THE INFLUENCE OF PAYTREN MLM AND AGENT

ATTRIBUTES ON WILLINGNESS TO UNDERTAKE

MULTILEVEL MARKETING AS

A CAREER OPTION

By

Dewi Salindri

014201400040

A Skripsi presented to the

Faculty of Business President University

in partial fulfillment of the requirements for

Bachelor Degree in Business Major in Management

March 2018

i

ii

DECLARATION OF ORIGINALITY

I declare that this Skripsi, entitled “THE INFLUENCE OF PAYTREN

MLM AND AGENT ATTRIBUTES ON WILLINGNESS TO

UNDERTAKE MULTILEVEL MARKETING AS A CAREER

OPTION” is to the best of my knowledge and belief, an original piece of

work that has not been submitted, either in whole or in part, to another

university to obtain a degree.

Cikarang, Indonesia, 29thMarch 2018

Dewi Salindri

014201400040

iii

ACKNOWLEDGEMENT

First of all, I would like to say big thanks and gratitude to Allah SWT who has given

me fluency and ease until finally able to finish this Skripsi. I also very grateful for the

help and support from people closest to me because I am nothing without them.

Therefore, I would like to express my deepest gratitude and appreciation to:

1. The persons I love most in this world, my parents. There are neither words nor

deeds enough for me to repay all the unconditional love, endless support, and

prayers they have given me. I amwholeheartedly very grateful and this Skripsi

I dedicate to them.

2. Mr. Jhanghiz Syahrivar, MM, my advisor who has guided and gave me

uncountable valuable advises for me so that I can finish this Skripsi well.

Thank you so much for giving me many worthwhile knowledges.

3. My very special friend, Annisa who are always willing to help whenever I

need, always give supports, and motivations.

4. My beloved friends, Trixie Jacqualine, Moza Andini, Pratiwi Citra Bella,

Shafa Insi Nafarani, Silvi renita, Meilisa Audina, Rinika Elmanti, Vincent

Bonavisi, Kristian, Chelsy, Gilang, Eka, Gazha, Dian, Adelita Marcia and Kim

who have givenhappiness and many good memories during my college life

that will never be forgotten.

5. All my friends in campus,marketing squad 2014 and volley squad which I

cannot mention one by one, thank you for all the corporation and help during

my college life.

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TABLE OF CONTENT

PANEL OF EXAMINERS ...........................................................................................i

APPROVAL SHEET ....................................................................................................i

DECLARATION OF ...................................................................................................ii

ORIGINALITY ........................................................................................................... ii

ACKNOWLEDGEMENT ...........................................................................................iii

TABLE OF CONTENT ...............................................................................................iv

LIST OF TABLES ......................................................................................................vii

LIST OF FIGURES .....................................................................................................x

ABSTRACT ...............................................................................................................xi

CHAPTER I INTRODUCTION ...................................................................................1

1.1 Background of Study ........................................................................................1

1.2 Problem Identification......................................................................................6

1.3 Statement of Problem .......................................................................................6

1.4 Research Objectives.........................................................................................7

1.5 Significance of Study .......................................................................................7

1.6 Scope and Limitation.......................................................................................8

1.7 Organization of the Skripsi ..............................................................................8

1.8 Definition of Terms ..........................................................................................9

CHAPTER IILITERATURE REVIEW.....................................................................11

2.1 Introduction ....................................................................................................11

2.2 Theoretical Review........................................................................................11

2.2.1 MLM Company ......................................................................................11

2.2.1.1 MLM Company and Career Option Relationship ..........................12

2.2.2Service ....................................................................................................13

2.2.2.1 Service and CareerOption Relationship .........................................14

2.2.3Reward Scheme ......................................................................................15

2.2.3.1Reward Scheme and Career Option Relationship ..........................16

2.2.4 Trust ....................................................................................................... 17

2.2.4.1Trust and Career Option Relationship ............................................18

2.2.5 Agent ......................................................................................................19

v

2.2.5.1Agent and Career Option Relationship ...........................................20

2.2.6 Career Option .........................................................................................21

2.3 Previous Research..........................................................................................22

2.4 Hypothesis ..................................................................................................... 25

2.5Operational Definition of Variable................................................................26

2.5.1 MLM Company (X1) .............................................................................26

2.5.2Agent Attributes (X2) .............................................................................28

2.5.3Career Option (Y) ...................................................................................29

2.6 Research Gap .................................................................................................30

CHAPTER III RESEARCH METHODOLOGY........................................................31

3.1 ResearchFramework ......................................................................................31

3.2 ResearchDesign.............................................................................................31

3.3 Sampling Design.............................................................................................32

3.3.1 Population .............................................................................................. 32

3.3.2 Sample ....................................................................................................32

3.4 Research Instrument .......................................................................................33

3.4.1 Primary Data ...........................................................................................33

3.4.2 Secondary Data .......................................................................................35

3.5Validity and Reliability ..................................................................................35

3.5.1Validity...................................................................................................35

3.5.2Reliability...............................................................................................37

3.6 Data Gathering Procedure..............................................................................38

3.7 Testing the Hypothesis..........................................................................................39

3.7.1 Structural Equation Modeling Analysis.................................................40

CHAPTER IV DATA ANALYSIS ............................................................................43

4.1 Company Profile ............................................................................................43

4.2Respondent Profile .........................................................................................44

4.2.1 Gender ....................................................................................................44

4.2.2Age .........................................................................................................44

4.2.3Occupation ............................................................................................. 45

4.2.4Latest Education .....................................................................................46

4.2.5Monthly Income .....................................................................................46

vi

4.3 Validity Test .................................................................................................. 47

4.3.1 KMO-MSA Barlett‟s Test ..................................................................... 48

4.3.2Communalities .......................................................................................49

4.3.3Total Variance Explained .......................................................................50

4.3.4Construct Validity Test..........................................................................50

4.3.4.1Discriminant Validity .....................................................................50

4.3.4.1Convergent Validity .......................................................................51

4.4Reliability Test ...............................................................................................52

4.5Descriptive Analysis ......................................................................................53

4.5.1Company Variable Description ..............................................................53

4.5.2Service Variable Description ..................................................................55

4.5.3Reward Scheme Variable Description ...................................................56

4.5.4Trust Variable Description .....................................................................57

4.5.5Career Option Variable Description .......................................................58

4.6Overview of Career Option Based on Demographic Respondent.................60

4.6.1Career Option Variable Based on Gender ..............................................60

4.6.2Career Option Variable Based on Age ...................................................60

4.6.3Career Option Variable Based on Occupation .......................................61

4.6.4Career Option Variable Based on Education .........................................63

4.6.5Career Option Variable Based on Monthly Income ...............................64

4.6.6 Career Option Based on Demographic...................................................65

4.7 Structural Equation Model (SEM) Analysis ..................................................66

4.7.1Hypotheses Testing ................................................................................69

4.7.1.1Influence of Company toward Career Option ................................69

4.7.1.2Service towards Career Option .......................................................69

4.7.1.3Reward Scheme towards Career Option..........................................70

4.7.1.4 Trust towards Career Option ..........................................................70

CHAPTER VCONCLUSION AND RECOMMENDATIONS .................................73

5.1 Conclusion..................................................................................................... 73

5.2 Recommendations..........................................................................................74

5.2.1 For Paytren Company .............................................................................74

5.2.2 For Future Researcher ............................................................................74

vii

REFERENCES........................................................................................................... 75

APPENDIX .................................................................................................................87

Appendix A – Questionnaire Form .............................................................................87

Appendix B – Raw Data..............................................................................................97

Appendix C – Amos Result .......................................................................................106

viii

LIST OF TABLES

Table 1.1 Comparison of Growth MLM Sales in South East Asia ...............................2

Table 1.2Data of Paytren Member in 2017..................................................................5

Table 2.1Operational Definition of X1 ......................................................................26

Table 2.2Operational Definition of X2 ......................................................................28

Table 2.3Operational Definition of Y ........................................................................29

Table 3.1Likert Scale.................................................................................................34

Table 3.2Likert Scale Questionnaire ..........................................................................34

Table 3.3 Tools for Measuring Model Fit...................................................................40

Table 3.4 Goodness Fit Index Value ...........................................................................41

Table 4.1 Rotated Component Matrix.........................................................................46

Table 4.2 KMO-MSA Barlett‟s Test...........................................................................47

Table 4.3 Communalities............................................................................................48

Table 4.4 Total Variance Explained............................................................................49

Table 4.5 Correlation matrix.......................................................................................49

Table 4.6 Rotated Component Matrix.........................................................................50

Table 4.7 Reliability Test............................................................................................51

Table 4.8 Frequency Distribution of Company Variable ............................................53

Table 4.9 Frequency Distribution of Service Variable...............................................54

Table 4.10 Frequency Distribution of Reward Scheme Variable...............................55

Table 4.11 Frequency Distribution of Trust Variable.................................................58

Table 4.12 Frequency Distribution of Career Option Variable...................................59

Table 4.13 Career Option Based on Gender................................................................60

Table 4.14 Career Option Based on Age.....................................................................60

Table 4.15 Career Option Based on Occupation..........................................................61

Table 4.16 Career Option Based on Education............................................................63

Table 4.17 Career Option Based on Monthly Income.................................................64

Table 4.18 Career Option Based on Demographic......................................................65

Table 4.19 Evaluation Fit Indexes Structural Model...................................................67

Table 4.20 Regression Weight.....................................................................................68

Table 4.21 Standardized Regression Weight...............................................................68

Table 4.22 Squared Multiple Correlation....................................................................69

Table 4.23 Influence of Company towards Career Option..........................................70

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Table 4.24 Influence of Service towards Career Option..............................................70

Table 4.25 Influence of Reward scheme toward Career Option..................................71

Table 4.26 Influence of Trust toward Career Option...................................................72

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LIST OF FIGURES

Figure 1.1 Graphic of Paytren members in 2017 ..........................................................4

Figure 2.2Theoretical Framework..............................................................................25

Figure 4.1 Gender of Respondents..............................................................................44

Figure 4.2Age of Respondents...................................................................................44

Figure 4.3Occupation of Respondents.......................................................................45

Figure 4.4Latest Education of Respondents...............................................................46

Figure 4.5Monthly Income of Respondents ...............................................................46

Figure 4.6 Frequency Distribution of Company Variable ...........................................54

Figure 4.7 Frequency Distribution of Service Variable ..............................................55

Figure 4.8 Frequency Distribution of Reward Scheme Variable ................................56

Figure 4.9 Frequency Distribution of Trust Variable ..................................................57

Figure 4.10 Frequency Distribution of Career Option Variable .................................59

Figure 4.11 Full Structural Model................................................................................66

xi

ABSTRACT

The concept of Multilevel Marketing or referral marketing is a method of product

distribution. The distributors are given an opportunity to introduce other distributors

to the business. This study is conducted to analyze one of MLM companies in

Indonesia which is PT. Veritra Sentosa Internasional. This company is a multilevel

marketing company that has been running in the business since 2014. The product of

this company namely Paytren. The fluctuation of the members happened in the

company because of the Paytren payment system was detained by Bank Indonesia and

make the company decide to change the MLM system. The purpose of this study is to

analyze the influence of MLM Companies and Agent attributes on the willingness to

undertake MLM as a Career Option. The study is using factor analysis and structural

equation modeling by distributing the questionnaires to 250 Paytren members. This

study adopted theoretical framework from previous research by Nga and Mun (2011)

which in six variables namely company, service, reward scheme, agent, trust and

career option. The result of this study found that service has the highest influence

towards career and followed by trust variable, reward scheme and company which has

the lowest value and indicates not significant with career option.

Keywords: Company, Service, Reward Scheme, Agent, Trust Career Option

1

CHAPTER 1

INTRODUCTION

1.1 Background of Study

Fundamental changes during the past century have had a staggering effect on

every aspect of human life (Rezvani, Ghahraman and Hadadi 2017). Early in the

twentieth century, direct selling bridged the selling tradition of the itinerant

peddler into a new era (Keep & Nat, 2014).Multilevel Marketing (MLM) is

gaining much attention in business circles recently (Koroth & Sarada,

2012).Multilevel marketing is a way of distributing products or services in which

distributors earn income from their own retail sales made by other direct and

indirect recruits, that is, people they have recruited to sell, and people their

recruits have recruited, into the direct selling organization as distributor (Albaum

& Peterson, 2011). It is often described as direct selling or network marketing

(Nga & Mun, 2011).

Network marketing (NM) is a modernized way of selling products, depending on

social relations and networks of people who advertise for the product using word-

of-mouth marketing (Pedrod, Ahmadi & Charafedd, 2008) . Network marketing is

the most common form of direct selling (Tyre, Myrex, Lazo & Waters, 2016).In a

direct selling situation, a salesperson has to develop trust with consumers during

their interpersonal interaction in order to have better sales and develop long-term

relationships (Poon, Albaum & Chan, 2012).Multilevel marketing plans usually

promise to pay commissions through two or more levels of recruits known as

distributor‟s “downlines” (Attri & Chaturvedi, 2011). The more the downlines

there are corresponding to each upline, the more the chains, and the more these

networks can expect to grow, locally, nationally, and internationally (Luca, 2011).

The big draw card in MultiLevel Marketing is the commission paid not only for

direct sales made by the salesperson but also from the sales made by those

recruited by the salesperson. (Chaudhari & Mistry, 2010). MLM is certainly a big

2

business in the United States, Canada and around the world involving millions of

individuals direct selling MLM members (Epstein, 2010). Despite criticism of

network marketing distribution system, others believe this to be the best system

of the twenty-first century and therefore it deserves appropriate attention,

respect and credibility (Salciuviene, Reardon & Auruskeviciene, 2011).

Moreover, based on Spire Research & Consultant Ltd (2011) states that Asia

registered USD 37 billion in MLM product sales in 2007, and is now the world‟s

biggest region for multi-level marketing. Trailing behind are North America

(USD 32 billion including Canada), Europe, Africa and the Middle East (USD 27

billion), Central America, Southern America and the Caribbean (USD 17 billion),

and Australia and the Pacific (USD1.4 billion)

According to Kontan.co.id (2012) direct sales business or often called multilevel

marketing (MLM) has been widely implemented in Indonesia. This year,

Chairman of the Indonesian Direct Sales Association (APLI) Helmy Attamimi

projected its turnover to grow to 10% . MLM business growth averaged 5% -10%

per year, where the transaction value in 2009 reached Rp 7.6 trillion. Moreover,

based on the research of Wongsurawat and Hatchaleelaha (2016) states that

Indonesia is in the 3rd

position of MLM growth in South East Asia.

