governance in the United States and in Italy

2017 ◽  
Vol 17 (1) ◽  
pp. 77-88 ◽  
Author(s):  
Daniel P. Sorensen ◽  
Scott E. Miller
Keyword(s):  
United States ◽  
Corporate Governance ◽  
Financial Reporting ◽  
The United States ◽  
Class Action ◽  
Financial Accounting ◽  
Private Enforcement ◽  
Content Type ◽  
Accounting Scandals ◽  
The Usa

Purpose In the 1990s and beginning of the next decade, a series of financial accounting scandals occurred in the United States (USA or US) and in several other countries of the world. The USA and Italy (among others) responded with legislation to reform financial reporting and corporate governance in these jurisdictions. This paper aims to compare the regulatory response of Italy to that of the USA. Design/methodology/approach This paper includes a review of relevant literature and evaluation of the actions of the regulatory authorities. Findings In the case of the financial reporting crises, the rapid response put the USA into the role of the “first mover” with the European Union (EU) reacting to US initiatives and eventually converging to a large degree with the provisions of the US legislation. Italy has adopted many of the same regulatory reforms as the USA and has added some reforms that are directed to the specific needs to Italy. Research limitations/implications In conjunction with legislative initiatives like Sarbanes-Oxley, private enforcement mechanisms, such as shareholder class action suits in the USA, play an important role in discouraging and punishing financial accounting fraud. Practical implications In the absence of significant reforms of the Italian private enforcement system, corporate governance abuses and the potential for accounting scandals may still be persistent. As a whole, cooperative efforts continue between the USA and the EU. Such efforts are needed more and more, as companies become increasingly globalized. Originality/value This paper provides comparison and evaluation of corporate governance reform efforts in the USA and Italy.

Revisiting the tourism-economic growth nexus: evidence from the United States

2019 ◽  
Vol 31 (9) ◽  
pp. 3779-3798 ◽  
Author(s):  
David N. Aratuo ◽  
Xiaoli L. Etienne ◽  
Tesfa Gebremedhin ◽  
David M. Fryson
Keyword(s):  
Economic Growth ◽  
Exchange Rates ◽  
The United States ◽  
Impulse Response Functions ◽  
Causality Test ◽  
Content Type ◽  
Long Run ◽  
The Usa ◽  
State And Local ◽  
Exchange Rate Shocks

Purpose The purpose of this study is to investigate the causal linkages between tourism and economic growth in the USA and determine how they respond to shocks in the system. Design/methodology/approach The study uses a variety of time series procedures, including the bounds test, Granger causality test, impulse response functions and generalized variance decomposition to analyze the relationship between monthly tourist arrivals (TA) to the USA, real gross domestic product (GDP) and real effective exchange rates. Findings Results suggest that GDP Granger causes TA in the USA in the long run, indicating the economy-driven tourism growth hypothesis. Additionally, a shock to GDP generates a positive and significant effect on TA that persists in the long-run, while exchange rate shocks only have a significant effect in the first six months. Research limitations/implications Different tourism sectors may exert different degrees of influence on the economy. The use of aggregate data on TA in the analysis assumes homogeneity in the industry, thus, only represents the average relationship between tourism and GDP. Practical implications This study provides insight that shapes the investment, marketing, sustainability decisions of the public and private sectors aim at increasing tourist flows to drive economic development at the national, state and local levels. Originality/value Though several studies have examined the factors influencing the international tourist demand of the USA, this is the first to investigate the causal relationships between tourism, GDP and exchange rates for the USA. It is also the first in the US tourism literature to account for the nature of interactions between the three variables because of innovations in the system.

