Customer Satisfaction of Amway Products

A Study on Customer Satisfaction of Amway Products
1. INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Consumer is the king in the modern marketing. The buying decision of a consumer is
highly influenced by the buyer’s personal and psychological factors. The survival as well
as growth of any business organization depends upon its ability to satisfy the present and
potential consumers. Selection of the particular brand is influenced by individual
characteristics, product characteristics and situational characteristics. The buyer’s decision
in selecting the brand varies from individual to individual and from region to region.
Consumers have their own choice of product in their day to day life.
Customer satisfaction refers to the extent to which customers are happy with the product
and services provided by a business. Customer satisfaction level can be measured using
survey techniques and questionnaires. Gaining high levels of customer satisfaction is very
important to business because satisfied customers are most likely to be loyal and to make
repeated orders and to use a wide range of services offered by a business The need to
satisfy customer for success in any commercial enterprises is very obvious. The income of
all commercial enterprises is derived from the payments received for the product and
services to its external customers. Customers are the sole reason for the existence of
commercial establishments.
1.2 NEED AND SIGNIFICANCE OF THE STUDY
The study is focused specifically on customers who have purchased the product. The Indian
economy is witnessing changes like never before. The Indian consumer thoughts are
changing. With new players entering the market and increasing availability of choices. The
expectations of consumer are increasing more and more. The study attempts to identify the
research of the Amway product, it would help the company in formulating the suitable
strategy. It also identifies the attitude and preference of customers towards Amway products
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Mount Zion School of Business Management
1.3 STATEMENT OF THE PROBLEM
Customer satisfaction with regard to Amway products depends upon user expectation and
various factors like price, quality and brand image. Customer satisfaction differs from one
consumer to other based on various factors. Attitudes and opinions of the consumers include
Product interest, brand image. The necessity that has arisen for the study has been to
identify the level of consumer satisfaction towards Amway products and to know about the
causes for shifting their preference from Amway to other brands because of high price and
other reasons,. Hence, the current study on customer satisfaction towards Amway has been
conducted
1.4 OBJECTIVES OF THE STUDY
 To study about the customer satisfaction of Amway products.

 To study about the preference of customer towards the Amway products.
 To study about the factors considered by the customers while purchasing Amway
products.
 To determine whether the Amway products are matching with the customer
expectation.
1.5 SCOPE OF THE STUDY
The study has focused on the customer satisfaction in relation to Amway products. The
study has analysed the source of awareness with regard to Amway products. The study has
to reveal the level of preference towards Amway products.
1.6 LIMITATIONS OF THE STUDY.
 Due to time and cost constraints, the number of respondents and geographical
area are limited.
 Some of the respondents are not willing to express their opinion.
 There remains the possibility of false entry by respondents.
 The individual’s perspective appears to be different throughout the study.
 The respondents were reluctant to answer due to their busy schedule.
 The study is limited because the research is conducted by a single person.
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1.7 ORGANISATION OF THE REPORT
This empirical study is organized into eight chapters.
 The First chapter presents Introduction which includes Background of the

study, Need and significance of the study, statement of the problem, Scope of the
study, objective of the study, limitations of the study.

 The Second chapter presents Profiles which include Industry, Company and
Product profile

 The Third chapter covers the Review Literature

 The Fourth chapter presents Theoretical framework of Consumer
satisfaction of Amway products

 The Fifth chapter presents Research methodology which include research
design, sources of data, primary data and secondary data, sample design sampling
method, method of data collection, data analysis technique

 The Sixth chapter discuss data analysis

 The Seventh chapter highlights findings

 The Eighth chapter presents Recommendations based on the findings that
have been made

The Ninth chapter recapitulates the Conclusion of the study
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2.1 INDUSTRY PROFILE
Multi-Level Marketing or Network Marketing as it is called world over happens to be a fast

growing phenomenon. The fact that anyone, anywhere can become a distributor and earn
income from building the network without having to sacrifice any other occupation or
additional investment into this business makes it very attractive for people from all walks of
life to attempt at joining the network. It is estimated that in US alone over 70 percent of the
Direct Selling Revenues come from Network Marketing. Though no figures are available to
confirm the revenue figures at national level, over 50 million people are estimated to be
engaged in Multi-Level Marketing all over the world.
he concept of Multi Level or Network selling seems to have emerged accidently when the
Distributors discovered that they were generating more sales for the Company by referring
their friends and known people to the business opportunity available with Nutrilite. At this
point of time, there was no system in place to recognize and reward the distributors for their
efforts in recruiting other Distributors for the company. With the realization dawning on the
Distributors and the Company, the system of paying 2 percent bonus to the sponsor
Distributor on the sales that were achieved by the Distributor and the network that he
sponsored or built was introduced. This then led to the birth of modern day system of
‘Pyramid Selling’.
Nutrilite achieved unprecedented growth and profits in the following decades thanks to the
fast growing network not only in the US but across other continents as well. In early 1960s,
two men Richard DeVos and Jay Van Andel who were the Distributors of Nutrilite broke
away to build their own company which grew to be the biggest in MLM business world over
called ‘Amway’. This company initially made a foray into House hold and cleaning
products and went on to buy Nutrilite Company and merge the food supplement products
into its portfolio.
Yet another distributor named Dr. Forrest C Shaklee too broke away from Nutrilite at the
same period that ‘Amway’ took birth and found the new Company named Shaklee dealing
with Nature’s sunshine products.
Today there are several hundreds of Companies that are practicing Pyramid selling or Multi
Level Selling and compensation methods to sell their products. Numerous brands such as
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Avon, Tupperware, Electrolux, Discovery Toys, Herbal life, Kleenez, Oriflame, Reliv etc
have been highly successful in growing their business globally using this concept of sales.
Though there are a lot of criticisms and charges levied against this system and companies
both by the industry watchers as well as the trade and Governments, the figures reveal that
the concept has been successful in the growth of more businesses in recent years. The Direct
Selling Association of US reported that about 25 % of its members were engaging in MLM
channel of selling in the 1990s whereas by the year 2009, it was found that over 94% of the
members had been practicing this method contributing to about 97% of the total Direct
Sales.
While the figures are showing progressive trends and the Companies often promote the
success stories of individuals who have become millionaires in the business, it is to be noted
that there is growing concern in the trade and Governments of various countries which have
been raising questions about the authenticity of the pyramid compensation method which
they believe is inherently faulty model and that the revenue or income generation does not
happen due to sales of the product but is due to the recruitment of distributors. China has
banned this form of Direct Selling since 1998. The trade however seems to be growing
unprecedentedly all over the rest of the world.
2.2 COMPANY PROFILE
Amway is one of the world’s largest direct selling companies. It is founded in