Table 1.1 Comparison of Growth MLM Sales in South East Asia

Source: (Wongsurawat &Hatchaleelaha, 2016)

Based on Tyre, Myrex, Lazo and Waters (2016) states that network marketing

started in the United States and spread globally. The globalization of network

3

marketing has driven a new interest in empirical research on effectiveness,

perception, legality, and economic impact the business model has on established

and emerging economies. Furthermore Merdeka.com (2016) states that as a

country in the largest population category in the world, Indonesia becomes a big

business opportunity for an entrepreneurs of multilevel marketing (MLM). This

one business is believed to continue to survive in various economic situations

amid technological advances.

(Kompas.com, 2009) The supporting factor of why MLM could survive in

Indonesia is the increasing number of unemployed in Indonesia, MLM business

can be a solution because it is able to create widespread employment

opportunities. Republika.co.id (2017) states that not a few people who have a

negative perception for this business model in Indonesia. This negative image is

not only due to the bad management of MLM companies, but also the individuals

of these businesses. Kompas.com (2014) Paytren MLM was inaugurated under

PT Veritra Sentosa International on 22nd

August 2013. This business is growing

by looking for new partners or members. A number of partners claim to feel the

benefits of this business. Furthermore, based on Kompas.com (2014) also stated

that one of the paytren‟s member did not make this business as their main job

because the electronic payment system is often stuck.

According to detik.com (2017) Paytren MLM was detained by the Indonesian

Bank at the end of September 2017. Yusuf Mansyur as the president

commissioner of Paytren said that the suspension was done because it does not

have permission from Bank Indonesia. Based on Detik.com (2017) The President

Director, Hari Prabowo stated that at this time, the company only waiting for the

permission from Indonesian Bank. Hari Prabowo estimates the permission will

come out in January 2018. And since then, Paytren application can not be used for

top up deposit.

Based on the data given from PT. Veritra Sentosa Internasional, the member of

Paytren has decrease on September 2017 until December 2017. The drastic

4

decline was happened on October 2017 until December 2017 together with the

suspension from the Indonesian Bank.This is certainly very detrimental for the

paytren and for members who have joined because it is difficult to get a new

member. The manager of PT. Veritra Sentosa Internasional said that this decrease

causes Paytren to change the membership system where member who has become

a leader is required to keep prospects and help the downline. And if the leader

does not help his downline then it will be disabled by the Paytren. This is done to

make Paytren members can be more focused on doing Paytren MLM business and

make this business as their career. So, for the member who have main job beside

the Paytren MLM should choose whether they want to focus to develop their

career in Paytren MLM or they want to stop it. This new system makes all the

members in Paytren MLM did not get passive income which the other MLM

offered. Since the owner is one of the Islamic influencer in Indonesia, the business

is should be halal and fair. The member gets the commission based on their work

and effort to prospect new members.

Figure 1.1 Graphic of New Recruitment of Paytren members in 2017

Source: PT. Veritra Sentosa Internasional, 2017

5

Table 1.2 Data of New Recruitment of Paytren Member in 2017

Year Month Total Member

2017 1 39596

2017 2 57183

2017 3 101254

2017 4 85869

2017 5 95126

2017 6 92401

2017 7 92597

2017 8 94854

2017 9 89773

2017 10 41854

2017 11 27586

2017 12 22662

Source: PT. Veritra Sentosa Internasional, 2017

Based on previous research (Nga & Mun, 2011) with the title “influence of MLM

and agent attributes on the willingness to undertake multilevel marketing as a

career option among youth” analyze about the general MLM and the effect for

career option among generation Y who join MLM in Malaysia. The result of the

previous research stated that reward scheme did not influence the willingness to

undertake MLM as a career option. There may be skepticism in the schemes due

to the misconception created by pyramid schemes. Furthermore, Nga and Mun

(2011) stated that perhaps MLM companies need to better communicate and

educate agents on the viability and sustainability of the earning potential in reward

schemes.

According to the previous research of Nga & Mun (2011) the researcher wants to

analyze the influence of Paytren MLM and agent attributes for career option

among members of Paytren. Researchers suspect there are existence of variables

6

that affect Paytren‟s member in choosing MLM as their career. The researcher

identified the independent variables and dependent variables based on research by

Nga & Mun (2011). The independent variable namely the MLM company,

service, reward schemes, agent, and trust on MLM companies. The dependent

variable of this study is the willingness to undertake MLM as a career option. The

researcher wishes to conduct research with the title "TheInfluence of Paytren

MLM and Agent Attributes on the Willingness to Undertake Multilevel

Marketing as a Career Option”.

1.2 Problem Identification

Based on data obtained from PT. Veritra Sentosa Internasional, there are a

decreasing number of members who join in Paytren on October 2017 until

December 2017 because of the electronic payment got detained by the Indonesian

Bank. The decreasing members from September to October was 47,919, from

October to November is 14,268 and from November to December is 4,924. This

decline is very significant and together with the suspension from Bank Indonesia.

The fact that almost 46% decreasing happened on September 2017 to October

2017, 32% on October 2017 to November 2017 and 17% on November 2017 to

December 2017.

1.3 Statement of Problem

From the background, the researcher finds out some questions that are needed to

be answered based on the analysis of this research. They are:

RQ1. Dothe MLM company has an influence on the willingness to take up MLM

as a career option?

RQ2. Do the service has an influence on the willingness to take up MLM as a

career option?

RQ3. Do the reward schemes has an influence on the willingness to take up MLM

as a career option?

RQ4. Do the MLM Agent has an influence on the willingness to take up MLM as

a career option?

7

RQ5. Do the MLM trust has an influence on the willingness to take up MLM as a

career option?

RQ6. Do demographic variables (gender, age, education, occupation) influence

the willingness to take up MLM as a career option?

1.4 Research Objectives

This objective of the research is to analyze the influence of service, reward

schemes, company and agent characteristics, as well as trust on MLM companies

on willingness to undertake multilevel marketing as a career option. Specifically,

the objectives of the research are:

1. To analyze the influence of MLM company in Paytren MLM to

undertake multilevel marketing as a career option.

2. To analyze the service in Paytren MLM to undertake multilevel

marketing as a career option

3. To analyze the influence of reward scheme on the willingness to

undertake multilevel marketing as a career option.

4. To analyze the influence of trust to undertake multilevel marketing as

a career option

5. To analyze the trust of Paytren agent to undertake multilevel

marketing as a career option.

6. To analyze the demographic variable to undertake multilevel

marketing as a career option.

1.5 Significance of Study

1. Researcher

In order to fulfill the requirements to achieve bachelor‟s degree from President

University, this research obviously gives a huge contribution to the researcher.

Along this several months to spend time working on this research using theories

that have been learned during university study for years and from other resources

to support my research. Also, it gives me a cache to obtain more knowledge about

8

my research such as the important MLM company, service, reward scheme, trust

agent, and demographic variable towards career that hopefully can be used as an

asset to other researcher in the future.

2. For Paytren

From this research, the company could know, realize and make an evaluation for

their business development in the future.

2. For Future researcher

Through this study, the future researcher will be able to learn about Multilevel

Marketing and the role of agent attributes in MLM company and also to improve

this research in writing better paper as comparative study.

1.6 Scope and Limitation

Scope

The research study is conducted to analyze the influence of Paytren MLM and

agent attributes on the willingness to undertake multilevel marketing as a career

option.

Limitation

This research is going to take sample for business agents of Paytren MLM. The

researcher is using factor analysis and structural equation modeling (to be

explained in chapter 3) to take sample. This research will be conducted by online

questionnaire that will be given to 250 leaders in Paytren MLM. This study

focuses on the influence of Paytren MLM and agent attributes on the willingness

to undertake multilevel marketing as a career option.

1.7 Organization of the Skripsi

These followings explanation are how the research organized:

1. Chapter I – Introduction / Background

This chapter presents the research foundation including background,

formulation of problems, the aims of research, scope and limitation of

9

research, and its organization paper. The keys of comprehending this

research are provided in this chapter.

2. Chapter II – Literature Review

This chapter presents the result of researchers on the theories such as

definition, previous research, theoretical framework, and hypothesis and

research gaps.

3. Chapter III – Research Methodology

How to do the research the data are explained here. In this session, there

would be research framework, research method, data instrument, samples,

statistical treatment, and data analysis.

4. Chapter IV – Results and Discussions

It is the spirit of the papers. The findings display all results of data

analysis. The research questions meet the answers in this chapter. To

make it clearer for the readers, the researcher conveys the discussions of

the findings.

5. Chapter V – Conclusion & Recommendation

This chapter is the end of the paper that result from chapter four and

opinion form the researcher.

1.8 Definition of Terms

1. MLM Company

MLM companies is kind of company which continuously striving to

educate, communicate and deliver value to the customer. They need to be

committed in reinforcing their brand character and a company culture that

nurtures customer loyalty. MLM companies need to continuously uphold

high ethical practices and integrity in marketing and in social

responsibility(Nga & Mun, 2011).

10

2. Reward Scheme

The compensation that given by the MLM companies to their distributor

based on legal pyramid scheme(Muncy, 2004).

3. Service

It is referring to customer's satisfaction when they need is matches their

expectations and create the quality of specific levels of value so that

customers remain engaged positively with the companies (Lu, Berchoux,

Marek & Chen, 2015).

4. Trust

It is associated with a partner‟s reliability, integrity, and competence.

Trusted partner reduces the risks associated with relational

exchange(Constantin, 2009).

5. Agents

Agents are entrepreneurs cum sales representatives and treated as both

customers and partners of an integrated sales cum social network and

being an individual with passion, integrity, empathy, capacity to be a good

listener and communicator are critical in relationship marketing (Nga &

Mun, 2011).

6. Career

It is the sum total of paid and unpaid work, learning and life roles you

undertake throughout your life. The term 'career' was traditionally

associated with paid employment and referred to a single occupation

(Zaidi & Iqbal, 2012).

11

CHAPTER II

LITERATURE REVIEW

2.1 Introduction

This chapter is introducing to deliver the review of literature which is relevant to

this research and to provide the foundation of theoretical review. The first part

begins with a review of dependent variable and after that followed by review of

independent variables. The possible association between dependent and

independent variables and finally summarize the gaps of research.

2.2 Theoretical Review

2.2.1 MLM Company

Based on Franco and Perez (2016) stated that MLM companies have no barriers to

expand their selling network as they accept independent and casual consultants

regardless of education level, work availability, age, experience, socio-economic

status, or gender. According to Girish and Dipa (2015) this business uses

independent representatives to sell products or services to family, friends, and

acquaintances. It is a business strategy, which involves participants at various

levels, the level above getting returns through the perpetuation of the business at

the levels below it.

Makni (2014) argues that companies which distribute their products through the

method of direct sales and network marketing have the rule not to use advertising

as a means of promotion, since instead of it they pay a commission to their

independent representatives who also do live advertising by word of mouth.

Moreover, according to Tyre, Myer, Lazo and Water (2016) the company

developed network marketing to reduce the cost of labor, advertising, and

marketing.

Other research by Kiyosaki (2007) stated that the financial freedom offered by

MLM companies to the average person and as the distributor or agent are not

12

contractual employees, the company will not terminate them even if they fail to

achieve the envisioned target since they are responsible for their own income or

incentives. And based on Lee, Lau and Loi (2016) it is very important for MLM

companies to engage their distributors in ways that can satisfy them so that they

will work harder to achieve the firms‟ objectives. Furthermore, Tyre, Myer, lazo

and Waters (2016)stated that network marketers start out with a company because

the network marketer believes in the products, organization, or the business

model.

According to research by Yen, Liang and Chieh (2008) states that for a successful

direct seller, in addition to treating himself/herself as part of the business body to

accurately reflect company image and concept, it is more important to clarify and

satisfy real customer‟s need through sincere and objective mind. This is also the

most important spirit of Direct Selling and is the reason why an excellent Direct

Selling company stays strongly in the market.

2.2.2.1 MLM Company and Career Option Relationship

According to Handoko (2008) suggests that career is an effort by the employees

personally to achieve a career plan in a company. Based on Rivai and Sagala

(2009) career is the process to improving the individual work capabilities that

employees achieved in order to achieve the desired career. Furthermore, Gorda,

Lestari and Astawa (2016) states that the better of someone‟s career in the

organizational then the organizational or the company is also better.

Based on research by Alniacik, Ekcin and Erat (2012) states that the company

should have highly skilled and motivated their loyal employee who are committed

and planning a long run career in order to make them stay in a company.

Furthermore, states that the companies which not capable to satisfy the employee

may make the employee‟s wish to leave their career.

Other research by Nga and Mun (2011) states that company has an influence of

someone choosing their career option. MLM companies can enhance these

13

attributes by continuously striving to educate, communicate and deliver value to

the customer. They need to be committed in reinforcing their brand character and

a company culture that nurtures customer loyalty. MLM companies need to

continuously uphold high ethical practices and integrity in marketing and in social

responsibility.

2.2.2 Service

According to Gregor and Wadlewski (2013) states that service is one of the tools

in multilevel marketing that makes the pyramid and multilevel marketing become

legal or illegal. Furthermore, Guenzi, Luca and Spiro (2016) states that service is

the important aspect to satisfy the need of customer and create specific

knowledge. Moreover, Hatchaleelaha and Wongsurawat (2016) states that in

MLM structure, delivering a service through various level of independent agent is

should at the forefront. Selling a product or service in MLM network can develop

a hierarchical tree structure by recruiting a minimum of two downline members.

Other research by Farrahmandian, Minavand and Afshardost (2013) states that

generally, in a competitive environment it is vital for service company to have a

proper understanding of determinants and backgrounds of consumer‟s satisfaction

as to have an extremely high monetary value. Furthermore, Ilias, Rahman and

Razak (2009) states that service is a definition of quality and has to be judged on

the assessment of the consumer. Moreover, Lee, Lau and Loi (2016) states that the

products and services of a company represent the corporate identity and

reputation.

Based on research by Yen, Liang and Chieh (2008) states that the product or

service in MLM company sold directly to the customer through the use of face to

face way or personal contact. Moreover, Herbig and Yelkur (2008) states that

direct marketing or multilevel marketing is defined as a sale of product or service

directly to the customer. Furthermore, research by Franco and Perez (2016) states

that delivering a service to the customer can earn income and generate a

percentage of the sales executed by the people they recruit for the company.

