The Socio-Economic Implication of Network Marketing In Addis Ababa: The Case Of Gold Quest International
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Date
2007-04
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Addis Ababauniversity
Abstract
The purpose of this study is to asses the general socia-economic implication of nelwork
marketing in Addis Ababa. Due to the youngness of the industry in the country, hardly
any studies have been made on this area; therefore, this study was initialed 10 fill Ihe
knowledge gap that exisls in this particular area and il was conelucled by taking Ihe
sample participants of Gold Quest International (GQI). This company is one of Ihe
pioneers NWM Companies in Ethiopia.
The objective of this sludy is to briefly asses the general socia-economic implications of
network marketing in Addis Ababa with special reference to Gold Quest international. In
doing so, the economic contribution of the business, in the form of laxes and
employment opportunity, and the social implication as 10 what societal values the
customers gel/Io-~e from tile lechnologies and knowledge Iransfer were assesseel
To achieve this objective. bolh qualilative and quantitalive research methods were used.
The study involved 96 pnrticipnllis of Ihe business, five case sludies and a group
discussion.
The resull of Ihe sludy shows Ihal 1I10si NWM business participanls are young, nliJlc,
unmarried and educated. The business created employment opportunity and personal
development for them. Moreover, as the majority of respondents indicated, the business
helped them build new relationships and even strengthened their previous relations.
Almost all participants (97%) of the business documented that they did not get financial
benefit, Which was their major reason for their involvement in the business. The business
does nol have rules and regulations for ils activily in Ihe country.
It is concluded from the study Ihat network marketing helps creale many import ani
societal values if it is done with ils true concepls. In this regard, il is also observed from
the focus group discussion that individuals should join the system to use the proelucl
andlor service as Iheir primary objective then Ihe financial benefil comes afterwarels
Moreover. it is recommended Ihal exislence of rules anel regulalions for ils activily in tI/C
counlry will help develop Ihe business and help Ihe participanls 10 acquire ils benefils
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Keywords
Network Marketing