1959 by Jay Van Andel and Richard DeVos. Amway operates in more than 80
countries and territories on six continents. Amway offers the opportunity for people
to have a business of their own based on retailing beauty, nutritional, Health care
and household products and sharing the opportunity with others who will do the
same.
Amway is an abbreviation for "American Way" and was coined in 1959 by

company founders, Jay Van Andel and Richard DeVos. Short, unique and easy to
remember, Amway has been registered as a corporate name and trademark ever
since. In the following decades, Amway Corporation successfully established itself
as a leading multilevel marketing business, built on strong values and founding
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principles that continue to sustain our company today. The business is built on the
simple integrity of helping people lead better lives.
Amway is a pioneer in direct marketing and working on the faith and dedication of
the distributors by providing them free atmosphere and healthy incentive plans. The
model of direct selling of Amway is a role model for the direct selling industry. The
company is engaged in selling product to the consumers directly with help of
distributors which is known as Independent Business Owners (IBO). This method
depends on multilevel marketing or network marketing model. This Independent
Business Owners develop a network of people by recruiting others under them and
expand a huge network. The IBO earns commission on the products sold. Further,
the ABO also gets commission for the sales done by other IBOs recruited by him.
This business model categorized the distributors on the basis of sales performance
of their entire team and therefore everybody’s commission will be differ
accordingly. Profile of Amway India Enterprises: In 1959 Amway was established
by Jay Van Andel and Richard De Vos in America. Amway means American Way
an abbreviation used for Amway. Amway is one of the world’s largest and most
successful direct selling companies.
History of Amway:
The founder of the company worked together in different small enterprises since
their childhood and so they decided to share their experiences, knowledge and
expertise in the business. They started in 1949 and introduced Nutrilite as a direct
selling method. After that in 1959 they founded Amway with main idea of the
earlier company’s sales plan. In this business and method there is low risk and open
to everybody, no area limit and no income limit for the hard workers at initially very
low investment to start the business. The only condition is that they have to spend
time and effort in this business. In this period company started developing and
selling their own products with good quality. The company’s first product is liquid
organic cleaner which got the tremendous response from the market. In 1960 they
decided to expand their market in different part of world with more products
including detergents, personal care products with women’s likely products to groom
themselves. By the end of these decades the company in United States and Canada
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increases the network of people to sale their exclusive products. To meet the
demand of the product they have manufactured more than 200 products in Ada,
where more than 650 people were employed. In 1970s Amway think to overseas
expansion to Australia, Europe and in Asia. For that Amway production facility has
to continuously grow. In 1980s it is observed that the company’s sales continuously
rising. For that new plants for the production have to plan to meet the demand of the
people. As far as environmental is concerned the company was recognized as a
corporate leader in promoting education and environmental awareness and received
United Nations award regarding environmental program. In 1990s a new generation
of leader’s i.e. son of founders started looking after the company and became a
chairman and president of day to day affairs of the company. In this period company
saw a great expansion, first half of the decade Amway sales got pacing. The new
sales peoples were joined the company indifferent countries to start their business
with Amway
 Company Type – Private

 Industry – Direct Selling
 Founded – 1959 Founders – Rich DeVos and Jay Van Andel Headquarter – Ada,
Michigan, United States
 Key People – Steve Van Andel (Chairman) Dong DeVos (President)
Amway in India:
In India Company established in the year 1995, but started commercially in 1998. The
company headquartered in New Delhi to control the business in India. The company
generated employment with help of logistics, delivery peoples, office staff and others. The
company appointed more than four Lakh sales representatives to sales their products in
India with handsome commission. Amway is also providing training to their salespeople or
distributors to help them and do the business successfully.
Competitors of Amway:
Like other businesses and every field there is competition, so obliviously Amway also fight
with some competitors in the direct marketing and multilevel marketing companies. May all
these competitors are different in products, marketing plan, incentives till they are rivals of
each other for getting the popularity and market share those are Mary Kay Cosmetics India
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Pvt/ Ltd, Oriflamme Cosmetics, Tupperware Plastics, Avon Beauty Products India Pvt Ltd
and so on.
Mission statement of Amway
Through the partnering of Distributors, Employees, and the Founding Families and the
support of quality products and service, we offer all people the opportunity to achieve their
goals through the Amway Sales and Marketing Plan.
Vision of Amway
“Helping people live better lives.”
We work each and every day to help people live better lives. We achieve our vision by
helping people everywhere discover their potential and achieve their goals by offering better
brands and opportunities for the future, and by sharing generously with the global
community. To help us realize our vision, we have six enduring values that the business has
been built on.
Amway have six enduring values that are:
Partnership
Amway is built on the concept of partnership, beginning with the partnership between our
founders. The partnership that exists among the Founding Families, Distributors and
Employees is our most prized possession. We always try to do what is the long-term best
interest for our partners, in a manner, which increases trust and confidence. The success of
Amway will reward all who have contributed to its success.
Integrity
Integrity is essential to our business success. We do what is right, not just whatever ‘works’.
Amway’s success is measured not only in economic terms, but by the respect, trust and
credibility we earn.
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Personal worth
We acknowledge, the uniqueness created in each individual. Every person is worthy of

respect, and deserves fair treatment and the opportunity to succeed to the fullest extent of his
or her potential.
Achievement
We are builders and encouragers. We strive for excellence in all we do. Our focus is on
continuous improvement, progress and achievement of individual and group goals. We
anticipate change, respond swiftly to it, take action to get the job done, and gain from our
experiences. We encourage creativity and innovation.
Personal reasonability
Each individual is responsible and accountable for achieving personal goals, as well as
giving 100 percent effort in helping achieve corporate or team goals. By helping people help
themselves, we further the potential for individual and shared success. We also have a
responsibility to be good citizens in the communities where we live and work.
Free enterprise
We are proud advocates of freedom and free enterprise. Human economic advancement is
clearly proven to be best achieved in a free market economy.
Achievement and awards of Amway
There is a non-exhaustive list of awards and recognitions from year 1989 to 2012 received
by Amway and affiliated companies. Achievements and awards enhanced the reputation of
Amway and public recognition. This is a list of achievements achieved by Amway in year of
2012 up-to-date.
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Amway Achievement and Awards 2012
 Amway Nutrilite – Most trusted brand Asia

 Amway eSpring – Most trusted brand Asia
 Amway Nutrilite – Most trusted brand China
 Amway Nutrilite – Most trusted brand India
 Amway eSpring- Most trusted brand Malaysia
 Amway Nutrilite – Most trusted brand Malaysia
 Amway eSpring- Most trusted brand Singapore
 Amway Nutrilite – Most trusted brand Singapore
2.3 PRODUCT PROFILE
Its product lines include:

 Personal care products
 Home care product
 Nutrition & wellness
 Cosmetics and
 Water purifiers
 Air purifiers
BRAND
Today Amway manufacture over 450 products with manufacturing flexibility in china,
India, and the united states. Amway brand includes artistry, atmosphere, body blends, body
key, glister, body works, e-spring.
In company’s portfolio there are number of products which tested in research and
development department of the company regularly. All these products were sales by train
salespeople of the company which is known as Independent Business Owners of the
Amway. The product includes health care, beauty care, home care and personal care. The
company’s existent in more than eighty countries with many products as per the requirement
of the country.
Amway doing the business in different way with help of think global and act local from last
forty years. The company also launched the attitude range of skincare products with extra
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benefits in moisturizers, face wash and sun screen lot Over 450 unique, high-quality
products carry the Amway name in the areas of nutrition, wellness, beauty and home, as
well as commercial products and a variety of services (from which 105 products are offered
in India). In addition, Amway independent business owners in selected markets sell
additional brand-name goods through local merchandise catalogues, plus a variety of
services and educational products. All products are backed by a customer satisfaction
guarantee.
Amway offers a range of exclusive, competitive brands that meet proven customer
needs around the world. From nutritional supplements to water treatment, cosmetics to
cleaning products, these brands are the solid foundation for a successful, independent retail
business.
 NUTRILITE
Nutrilite is the world’s leading brand of vitamin, mineral and dietary supplements,
grown harvested, and processed on its own certified organic farm
 ARTISTRY
Artistry is one of the world’s top five largest-selling prestige brands of facial skin
care and colour cosmetics.
 DYNAMITE
Dynamite’s range of male grooming products, formulated internationally is designed
to deliver the ultimate grooming experience.
 GLISTER
Glister toothpaste is a revolutionary Multi-Action Toothpaste with Sylodent that
offers seven benefits.
 PERSONA
Persona Premium 3 in 1 Soap is a complete soap for the entire family promises
refreshing confidence.
 SATINIQUE
Satinique Advanced Range with unique Ceram ide Infusion System uses nature’s
own renewing technology to rejuvenate, strengthen and protect your hair.
 SA8
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SA8 Gelzyme is India’s only 3-in-1 laundry detergent which pretreats,cleans and
softens.
 G&H
G&H Range enriched with the goodness of Glycerine and Honey, deeply nourishes
and hydrates the skin for a healthy glow.
 LOC
LOC High Suds is multipurpose household liquid cleaner.
 DISH DROPS
Dish Drops is concentrated hand dishwashing liquid with a powerful “Triadic
Detergency System”
 ATTITUDE
Attitude Skin care range of products are fortified with Triple Advanced Complex.
This Complex contains: OSMOGELINE –red sea weed extract, vitamin A,C,E &
Natural fruit & Floral extracts like Aloe Vera,Avacado & Grape seed extracts. The
new improved attitude skin care range of products help to clean, replenish,
moisturize& revitalize your skin making it soft supple & lustrous.
 GREAT VALUE PRODUCT
Great Value Product Range offers you Great Quality, Great Performance, Great
Price and a Money Back Guarantee.
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3. LITERATURE REVIEW
Review of literature provides information to the researcher regarding the previous works
done in their area of research and thereby helps them in identifying the theoretical
framework and methodological issues relevant to the study. It provides the researcher a
proper direction to carry out their research work and enables them to arrive at meaningful
conclusions.
 Kin Mather (2004)1 in his study entitled, “Your Church is a Market Place”
tells about how the products in multi-level marketing could be sold without
much difficulty and also deals with how the markets could be created
anywhere and everywhere.
 Furse et al (1994)2 in his study entitled "Satisfaction as the measurement of
one or more variety of customer opinions including ratings of service
quality, ‘future behavioural intentions, customer’s self-assessment of
outcome and satisfaction?
 Boulding et al (1993)3 in his study entitled “perspective of customer
satisfaction” which deals with the difference between transaction specific
and cumulative customer satisfaction. Customer satisfaction is viewed as a
post-purchase evaluative judgment of a specific purchase occasion
according to transaction-specific perspective. Cumulative customer
satisfaction is an overall evaluation based on the total purchase and
consumption experience with goods or service over tome. Cumulative
satisfaction is a more fundamental indicator of the firm’s past, current and
future performance and its cumulative satisfaction that motivates a firm’s
investment in customer satisfaction
 Kotler and Armstrong (1993)4 stated that consumer/customer satisfaction
is determined by the relationship between the customer’s expectations and
product’s perceived performance. Customer satisfaction is important
because a company earns sales from new customers and retained customers.
Satisfied customers buy a product again, talk favourably to others about the
product, pay less attention to competing brands and advertising.
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 Bitner et al (1996)5 defined, satisfaction is the customers evaluation of a

product or service in terms of whether that product or service has met their
needs and expectations.
 Fe and Ikova (2004)6 added that the perception of the word "satisfaction"
influences the activities, which a customer conduct to achieve it.
Researchers have also identified customer satisfaction as a multi-
dimensional in nature and viewed overall satisfaction as a function of
satisfaction with multiple experiences with the service provider.
 Giese & Cote (2000)7studied various literatures and indicated that customer
satisfaction is a response (emotional or cognitive), the response pertains to a
particular focus (expectations, product, consumption experience, etc) and
the response occurs at a particular time (after consumption, after choice,
based on accumulated experience, etc).
 Halstead, Hartman and Shmidt (1994)8 in his study he found that
customer satisfaction is a transaction-specific affective response resulting
from the customer’s comparison of product performance to some pre-
purchase standard.
 Webbrook and Oliver (1991)9 in his study he described customer
satisfaction is a post choice evaluative judgment concerning a specific
purchase selection.
 Tse and Wilton (1998)10 stated customer satisfaction as the customer’s
response to the evaluation of the perceived discrepancy between prior
expectations (or some norm of performance) and the actual performance of
the product as perceived after its consumption.
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4. THEORETICAL FRAMEWORK
Definition
The definition of customer satisfaction has been widely debated as organizations

increasingly attempt to measure it. Customer satisfaction can be experienced in a variety of
situations and connected to both goods and services. It is a highly personal assessment that
is greatly affected by customer expectations. Satisfaction also is based on the customer‘s
experience of both contacts with the organization and personal outcomes. Some researchers
define a satisfied customer within the private sector as ―one who receives significant added
value‖ to his/her bottom line—a definition that may apply just as well to public services.
Customer satisfaction differs depending on the situation and the product or service. A
customer may be satisfied with a product or service, an experience, a purchase decision, a
salesperson, store, service provider, or an attribute or any of these
Kotler
"Customer satisfaction is a person's feeling of pleasure or disappointment resulting from

comparing a products perceived performance in relation to his or her expectation".
Satisfaction is as a judgment following a consumption experience - it is the consumer’s