14

According Okeke and Nwankpa (2017) states that supplying a service in MLM is

through various levels of independent agents such as contractor, distributor and

etc. Furthermore, Vahidi (2016) states that it is simply a network of independent

sales representatives that sell products and services from the supplier (or

manufacturer) directly to the end-user (or consumer).

Lee, Lau and Loi (2016) argues that training program is one of the service that

MLM companies give to improve the skill and knowledge of the agents or

distributors in convincing the target market to join their multilevel marketing.

Furthermore, Girish and Dipa (2015) states that the target market for multilevel

marketing is start from family, friends and acquaintances by verbally supporting

them, and recommend that they use the products.

2.2.2.1 Service and Career Option Relationship

Based on research by Alniacik, Ekcin and Erat (2012) states that satisfaction

towards service is affected in someone choosing career. According, Odunayo,

Ayodeji and Olaniyi (2014) states that services are delivered to meet human needs

and it will affect of behavioral of the employees towards their career and their

organization. Furthermore, Fejoh and Faniran (2016) states that training is one of

the service that companies give to improve the career and enhance to get better

position in the company.

According to research by Lu, Berchoux, Marek and Chen (2015) states that

customers are satisfied when they get what they want and whenall the services

they need and matches their expectations. Satisfactionmeans providing goods and

services that create specific levels of value for the customerso that the customers

remain engaged positively with the companies. Furthermore, Dado, Petrovicova,

Riznic and Rajic (2013) states that the quality of service revealed significant

influence of corporate image and perceived value on customers behavioral

intentions.

15

Other research by Nazeer, Zahid and Azeem (2014) states that satisfaction,

retention, loyalty, growth and profit is linked with the service quality of the

companies which will affect the career option. Furthermore, Nga and Mun (2011)

states that there is a relationship between service of the companies and someone‟s

in choosing their career. MLM services include providing sound technical advice,

easy access to distributors, high-quality products and incorporating customer

feedback for improvement. MLM companies need to uphold their positive

attributes and commitment towards service and training to remain the employer of

choice to reinforce their creditability as a sustainable employer of choice.

2.2.3 Reward Scheme

According to Keep and Nat (2014) a pyramid or reward scheme may seek to hide

its real nature (essentially, a chain letter) by introducing a product or service to

fool people into thinking that they are engaged in a business or income

opportunity. Furthermore, Vahidi (2016) states that the members of a pyramid

receive commission only by adding some other members to their team without

selling any product or service, while in network marketing, the active customers

are actually independent distributors which receive commission from the profit

gained by more sales.

Based on research by Girish and Dipa (2015) states that MLM companies are

more focus on rewards for recruiting new members rather than selling a product

or service. Moreover, Franco and Perez (2016) in pyramid schemes, a member

makes an investment to receive authorization to recruit others and collect a

commission when those recruit others to join the scheme. Furthermore,

Hatchaleelaha and Wongsurawat (2015) states that the MLM companies give a

reward to members who achieve stated targets to maintain and grow their

networks while contributing to the growth of the company business.

Other Research by Gregor and Wadlewski (2013) states that reward scheme leads

to an unfair situation in which unproductive persons are rewarded to the same

extent as persons who work. Moreover, the system will always be paying higher

16

commissions to persons who are higher until the moment the persons located

lower fill to a greater extent the levels beyond the reach of the

former.Furthermore, Albaum and Peterson (2011) states that the hierarchical

reward system that MLM companies have are encourage the recruitment,

entrepreneurship and also sales.

Figure 2.1 Reward Scheme in Multilevel Marketing

Source: (Albaum & Peterson, 2011)

2.2.3.1 Reward Scheme and Career Option Relationship

According to Trivellas, Kakos, Blanas and Santouridis (2015) states that

successful career may bear such satisfactory benefits or rewards as pay,

professional growth and/or peer recognition that are likely to act as an individual‟s

motivator for job performance. Furthermore, Osibanjo, Oyewunmi and Ojo

(2014) states that rewards play a significant role in keeping the employees

contended and committed and also impact on the organization effectiveness and

efficiency which measures their levels of survival and growth, thus the highly

motivated employees serve as the competitive advantage for any company

because their performance leads an organization to accomplishments of its goals.

Based on research by Gregor and Wadlewski (2013) states that the rewarding in

multilevel marketing system affecting the work, people located in higher level can

get a high reward and that‟s make them loyal to the companies. Furthermore,

17

Hatchaleelaha and Wongsurawat (2015) states that a lack of loyalty excludes such

individuals from being the ideal membership for MLM.

Research by Mayastinasari (2013) states that reward is associated with the

fulfillment of the promise of the organization. It concerns the organization doing

their fulfillment of the promise. More specifically that reward is the desired

consequence which is typically given for general performance rather than being

contingent on specific behaviors. It is not only tangible material but also

intangible non- material. The rewarding of the right to work as a driver motivate

positive performance due to the behavior of others to their career performance.

Furthermore, Mansor, Borhanudin and Yusuf (2012) states that rewards are very

important to ensure that adequate benefits and rewards packages can significantly

increase the motivation of an individual to increase their work performance.

Other research by Nga and Mun (2011) states that MLM companies need to better

communicate and educate agents on the viability and sustainability of the earning

potential in their reward schemes. MLM companies need to make their

performance measures and rewards more transparent and equitable. MLM reward

schemes may be difficult to comprehend, as well as may not provide assurance of

income and job security. The reward schemes offered need to be easily

understood and profitable to the members who intend to take this up as a career

option.

2.2.4 Trust

According to Franco and Perez (2014) the business network and level of

commitment between both parties determines the level relationship profitability as

a result; hence, a high level of trust is needed in order to successfully rely on each

other. Furthermore, research by Rezvani, Ghahraman and Hadadi (2017) states

that by using network marketing method, not only companies no longer need to

spend heavily on advertisements, the potential buyers will also experience a

higher level of trust and security in their shopping behavior by obtaining

information from people around them. Moreover, Guenzi, Luca and Spiro (2016)

18

emphasizes that people learn through experience how much to trust others and

that trust grows when two parties share a variety of experiences.

Based on research by Hatchaleelaha and Wongsurawat (2015) states that in

multilevel marketing business, the company should be focused on attracting new

members to join its MLM network with a clear marketing strategy and at the same

time create confidence and trust among members. Furthermore, research by Tyre,

Myer, lazo and Waters (2016) states that creating trust is imperative to success in

network marketing. The level of trust is a function of the level of expected gain or

loss involved in network marketing.

Other research by Grob and Vriens (2017) states that at MLM, the risk of

misusing trust is higher in comparison with other sales organizations as the

marketing activities take place far more often in situations of trust. Moreover,

research by Constantin (2009) states that trusted partner reduces the risks

associated with relational exchange, because trust is associated with a partner‟s

reliability, integrity, and competence.

Based on Kalra, Kondepudi and Sridharan (2016) states that trust among members

have an influence on the attitude towards the company image. Furthermore,

Pratistha (2017) states that the success of multilevel marketing company depends

on the trust and cooperation among the members. Moreover, Sarwar, Abasi and

Pervaiz (2012) argues that trust is an important variable to enhance the customer

commitment.

2.2.4.1 Trust and Career Option Relationship

According to Hanafi (2016) states that trust in the organization has a negative

effect on the intention turnover. As employee perception about the existence of

program career planning to help members achieve their career goals. In other

words, the higher the trust then their tendency to be leaving the company is

smaller. Furthermore, Meral, Yashoglu and Semercioz (2016) states that trust

19

effect job satisfaction positively and increase new identification in mergers and

also conformity.

Based on Siddiqi and Kharsiing (2015) states that when dissatisfaction with one‟s

job sets in, organizational trust plays a pivotal role, wherein employees with a

strong sense of trust towards their organization, feel more satisfied with their job,

and hence are highly committed to their organization. Furthermore, Poon, Albaum

and Chan (2012) emphasize that in a direct selling situation, a salesperson has to

develop trust with consumers during their interpersonal interaction in order to

have better sales and develop long-term relationships with the customer and with

the MLM companies itself.

Other research by Salciuvine, Reardon and Auruskeviciene (2011) states that trust

is as an important predictor of commitment. Trust and commitment influence

performance mainly because of buyers‟ tendency to work more positively with

trusted sellers resulting in greater commitment. And in MLM companies, the trust

of buyer or customer is important to maintain the career in MLM companies.

Furthermore, Nga and Mun (2011) emphasize that first impressions of the sales

advisor/agent has been found to be passively related to the trust established

whilst the last impressions impacted satisfaction attained by the customer. To this

extent, trust towards the agent is critical in establishing future confidence and

willingness to commit to future exchanges and/or commitments. Trust towards the

exchange partner has been found to be positively correlated with sales growth,

customer retention, return on investment, market share and also career.

2.2.5 Agent

According to Sizovaite and Paschaloudis (2011) states that multi-level marketing

is one direct selling types and describes it as companies recruiting business people

who act as an agent for their products. Moreover, research by Makni (2014) states

that MLM companies using independent agents to defines a strategy and selling

approach of companies to carry out direct sales and structured on many levels in

order to sell the company goods/services to other agents or end users.

20

Furthermore, research by Koroth and Sarada (2012) emphasize that MLM agents

can generate income in two ways. They can earn commissions and retail profits by

selling directly to retail customers, and they can recruit and manage their own

network of sales agents (on whose sales they earn a commission). Those who

undertake this second income generating activity are often called sponsors who

develop a downline of sales agents.

Other research by Kalra, Kondepudi and Sridharan (2016) states that the MLM

agents must have a motivation to sell the product in order for a consumer to have

an opinion and attitude towards Multilevel marketing. Furthermore, Krige (2012)

emphasize that MLM agents create a narrative structure that shape testimonials as

a part of push-push scheme presentation in order to attract the customer.

Based on Elnaz and Hasan (2016) states that MLM agents believe that they own

the business since the commission to the agents are based on performance.

Moreover, Juman and Christopher (2015) states that the agents commission

includes a percentage of sales to the entire sales group that the agents recruited as

well as earning on any direct sales to retail customers. Furthermore, research by

Vahidi (2016) emphasize that in typical networking model, an agent essentially

contracts or act like a franchisee to the parent company and are paid a commission

based on the volume of product or services that are sold as a result of their own

organization's efforts.

According to research by Bobalca and Soponaru (2015) the agents have the ability

to generate trust and fulfill special requests of the customer. Furthermore, Keep

and Nat (2014) states that the ability of high volume agents to generate and sell

business support materials at a profit to downline distributors further obscures the

path to financial success. High annual agents‟ turnover creates a ready market for

fee-based training programs offered by upline agent.

21

2.2.5.1 MLM Agent and Career Option Relationship

According to Gorda, Lestari and Astawa (2016) states that the employee

performance has positive influence in career, it is indicating that the better

employee performance the better of the career. Furthermore, Zaidi and Iqbal

(2012) emphasize that the personality of the employee (agent) will affect

someone‟s in choosing career because a career which is in line with the

personality can make work without any extra effort.

Other research by Lee and Loi (2016) states that distributors are direct selling

agents who function as the frontline sales force of a MLM company. A MLM

company is unable terminate them even if they fail to reach the envisioned.

Hence, it is crucial for MLM firms to understand the motivators for distributors to

meet the company objectives and to make them stay in MLM companies.

Furthermore, Franco and Perez (2016) states that companies encourage their

distributors to recruit others from their social and family networks. Thus, they

encourage members to bring their family into the business physically or

psychologically. In the same manner, the companies build a system of family by

developing family like bonds between current distributors and new members. The

business network and relationship is crucial between the MLM and its

independent distributor to maintain their pyramid and keep running the business.

Other research by Koroth (2014) states that this worldwide growth in direct sales

both as a selling system and as a career opportunity. Moreover, Nga and Mun

(2011) in their research states that MLM relies on the agent attributes such as

enthusiasm, empathy, positive attitude, communication, passion and ethical

orientation. In essence, MLM agents need to exhibit positive cooperative

motivations and extend of clients/customers above self-interest and sales.

MLM agents need to be encouraged to reflect on their personal selling

experiences and share them with their peers to enhance their tacit knowledge in

MLM career.

22

2.2.6 Career Option (Y)

Based on Kayalar and Ozmutaf (2009) career is the idea of an occupation chosen

as the means of one‟s progress through life. According to research by Koroth

(2014) direct sales has growth in despite this worldwide both as a selling system

and as a career opportunity. Moreover, Hiranpong, Decharin and

Thawesaengskulthai (2016) argues that the network marketers who experience

high levels of success in their career are more highly motivated in multilevel

marketing. Furthermore, Tyre, Myer, Lazo and Waters (2016) emphasize that

network marketers view the multilevel marketing business not only as a career for

them but as a way of life.

Other research by Lee and Loi (2016) argues that the MLM leader will create a

vision that strategically linked into career objectives and organizational goals as

process of sense making process. Moreover, Keep and Nat (2014) states that the

MLM companies convince the customer in giving them a high commission if they

make the MLM as their full-time career option. Furthermore, Coughlan (2012)

states that there are many sales agents of multilevel marketing who are satisfied

with the commission from their company and make it as a fulltime career.

According to Franco and Perez (2016) states that young people more tend to

choose multilevel marketing as their career option to supplement their income.

Furthermore, Albaum and Peterson (2011) emphasize that some of direct sellers

in multilevel marketing companies make themselves as the career seller who use

MLM as their major source of income. Moreover, research by Beasley (2012)

states that members in multilevel marketing join primarily is for additional

income or chance to be successful.

2.3 Previous Research

Author 1. Joyce Koe Hwee Nga

2. Soo Wai Mun (Nadiah Soo)

(Nga & Mun, 2011)

23

Journal Title The influence of MLM companies and agent attributes on the

willingness to undertake multilevel marketing as a careeroption

among youth.

Purpose With the real wages in Malaysia decreasing and increasing

unemployment especially among fresh graduates there may be a

greater incentive to explore multilevel marketing (MLM) to

supplement their income and maintain their desired modern

lifestyle. However, the perception of MLM has in the past been

tainted by unscrupulous pyramid and Ponzi schemes which aims

at quick profits and are not sustainable. This paper aims to

investigate the influence of perception of MLM companies and

agent attributes on the willingness to undertake MLM as a career

among youth.