University-centred entrepreneurial ecosystems in resource-constrained contexts

2020 ◽  
Vol 27 (7) ◽  
pp. 1149-1166
Author(s):  
Zsolt Bedő ◽  
Katalin Erdős ◽  
Luke Pittaway
Keyword(s):  
Conceptual Framework ◽  
Rural Areas ◽  
Entrepreneurship Education ◽  
The United States ◽  
Resource Constrained ◽  
Content Type ◽  
Large Cities ◽  
Entrepreneurial Ecosystems ◽  
The Usa ◽  
Entrepreneurship Ecosystems

PurposeResearch on entrepreneurial ecosystems has advanced over recent years and has become a popular topic. Despite the interest, previous work has focused on entrepreneurial ecosystems in large cities in the United States. Ecosystems in small cities, underpopulated rural areas, university towns and outside the USA have not been considered much. This paper begins to address this deficit by reviewing three groups of literature.Design/methodology/approachFrom the review, the paper builds a conceptual framework to consider entrepreneurial ecosystems led by universities. After summarizing the literature on entrepreneurial ecosystems, entrepreneurial universities and entrepreneurship education, the paper suggests a conceptual framework outlying the structure, components and mechanisms that enable universities to operate as catalysts in the creation of entrepreneurial ecosystems.FindingsIt is evident that on many of the “ingredients” of a successful entrepreneurial ecosystem, a resource-constrained environment would have many gaps. Building an entrepreneurship ecosystem in such contexts would be inherently challenging. The model presented suggests that the presence of a university in such locations should enhance the prospects of progress but that the nature of the university itself would impact any outcomes. Universities that make concerted efforts to be entrepreneurial and that have entrepreneurship programmes have strategies available to them that can enhance entrepreneurship ecosystems over time.Originality/valueThe contribution of this paper is to show “how” a university and its entrepreneurship programme can operationally address deficits in a local ecosystem and how it might bring about positive change. The paper also opens new avenues for entrepreneurship education researchers.

Fear of terrorism and its correlates in young men and women from the United States and South Korea

2020 ◽  
Vol 12 (1) ◽  
pp. 21-32
Author(s):  
Fang Hong ◽  
Yijing Lin ◽  
Mikyung Jang ◽  
Amanda Tarullo ◽  
Majed Ashy ◽  
...  
Keyword(s):  
College Students ◽  
Social Anxiety ◽  
South Korea ◽  
Moral Disengagement ◽  
The United States ◽  
Negative Outcomes ◽  
Cross Sectional ◽  
Content Type ◽  
Mediation Analyses ◽  
The Usa

Purpose The purpose of this study was to examine associations between fear of terrorism and several predictors (gender and nationality) and outcomes (moral disengagement, authoritarianism, aggression and social anxiety) in the USA and South Korean young adults. Of particular interest were the potential moderating and mediating roles of moral disengagement between fear of terrorism and the other outcomes. Design/methodology/approach Samples of 251 college students from the USA and 211 college students from South Korea completed survey packets including measures of fear of terrorism, moral disengagement, authoritarianism, aggression and social anxiety. Findings US participants expressed greater concern about a terrorist threat to their country, while South Koreans worried more about terrorist threats to their family or themselves. Females in both countries reported greater fear of terrorism and social anxiety. In both countries, fear of terrorism was associated with aggression, social anxiety and moral disengagement. Mediation analyses showed that fear of terrorism exerted a significant direct effect and an indirect effect via moral disengagement on aggression and authoritarianism in the US sample. Moderation analyses revealed that moral disengagement moderated the relationship between fear of terrorism and social anxiety in the Korean sample. Research limitations/implications This study has the common limitations of cross-sectional studies; i.e. it cannot prove causal relationships. Practical implications The findings support Albert Bandura’s view that efforts to address the excesses of counterterrorism and other negative outcomes of fear of terrorism, attending to issues of moral disengagement may be helpful. Originality/value The authors findings provide support for the view that fear of terrorism is associated with negative psychological and social outcomes and that moral disengagement can play an important role in those negative outcomes. Moreover, it adds to evidence that the negative role of moral disengagement shows considerable generalizability across gender and two very different cultures.