judgment that a product provided (or is providing) a pleasurable level of consumption-
related fulfilment (adapted from Oliver 1997).
Factors affecting customer satisfaction.
 Accessibility
You need to ensure that customers are able to find and access your products and
services efficiently, without barriers and friction, on their preferred channel. Also,
make sure that they can reach your company and obtain good service whenever they
have a question or need assistance to make a purchase decision.
 Navigation
Navigating and browsing your store should be a straightforward and simple process.
This includes providing users who know what they want with an effective keyword
search or filters but also integrating solutions that guide unsure shoppers to help
them identify suitable products quickly.
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A website that’s difficult to navigate will only lead to customer frustration and a loss
of potential customers.
 Page Load Speed
It’s a simple rule: the faster your website loads, the happier your visitors. If one of
your pages doesn’t appear lightning-fast, your customer will move on to speedier
online stores.
 Language
Speaking to your customers in their preferred language is pivotal for your business.
More than 50% of consumers won’t make a purchase if information about a product
isn’t available in their language.
However, language doesn’t only apply to language in terms of geographical
demographics but also how certain phrases or terms resonate with your audience and
reflect back on your business. Use user-friendly language and avoid industry specific
jargon that could cause confusion and rob you of an opportunity to connect on a
personal level. Without great communication, there can be no great customer
experience.
 Memory
According to Harvard Business Review, customers become frustrated if they have to
repeat themselves. Consumers feel comfortable switching from one channel to
another and expect their information and data to follow them along. They don’t want
to be asked for the same details over and over again, regardless of the channel or
department, they’re interacting with.
Memory also means remembering your customer’s needs and wants to avoid trying
to sell products to customers, which they already have or clearly have no interest in.
 Personalized
It’s kind of ironic that shoppers want personalized experiences in a sphere in which
so many business and personal interactions can be anonymous. By personalizing the
experience and sharing the right content, at the right time with the right people, you
can make interactions faster, easier and more efficient for your customers. This
results in increased customer satisfaction and the likelihood of repeat visits.
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 Convenience
Convenience is an essential element of a positive customer experience. It influences
how customers make decisions about what to buy, what services to use, where to go,
and with whom to engage.
 Intuition
Customers value companies that “really get them”. Some companies simply have a
good intuition or “sixth sense”. They are proactive and anticipate the needs and
emotions of customers. Companies who know what their customers want before they
want it or solve a problem before customers even know it exists are able to create
better, more convenient experiences and a trust-based relationship.
For example, Southwest Airlines has a team called Proactive Customer Service that
works with 14 other departments to ensure operational efficiencies, effective
communications, and better customer accommodations. Their job is to evaluate
flight disruptions, determine the customer impact, and reach out to customers
proactively so the customer doesn’t have to reach out to them.
 Real-Time
If you want to capture the attention of your audience, think about how you can take
advantage of real-time experiences. It’s about showing up when your customers need
you. Real-time interactions are becoming increasingly important to the modern
consumer. They expect real-time responses and faster resolutions.
 Simplicity
Simplicity is key. It is one of the easiest ways to improve your chances of getting
your customer’s business is by making the process as simple as possible. You need
to take away the intricacy and complexity related to decision-making by advising
and supporting customers throughout their journey.
 Logic
There is a difference between emotional customer satisfaction and logical customer

satisfaction.
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Emotionally satisfied customers are extremely satisfied with the products and services
the company provides and have a strong emotional attachment to the company.
Logically (or rationally) satisfied customers may be extremely satisfied with the
company but lack the strong emotional connection of customers who are emotionally
satisfied. They essentially behave no differently than customers who are dissatisfied. They
have no reason to remain loyal.
To convert logically satisfied customers into emotionally satisfied customers, you have to
provide customers with logical reasons why they should do business with you over your
competitors. This means understanding their expectations to meet or even exceed them.
 Deliverability
According to an Econsultancy report, 48% of customers are not willing to wait more
than five days for most of their purchases, while 23% said they would be willing to
wait eight days or more. Shipping time does not only influence purchase decisions
but also has a major impact on customer satisfaction.
 Choice
The more choices you can give your customers during the buying process, the more
likely they are to feel in control of the experience that they have with your brand.
However, when offering choices make sure to support your customers and enable
them to figure out the optimal choice that is right for them.
Choice overload and the Paradox of choice are very real in today’s environment and
are a growing concern for retailers and brands.
 Community
Today, customers are doing more and more research online before they make a purchase.
It’s important to consider the community that exists around your brand. Even if you don’t
have an active part in building your community, one will form around your business – on
social media, websites, and review forums.
The best way to take charge of your brand reputation is to make sure that you engage with
your community whenever possible. Even when someone has something bad to say about
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your business, learn how to respond from a positive perspective, by offering a solution to a
problem.
Aspects of customer satisfaction

Customer satisfaction is a sophisticated term, which is composed by a huge
range of factors. This part defines all these factors which could be reflected in the three
main aspects of satisfaction. First of all trust will be discussed. After that the next aspect,
customer loyalty, is going to be considered. Finally factors influencing satisfaction should
be revealed as an assessment by consumers of the parameter depends on other parameters,
and only a comprehensive measurement of trust, customer loyalty and all the factors gives a
complete picture of customer satisfaction.
a) Trust
The degree of confidence in the brand could be defined by several criteria, which are
the basis for the purchase completion. They include the past experience, history and the
company image, adequacy of advertising information and others. All these criteria have a
different weight in the overall assessment, so we need to focus on a weighted average, and
correlate it with those of the competitors. Typically, trust is composed after the first
connection with the company and is based on two or three dominant factors that will
determine the likelihood of future purchases.
Building trust to a company requires careful measures and considerable funds.

There are three most important stages on the way to trust:
 Customer satisfaction - the ratio between the expectations of consumers and the real
results of consumption.
 Predictability - the consumer’s belief that his expectations were not deceived, at this
stage, the credibility of the product increases dramatically.
 Competence of the company - your brand competence with respect to the supply of
competitors. At this stage, the consumer comes to the belief that your brand is the best in its
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segment, at the same moment the loyalty of consumers is more fixed and now it is
meaningful.
Trust and customer satisfaction could be predecessors of each other but with
the different probabilities. In most of the cases customer satisfaction appears as a foundation
of trust. A customer, satisfied with the service is likely to feel confident in the company’s
action. Akbar and Parvez in their article noticed that trust is usually created if one party is
convinced with the profitable result of relationships with the other party, and at the same
time, the profitable result is a basis of fulfillment of customers’ needs, which induces their
satisfaction.
b) Customer Loyalty
Loyalty is a consumer preference for certain goods or services, which is

formed as a result of the generalization of feelings, emotions and thoughts regarding this
product or service. The degree of loyalty could be described as the probability with which
the consumer is willing to temporarily accept some unsatisfying conditions because of a
positive attitude towards it. Generally, loyalty could be formed during many years of
cooperation with the company or consumption of a service, when this experience becomes a
part of a person's lifestyle, and it is difficult to change the existing habits. Talking about the
interrelation of loyalty and satisfaction, it could be mentioned that there is a strong
correlation between them. Customer satisfaction is one of the principles which results in the
prolongation of interaction with the client and the emergence of the loyalty. Xerox research
results were unexpected: fully satisfied customers were six times more willing to make a
repeat purchase than just satisfied. The conclusion was very obvious: customers that are
partly satisfied still have a choice, which means that it's not enough to make a customer
loyal. It turned out that customers could be called loyal only when they are that completely.
20
5. RESEARCH METHODOLOGY
Research Methodology is a way to systematically solve the research problem. The Research
Methodology includes the various methods and techniques for conducting a Research.
“Marketing Research is the systematic design, collection, analysis and reporting of data and
finding relevant solution to a specific marketing situation or problem”. D. Slesinger and M.
Stephenson in the encyclopaedia of Social Sciences define Research as “the manipulation of
things, concepts or symbols for the purpose of generalizing to extend, correct or verify
knowledge, whether that knowledge aids in construction of theory or in the practice of an
art”. Research is, thus, an original contribution to the existing stock of knowledge making
for its advancement. The purpose of Research is to discover answers to the Questions
through the application of scientific procedures. Our project has a specified framework for
collecting data in an effective manner. Such framework is called “Research D5.1 Research
5.1 Research Design
A research design is the “blue print” of the study. Research design is the framework that has
been created to seek answers to research questions. The various tasks that I have undertaken
in the research design process are:
 Defining the information needed.
 Design the exploratory, descriptive and causal research.
The research design is a simple specific presentation of the various steps in the process of
research. Design means adopting that types of techniques of research which is most suited
for the research and study of the problem.
Two types of Research Design

a) Exploratory Research Design
Exploratory research helps determine the best research design, data collection
method and selection of subjects.
b) Descriptive Research Design