Variable 1. Company

2. Service

3. Reward Scheme

4. Trust

5. Agent

6. Career

Result MLM company, service and agent attributes have been found

to influence the willingness to pursue MLM as a career

option among youth. In line with the rising cost of living,

the implication of this study is that youth do consider

MLM as a viable opportunity to supplement income and

potential career option. In terms of demographics, only

the perception of family income level has an influence on

the willingness to undertake MLM as a career option. As

such, to better equip youth for their career in MLM, more

relevant, active and engaging teaching and learning

experiences need to be incorporated in the business

education curriculum. Greater emphasis needs to be

24

placed on entrepreneurship education to train students to

be more independent and innovative in their outlook.

MLM companies need to uphold their positive attributes

and commitment towards service and training to remain

the employer of choice to reinforce their creditability as a

sustainable employer of choice. This study also presents

MLM companies with an opportunity to nurture and

capitalize on the pool of young, willing and capable

young people for the positive future growth of the

industry.

Author 1. Arngrim Hunnes

2. Ola Kvaloy

3. Klaus Mohn

(Hunnes, Kvaloy & Mohn, 2011)

Journal Title Performance appraisal and career opportunities: A case study

Purpose gives a brief overview of the processes of performance

appraisal in the company which forms the subject of our case

study. The data set is presented and variables are defined and

discussed. An econometric model is outlined and estimated in,

with subsequent discussion of key results.

Variable 1. Performance

2. Change capability

3. Expertise

4. Trust

5. Health, safety and

environmental issue

6. Career

Result Dimensions of expertise (EXPT) and trust (TRID) also exert a

clearly positive influence on perceived career. Performance

variable, is not supportive for career opportunities. And HSE-

oriented work environment is negative for the content with

performance appraisal systems at least for employees.

25

Author 1. Abdul Assis Koroth

(Koroth, 2014)

Journal Title Antecedents of distributor turnover in multilevel marketing

Purpose The purpose of this study is to examine the antecedents of

channel performance in a multi-level marketing (MLM) channel.

Variable 1. Met expectation

2. Job Satisfaction

3. Turnover intention

4. Public Image

Result From the foregoing analysis, it is concluded that there is a

positive relation between met expectations and job satisfaction in

MLM business. The study shows that the expectations of many

MLM distributors still remain as a dream and hence they were

not satisfied with their present distributorship. Consequently,

many distributors were seriously thinking of quitting the industry

in the near future.

Figure 2.2 Theoretical Framework

Adopted from Nga and Mun, (2011)

26

2.4 Hypothesis

H1. The perception of Paytren MLM company will have an influence on the

willingness to take MLM as a career option ( CAREER).

H2. The perception of Paytren MLM company service will have an influence on

the willingness to take up MLM as a career option (CAREER).

H3. The perception of Paytren MLM company reward schemewill have an

influence on the willingness to take up MLM as a career option (CAREER).

H4. The trust towards MLM agents will have an influence on the willingness to

take up MLM as a career option (CAREER).

H5. The perception towards MLM agents will have an influence on the

willingness to take MLM as a career option (CAREER).

2.5 Operational Definition of Variable

2.5.1 MLM Company (X1)

Table 2.1 Operational Definition of X1

Com

pan

y (

X1)

Definition Indicators Statements

MLM companies is kind of

company which continuously

striving to educate,

communicate and deliver

value to the customer. They

need to be committed in

reinforcing their brand

character and a company

culture that nurtures

customer loyalty. MLM

companies need to

continuously uphold high

ethical practices and integrity

1. Brand Image

2. Reputation

3. Legal

4. Ethical

5. Stable

(Nga & Mun,

2011)

1. Paytren company have a

name.

2. Paytren Company have

been in business for a

long time.

3. Paytren company are

reputable.

4. Paytren company have a

legal operating scheme.

5. Paytren company are

ethical in their

operation.

6. Paytren company are

27

in marketing and in social

responsibility

(Nga & Mun, 2011)

operationally stable.

(Nga & Mun, 2011)

Servic

e (

X1

)

Service is referring to

customer's satisfaction when

they need is matches their

expectations and create the

quality of specific levels of

value so that customers

remain engaged positively

with the companies.

(Lu, Berchoux, Marek &

Chen, 2015)

1. Need

2. Advice

3. Quality

(Nga & Mun,

2011)

1. Paytren Company

consider the

customers long-term

needs.

2. Paytren company

provides adequate

technical advice on

the product.

3. Paytren company

provides easy access

to the product.

4. Paytren company

products are high

quality.

(Nga & Mun, 2011)

Rew

ard

Sch

em

e (X

1)

Reward scheme is the

compensation that given by

the MLM companies to their

distributor based on legal

pyramid scheme.

(Muncy, 2004)

1. Legal

2. Scheme

(Nga & Mun,

2011)

1. Paytren MLM schemes

are legal.

2. Paytren MLM scheme

provides fair compensation

to their sales agents.

3. Paytren MLM schemes

reward sales agents at the

top the most

(Nga & Mun, 2011)

28

2.5.2 Agent Attributes (X2)

Table 2.2 Operational Definition of X2

Definition Indicators Statements

Agen

t (X

2)

Agents of MLM companies are

entrepreneurs cum sales

representatives and treated as

both customers and partners of

an integrated sales cum social

network and being an individual

with passion, integrity, empathy,

capacity to be a good listener

and communicator are critical in

relationship marketing.

(Nga & Mun, 2011)

1. Enthusiastic

2. Persuasive

3. Persistent

(Nga & Mun,

2011)

1. Paytren agents are

enthusiastic

2. Paytren agents are

persuasive

3. Paytren agents are

persistent

(Nga & Mun, 2011)

Tru

st (

X2)

Trust is associated with a

partner‟s reliability, integrity,

and competence. Trusted partner

reduces the risks associated with

relational exchange.

(Constantin, 2009)

1. Friend

2. Integrity

(Nga & Mun,

2011)

1. The sales agent is a

friend of mine .

2. The sales agent is

introduced by a

friend of mine

3. The sales agent of

Paytren MLM

displays integrity

(Nga & Mun, 2011)

29

2.5.3 Career Option (Y)

Table 2.3 Operational Definition of Y

Definition Indicators Statements

Career O

pti

on

(Y

)

A career is the sum total

of paid and unpaid work,

learning and life roles you

undertake throughout

your life. The term

'career' was traditionally

associated with paid

employment and referred

to a single occupation.

(Zaidi & Iqbal, 2012)

1. Prospect

2. Sustained

3. Life style

4. Income

5. Reputable

6. Social

Acceptance

(Nga & Mun, 2011)

1. I would consider Paytren

MLM as a full-time

career prospect.

2. A career in Paytren

MLM would provide me

with a long-term

sustainable.

3. A career in Paytren

MLM would support my

life style choices.

4. I would consider Paytren

MLM as a reputable

career prospect.

5. I consider Paytren MLM

as a supplementary

income prospect

6. A career in Paytren

MLM would provide me

with good social

acceptance.

(Nga & Mun, 2011)

30

2.6 Research Gap

This study aims to the influence of Paytren MLM and agent attributes on

willingness to undertake multilevel marketing as a career option. This research is

focused on Paytren MLM in Indonesia. While the previous research by Nga &

Mun (2011) with the title “influence of general MLM and agent attributes on

willingness to undertake multilevel marketing as a career option among youth

conduct research in Malaysia and use general MLM to analyze the MLM career

among youth generation. The previous research not analyze the specific MLM

companies.

In the second previous research by (Hunnes, Kvaloy & Mohn, 2011) with the title

“Performance appraisal and career opportunities: A case study” analyze about the

career in oil company in Norway. The study conducted to find out performance

appraisal and career opportunities among leaders and employees. In conclusion,

this research is the research that examines the career of MLM companies among

Paytren members.

In the last previous research by (Koroth, 2014) with the title “Antecedents of

performance of multi-level channels in transitional economies” analyze about

factor that influence job satisfaction that related with career in multilevel

marketing. In this previous research, the research conducted in Kerala, India

among the general companies of MLM. While, in this research, the researcher

conduct research to specific MLM companies in Indonesia.

31

CHAPTER III

RESEARCH METHODOLOGY

3.1 Research Framework

First stage this research is determining the problem statement with 2 variables x

(Paytren MLM and Agent Attributes) and 1 variable y (Career). After that the

researcher should find the theory as literature review. Do pretest questionnaires to

validity test and reliability test. When the questionnaire valid and reliable, the

researcher analyzes the data and make the conclusion and recommendation at the

last.

3.2 Research Design

There are two methods in doing scientific research those are qualitative and

quantitative research. The differences between qualitative and quantitative

research are the type of data, research process, instrument in collecting data and

the purpose of research.

1. Qualitative research often gathers data from relatively small samples of

people and can provide a „micro‟ view of the issues. However, the relatively

small amount of data makes the researcher‟s job easier. Because qualitative

data often take the form of words, narratives and descriptions, which are not

easy to analyze, the researcher must do a lot of intelligent interpretation of

these data to identify relevant themes and to make these understandable and

credible for the reader (Lancaster University management school 2016).

2. Quantitative methods emphasize objective measurements and the statistical,

mathematical, or numerical analysis of data collected through polls,

questionnaires, and surveys, or by manipulating pre-existing statistical data

using computational techniques. Quantitative research focuses on gathering

numerical data and generalizing it across groups of people or to explain a

particular phenomenon (Labaree 2017).

32

Quantitative methods is used to quantify attitudes, opinions, behaviors, and other

defined variables – and generalize results from a larger sample population.

Quantitative Research uses measurable data to formulate facts and uncover

patterns in research. Quantitative data collection methods are much more

structured than Qualitative data collection methods (DeFranzo 2017). The

researcher uses quantitative method in conducting research.

3.3 Sampling Design

In the research, sampling design is used to identify the target population and then

determine whether a sample or a census is desired. Taking a sample requires that

the researcher examine or count all elements in the target population. The

sampling process must then give every person within the target population a

known nonzero chance of selection if probability sampling is used. If there is no

feasible alternative, a non-probability approach may be used (Cooper and

Schindler 2011).

3.3.1 Population

Population is the total number of objects and subjects that have certain

characteristics and qualities set by the researcher to be examined and then drawn

the conclusions(Sujarweni 2015) . The population is referring to the entire group

of people, events or records that contain the desired information and can answer

the measurement questions (Cooper and Schindler 2011).The target population of

this research are the members of Paytren MLM. The respondents are both female

and male.

3.3.2 Sample

A sample examines a portion of the target population, and the portion must

carefully have selected to represent that population (Cooper and Schindler 2011).

Sample on this research used to investigate the research problems. This Research

will use non-probability sampling to get the respondent.

In determining the correct required sample size, there are two factors that need to

be considered. Those two factors are margin error (confidence interval), and

33

confidence level (Pazzaglia, Stafford & Rodriguez, 2016). Margin of error is the

direction of deviation allowed for the survey results. Margin of error usually range

from 1% - 5%. Confidence level is the percentage of the sureness within

limitation of margin of error that the population will answer like the hypothesis.

The common confidence levels used for the research are 90%, 95% or 99%.

In this research, the researcher used Structural Equation Modeling (SEM) as a

method of testing the hypothesis. Since SEM is large sample technique, usually

the sample should be more than 200 respondents (N > 200) (Siddiqui, 2013). As

the sample should be more than 200, by entering 5% margin of error, 95%

confidence level, and the sample size used in this research is 250 respondents.

Sample Size = Number of question x 5

Sample Size = 35 x 5

Sample Size = 175 for the minimum

Source: (Suprianto, 2001)

3.4 Research Instrument

Research instrument is the tool that used to answer the research questions that

stated in the previous chapter. The Researcher intention is to gather the

information from as much various sources. Data can be obtained from primary

data and secondary data. Primary data refers to information obtained from

respondent through questionnaire, focus group, or the data from interview.

Secondary data obtained from books, magazine, article and etc(Sujarweni 2015).

In order to fulfill the validity of this research, the researcher use both of primary

data and secondary data.

3.4.1 Primary Data

Primary data are original works of research or raw data without interpretation or

pronouncements that represent an official opinion or position. Included among the

primary sources are memos, letters, complete interviews or speeches, law,

regulations, government data, labor data. Primary data are always the most

34

authoritative because the information has not been filtered or interpreted by a

second party (Cooper and Schindler 2011).

Primary data in this research of “Influence of Paytren MLM and Agent attributes

on the willingness to undertake multilevel marketing as a career option” is

obtained directly from the questionnaires that used for survey. Questionnaire are a

technique of data collection done by giving series of written statements that are

consist of research variables. These questionnaires will be spread to the number of

samples.

Likert type has been choosing for this research. Likert scale is used to measure

attitudes, opinions, and perceptions of a person or group of people about social

phenomena. with Likert scale, the variable to be measured is adjusted to indicator

variable. then the indicator is used as a measure to construct questions (Sujarweni

2015).

Table 3.1 Likert scale

1. Strongly

disagree 2. Disagree 3. Neutral 4. Agree

5. Strongly

Agree

Source: (Sujarweni 2015)

The questionnaire use Likert scale and all statements that express either a

favorable and unfavorable attitude will be scaled through Strongly disagree,

Disagree, Neutral, Agree, Strongly Agree.

Table 3.2 Likert Scale Questionnaire

No Statement SD D N A SA

Source:(Sujarweni 2015).

Each of five responses would have a numerical value which would be used to

measure the attitude under investigation. Likert scale have the advantage that they

35

do not expect a simple yes or no answer from the respondent, but rather allow for

degrees of opinion and even no opinion at all.

3.4.2 Secondary Data

Secondary data are interpretation of primary data. Encyclopedias, textbook,

handbooks, magazine and newspaper articles are considered secondary

information sources(Cooper and Schindler 2011).

Secondary data in this research is the literature studies. A literature studies is a

technique of data collection based on information gathered from books, journal,

and website. The data that obtained from secondary data is no need to processed

again. The sources do not directly provide data on the data collector (Sujarweni

2015).

3.5 Validity and Reliability

3.5.1 Validity

Validity is the extent to which the interpretations of the results of a test are

warranted, which depends on the particular use the test is intended to serve

(Kimberlin and Winterstein 2009).

