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Examining the role of monetary incentives and tie strength in mediating satisfaction and word of mouth in multilevel marketing companies: an entrepreneurial marketing perspective

Sebastián Robledo et al.

Journal of Research in Marketing and Entrepreneurship2025https://doi.org/10.1108/jrme-07-2023-0117article
AJG 2ABDC B
Weight
0.50

What the paper says

Purpose This study aims to explore the mediating roles of monetary incentives and tie strength in the relationship between satisfaction and the word-of-mouth (WOM) process within a multilevel marketing (MLM) organization. Design/methodology/approach This study conducted a personal survey with 240 distributors from a MLM company. The conceptual framework was tested using structural equation modeling. Findings These empirical findings substantiate the vital role of satisfaction in generating WOM. Moreover, monetary incentives and a strong interpersonal connection between the information provider and recipient (tie strength) serve as pivotal drivers in initiating the WOM process. These factors were found to mediate the relationship between satisfaction and WOM, underscoring their strategic importance. Research limitations/implications This research focuses on a single MLM company, limiting its generalizability to non-MLM or other companies. This area holds promise for future research. Practical implications MLM entrepreneurs should prioritize offering high-quality products, well-designed monetary incentives, and fostering strong relationships with clients to activate the WOM process. Originality/value The results of this study indicate that satisfaction plays a significant role in WOM. In addition, this study emphasizes the importance of a well-structured compensation plan (monetary incentives) and the need for MLM entrepreneurs to strengthen relationships with customers to enhance the likelihood of WOM activation.

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https://doi.org/https://doi.org/10.1108/jrme-07-2023-0117

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@article{sebastián2025,
  title        = {{Examining the role of monetary incentives and tie strength in mediating satisfaction and word of mouth in multilevel marketing companies: an entrepreneurial marketing perspective}},
  author       = {Sebastián Robledo et al.},
  journal      = {Journal of Research in Marketing and Entrepreneurship},
  year         = {2025},
  doi          = {https://doi.org/https://doi.org/10.1108/jrme-07-2023-0117},
}

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Examining the role of monetary incentives and tie strength in mediating satisfaction and word of mouth in multilevel marketing companies: an entrepreneurial marketing perspective

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Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.