Descriptive research design is a scientific method which involves observing and
describing the behaviour of a subject without influencing it in any way.
21
5.2 Source of data

The data is collected through two ways:
 Primary data: - The primary data was collected freshly and thus it was original in
character. It has been collected through questionnaire. The questionnaires were given
to the respondents when they visited respective show rooms and consumers.
 Secondary data: - Secondary data are data which have already been collected by
someone. Its main sources are Journals, Newspapers, Magazines, and Internet etc.
5.3 Sample Design

The sample design which is used in the study is convenience sampling. Respondents of
Amway products were selected on the basis of convenience.
 The design for this study is exploratory and Random sampling.
 Sample size taken for the study is 100 respondents.
 Collection of data done through questionnaire.
5.4 Sampling method

In this technique, each member of the population has an equal chance of being selected as
subject. The entire process of sampling is done in a single step with each subject selected
independently of the other members of the population.
There are two types of sample methods;
 Probability sampling techniques

 Non-probability sampling techniques
Probability sampling techniques
The method, in which all units of the universe are given equal chance of being
selected in the sample, is known as Probability Sampling.
 Simple Techniques
 Satisfaction Techniques
 Sequential Techniques
22
 Cluster
Non-probability sampling techniques
Non-probability sampling is that type of sampling procedure which does not have
any ground for estimating the probability that whether or not each item in the population has
been included in the sample.
For our study, we are taking non-probability sampling as the sampling technique. The
different types of non-probability sampling technique are;
 Convenience sampling
 Judgment Sampling
 Panel sampling
 Purposive sampling
 Snow ball sampling
5.5 Method of data collection

The data is collected randomly irrespective of the category of the people in the form of
questionnaire and sample size is 100 respondents. Because, it is a pilot study and due to time
constraints, the sample size is small.
Two types of Method of data collection
a. Primary data
b. Secondary data
The different types of primary data are;
 Survey
 Interview
 Questionnaire
Here we are taking Questionnaires (for employees).
Secondary data is collected through company publications, journals, company’s website,

internet, newspapers, etc.
23
5.6 Tools and techniques for analysis

5.6.1 Percentage analysis
This is the simplest way to analyze different types of data. The percentage rate of each data
is found out with respect to the total.
Percentage Analysis is the method to represent raw streams of data as percentage (a part in
100- percentage) for better understanding of collected data. This form of analysis looks at
raw streams of data in the form of percentage. This is done to learn about the data collected.
The percentage method is used for comparing certain features. The collected data
represented in the form of tables and graphs in order to give effective visualization of
comparison made.
𝑛𝑜 𝑜𝑓 𝑟𝑒𝑠𝑝𝑜𝑛𝑑𝑒𝑛𝑡𝑠
𝑃𝑒𝑟𝑐𝑒𝑛𝑡𝑎𝑔𝑒 = × 100
𝑡𝑜𝑡𝑎𝑙 𝑟𝑒𝑠𝑝𝑜𝑛𝑑𝑒𝑛𝑡𝑠
5.6.2 Chi-square analysis
The chi-square distribution has many uses in the field of testing of hypothesis. It
helps to test whether a population has given variance. It also helps to test goodness of fit of
a theoretical distribution to an observed distribution and in testing independence of
attributes in a contingency table. Any statistical test that uses the chi square distribution can
be called as chi square test. Chi square test is conducted as a statistical test to investigate
difference. The chi square measures the difference between a statistically generated
expected results and an actual
to see if there is a statistically difference between them. It measures the goodness of fit
between an unexpected and an actual result.
Formula for chi square test is
(𝑂−𝐸)2
Chi square ( χ²)= ∑ Where, O= Observed sample in each category
𝐸
E= Expected frequency in corresponding category
Chi Square test degree of freedom

The degree of freedom for chi square test is equal to the difference between degree
of freedom associated with the models. Each type of two tables has its own chi square
distribution, depending on the number of row and columns. And each chi square
24
distribution is identified by its degree of freedom. A two way table with r rows and c
column uses a chi square distribution with (r-1) * (c-1) degree of freedom,
Chi Square Goodness of fit test
This test applicable when the observations are independent (random) and the total
frequency should be large. This is used to test association of variables in two- way tables
where the assumed model of independence is evaluated against the observed data. The chi
square goodness of fit test is that it can be applied to any univariate distribution to which
you can calculate cumulative distribution function. The chi square goodness of fit test can
be distributions such as the binomial and poison.
5.6.3 Weighted average analysis
Weighted average is an average in which each quantity to be averaged is assigned a

weight. These weightings determine the relative importance of each quantity on the average.
Weightings are the equivalent of having that many like items with the same value involved
in the average. Most people are familiar with the idea of finding the average, or arithmetic
mean, of a series of items. You simply add up all the item values and divide by the total
number of items to calculate the average.
However, this only works when all the items are weighted equally. For example, to
calculate your average monthly electricity bill for a year, it would make sense to add up the
billed amounts for the previous twelve months and divide by twelve, since each bill cycle is
roughly the same period of time (one month).weighted average, which is an average where
each value has a specific weight or frequency assigned to it, to calculate your grade. The
equation for weighted average method is
W= weight of ranked position
X= response count of answer choice
𝑥1 𝑤1 +𝑥2 𝑤2 +𝑥3 𝑤3 +⋯.+𝑥𝑛 𝑤𝑛

Weighted Average Method = 𝑤1+𝑤2+𝑤3+⋯+𝑤𝑛
Weights are applied in reverse. In other words, the respondent’s most preferred choice(
which they rank as 1) has the largest weight, and their least preferred choice (which they
rank in the last position) has a weight of 1. You can’t change the default weight.
25
6. DATA ANALYSIS AND INTERPRETATION

6.1.1. The following table shows whether the respondents are male or female.
SL Particulars No of respondents Percentage

NO
1 Male 35 35%
2 Female 65 65%
6.1.1 Graph showing the details regarding the gender of respondents.
No: of respondents
35%
Male
Female
65%
Interpretation: - From the above table it is clear that 35% of the respondents are male and 65% of
respondents are female
26
6.1.2. The following table representing the age of the respondents.
Table-6.1.2
SL.NO Particulars No of respondents Percentage