For this research, the researcher will use the construct validity test. Construct

validity occurs when theoretical constructs of cause and effect accurately

represent the real-world situations they are intended to model (Grimm &

Widaman, 2012).There are three types of construct validity, which are:

1. Convergent validity

Convergent validity test whether constructs that should be related, are

related. Convergent validity helps to establish construct validity of when

there are two different measurement procedures and research methods.

36

2. Discriminant validity

Discriminant validity test whether believed unrelated constructs are, in

fact, unrelated. It is the extent to which the instrument doesn‟t have

correlation with another construct.

3. Nomo logical validity

Nomo logical validity requires a comparison at least two constructs and

that those constructs have a possible linkage. Both of these events occur,

and appear to have a correlation without being directly related to one

another.

In this research, the researcher will use the convergent validity test because I

occur where measures of construct that are expected to correlate do so (Sellars,

2014).

Validity test is done by using factor analysis in SPSS software. Factor

analysis is a multivariate statistical procedure that used to examine the entire

variable for interdependence (Birks & Malhotra, 2006). The data in this research

was calculated by using frequency distribution for section 1 (demographical

questions) and factor analysis for section II (Likert scale). According to Malhotra

(2010), factor analysis is conducted by following these steps:

1. Formulate the problem

2. Construct the correlation matrix

3. Determine the method of factor analysis

4. Determine the number of factors

5. Rotate the factors

6. Interpret the factors

7. Determine the model fit

The filled questionnaires will become the data for the research. The data will be

input into Microsoft Excel. The validity of the data will be tested by using

statistical software which is SPSS software. The validity of the data can be seen

through:

37

1. KMOMSA

KMOMSA (Kaiser-Meyer-Olkin Measure of Sampling Adequacy), this

measure varies between 0 and 1, and values closer to 1 are the better

(Bothma & Roodt, 2012). The data is valid if the significant value of

KMOMSA is greater than 0.6 (Bothma & Roodt, 2012) in order to

continue the factor analysis.

2. Barlett‟s Test

The next step is testing the entire correlation matrix (the correlation

between variables), as measured by the amount of Barlett‟s Test of

Sphericity. Barlett‟s test of sphericity is used to measure interns variable

correlation tested. It is using chi-square approach, Barlett‟s test of

sphericity should be lower than 0.5 in order to make the data become

valid (Malhotra, 2010).If the requirements explained before have been

passed, it directly determined that factor analysis is suitable for analyzing

the data.

3. Communalities

This is a table that shows a variable‟s amount of variance for

communalities that should be above 0.5 (Communalities > 0.5) and

all variables share with the other variables being considered (Birks

& Malhotra, 2006).

4. Total variance

Malhotra and Bircks (2006) stated that to determine the number of factors,

the researcher must consider the total variance explained by the data in

factor analysis. There is cumulative column which representing a

percentage of variable explained through this study with considerate

number at least 60%.

38

5. Rotated Component Matrix

Rotated Component Matrix is used to deliver a table that consist of factor

loading of each variable on the component and delivered a relationship of

variable and component. Convergent validity and divergent validity are

ways to assess the construct validity of a measurement procedure

(Malhotra & Bircks, 2006). Convergent validity is used when there are

two similar questions reveal the same result, while divergent

validity is used when there are two opposite questions reveal

opposite results. Testing for this type of validity are required for a

research.

3.5.2 Reliability

Not only valid, but the data also has to be reliable. Reliability test is a measure of

a stability and consistency of respondents in answering things related to the

question which is the dimension of a variable and arranged in a form of

questionnaire. Reliability test can be done together to all questions if the value of

alpha > 0.60 then reliable(Sujarweni 2015). The reliability of this research will be

tested using SPSS software as well. The reliability can be seen through

“Cronbach‟s Alpha” in reliability statistic. Cronbach‟s Alpha determines the

internal consistency or average correlation of items in survey instrument to gauge

its reliability (Quansah, 2017). Cronbach‟s Alpha coefficient ranges in value from

0 to 1. The higher the score, the more reliable the generated scales is. Cronbach‟s

coefficient is the most often used for each set of measures to test reliability of a

multi-item scale. The Cronbach‟s coefficient formula is:

α = k . r

1+ (k-1) . r

Where:

α = Coefficient of Cronbach‟s Alpha

r = Average of correlation between questions

k = Total of questions in scale

39

3.6 Data Gathering Procedure

The researcher collected the data by spreading the questionnaires online by using

Google Drive and offline using printed questionnaires to the targeted respondents.

This research is using self-assessment, means that the respondent will fill out the

questionnaire and assess by themselves. This research is limited for individuals

who are already become a member of Paytren‟s MLM.

3.7 Testing the Hypothesis

3.7.1 Structural Equation Modeling Analysis (SEM Analysis)

Quantitative data analysis is helpful in evaluation because it provides quantifiable

and easy to understand results. Structural equation modeling analysis or SEM is a

very general, chiefly linear, chiefly cross sectional statistical modeling technique.

Factor analysis, Path analysis and regression all represent special cases of SEM.

Analysis technique used in this research is Structural Equation Modeling Analysis

(SEM Analysis). In SEM, interest usually focuses on latent constructs - abstract

psychological variables like "intelligence" or "attitude toward the brand", rather

than on the manifest variables used to measure these constructs. Measurement is

recognized as difficult and error-prone. By explicitly modeling measurement

error, SEM users seek to derive unbiased estimates for the relations between latent

constructs. To this end, SEM allows multiple measures to be associated with a

single latent construct.

Compared to regression and factor analysis, SEM is a relatively young field,

having its roots in papers that appeared only in the late 1960s. As such, the

methodology is still developing, and even fundamental concepts are subject to

challenge and revision (Bowen & Guo, 2012).

40

Table 3. 3 Tools for Measuring Model Fit

No. MeasurementDegree

ofCompatibility Description

Acceptable Level

Match

1 Chi Square

Normed Chi Square

(X2 /df )

Testing whether the estimated

population covariance same with

sample covariance (whether the

model fits the data)

The ratio between the values of

chi square with degree of

freedom.

Lower limit = 1.0

After Limit = 2.0 or

3.0

X2

/ df> 5

2 The minimum sample

discrepancy function

divided with degree

of freedom

(CMIN/DF)

Statistic chi square divided

degree of freedom

≤ 2.00

3

Root Mean Square

Error of

Approximation

(RMSEA)

The average difference in degree

of freedom which is expected to

occur in population, and not the

sample

RMSEA ≤ 0.08 (good

fit) RMSEA < 0.05

(close fit)

4 Comparative Fit

Index (CFI)

Feasibility test of the proposed

model with the basic model. If

CFI closer to 1, indicating the

highest level of fit

Lower limit = 0

Upper limit = 1

5 Tucker Lewis Index

(TLI)

Comparing a model that was

tested against a baseline model.

The size measure combines

parsimony into a comparative

index between the proposed

Lower limit = 0

Upper limit = 1.0

41

model and null model.

6 Incremental Fit Index

(IFI)

Subtract the hypothesized models

in the denominator, to check if

the hypothesis model is correct.

IFI ≥ 0.90

7 (S)RMR The squareroot of the difference

betweenthe residuals of the

sample covariance matrixand the

hypothesized model. If items

vary inrange (i.e. some items are

1-5, others 1-7)then RMR is hard

to interpret, betterto useSRMR.

SRMR < 0.08

Source: (Cangur & Ercan, 2015)

Table 3.4 Goodness Fit Index Value

Source: (Hooper, Coughlan & Mullen, 2008)

42

CHAPTER IV

DATA ANALYSIS

4.1 Company Profile

According to Paytren (2018) states that PT. Veritra Sentosa International or

Paytren as its product was born On July 10, 2013. The company obtained Direct

Sales License (SIUPL) with number: 45/1 / IU / PMDN / 2014. Paytren

recognizes the importance of maintaining a good reputation and takes

responsibility and professionalism the height of every business involved, based on

trust and honesty. Some of the business principles applied in the company are

actions that are fully responsible with good integrity, based on Islamic norms,

obey the prevailing laws and regulations and respect the culture and traditions of

Indonesian society. Company Partners as one of the business actors that influence

the company's reputation. PT. VSI is equipped with a Code of Ethics and Conduct

to avoid conflicts of interest, misuse of authority and misuse of information. This

Partner Behavior is governed by the Code of Conduct, aiming at each Partner

always acting ethically, consistently and integrity in accordance with company

principles in fostering public trust.

Paytren is a smartphone-based transaction application created and developed by

PT. Veritra Sentosa International. The purpose of this application is to facilitate

users in performing routine transactions such as the contents of all operator

pulses, pay bills, buy airline tickets and trains, and others.

Benefit of the paytren application is the efficiency of time and cost efficiency

because paytren users pay bills paying at a cheaper price. In addition, paytren

provides cashback from every transaction and can be a financial enhancement tool

because every transaction is in the hands of the users.

Revenue offered by paytren is if the user successfully sells the license or paytren

business rights to others. Licenses or business rights can be obtained if we join

and join as a partner paytren.

43

4.2 Respondent Profile

4.2.1 Gender

Figure 4.1 Gender of Respondents

Constructed by researcher, source: Google Forms (2018)

Based on Figure 4.1, it shows that from the 250 respondents examined in this

research, the majority of the respondent is female. Specifically, there are 127

female respondents and the number of male respondents are 123 persons.

4.2.2 Age

Figure 4.2 Age of Respondents

Constructed by researcher, source: Google Forms (2018)

Based on the age classification from Health Department of the Republic of

Indonesia, people with age of < 17 years old classified as early teens, people with

50,8% 49,2%

Female

Male

2,0%

28,4%

50,4%

17,6%

1,6%

< 17 tahun/years old

17-25 tahun/years old

26-35 tahun/years old

36-45 tahun/years old

46-55 tahun/years old

44

age of 17-25 years old classified as late teens, people with age of 26-35 years old

classified as early adults, people with age of 36-45 years old classified as late

adults, people with age of 46-55 years old classified as early elderly, and people

with age of 56- 65 years old classified as late elderly.

As seen in the Figure 4.2, it can be concluded that from the total of 250

respondents examined in this research, the majority of respondent in this research

is the early adults. Specifically, there are 71 late teen respondents, 126 early adult

respondents, and 44 late adult respondents.

4.2.3 Occupation

Figure 4.3 Occupation of Respondents

Constructed by researcher, source: Google Forms (2018)

Based on Figure 4.3, it shows that from the 250 respondents examined in this

research, the majority of the respondent is the private employees. Specifically,

there are 101 private employees, 100 entrepreneurs, and 42 housewives.

0,8%

40,4%

40,0%

16,8%

2,0%

Civil Servant (PNS)

Private Employee (Karyawan Perusahaan)

Entrepreneur (Pengusaha)

House Wife (Ibu Rumah Tangga)

Unemployment (Pengangguran)

45

4.2.4 Latest Education

Figure 4.4 Latest Education of Respondents

Constructed by researcher, source: Google Forms (2018)

As seen in the Figure 4.4, the researcher can conclude that from the 250

respondents examined in this research, the majority of respondent have senior

high school as their latest education. In specific, there are 172 senior high school

graduates, 73 bachelor graduates, and 5 junior high school graduates.

4.2.5 Monthly Income

Figure 4.5 Monthly Income of Respondents

Constructed by researcher, source: Google Forms (2018)

As seen in the Figure 4.5, it is known that from the total of 250 respondents

examined in this research, the majority of respondent in this research is people

2,0%

68,8%

29,2%

Junior High School (SMP)

Senior High School (SMA)

Bachelor Degree (Sarjana S1)

2,0%

28,0%

33,2%

23,2%

11,2% 2,4% No Income ( Tidak ada penghasilan )

Less than IDR 3,600,000 ( < 3,600,000 )

IDR 4,501,000 - IDR 6,000,000

IDR 6,001,000 - IDR 7,200,000

IDR 7,201,000 - IDR 10,000,000

More than 10,000,000 ( > 10,000,000 )

46

with monthly income ranged IDR 4,501,000 - IDR 6,000,000 as much as 83

respondents. The remaining respondents are people with monthly income less

than IDR 3,600,000 as much as 70 respondents, monthly income ranged IDR

6,001,000 - IDR 7,200,000 as much as 58 respondents and monthly income

ranged IDR 7,201,000 - IDR 10,000,000 as much as 28 respondents.

4.3 Validity Test

To test the validity of this research data, the researcher used the Kaiser-Meyer-

Olkin (KMO), Barlett's Test, Communalities and Rotated Component Matrix as

parameters. Based on preliminary test results, there are some invalid items

because they are not in one factor. This can be seen in the following Rotated

Component Matrix table.

Table 4.1 Rotated Component Matrix

Rotated Component Matrixa

Component

1 2 3 4 5 6

COM1 ,609

COM2 ,788

COM3 ,683

COM4 ,661

COM5 ,777

COM6 ,401

SRV1 ,522

SRV2 ,678

SRV3 ,653

SRV4 ,551

RSC1 ,673

RSC2 ,583

RSC3 ,709

AG1 ,537

AG2 ,425

AG3 ,507

TRS1 ,812

TRS2 ,815

TRS3 ,632

CRO1 ,708

47

CRO2 ,700

CRO3 ,488

CRO4 ,441

CRO5 ,680

CRO6 ,653

Extraction Method: Principal Component Analysis.

Rotation Method: Varimax with Kaiser Normalization.

a. Rotation converged in 9 iterations.

Source: SPSS 24.0 Analysis Output (2018)

Based on the test results of rotated component matrix above, it can be seen that

there are several items that are not valid because it does not form the same factor.

So, it is processed further by take out one by one the invalid items starting with

the item which has the lowest value and in the same factor with the lowest number

of items. So as to obtain the final result of 13 items of valid statement and will be

used for further test.

4.3.1 KMO-MSA Barlett’s Test

Table 4.2 KMO-MSA Barlett’s Test

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .901

Bartlett's Test of Sphericity

Approx. Chi-Square 1947.977

Df 78

Sig. .000

Source: SPSS 24.0 Analysis Output (2018)

According to the table result above, it can be seen that the value of KMO of 0.901

(greater than 0.5) indicates that the samples taken are adequate. Bartlett's Test of

Sphericity significance of 0.000 (less than 0.05) indicates that research variables

can be predicted and analyzed.

