I don' have a preference, just ensure the research design follows the paper and here are a few guidelines from my class.For this week's assignment, you will select an appropriate research design for y

Research Method

Amenia Payne

University of Phoenix

Research Method

E-commerce has erupted with a variety of advantages and limitations. This E-commerce involves the use of internet and online platforms to undertake business transactions (Choi et al., 1997). In recent years, many companies have applied the use of internet to sell their products and services to their potential customers (Grandon and Pearson, 2004). This is because internet transactions have proven to be ideal, as well as the easiest and most convenient method of conducting business transactions. However, these internet transactions have resulted in an increase in cyber crimes and scams that have exploited millions of customers consumers. The legal regulations of e-commerce are justified since its dynamics leads to the creation of a significant market, multilevel marketing. Most laws regarding ecommerce state that transactions carried out over the internet fall under the jurisdiction of the supplier's country (Batagan et al., 2010). This system of marketing provides for companies to make easy and faster profits through selling of products and services. However, this multi level marketing system may also be used by companies or business organizations to exploit consumers. This may be done through the providing false advertisements to consumers that involve wrong information about the product features and prices. Government organizations have however tried to reduce the effect of these false business transactions generated from the multi level marketing (Richey & Skinner, 2015). The Federal Trade Commission in the United States have tried to make regulations to help regulate and reduce these scams and consumer exploitations. However, this has not been effective since most of multi level marketing involves external business transactions that have no effective regulations. This type of marketing lacks government control something that makes the business dealing in these activities continue with their businesses. Ensuring the consumer's protection in the virtual environment, where the commercial transaction are carried out, requires the existence of new and extremely important aspects regarding the security of the consumer (Surcel and Dinu, 2007). E-commerce comprises a wide range of problems such as security, trust, reputation, legal framework, payment mechanisms, advertising, online catalogues (Haleema and Iyengar, 2016).

This research will focus on the various aspects that have contributed to this continued exploitation of consumers by use of multi level marketing. The research will focus on the effects consumers get from the increased multi level marketing. The research will specifically exploit the case study of Digital Altitude, a multilevel marketing company, which sells a digital marketing business opportunity, that was shut down by the FTC for engaging in illegal marketing practices, a pyramid scheme.  

Purpose

The purpose of this research is to educate consumers on the safe multi level marketing and business transactions. When individuals get to understand the business safety measures they will be able to avoid scam businesses. The qualitative research method will explain the various factors, ways and methods these scam businesses and pyramids are using to exploit consumers. This therefore provides an alternative measure for the control and regulation of such illegal businesses (Hsu, 2016). It will be an alternative method since it provides the government with another method of reducing such scam businesses even if the regulation methods will not be applied. For instance, consumers will be able to understand how the Digital Altitude, a multilevel marketing company was able to exploit many consumers until it was shut down (Richey & Skinner, 2015). This will also help the consumers to have clear information on legitimate and illegitimate multi level marketing companies and choose appropriately on which company to invest.

Research questions

What is the safest MLM and business practices for consumers to engage in online?

Do MLM business need further regulations?

Research Method

This research will utilize the qualitative research method. This is the method which will focus on the variables and factors that have effect on the consumers through the multi level marketing. This qualitative method involves several methods that will help get information relating to the effect of multi level marketing to consumers. The first method that will be utilized in this qualitative method is the individual interviewing. Interviewing will help get correct and actual information directly from the consumers. Random groups of consumers will be interviewed from diverse regions to get the specific ways that these consumers have been exploited. This is one of the best methods to find information about pricing and advertisements that are falsely provided to consumers (Caruana & Chatzidakis, 2014). The consumers are the ones’ at the ground and it will be very correct to interview them on this matter. The data collected from different regions and consumers will provide a valid conclusion to make relating to this consumer exploitation method. After making analysis and conclusions from the data collected from the interview, the information relayed will be used to educate other consumers on safe measures of multi level marketing.

Beside this, group discussions will be the other important qualitative method to use in this research. This method provides first hand information from random groups of individuals about the effects of the multi level marketing to consumers. This involves group discussions will be discussing and recording the results and information relating to consumer exploitation using the multi level marketing. To make the information and data more reliable and free from manipulation, the group should comprise of consumers from different regions and counties. To neutralize the biasness of consumers, the group will comprise of several members from the multi level companies that practice legitimate multi level marketing. These groups will be discussing about the false pyramid schemes that have lured consumers into investing in them when they are scam businesses. The consumers who are victims of such circumstances will help provide educative information that will create awareness to other consumers (Friedner, 2015). These individuals will expound on the hidden means that multi level companies are using through the internet to exploit consumers. In addition, these individuals will propose the various regulations that governments may apply to control the prevent employees from multi level marketing exploitation.