1 Up to 30 20 20%
2 31 to 40 30 30%
3 41to 50 25 25%
4 Above 50 25 25%
6.1.2 Graph showing the details regarding the respondents age wise classification
Age wise clasification

30%
30%
25% 25%
25%
20%
upto 30
20%
31 to 40
15%
41 to 50
10%
above 50
5%
0%
upto 30 31 to 40 41 to 50 above 50
Interpretation: - From the above table it is clear that 20% of respondents are up to 30 years,30% of
respondents are 31 to 40 years,25% of respondents are between 41 to 50, rest of 25% is above 50
years.
27
6.1.3 The following table representing the occupation of the respondents.
SL NO particulars No of respondents Percentage

1 Public sector 15 15%
2 Private sector 20 20%
3 Business 50 50%
4 Agriculture 5 5%
5 others 10 10%
Figure:6.1.3 Categorizing the respondents on the basis of occuapation.
Interpretation: - From the above table it is clear that 50% are business men,20% belongs to private
sector.5% are agriculture 15% belongs to public sector and 10% belongs to other categories.
28
6.1.4 The following table representing the income level of the respondents.
SL NO Particulars No of respondents Percentage

1 Up to 1 5 5%
2 1 to 2 25 25%
3 2 to 3 55 55%
4 Above 3 15 15%
Fig: 6.1.4 Income level of the respondents.
Interpretation: - From the above table it is clear that 80% of respondents fall in category of below 3
lakh. Rest have annual income above 3 lakh.
29
6.1.5The following table and figure representing the awareness of respondents
SL NO Particulars No of respondents Percentage

1 Yes 40 40%
2 No 60 60%
Figure – 6.1.5 Graph showing awareness of the respondents
70
60
50
number of
respondents
40
percentage
30
20
10
0
yes no
Interpretation: - from the above table it is clear that 40% of the respondents are aware about Amway
products, rest of 60% of respondents are not aware.
30
6.1.6 The following table and figure representing respondents duration of usage.
SL.NO Particulars No of respondents percentage

1 Less than a year 20 20
2 1-2 years 30 30
3 Less than 5 years 15 15
4 More than 5 years 35 35
Figure: 6.1.6 Graph showing the respondents duration of usage.
Interpretation: - from the above table it is clear that 20% of the respondents are using Amway
products less than a year, 30% are between 1 and 2 years,15% are using less than 5 years, rest of
them are using more than 5 years.
31
6.1.7 The following table and figure representing the respondents preference on
Amway products.
SL NO particulars No of respondents percentage
1 Homecare 45 40
2 Healthcare 30 30
3 Personal care 25 25
Figure:6.1.7 Graph showing the preference of Amway products.
preference
25%
45%
Homecare
Healthcare
30% personal care
Interpretation: - From the above table it is clear that Majority of respondents prefer Homecare
products and rest of them prefer healthcare and personal care.
32
6.1.8 The table and figure representing quality of products.
1 Yes 45 45%
2 No 25 25%
3 Can’t say 30 30%
Figure: 6.1.8 Graph showing the quality of Amway products.
Quality of Amway products
30%
45%
Yes
No
25% Can't say
Interpretation: - From the above table it is clear that 45% per cent say that Amway products are
quality products,30% say that they don’t have quality, rest of them can’t say whether it is quality
products or not.
33
6.1.9 The following table and figure representing rating of the Amway products.
Sl.no Particulars No of respondents Percentage
1 Excellent 45 45%
2 Good 30 30%
3 Moderate 15 15%
4 Bad 10 10%
Figure: 6.1.9 Graph showing rating of the Amway products.
Rating of Amway products

45%
45%
40%
35% 30%
Excellent
30%
25% Good
20% 15% Moderate
15% 10% Bad
10%
5%
0%
Excellent Good Moderate Bad
Interpretation: - From the above table it is clear that 45% of respondents rate Amway products as
execellent,30% rate it as good , 15% rate it as moderate and rest of 10% rate as bad.
34
6.1.10 The following table and figure representing the respondents buying behaviour
when there is a price hike.
SL.NO particulars No of respondents Percentage
1 Yes 20 20%
2 No 80 80%
Figure: 6.1.10 whether the respondents buy the products when there is a price hike.
90
80
70
60 number of
respondents
50
percentage
40
30
20
10
0
yes no
Interpretation: - From the above table it is clear that 20% of respondents buy even when there is a
price hike, rest of 80% don’t buy Amway products if there is a price hike.
35
6.1.11 The following table and figure representing spending level of the
respondents.

1 Below 500 40 40%
2 500-1000 25 25%
3 1000-1500 20 20%
4 1500-2000 15 15%
Figure: 6.1.11 Graph showing spending level.
45
40
35
30 number of
25 respondents
percentage
20
15
10
5
0
below 500 500-1000 1000-1500 1500-2000
Interpretation: - From the above table it is clear that 40 % of respondents spend below 500, 25% of
respondents spend between 500 and 1000 and rest of them spend above 1000.
36
6.1.12 The following table and figure representing ordering method of Amway
products.
SL. NO Particulars No of respondents Percentage

1 Phone 10 10%
2 Internet 35 35%
3 Direct from Amway 15 15%
showroom
4 Distributors 40 40%
Figure: 6.1.12 Graph showing ordering method.
45
40
35
30
number of
25
20 respondents
15 percentage
10
5
0
Phone Internet Direct from Distributors
Amway
showroom
Interpretation: - From the above table it is clear that 15 % of respondents spend below 500, 20% of
respondents spend between 500 and 1000 and rest of them spend above 1000.
37
6.1.13 The following table and figure representing the respondents satisfaction level of
Amway products.
SL.NO particulars No of respondents percentage

1 Highly satisfied 25 25%
2 Satisfied 25 25%
3 Dissatisfied 25 25%
4 Highly dissatisfied 25 25%
Figure: 6.1.13 Graph showing the satisfaction level of Amway products.
30
25 25 25 25
25
20 number of
15 respondents
percentage
10
5
0
Highly Satisfied Dissatisfied Highly
satisfied dissatisfied
Satisfaction level
25% 25% Highly satisfied

Satisfied
Dissatisfied
25% 25% Highly dissatisfied
Interpretation: - From the above table it is clear that 40% of respondents were highly satisfied with
Amway products,35% of respondents are satisfied with the products, 15% were dissatisfied with the
products, rest of 10% were highly dissatisfied the Amway products.
38
6.1.14 The following table and figure representing recommended level to others
1 Yes 20 20%
2 No 80 80%
Figure: 6.1.14 Graph showing recommended percentage of respondents to others.
Recommentation level
20%
yes
no
80%
Interpretation: - From the above table it is clear that 20% of respondents recommend Amway
products to others, rest of them will not recommend to others.
39
6.1.15 The following table and figure representing on the basis of healthy products
SL.NO particulars No of respondents Percentage
1 Yes 40 40%
2 No 10 40%
3 Can’t say 20 20%
4 Not sure 30 20%
Figure: 6.1.15 Graph showing respondents suggestion on Amway products
45
40
35
30 number of
respondents
25
percentage
20
15
10
5
0
Yes No Can't say Not sure
Interpretation: - From the above table it is clear that out of 100 respondents 40% agree that Amway
products are healthy, 10% are not agreeing, 20% respondents can’t say and rest of them are not sure
about it.
40
6.3 CHI-SQUARE TEST