48

4.3.2 Communalities

Table 4.3 Communalities

Communalities

Initial Extraction

COM1 1.000 .777

COM2 1.000 .778

COM3 1.000 .782

SRV2 1.000 .806

SRV3 1.000 .728

RSC1 1.000 .903

RSC3 1.000 .885

TRS1 1.000 .874

TRS2 1.000 .835

TRS3 1.000 .701

CRO1 1.000 .737

CRO5 1.000 .777

CRO6 1.000 .767

Extraction Method: Principal

Component Analysis.

Source: SPSS 24.0 Analysis Output (2018)

According to the table results above, researcher obtained the initial value and

extraction value. Initial value is a variant variable before the extract is done. All

the initial values is 1, this means that before the extraction of these variables

100% form the factor. Due to non-extraction factor, thus there are 13 factors.

Extraction value describes the percentage of a variant variables that can be

explained by factors to be formed. For the COM1 indicator, the extraction value is

0.777. this means that 77.7% of the variant of the COM1 indicator can be

explained by the factors to be formed. Similarly for other variables, the greater the

value of extraction shows the stronger the relationship with the factors that will be

formed.

49

4.3.3 Total Variance Explained

The determination of the number of factors required to represent the variables to

be analyzed is based on the magnitude of the eigenvalue and the percentage of the

total variance.

Table 4.4 Total Variance Explained

Total Variance Explained

Component Initial Eigenvalues Extraction Sums of Squared Loadings

1 6.765 52.042 52.042 6.765 52.042 52.042

2 1.147 8.823 60.865 1.147 8.823 60.865

3 .973 7.482 68.347 .973 7.482 68.347

4 .815 6.267 74.614 .815 6.267 74.614

5 .651 5.009 79.623 .651 5.009 79.623

Extraction Method: Principal Component Analysis.

Source: SPSS 24.0 Analysis Output (2018)

Based on Table 4.4, researcher can obtain information that the number of factors

formed is 5 factors with a cumulative percentage of 79.623. This shows that

79.623% of all variables can be explained by the 5 factors formed.

4.3.4 Construct Validity Test

4.3.4.1 Discriminant Validity

Discriminant validity test is to determine the correlation between each item with

other items.

Table 4.5 Correlation matrix

Correlation Matrixa

COM1 COM2 COM3 SRV2 SRV3 RSC1 RSC3 TRS1 TRS2 TRS3 CRO1 CRO5 CRO6

Correlation

COM1 1.000 .542 .494 .304 .334 .390 .379 .355 .316 .395 .391 .440 .388

COM2 .542 1.000 .633 .425 .462 .460 .429 .342 .301 .459 .425 .411 .368

COM3 .494 .633 1.000 .441 .462 .501 .417 .467 .404 .481 .300 .367 .349

SRV2 .304 .425 .441 1.000 .591 .475 .523 .418 .396 .463 .500 .483 .446

SRV3 .334 .462 .462 .591 1.000 .574 .566 .469 .465 .451 .480 .503 .455

RSC1 .390 .460 .501 .475 .574 1.000 .803 .541 .565 .548 .446 .547 .554

RSC3 .379 .429 .417 .523 .566 .803 1.000 .508 .496 .531 .504 .532 .558

TRS1 .355 .342 .467 .418 .469 .541 .508 1.000 .792 .680 .444 .521 .569

50

TRS2 .316 .301 .404 .396 .465 .565 .496 .792 1.000 .611 .358 .489 .456

TRS3 .395 .459 .481 .463 .451 .548 .531 .680 .611 1.000 .411 .500 .536

CRO1 .391 .425 .300 .500 .480 .446 .504 .444 .358 .411 1.000 .587 .543

CRO5 .440 .411 .367 .483 .503 .547 .532 .521 .489 .500 .587 1.000 .719

CRO6 .388 .368 .349 .446 .455 .554 .558 .569 .456 .536 .543 .719 1.000

a. Determinant = ,000

Source: SPSS 24.0 Analysis Output (2018)

As shown in the result table above, it can be seen that the indicators COM1-

COM2 and COM3 have the highest correlation with each indicator compared with

other indicators. Likewise, SRV2 and SRV3 indicators have the highest

correlation with each of these indicators compared to other indicators. Indicators

SRC1 and SRC3 have the highest correlation with each of these indicators

compared to other indicators. Indicators TRS1, TRS2 and TRS3 have the highest

correlation with each of these indicators compared to other indicators. CRO1,

CRO5 and CRO6 indicators have the highest correlation with each of these

indicators compared to other indicators. Therefore, it can be concluded that each

indicator already has good discriminant validity.

4.3.4.2 Convergent Validity

Convergent validity test is to determine whether the indicators used are valid in

describing the variable.

Table 4.6 Rotated Component Matrix

Rotated Component Matrixa

Component

1 2 3 4 5

COM1 .766

COM2 .786

COM3 .733

SRV2 .794

SRV3 .670

RSC1 .801

RSC3 .797

TRS1 .848

TRS2 .847

51

TRS3 .684

CRO1 .719

CRO5 .749

CRO6 .726

Extraction Method: Principal Component Analysis.

Rotation Method: Varimax with Kaiser Normalization.a

a. Rotation converged in 6 iterations.

Source: SPSS 24.0 Analysis Output (2018)

According to the result table above, it can be seen that each indicator has formed a

same factor. COM1, COM2 and COM3 are in one factor, this shows that COM1,

COM2 and COM3 are valid as measurement tool for Company variable. The

SRV2 and SRV3 indicators are also in one factor, indicating that SRV2 and SRV3

are valid as measurement tool for Service variable. The SRV2 and SRV3

indicators are also in one factor, indicating that RSC1 and RSC3 are valid as

measurement tool for Reward scheme variable. Indicators TRS1, TRS2 and TRS3

are also in one factor, this indicates that TRS1, TRS2 and TRS3 are valid as

measurement tool for Trust variable. CRO1, CRO5 and CRO6 indicators are also

in one factor, indicating that CRO1, CRO5 and CRO6 are valid as measurement

tool for Career option variable.

4.4 Reliability Test

Reliability test is used to determine whether the indicators are consistent as a

measurement tool of each variable.

Table 4.7 Reliability Test

Variable Cronbach's Alpha Critical Point Conclusion

Company 0,789 0,6 Reliable

Service 0,741 0,6 Reliable

Reward scheme 0,891 0,6 Reliable

52

Trust 0,872 0,6 Reliable

Career option 0,829 0,6 Reliable

Source: SPSS 24.0 Analysis Output (2018)

Based on the result table above, it can be seen that the value of Cronbach's Alpha

for each variable is > 0.6. This shows that all indicators have consistency in

describing each variable in this research.

4.5 Descriptive Analysis

4.5.1 Company Variable Description

1

33

46

88 82

0

20

40

60

80

100

1 2 3 4 5

Paytren Company have been in business for a long time.

2 9

49

106

84

0

20

40

60

80

100

120

1 2 3 4 5

Paytren company have a good brand names.

10

29

78 78

55

0

20

40

60

80

100

1 2 3 4 5

Paytren company are reputable.

53

Figure 4.6 Frequency Distribution of Company Variable

Source: Google Forms (2018)

Table 4.8 Frequency Distribution of Company Variable

Items Scale

Total 1 2 3 4 5

Paytren company have a good

brand name.

F 2 9 49 106 84 250

% 0,8% 3,6% 19,6% 42,4% 33,6% 100,0%

Paytren Company have been in

business for a long time.

F 1 33 46 88 82 250

% 0,4% 13,2% 18,4% 35,2% 32,8% 100,0%

Paytren company are reputable. F 10 29 78 78 55 250

% 4,0% 11,6% 31,2% 31,2% 22,0% 100,0%

1 = Strongly disagree 2 = Disagree 3= Neutral 4 = Agree 5 = Strongly Agree

Source: Google Forms (2018)

As shown in the result table above, it can be seen that there are 42.4% of

respondents who agreed that Paytren Company has a good brand name. And,

there are 35.2% of the respondents who agreed that Paytren Company has been in

MLM business for a long time and 31,2% of respondents also agreed that Paytren

Company has a good reputation.

4.5.2 Service Variable Description

1 = Strongly disagree 2 = Disagree 3= Neutral 4 = Agree 5 = Strongly Agree

1 22

68

100

59

0

50

100

150

1 2 3 4 5

Paytren company provides easy access to the product

6 22

64

94

64

0

20

40

60

80

100

1 2 3 4 5

Paytren company products are high quality

54

1 = Strongly disagree 2 = Disagree 3= Neutral 4 = Agree 5 = Strongly Agree

Figure 4.7 Frequency Distribution of Service Variable

Source: Google Forms (2018)

Table 4.9 Frequency Distribution of Service Variable

Items Scale

Total 1 2 3 4 5

Paytren company provides easy access

to the product.

F 1 22 68 100 59 250

% 0,4% 8,8% 27,2% 40,0% 23,6% 100,0%

Paytren company products are high

quality.

F 6 22 64 94 64 250

% 2,4% 8,8% 25,6% 37,6% 25,6% 100,0%

1 = Strongly disagree 2 = Disagree 3= Neutral 4 = Agree 5 = Strongly Agree

Source: Google Forms (2018)

Based on the result table above, it can be seen that there are 40.0% of respondents

who agree the Paytren Company provides easy access to the product / application

Paytren. Also, there are 37.6% of the respondents who agreed that Paytren

companies have products / applications that are very qualified.

4.5.3 Reward Scheme Variable Description

5 17

73

102

53

0

20

40

60

80

100

120

1 2 3 4 5

Paytren MLM schemes are legal

4 14

72

104

56

0

20

40

60

80

100

120

1 2 3 4 5

Paytren MLM schemes reward sales agents at the top the most

55

1 = Strongly disagree 2 = Disagree 3= Neutral 4 = Agree 5 = Strongly Agree

Figure 4.8 Frequency Distribution of Reward Scheme Variable

Source: Google Forms (2018)

Table 4.10 Frequency Distribution of Reward Scheme Variable

Items Scale

Total 1 2 3 4 5

Paytren MLM schemes are legal. F 5 17 73 102 53 250

% 2,0% 6,8% 29,2% 40,8% 21,2% 100,0%

Paytren MLM schemes reward sales agents

at the top the most

F 4 14 72 104 56 250

% 1,6% 5,6% 28,8% 41,6% 22,4% 100,0%

1 = Strongly disagree 2 = Disagree 3= Neutral 4 = Agree 5 = Strongly Agree

Source: Google Forms (2018)

From the result table above, it can be seen that there are 40.8% of respondents

who agreed that Paytren MLM scheme legally valid. And there are 41.6% of the

respondents who agreed that Paytren's MLM scheme reward sales agents at the

top the most.

56

4.5.4 Trust Variable Description

1 = Strongly disagree 2 = Disagree 3= Neutral 4 = Agree 5 = Strongly Agree

Figure 4.9 Frequency Distribution of Trust Variable

Source: Google Forms (2018)

Table 4.11 Frequency Distribution of Trust Variable

Items Scale

Total 1 2 3 4 5

The sales agent is a friend of mine. F 6 19 94 83 48 250

6

19

94 83

48

0

20

40

60

80

100

1 2 3 4 5

The sales agent is a friend of mine

4

31

80 82

53

0

20

40

60

80

100

1 2 3 4 5

The sales agent is introduced by a friend of mine

6 11

69

115

49

0

20

40

60

80

100

120

140

1 2 3 4 5

The sales agent of Paytren MLM displays integrity

57

% 2,4% 7,6% 37,6% 33,2% 19,2% 100,0%

The sales agent is introduced by a

friend of mine

F 4 31 80 82 53 250

% 1,6% 12,4% 32,0% 32,8% 21,2% 100,0%

The sales agent of Paytren MLM

displays integrity

F 6 11 69 115 49 250

% 2,4% 4,4% 27,6% 46,0% 19,6% 100,0%

1 = Strongly disagree 2 = Disagree 3= Neutral 4 = Agree 5 = Strongly Agree

Source: Google Forms (2018)

According to Table 4.11, it can be seen that there are 33.2% of respondents who

agreed that the sales partners / business partners who make me join Paytren is my

friend. Also, there are 32.8% of the respondents who agreed that the Sales Partner

/Business Partner was introduced by my friend. And there are 46.0% of the

respondents who agreed that the sales partners of Paytren MLM display integrity.

4.5.5 Career Option Variable Description

9

58

101 82

0

50

100

150

2 3 4 5

I would consider paytren MLM as a full-time career prospect

2

21

67

88

72

0

20

40

60

80

100

1 2 3 4 5

I would consider paytren MLM as a reputable career prospect

2 10

55

93 90

0

20

40

60

80

100

1 2 3 4 5

I consider Paytren MLM as a supplementary income prospect

58

1 = Strongly disagree 2 = Disagree 3= Neutral 4 = Agree 5 = Strongly Agree

Figure 4.10 Frequency Distribution of Career Option Variable

Source: Google Forms (2018)

Table 4.12 Frequency Distribution of Career Option Variable

Items Scale

Total 1 2 3 4 5

I would consider Paytren MLM as a full-

time career prospect.

F 0 9 58 101 82 250

% 0,0% 3,6% 23,2% 40,4% 32,8% 100,0%

I would consider Paytren MLM as a

reputable career prospect.

F 2 10 55 93 90 250

% 0,8% 4,0% 22,0% 37,2% 36,0% 100,0%

I consider Paytren MLM as a

supplementary income prospect

F 3 9 60 99 79 250

% 1,2% 3,6% 24,0% 39,6% 31,6% 100,0%

1 = Strongly disagree 2 = Disagree 3= Neutral 4 = Agree 5 = Strongly Agree

Source: Google Forms (2018)

Based on the above table, it can be seen that there are 40.4% of respondents who

agree that they will consider MLM Paytren as the main career. Also, there are

37.2% of the respondents who agreed to consider MLM Paytren as a prospect.

And there are 39.6% of respondents agreed to consider Paytren MLM as an

additional revenue prospect.

59

4.6 The Overview of Career Option Variables Based on Demographics

Respondent

4.6.1 Career option variable based on gender

Table 4.13 Career option based on gender

Gender Item N Min Max Mean Std.

Deviation

Female

full-time career prospect 127 2 5 4,01 0,81

reputable career prospect 127 1 5 3,97 0,94

supplementary income prospect 127 1 5 3,96 0,89

Male

full-time career prospect 123 2 5 4,04 0,87

reputable career prospect 123 2 5 4,11 0,86

supplementary income prospect 123 1 5 3,98 0,92

Based on the results of the calculations presented in the table above can be seen

that the average of respondents to the statement of "full-time career prospect" in

the male respondents group of 4.04 higher than female respondents of 4.01.