More so, qualitative research method is effective in acquiring information from the involved consumers. This is because this type of research method involves participation and observations. Engaging in observation method helps to get important information from the consumer themselves. One will be able to observe the various ways that these companies using multi level marketing use to exploit consumers. Such observations include observing the advertisements and identify their relevance if they are correct or wrong. This is determining and examining the advertisements if they are in line with the exact features and value of the products and investments to make by the consumers. The pricing of the products and services will also be determined if they are valid through participation and observation. These are qualitative variables that will help determine the consumer exploitation in various ways. In addition, this participation method is also important since it helps to get the false pyramid schemes that exploit consumers (Hsu, 2016). The information concluded from this research study will also help provide important education and creation of awareness to consumers to avoid their exploitations. Participation method will provide actual information on the specific companies that practice illegitimate multi level marketing that exploit consumers. The government organizations that regulate and control multi level marketing businesses will use this information to close such business organizations.

Moreover, the qualitative research will provide important information relating to multi level marketing through analyzing aspects of the online businesses. This type of research will help to determine the various issues that were experienced in the Digital Altitude, a multilevel marketing company that made the Federal Trade Commission shut it down. The consumers who are victims of the exploitation from the Digital Altitude may provide information and data to be collected on the exploitation. The false information relating to pricing and advertisements of the Digital Altitude company will be identified correctly from the qualitative research. This information is also important since it will educate other consumers on the various methods and ways that this Digital Altitude Company used to manipulate and exploit consumers. For instance, the Digital Altitude sells digital marketing opportunities that call for consumers to purchase such business opportunities to make easy and faster profit (Richey & Skinner, 2015). Consumers were exploited by being given wrong information and false advertisements about the digital marketing. Therefore, using methods such as interviewing, observation and participation will help determine the correct information concerning the Digital Altitude Company. The false pyramids and scam businesses from the multi level marketing by the Digital Altitude company will also be identified through the group discussions and interviewing the involved consumers.

In conclusion, multi level marketing has contributed to scam business and consumer exploitations. This has been hard for governments to control since it involves online transactions that government regulations cannot control. However, this qualitative research will provide information to consumers about ways that exploit consumers (Friedner, 2015). This information may be used by government organizations to regulate and monitor multi level marketing companies to prevent them from exploiting consumers. The consumers will benefit a great deal from this qualitative research.

References

Batagan L., Marasescu A., Pocovnicu A. (2010). Drepturile consumatorilor În economia digitala. Studiu de caz al utilizarii comertului electronic În România. Economie teoretica si aplicata, XVII no 9 ( 550), 66.

Caruana, R., & Chatzidakis, A. (2014). Consumer social responsibility (CnSR): Toward a multi-level, multi-agent conceptualization of the “other CSR”. Journal of business ethics, 121(4), 577-592.

Choi S., Stahl D., Whinston A. (1997). The Economics of Electronic Commerce. Indianapolis: Macmillan Technical Publishing.

Friedner, M. (2015). Deaf uplines and downlines: Multi-level marketing and disharmonious sociality in urban India. Contributions to Indian Sociology, 49(1), 1-25.

Grandon E. E., Pearson J. M. (2004). Electronic commerce adoption: an empirical study of small and medium US businesses. Information & Management, 42(1), 197-216.Richey, R. G., & Skinner, L. (2015). A Multi-Level Approach to Retail Management Education. In Revolution in Marketing: Market Driving Changes (pp. 120-120). Springer, Cham.

Haleema P. K., Iyengar N. C. (2016). A mathematical model with flexible negotiation strategies for agent based negotiations in dynamic e-commerce environments. Journal of King Saud University - Computer and Information Sciences.

Hsu, P. H. (2016). The Study of Multi-level Marketing Industry’s Channel Conflict and Management–A case of Company M.

Surcel T., Dinu V. (2007). Auditul comertului electronic În relatie cu protectia consumatorilor. Amfiteatru economic, 21, 115-120.