To find out whether there is any significant relationship between Gender and level of
satisfaction
H0 : There exists no significant relationship between gender and level of satisfaction

towards Amway products
H1 : There exists significant relationship between gender and level of satisfaction towards
Amway products.
Table: 6.3.1 Observed Frequency
Gender Satisfaction level towards Amway products Total
Highly Satisfied Dissatisfied Highly

satisfied satisfied
Male 10 5 15 20 50
Female 15 20 10 5 50
Total 25 25 25 25 100
Table: 6.3.2 Expected Frequency
Level of Satisfaction
Gender Highly Satisfied Dissatisfied Highly
Satisfied Dissatisfied
Male 12.5 12.5 12.5 12.5 50
Female 12.5 12.5 12.5 12.5 50
Total 25 25 25 25 100
41
Table: 6.3.3 Chi- Square Calculation
O E O-E (O-E)² (O-E)²/E

10 12.5 -2.5 6.25 0.5
5 12.5 -7.5 56.25 4.5
15 12.5 2.5 6.25 0.5
20 12.5 9.5 56.25 4.5
15 12.5 2.5 6.25 0.5
20 12.5 7.5 56.25 4.5
10 12.5 -2.5 6.25 0.5
5 12.5 -7.5 56.25 4.5
Total 20
(O−E)²
𝜒² =
E
= 20
Degree of freedom = (r-1) (c-1)
= (2-1) (4-1)
=3
Level of significance at 0.05= 7.815
7.815 < 20
Here T.V < C.V
Since, the calculated value is greater than table value, H0 is rejected.
That is there is a significant relationship between gender and satisfaction level towards
Amway products.
Interpretation: It can be concluded, that there is a significant relationship between gender

and satisfaction level of Amway products.
42
6.4 WEIGHTED AVERAGE TEST
Table : 6.4.1 factors which influence you to purchase Amway products.
Weight Price Quality Availability Brand name

1 15 20 44 21
2 46 12 24 18
3 14 38 22 26
4 25 30 10 35
x1w1+x2w2+x3w3+x4w4
Weighted average 𝑤1+𝑤2+𝑤3+𝑤4
=
a) Calculate weighted average for Price
x1w1+x2w2+x3w3+x4w4
Weighted average =
𝑤1+𝑤2+𝑤3+𝑤4
Weight (w1) Price (x1) w1x1

1 15 15
2 46 92
3 14 42
4 25 100
Total = 10 Total = 249
Table : 6.4.2 Weighted average for Price
x1w1+x2w2+x3w3+x4w4 15+92+42+100
Weighted average = 𝑤1+𝑤2+𝑤3+𝑤4
= 10
= 24.9
b) Calculate weighted average for Quality
x1w1+x2w2+x3w3+x4w4
Weight (w1) Quality(x1) w1x1

1 20 20
2 12 24
3 38 114
4 30 120
Table: 6.4.3 Weighted average for quality
x1w1+x2w2+x3w3+x4w4 20+24+114+120
= 10
= 27.8
43
c) Calculate weighted average for Availability
x1w1+x2w2+x3w3+x4w4
Weighted average =
𝑤1+𝑤2+𝑤3+𝑤4
Weight (w1) Availability(x1) w1x1

1 44 44
2 24 48
3 22 66
4 10 40
x1w1+x2w2+x3w3+x4w4 44+48+66+40
= 10
= 19.8
d) Calculate weighted average for Brand name
x1w1+x2w2+x3w3+x4w4
Weight (w1) Brand name (x1) w1x1

1 21 21
2 18 36
3 26 78
4 35 140
Table : 6.4.4 Weighted average for brand name.
x1w1+x2w2+x3w3+x4w4 21+36+78+140
= 10
= 27.5
Ranking:-
particulars Weighted average ranking

Price 24.9 3
Quality 27.8 1
Availability 19.8 4
Brand name 27.5 2
Interpretation:-
Ranking of factors that influence the customers to purchase Amway products. From
the weighted average ranking method we understood that it is the product quality
that creates more mileage towards the product
44
7. FINDINGS
 Most of the respondents are female.

 There is not much variation in number of respondents belonging to different age
groups.
 Most of respondents fall in the category of annual income below 3L.
 Most of the respondents occupation is business
 All respondents were aware about Amway products
 Most of the respondents were using Amway products more than 5 year
 Most of the respondents were using homecare products
 Most of the respondents say that Amway products are quality products
 Most of the respondents rate Amway products as excellent
 100% respondents buy even when there is price hike
 Most of the respondents spending level is between 1500-2000
 Most of the respondents prefer distributors method for ordering products
 Most of the respondents were highly satisfied with Amway products
 Most of the respondents recommend Amway products to others.
 Most of the respondents say that Amway products are healthy products .
45
8. SUGGESTION
 Majority of the respondents suggested that the price of Amway product is

considered to be higher. Hence steps could be taken by the companies to reduce the
prices so that many would be get benefited.
 Concentrate more on male products.
 There must be multiple options for purchasing the products for consumers like
online, retail shops and instant purchase.
 The company should provide effective, attractive advertisement to increase the sales
 Customer service should be provided.
 Introduce more products.
 Company should maintain the quality of the products.
46
9. CONCLUSION
Amway is one of the largest direct selling company in the world. The products of Amway
are world class product quality. They are made up of natural thing that’s why they are good
for health and environment. Amway covers a wide range of products from beauty care,
healthcare, to clothing, and daily use products etc. The products are costly as compared to
other branded products available in market but if we compare the quantity while using the
products require less amount and thus can be used for longer time.
The development in the field of science and technology accompanied by updated media in
very quick in creating awareness about the changes in all fields including personal and
health care products amongst the consumers. As a result the consumer do not mind giving
up their old products and taking up a new product. Today there is also no consumer who is
slave for any product. The number of brands available is also increasing, in its place of old
products consumer prefers to new branded products like Amway.
“The study on consumer satisfaction towards Amway products” has revealed that most of
the respondents switch over their preference to other brands due to higher price and lack of
awareness about Amway products. Hence to maintain the brand image of Amway Company
the prices of the products should be reasonable and moreover it must be affordable to buy its
products by all consumers.
47
BIBLIOGRAPHY
Journals
1. Kin Mather, “Your Church is a Market Place”, 2004.
2. Furse, David H, Burcham, Michael R; Rose, Robin L; Oliver, Richard W, Leveraging