While the average of respondents to the statement of "reputable career prospect"

in the group of male respondents of 4.11 higher than female respondents of 3.97.

And the average of respondents to the statement of "supplementary income

prospect" in the male respondents group of 3.98 higher than female respondents of

3.96.This shows that male respondents are more interested in making Paytren

MLM as career than female respondent group

4.6.2 Career option variables based on age

Table 4.14 Career option based on age

Age Item N Min Max Mean Std.

Deviation

< 17 years old

full-time career prospect 5 4 5 4,60 0,55

reputable career prospect 5 3 5 4,40 0,89

supplementary income

prospect 5 3 5 4,40 0,89

17-25 years old

full-time career prospect 71 2 5 3,99 0,80

reputable career prospect 71 1 5 3,87 0,96

supplementary income 71 1 5 3,87 0,89

60

prospect

26-35 years old

full-time career prospect 126 2 5 4,08 0,82

reputable career prospect 126 2 5 4,09 0,90

supplementary income

prospect 126 2 5 4,02 0,88

36-45 years old

full-time career prospect 44 2 5 3,82 0,97

reputable career prospect 44 2 5 4,09 0,83

supplementary income

prospect 44 2 5 3,91 1,01

46-55 years old

full-time career prospect 4 4 5 4,50 0,58

reputable career prospect 4 4 5 4,25 0,50

supplementary income

prospect 4 4 5 4,25 0,50

Based on the results of the calculations presented in table above, it can be seen

that the average of respondents to the statement "full-time career prospect" is 4.60

at the highest respondent found in <17 years / years old and the lowest average of

3.82 found in 36-45 years old respondents.

And the average of respondents to the statement of "supplementary income

prospect" was 4.40 at <17 years / years old and the lowest average of 3.87 was 17-

25 years old.

This shows that respondents who are <17 years old are more interested in making

Paytren MLM as a career compared to other age groups.

4.6.3 Career option variables based on occupation

Table 4.15 Career Option based on Occupation

Occupation Item N Min Max Mean Std.

Deviation

Civil Servant

full-time career prospect 2 4 5 4,50 0,71

reputable career prospect 2 3 4 3,50 0,71

supplementary income

prospect 2 4 4 4,00 0,00

Private

Employee

full-time career prospect 101 2 5 3,86 0,92

reputable career prospect 101 1 5 3,85 0,96

supplementary income 101 1 5 3,77 0,99

61

prospect

Entrepreneur

full-time career prospect 100 3 5 4,11 0,79

reputable career prospect 100 2 5 4,14 0,83

supplementary income

prospect 100 2 5 4,06 0,81

House Wife

full-time career prospect 42 2 5 4,12 0,74

reputable career prospect 42 2 5 4,21 0,87

supplementary income

prospect 42 2 5 4,17 0,82

Unemployment

full-time career prospect 5 4 5 4,60 0,55

reputable career prospect 5 3 5 4,40 0,89

supplementary income

prospect 5 3 5 4,40 0,89

Based on the results of the calculations presented in the table above, it can be seen

that the highest result of respondents to the statement "full-time career prospect"

is 4.60 found in the group of unemployment respondents and the lowest result is

3.86 in the group of Private employee respondents.

While the average of respondent‟s assesment to the statement of "reputable career

prospect" is 4.40 which is the highest results is on unemployment respondents and

the lowest result is 3.50 in the Civil Servant respondents group.

And the average of respondents to the statement of "supplementary income

prospect" is 4.40 in the group of unemployment respondents and the lowest score

is 3.77 in the group of respondents of Private Employee.

This shows that in the group of respondents Unemployment more interested to

make Paytren MLM as a career compared to other age groups.

62

4.6.4 Career option variable based on latest education

Table 4.16 Career option based on latest education

Latest Education Item N Min Max Mean Std.

Deviation

Junior High

School

full-time career prospect 5 4 5 4,60 0,55

reputable career prospect 5 3 5 4,40 0,89

supplementary income

prospect 5 3 5 4,40 0,89

Senior High

School

full-time career prospect 172 2 5 4,08 0,81

reputable career prospect 172 1 5 4,05 0,94

supplementary income

prospect 172 1 5 4,05 0,89

Bachelor Degree

full-time career prospect 73 2 5 3,85 0,89

reputable career prospect 73 2 5 3,97 0,82

supplementary income

prospect 73 2 5 3,74 0,88

Based on the results of the calculations presented in the table above, it can be seen

that the average of respondents to the statement of "full-time career prospect" is

4.60 which is the highest in the group of Junior high school respondent and the

lowest average of 3,85 are in the respondent group of bachelor degree.

While the average of respondents to the statement of "reputable career prospect"

is 4.40 which is in the group of Junior High School respondents as the highest

result and the lowest average of 3.97 is in the group of respondents bachelor

degree.

And the average of respondents to the statement of "supplementary income

prospect" is 4.40 is in the Junior High School respondents group and the lowest

average of 3.74 is found in the group of respondents Bachelor Degree (Bachelor

Degree).

This shows that in the group of respondents Junior High School (SMP) more

interested to make Paytren MLM as a career compared to other age groups.

63

4.6.5 Career option variables based on monthly income

Table 4.17 Career option based on monthly income

Monthly

Income Item N Min Max Mean

Std.

Deviation

No Income

full-time career prospect 5 4 5 4,60 0,55

reputable career prospect 5 3 5 4,40 0,89

supplementary income prospect 5 3 5 4,40 0,89

Less than IDR

3,600,000 ( <

3,600,000 )

full-time career prospect 70 3 5 4,06 0,70

reputable career prospect 70 2 5 4,07 0,82

supplementary income prospect 70 3 5 4,14 0,77

IDR 4,501,000 -

IDR 6,000,000

full-time career prospect 83 2 5 4,20 0,89

reputable career prospect 83 1 5 4,04 0,98

supplementary income prospect 83 1 5 3,94 0,95

IDR 6,001,000 -

IDR 7,200,000

full-time career prospect 58 2 5 3,83 0,90

reputable career prospect 58 2 5 4,03 0,90

supplementary income prospect 58 2 5 3,90 0,95

IDR 7,201,000 -

IDR 10,000,000

full-time career prospect 28 3 5 3,64 0,78

reputable career prospect 28 2 5 3,75 0,89

supplementary income prospect 28 2 5 3,57 0,84

More than

10,000,000 ( >

10,000,000 )

full-time career prospect 6 4 5 4,33 0,52

reputable career prospect 6 4 5 4,67 0,52

supplementary income prospect 6 3 5 4,50 0,84

Based on the results of the calculations presented in the table above, it can be seen

that the average of respondents to the statement of "full-time career prospect" at

the highest result is 4.60 in the group of respondents no income and the lowest

average of 3,64 are in the group of respondents IDR 7,201,000 - IDR 10,000,000.

While the average of respondents to the statement of "reputable career prospect"

at the highest result is 4.67 in the group of respondents more than 10,000,000 (>

10,000,000) and the lowest average of 3.73 is in the group of respondents IDR

7,201,000 - IDR 10,000,000.

64

And the average of respondents to the “supplementary income prospect”

statements is 4.50 as the highest result in the group of respondents of more than

10,000,000 (> 10,000,000) and the lowest result is 3.74 in the respondent group of

IDR 7,201,000 - IDR 10,000,000.

This shows that in a group of respondents with income more than 10,000,000 (>

10,000,000) per month more interested to make Paytren MLM as a career

compared to other groups.

4.6.6 Influence of Demographic towards Career Option

Table 4.18 Career Option based on Demographic

Source

Type III

Sum of

Squares

df Mean

Square F Sig.

Corrected Model 79,312 85,000 0,933 2,362 0,000

Intercept 1051,330 1,000 1051,330 2661,703 0,000

Gender 1,235 1,000 1,235 3,128 0,079

Age 0,189 3,000 0,063 0,160 0,923

Occupation 0,733 3,000 0,244 0,618 0,604

Latest_Education 0,034 1,000 0,034 0,086 0,770

Monthly_Income 4,113 4,000 1,028 2,604 0,038

Error 64,777 164,000 0,395

Total 4162,778 250,000

Corrected Total 144,089 249,000

a. R Squared = 0,550 (Adjusted R Squared = 0,317)

From the results of ANOVA calculations presented in the table above it appears

that only on Monthly_Income factors that have a significance value smaller than

0.05 which is 0.038 that indicates the career option in each group

Monthly_Income different from each other. While the factors of Gender, Age,

Occupation and Latest education have no significant differences in each group of

demographic factors. So it can be concluded that from 5 factor demographic only

Monthly_Income which have significant effect to career option.

65

4.7 Structural Equation Model (SEM) Analysis

In this study, there are five latent variables, that are Company, Service, Reward

Scheme, Trust and Career Option. Each of the latent variable is measured by

several observed variables / indicators. For SEM analysis, the researcher used

AMOS software with maximum likelihood estimation. Here are the results of Full

Structural Model test:

Figure 4.11 Full Structural Model (Standardized)

Source: AMOS (2018)

Furthermore, researcher will describe the evaluation results of the fit model and

the parameter values estimated from the structural equation model. The empirical

model resulting from the theoretical model in this study requires full model

testing.

SEM full model test is done with two kinds of test that are the suitability model

test and the causality significance test through regression coefficient. SEM full

66

model test is used to see the model feasibility or suitability of the research model.

The model conformity indexes used were not different from the indexes in the

confirmatory factor analysis. Evaluation of the suitability of a good model of

structural equation by comparing the values of the recommended fit indexes as

presented in the following table:

Table 4.19 Evaluation of Fit Indexes Structural Model

Index Fit Result Recommended Value Model Evaluation

Chi-Square 122,407

Probability 0,000 > 0,05

Chi-Square/DF 2,226 < 2 Marginal fit

GFI 0,931 > 0,90 Good fit

RMSEA 0,070 < 0,08 Good fit

AGFI 0,886 > 0,90 Marginal fit

TLI 0,950 > 0,90 Good fit

CFI 0,965 > 0,90 Good fit

RMR 0,039 < 0,08 Good fit

Source: AMOS (2018)

Based on Table 4.12, it can be seen the results of overall model fit test obtained Chi-

Square value of 122.407 with probability value of 0.000 and RMSEA value of 0.070.

When referring to the value of RMSEA then the model is fit as well as with other GOF

index that have shown the fit criteria, so that it can be continued in the next analysis

phase.

After the model suitability test, researcher did the further test which is the

hypotheses testing through structural model. The following table summarizes the

estimation results of the structural model of the relationship between the latent

variables through the regression coefficient test:

67

Table 4.20Regression Weight

Estimate S.E. C.R. P Label

CRO <--- COM ,029 ,063 ,457 ,648 par_9

CRO <--- SRV ,257 ,100 2,556 ,011 par_10

CRO <--- RSC ,164 ,077 2,117 ,034 par_11

CRO <--- TRS ,246 ,071 3,444 *** par_12

Source: AMOS (2018)

Based on the Regression Weight test results above, it shows that the regression

coefficient of Company variable (COM) toward Career option (CRO) is 0.029.

The coefficient is positive. Meaning that if the Company (COM) variable

increases one unit, the Career option (CRO) will increase by 0.029.

The regression coefficient of Service variable (SRV) toward Career option (CRO)

is 0,257. The coefficient is positive. Meaning that if the Service (SRV) variable

increases one unit, the Career option (CRO) will increase by 0.257.

The regression coefficient of Reward scheme variable (RSC) toward Career

option (CRO) is 0,164. The coefficient is positive. That is, if the Reward Scheme

(RSC) variable increases one unit, the Career option (CRO) will increase by

0.164.

The regression coefficient of Trust variable (TRS) toward Career option (CRO) is

0,246. The coefficient is positive. It indicates that if the Trust variable (TRS)

increases one unit, the Career option (CRO) will increase by 0.246.

To determine the strength of influence of each independent variable toward

Career option (CRO) can be seen from the following path coefficients:

Table 4.21 Standardized Regression Weight

Estimate

CRO <--- COM ,042

CRO <--- SRV ,359

CRO <--- RSC ,229

68

Estimate

CRO <--- TRS ,289

Source: AMOS (2018)

From the result of standardized coefficient shown in table above, it shows that all

the standardized coefficient is positive. This means there is a unidirectional

relationship between the independent variables with the dependent variable. If

there is an increase in Company (COM), Service (SRV), Reward Scheme (RSC)

and Trust (TRS), then Career option (CRO) will also increase. Judging from the

standardized coefficient, the most dominant variable in affecting Career option

(CRO) in sequence is Service (SRV) with value 0,359, then Trust (TRS) with

value 0,289, then Reward scheme (RSC) with value 0,229 and the last is

Company (COM) with a value of 0.042.

Table 4.21 Squared Multiple Correlation (R2)

Estimate

CRO ,669

Source: AMOS (2018)

From the R2 test results above, it shows that the estimated value of R2 is 0.669.

This indicates that the Career option (CRO) can be explained as much as 66.9%

by Company (COM), Service (SRV), Reward Scheme (RSC) and Trust (TRS)

variables while the remaining 33.1% is explained by other variables outside this

research model.

4.8.1 Hypotheses Testing

4.8.1.1 Influence of Company (COM) toward Career Option (CRO)

The first hypothesis to be tested is the Company (COM) influence towards Career

Option (CRO). The test conducted using statistical hypothesis as follows:

69

H0: There is no significant influence of Company towards Career Option

H1: There is significant influence of Company towards Career Option

Table 4.23 Influence of Company towards Career Option

Standardized Unstandardized (C.R.) P H1

0,042 0,029 0,457 0,648 Rejected

Source: AMOS (2018)

Based on the result above, it shows that the C.R value of Company variable

(COM) is 0,457 which is smaller than ttable value which is 1,96 and the p value of

0,648 which is higher than 0.05. Since the C.R value of Company is smaller than

ttable, and P > 0,05 then at error level of 5%, it is decided to accept H0 and reject

H1. Therefore, the first hypothesis is rejected. In other words, it can be concluded

that the Company has no significant influence towards Career Option.

According to the theory of Schein (1978) stated that if there is no good

cooperative relationship between the company and the individual then can be sure

the career path will get a barrier. Furthermore, based on the previous research by

Nga and Mun (2011) explained that the company has a positive influence towards

career option. And the result of this analysis has an opposite with the previous

research.