Pyramids, Ponzis and fraud prevention: lessons from a case study

2018 ◽  
Vol 25 (1) ◽  
pp. 81-94 ◽  
Author(s):  
Stacie Bosley ◽  
Maggie Knorr
Keyword(s):  
Religious Communities ◽  
Collective Knowledge ◽  
Content Type ◽  
Scarce Resources ◽  
Age Cohorts ◽  
Level Data ◽  
Pyramid Scheme ◽  
Affinity Groups ◽  
Pyramid Schemes

Purpose This paper aims to empirically identify factors that increase consumer vulnerability to pyramid scheme fraud and compares/contrasts dynamics and implications of pyramid and Ponzi fraud. Design/methodology/approach Statistical techniques, including multiple regression, are used to analyze participant data (with over half a million individuals) from a now-defunct US-based pyramid scheme, Fortune Hi-Tech Marketing. Findings Findings suggest that this pyramid scheme flourished in counties with identifiable affinity groups: religious communities, Hispanic populations and certain age cohorts (e.g. recently retired). Recruitment success varied significantly between geographic regions, with the highest levels of recruitment in the South. While prior research finds a possible positive relationship between education and Ponzi participation, this is not the case in the pyramid scheme studied. Furthermore, while Ponzi schemes might be pro-cyclical, collapsing during contractions when participants seek to extract their money, this pyramid scheme exhibited counter-cyclical behavior. Practical implications State and federal regulators, as well as consumer protection advocates, should learn from analysis of past pyramid scheme cases. Such analysis informs allocation of scarce resources and supports the case for targeted, active education. Clarifying differences between Ponzi and pyramid fraud helps to support clear and effective intervention. Originality/value This is the first research to analyze national participant-level data from a pyramid scheme to inform future action. While it confirms some past findings, such as the connection to affinity fraud, it adds to collective knowledge on pyramid schemes and the differences between pyramid and Ponzi fraud.

Heroic leadership in Australia, Sweden, and the United States

2014 ◽  
Vol 28 (7) ◽  
pp. 785-797 ◽  
Author(s):  
Lawrie Drysdale ◽  
Jeffrey Bennett ◽  
Elizabeth T. Murakami ◽  
Olof Johansson ◽  
David Gurr
Keyword(s):  
Academic Success ◽  
School Leadership ◽  
School Success ◽  
School Principals ◽  
The United States ◽  
Content Type ◽  
School Communities ◽  
The Usa ◽  
School Principalship ◽  
Successful School

Purpose – The purpose of this paper is to draw from data collected as part of the International Successful School Principalship Project (ISSPP) and present cases of democratic and heroic leadership from three countries, discussing to what extent successful school principals in each of their research sites (Melbourne, Australia; Umeå, Sweden; Arizona and Texas in the USA) carry old and new perspectives of heroism in their leadership. In particular the paper explores two questions: first, how do school principals describe aspects of heroic and post-heroic leadership in their practices? and second, how do these heroic and post-heroic leadership practices meet contemporary demands such as accountability standards and build inclusive and collaborative school communities in challenging contexts? Design/methodology/approach – Multiple-perspective case studies involving semi-structured individual and group interviews with principals, teachers, students, parents and school board members were used to understand the contribution of principals and other leadership to school success. Findings – The definitions of heroic and post-heroic leadership are inadequate in defining successful principal leadership. The Australian, Swedish and American principals showed characteristics of both heroic and post-heroic leadership. They showed heroic qualities such as: inspiring and motivating others; challenging the status quo; showing integrity in conflicting situations; putting duty before self; taking risks to champion a better way; showing courage to stand up to those in authority; advocating for students in struggling neighbourhoods under the scrutiny of both district and public expectations; and, showing uncommon commitment. Yet our principals showed post-heroic leadership such as involving others in decision making and recognising that school success depended on collective effort, and being sensitive to community needs through a deep respect for the local culture. Originality/value – The research shows that we may need to redefine and recast our images of who school principals are today, and what they do to generate academic success for students. Both heroic and post-heroic images of leadership are needed to explain successful school leadership.

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