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Decision-Making Analysis of Physical Channel
for Direct Selling Companies
Der-Fa Robert Chen Hsin-Hsin Lee
804 70 813 111
Tel:(07)5252000#4621 Tel:(07)3598515
E-mail: derfa@.tw E-mail:bookstar_lee@.tw
2004
()
115
Abstract
Several famous direct selling companies have developed physical channels since
2004. The phenomenon contradicts the idea of the well-known nature of direct selling.
People are familiar with the business model of direct selling as being non-store. We are
interested in knowing the decision process of direct-selling companies to build physical
channels and how it works in the competitive environment.
The research adopted case study method by observation and in-depth interview. We
concluded that there were four dimensions to consider in building the physical channel
for the direct selling business. The four dimensions include the characteristics and
images of product customer portfolios risk control and hierarchies of (customer)
relationship. At the end we developed the decision-making model for building the
physical channel decision according to the said dimensions.
Key words direct selling physical channel non-store customer
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