the Value of Customer Satisfaction Information Marketplace Insights, Fall 1994, Vol. 14,
NO. 3,
3. Boulding, William; Karla, Ajay; Staelin, R; Zeithaml, V.A, A Dynamic Model of Service
Quality; From Expectations to Behavioural intentions, Journal of Marketing Research, 1993,
Vol. 30, pp 7-27
4. Kotler, Philip; Armstrong, Gary, Principles of Marketing; 8th Edition, 1993 Prentice-HalI
of India Private Limited, New Delhi
5. Bitner, M.J; Faranda, W.T; Hubbert, AR; Zeithaml, V.A, Quality & Productivity in
Service Experiences: The Customer Role, Quality in Services (QUIS), 5th international
Conference, 1996, pp 289-298
6. Fe, I; lkova, C, An Index method for measuring of customer satisfaction, The Total
Quality Management, 2004, Vol. 16, Issue 1, pp 57-66.
7.Giese, Joan L; Cote, Joseph A, Defining Customer Satisfaction, Academy bf Marketing
Science Review, 2002, Vol. 2000, Issue1, Available on
www.amsreview.org/articles/giese01-2000-pdf
8.Halstead, D; Hartman, D; & Schmidt, S, L, Multisource Effects on the Satisfaction
Formation Process. Journal of the Academy of Marketing Science, 1994, Vol. 22, Issue 2,
pp 114-129
9. estbrook, R.A; Oliver, R.L, The Dimensionality of Consumption Emotion Patterns and
Customer Satisfaction, Journal of Customer Research, 1991, Vol. 18, pp 84-91
10. Tse, David K; Wilton, Peter C, Models of Customer Satisfaction Formation: An
extension, Journal of Marketing Research, May 1988, Vol. 25, pp 204-212
48
Books:
1. Ennew et el, The impact of Service quality and Service characteristics on customer
Retention: Small Business and their Banks in the UK, British Journal of
Management, 1996, Vol. 7, p219-230.
2. Thomas, Joffi; Gupta Rajen K, Marketing Theory and Practice: Evolving through
Turbulent times, Global Business Review, 2005, vol. 6, Issue 1, pp 95-112
3. Prahlad, C.K; Ramaswamy, Venkaitram, Co-opting Customer competence,
Harvard Business Review, January/ February 2000, Vol. 78, Issue 1, pp 79-87
WEBSITES
 https://www.scribd.com/doc/253262014/A-Study-on-Customer-
Satisfaction-
 https://www.researchgate.net/publication/327536780_A_STUDY_O
N_CONSUMER_ATTITUDE_TOWARDS_AMWAY_PRODUCTS
 http://www.amway.in/store/
 https://en.wikipedia.org/wiki/Amway
 https://www.referenceforbusiness.com/history2/59/Amway-
Corporation.html
49
APPENDICES
1. Name:
2. Gender
a) Male b) Female
3. Age:
a) Up to 30 b) 31 – 40
c) 41-50 d) Above 50
4. Occupation:
a) Public sector b) Private sector
c) Business d) Agriculture
e) Others
5. Contact no:
6. Email Id:
7. Annual income
a) Up to 1 b) 1 to 2
c) 2 to 3 d) Above 3
8. Are you aware about Amway products?
a) Yes b) No
9. How long have you been using Amway products?
a) Less than a year b) 1-2 years
c) Less than 5 years. d) More than 5 years
50
10. Which among the following Amway products you prefer more?
a) Home care b) Healthcare
c) Personal care
11. Do you think Amway products are quality products?
a)Yes b) No
c) Can’t say
12. How do you rate Amway products?
a)Excellent b) Good
c) Moderate d) Bad
13. Give weightage on a 4 point scale for the factors that influence you to
Purchase Amway products.
a) Price b) Quality
c) Availability d) Brand name.
14. Would you continue to buy Amway products even if they go for a
Price hike?
a) Yes b) No
15. How much do you spend for buying Amway products at a time?
a) Below 500 b) 500-1000
c) 1000-1500 d) 1500-2000
16. Which type of ordering method you adopt?
a) Phone b) Internet
51
c) Direct from Amway agents. d) Distributors.
17. Are you satisfied with Amway products?
a) Highly satisfied. b) Satisfied
c) Dissatisfied d) Highly dissatisfied.
18. Would you recommend Amway products to others?
a) Yes b) No
19. Do you think Amway products provide you an option to healthy life?
a) Yes b) No
c) May be d) Not sure
52
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Customer Satisfaction of Amway Products

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A Study on Customer Satisfaction of Amway Products

1.1 BACKGROUND OF THE STUDY

1.2 NEED AND SIGNIFICANCE OF THE STUDY

1.3 STATEMENT OF THE PROBLEM

1.4 OBJECTIVES OF THE STUDY

 To study about the customer satisfaction of Amway products.

1.5 SCOPE OF THE STUDY

1.6 LIMITATIONS OF THE STUDY.

1.7 ORGANISATION OF THE REPORT

This empirical study is organized into eight chapters.

 The First chapter presents Introduction which includes Background of the

2.1 INDUSTRY PROFILE

Multi-Level Marketing or Network Marketing as it is called world over happens to be a fast

2.2 COMPANY PROFILE

Amway is one of the world’s largest direct selling companies. It is founded in

Amway is an abbreviation for "American Way" and was coined in 1959 by

 Company Type – Private

Mission statement of Amway

“Helping people live better lives.”

Amway have six enduring values that are:

We acknowledge, the uniqueness created in each individual. Every person is worthy of

Achievement and awards of Amway

Amway Achievement and Awards 2012

 Amway Nutrilite – Most trusted brand Asia

2.3 PRODUCT PROFILE

Its product lines include:

LOC High Suds is multipurpose household liquid cleaner.

 Bitner et al (1996)5 defined, satisfaction is the customers evaluation of a

The definition of customer satisfaction has been widely debated as organizations

"Customer satisfaction is a person's feeling of pleasure or disappointment resulting from

Satisfaction is as a judgment following a consumption experience - it is the consumer’s

Factors affecting customer satisfaction.

There is a difference between emotional customer satisfaction and logical customer

Aspects of customer satisfaction

Building trust to a company requires careful measures and considerable funds.

Loyalty is a consumer preference for certain goods or services, which is

Two types of Research Design

b) Descriptive Research Design

5.2 Source of data

5.3 Sample Design

5.4 Sampling method

 Probability sampling techniques

Probability sampling techniques

Non-probability sampling techniques

5.5 Method of data collection

The different types of primary data are;

Here we are taking Questionnaires (for employees).

Secondary data is collected through company publications, journals, company’s website,

5.6 Tools and techniques for analysis

E= Expected frequency in corresponding category

Chi Square test degree of freedom

5.6.3 Weighted average analysis

Weighted average is an average in which each quantity to be averaged is assigned a

W= weight of ranked position

X= response count of answer choice

𝑥1 𝑤1 +𝑥2 𝑤2 +𝑥3 𝑤3 +⋯.+𝑥𝑛 𝑤𝑛

6. DATA ANALYSIS AND INTERPRETATION

SL Particulars No of respondents Percentage

6.1.1 Graph showing the details regarding the gender of respondents.

6.1.2. The following table representing the age of the respondents.

SL.NO Particulars No of respondents Percentage

Age wise clasification

6.1.3 The following table representing the occupation of the respondents.