Statement Of The Problem

1.1 Statement of the Problem Successful Personal selling based on referrals is the key to ensure regular expansion of customer base and building long term customer relations. A country like Ethiopia offers immense potential to build well run marketing networks to promote consumer goods and appliances. Conventional marketing may become slow or stagnated over a period of time. Multi level marketing may be the turnaround tool in such situations. In any type of organization customers are the key for the survival of the company. In order to be profitable the company must satisfy their customers. Customer satisfaction depends on the product’s perceived performance and the service delivered relative to a buyer expectations. If the service delivered falls short of expectation, the customer is dissatisfied. If the service delivered exceeds expectation, the customer is highly satisfied. DXN Ethiopia applies network marketing as their marketing strategy. All marketing strategies focus on satisfaction of customers in order to be profitable and long term survival of the company. The service given by the company should be evaluated whether they satisfy or not their customer. The researcher will measure the service render by the company based on servqual model. SERVQUAL instrument consists of a 22-item instrument for assessing service quality based on customer’s perceptions, which is, by his turn, the difference between the customer’s perceived quality and his/her expectation. The perceived quality is assessed based on service quality dimensions that correspond to the criteria used by consumers when assessing service quality. There are 10 potentially overlapping dimensions: tangibles, reliability, responsiveness, communication, credibility, assurance, competence, courtesy, understanding/knowing the customer, and access.

Since network marketing is in early stage of development in Ethiopia, there are a number of misconceptions and misunderstanding regarding what network marketing and what it is not.

Because of unknown reason or reasons,

introducing this industry to the public become difficult for DXN Ethiopia. The researcher will try to show how to introduce network marketing strategy through proper satisfaction of members or customers. Satisfied customers will be loyal and create strong relationship with the company. In addition to that, satisfied customer will tell others to buy the product which helps to increase the market share. In return it has great effect in increasing profit of the company which is the ultimate goal of the organization. Therefore, this study will try to find out an answer for the following basic research questions.  What kind of attitude people have towards network marketing?  What are major member expectations and requirement of network marketing?  What

is

the

awareness

level

of

people

regarding

network

marketing?  How likely customers are to continue to be a customer of the company for another year?  How likely are customers to recommend the company to others?  What is the overall customer satisfaction level with the company?