4.8.1.2 Influence of Service (SRV) towards Career Option (CRO)

The second hypothesis to be tested is the Service (SRV) influence towards Career

Option (CRO). The test conducted using statistical hypothesis as follows:

H0: There is no significant influence of Service towards Career Option

H2: There is significant influence of Service towards Career Option

70

Table 4.24 Influence of Service towards Career Option

Standardized Unstandardized (C.R.) P H2

0,359 0,257 2,556 0,011 Accepted

Source: AMOS (2018)

Based on the result above, it shows that the CR value of Service variable (SRV) is

2,556 which is higher than the ttable value which is 1,96 and the p value of 0,011

which is lower than 0.05. Since the CR value of is higher than ttable, and P < 0,05

then at error level of 5%, it is decided to accept H2 and reject H0. Therefore, the

second hypothesis is accepted. In other words, it can be concluded that Service

has significant influence towards Career Option.

According to the theory of Kotler and Keller (2009) service is any action or

performance which a company can give to an employee, which is basically

intangible and affects one's career. Furthermore, based on previous research by

Nga and Mun (2011) support that service has an influence of someone in choosing

their career. Moreover, other research by Koroth (2014) also support the fact that

service has an influence on job satisfaction in their MLM career.

4.8.1.3 Influence of Reward Scheme (RSC) towards Career Option (CRO)

The third hypothesis to be tested is the Reward Scheme (RSC) influence towards

Career Option (CRO). The test conducted using statistical hypothesis as follows:

H0: There is no significant influence of Reward Scheme towards Career Option

H3: There is significant influence of Reward Scheme towards Career Option

Table 4.25 Influence of Reward Scheme towards Career Option

Standardized Unstandardized (C.R.) P H3

0,164 0,229 2,117 0,034 Accepted

Source: AMOS (2018)

71

Based on the result above, it shows that the C.R value of Reward Scheme (RSC)

is 2,117 which is higher than the ttable value which is 1,96 and the p value of 0,032

which is lower than 0.05. Since the value of C.R value is higher than ttable, and P <

0,05 then at error level of 5%, it is decided to accept H3 and reject H0. Therefore,

the third hypothesis is accepted. In other words, it can be concluded that Reward

Scheme has significant influence towards Career Option.

According to the theory of Parson (1909) stated that one of career choice is based

on compensation which company give to their employer. Furthermore, based on

the previous research by Nga and Mun (2011) support that reward or

compensation has an influence towards career option.

4.8.1.4 Influence of Trust (TRS) towards Career option (CRO)

The forth hypothesis to be tested is the Trust (TRS) influence towards Career

Option (CRO). The test conducted using statistical hypothesis as follows:

H0: There is no significant influence of Trust towards Career Option

H4: There is significant influence of Trust towards Career Option

Table 4.26 Influence of Trust towards Career Option

Standardized Unstandardized (C.R.) P H4

0,289 0,246 3,444 0,000 Accepted

Source: AMOS (2018)

Based on the result above, it shows that the C.R value of Trust (TRS) is 3,444

which is higher than the ttable value which is 1,96 and the p value of 0,000 which is

lower than 0.05. Since the C.R value is higher than ttable, and P < 0,05 then at error

level of 5%, it is decided to accept H4 and reject H0. Therefore, the forth

hypothesis is accepted. In other words, it can be concluded that Trust has

significant influence towards Career Option.

72

According to the theory of Mayer (1995) stated that one factor that affects job

satisfaction is the factor of trust. It is shows that people will be excited and

motivated when they gain their trust and their ability to be recognized.

Furthermore, research by Hunnes, Kvaloy & Mohn (2007) support the fact that

trust is influence on career. Trust is important for perception of career according

to the result.

4.8.1.4 Influence of Agent (AGT) towards career option (CRO)

Factor 1 2 3 4 5

AG1 .537

AG2 .425

AG3 .507

According to the table above, it is indicates that agent variable does not form the

same factor. So, it is processed further by take out one by eliminate the factor

starting with the item which has the lowest value and in the same factor with the

lowest number of items.

According to the previous research by Nga and Mun (2011) stated that MLM

agent attributes have a negative influence on the willingness to take up MLM as a

career option.

4.8.1.5Demographic variable towards career option

Based on the table 4.18 shows that only on Monthly_Income factors that have a

significance value smaller than 0.05 which is 0.038 that indicates the career option

in each group Monthly_Income different from each other. While the factors of

Gender, Age, Occupation and Latest education have no significant differences in

each group of demographic factors. So it can be concluded that from 5 factor

demographic only Monthly_Income which have significant effect to career option.

73

According to the previous research by Nga and Mun (2011) stated that only

income level has a significant F-statistic at the p-value of 0.10. The other

demographic variable not have an influence on the willingness to take up MLM as

a career option. As such, H6 is supported only for perception of income.

74

CHAPTER V

CONCLUSION AND RECOMMENDATION

In this chapter, the detail findings from this study will be discussed. Managerial

implication of both studies will draw, followed by the discussion about suggestion

for future research.

5.1 Conclusion

This research has the objective to analyze the influence of Paytren MLM and

agent attributes on willingness to undertake multilevel marketing as a career

option. After conducting analysis to achieve research objective, the are several

results obtained:

1. The Company has no significant influence towards Career Option. C.R value of

Company variable (COM) is 0,457 which is smaller than ttable value which is

1,96 and the p value of 0,648 which is higher than 0.05. And based on the

theory of Schein stated that if there is no good cooperative relationship

between the company and the individual then can be sure the career path will

get a barrier. Furthermore, based on the previous research explained that the

company has a positive influence towards career option. And the result of this

analysis has an opposite with the previous research.

2. Service has significant influence towards Career Option. The CR value of

Service variable (SRV) is 2,556 which is higher than the ttable value which is

1,96 and the p value of 0,011 which is lower than 0.05. And based on the

theory of Kotler and Keller service is any action or performance which a

company can give to an employee, which is basically intangible and affects

one's career. Furthermore, based on previous research support that service has

an influence of someone in choosing their career. Moreover, other research

also support the fact that service has an influence on job satisfaction in their

MLM career.

75

3. Reward Scheme has significant influence towards Career Option. that the C.R value

of Reward Scheme (RSC) is 2,117 which is higher than the ttable value which is

1,96 and the p value of 0,032 which is lower than 0.05. And according to the

theory of Parson stated that one of career choice is based on compensation

which company give to their employer. Furthermore, based on the previous

research support that reward or compensation has an influence towards career

option.

4. Trust has significant influence towards Career Option.The C.R value of Trust

(TRS) is 3,444 which is higher than the ttable value which is 1,96 and the p

value of 0,000 which is lower than 0.05. And according to the theory of Mayer

stated that one factor that affects job satisfaction is the factor of trust. It is

shows that people will be excited and motivated when they gain their trust and

their ability to be recognized. Furthermore, previous research support the fact

that trust is influence on career. Trust is important for perception of career

according to the result.

5. Agent towards career option indicates that agent variable does not form the

same factor. So, it is processed further by take out one by eliminate the factor

starting with the item which has the lowest value and in the same factor with

the lowest number of items. And according to the previous research stated that

MLM agent attributes have a negative influence on the willingness to take up

MLM as a career option.

6. In demographic variable towards career, only monthly_income factors that have

a significance value smaller than 0.05 which is 0.038 that indicates the career

option in each group Monthly_Income different from each other. While the

factors of Gender, Age, Occupation and Latest education have no significant

differences in each group of demographic factors. So it can be concluded that

from 5 factor demographic only Monthly_Income which have significant effect

to career option.

76

5.2 Recommendations

5.2.1 For Paytren Company

Based on the result of research, the researcher has found some factor that

influence the members to choose Paytren as their career option. Paytren MLM

must pay attention in the service, reward scheme, and trust among the agent of

MLM and improve the performance and quality of these factor to attract members

in Paytren MLM to consider and choose Paytren MLM as their career option. For

the service area, Paytren MLM should increase the service that they give to the

members to make they feel convenience in doing their business, such as increase

the training and seminar among the members. For the reward scheme, Paytren

company should develop their reward scheme to attract members to do more

prospect to achieve those rewards. And for the trust among agent, Paytren MLM

should increase the trust of the members by doing training, seminar or gathering

among members to know each other‟s. Those of factor is important to make

Paytren MLM chosen as a career option by a members.

5.2.2 For future researcher

For future research who want to use career option as the research, it is necessary

to do further research for career in Paytren MLM on other factors besides

company, service, reward scheme, trust and agent in this research, such as up line,

downline, distributor satisfaction, etc. Subsequent research also suggests

examining other variables related to career option by looking for other companies

and a wider population. So that will be obtained a comparison between different

variables and different samples to conduct research. This research can be used for

other research to understand the career option among MLM companies.

77

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APPENDIX

Questionnaire

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97

98

99

100

Raw Data

COMPANY

SERVIC

E

REWARD

SCHEME

AGEN

T

TRUS

T CAREER

3 2 3 3 3 4 4 4 4 3 4 4 3 3 5 3 3 3 4 4 4 4 4 4 4

3 4 3 3 2 4 3 5 5 3 4 4 4 4 4 4 3 3 4 5 5 4 4 5 3

3 2 2 4 4 4 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5

101

3 5 3 3 3 3 4 4 4 4 4 4 4 4 4 4 3 3 4 5 5 4 4 4 4

3 4 4 3 3 4 3 4 4 3 3 3 4 4 3 3 3 2 4 5 5 3 4 3 3

3 2 2 2 3 2 2 2 2 2 2 2 2 2 2 2 1 1 4 3 2 2 2 3 2

4 4 3 3 3 4 4 4 5 4 4 4 4 5 3 4 3 4 4 5 5 5 4 4 3

5 4 2 2 5 4 5 3 3 3 3 4 3 3 4 3 3 2 4 4 5 3 3 4 4

4 3 4 4 4 3 5 5 4 4 4 5 4 4 5 4 5 3 5 5 5 4 4 4 5

4 4 4 4 3 3 3 4 3 4 4 3 4 4 3 3 2 3 4 3 5 4 4 3 4

5 5 3 4 3 3 3 3 3 3 3 3 3 3 3 3 2 2 3 3 5 3 3 3 3

4 5 3 3 4 4 4 4 5 4 4 4 4 5 4 3 3 4 4 5 5 4 4 5 3

3 5 4 4 3 4 5 4 4 4 5 3 5 4 4 4 4 4 4 5 4 3 4 5 5

5 5 3 3 4 3 4 4 4 4 4 4 4 4 4 4 3 3 4 4 5 3 4 5 4

3 2 2 2 3 2 2 2 1 3 2 1 3 4 1 1 2 2 3 2 4 2 3 2 2

4 4 3 5 4 3 4 4 4 3 4 4 3 5 3 3 3 2 3 4 5 3 3 4 5

4 4 3 3 5 4 4 4 4 4 4 4 4 4 4 4 3 4 4 5 5 4 3 4 4

4 4 4 4 4 4 5 4 4 4 4 5 4 5 3 4 3 2 4 5 5 3 4 5 4

4 5 3 3 4 5 4 4 4 4 4 4 4 4 4 4 3 3 3 5 4 3 5 4 4

4 4 4 4 4 4 2 3 3 4 3 3 3 2 3 4 2 2 4 3 4 3 3 2 4

4 4 4 3 4 5 4 4 4 4 4 4 4 4 4 4 3 3 4 5 5 4 3 4 4

4 4 4 4 4 4 4 5 5 5 5 4 5 5 5 4 5 5 5 5 5 5 4 5 5

4 5 3 4 5 4 1 4 4 5 3 4 4 3 4 3 4 3 4 5 5 3 3 4 3

5 5 4 3 4 4 5 3 5 5 5 4 5 4 5 5 4 3 4 4 5 5 5 5 4

5 4 3 5 4 4 4 4 4 2 3 4 3 2 4 4 4 2 4 5 4 2 2 5 4

5 5 4 3 4 4 4 4 3 4 4 3 4 5 3 3 3 3 4 4 4 4 4 4 4

5 5 4 4 5 3 3 5 4 3 3 4 4 3 3 5 4 2 4 4 4 4 3 4 5

5 5 4 4 4 4 3 5 3 3 4 4 3 4 3 4 2 3 4 4 4 3 5 4 3

5 5 5 4 4 3 4 4 3 2 3 3 4 3 3 3 3 2 4 3 4 4 3 3 4

5 5 4 4 5 3 3 3 4 4 3 4 3 2 4 4 3 2 4 4 3 4 4 4 3

5 4 3 4 5 5 4 4 5 5 4 5 4 5 4 4 5 4 5 4 5 4 5 4 5

5 5 3 4 5 4 2 3 5 4 3 4 4 3 4 4 4 4 4 4 4 4 3 4 4

5 4 5 3 4 5 4 4 5 5 5 4 5 5 4 5 5 5 5 3 5 5 5 5 5

5 5 4 4 4 5 3 3 4 4 4 3 4 4 3 4 3 4 3 4 4 4 3 4 4

4 5 4 5 4 5 4 4 3 4 4 4 3 4 4 3 4 4 4 4 4 4 4 4 4

4 4 5 4 5 5 2 3 3 4 3 3 3 2 3 4 3 3 3 3 3 3 3 3 4

4 5 5 5 5 4 3 3 4 4 4 3 3 3 3 4 3 3 3 3 3 3 5 4 4

5 5 5 4 5 5 4 4 4 4 4 4 4 4 4 4 3 4 5 3 5 4 5 5 3

2 4 2 3 2 2 3 4 1 1 2 2 2 1 3 3 2 3 3 3 2 2 2 3 4

5 5 4 5 5 5 2 4 5 5 4 4 4 4 4 4 4 5 5 4 3 5 5 4 4

3 2 3 2 5 1 1 3 3 1 1 3 1 1 1 4 3 3 2 2 1 2 2 4 2

5 5 5 5 5 5 2 2 4 4 3 3 3 3 3 3 3 3 3 3 3 4 4 3 3

4 4 3 3 4 4 4 3 3 3 4 3 3 3 3 3 3 4 3 3 3 4 3 4 4

5 4 4 4 3 4 5 3 4 5 3 5 5 4 5 4 4 4 4 4 4 4 4 5 5

5 4 4 4 3 4 5 4 3 5 4 5 4 5 3 5 4 4 4 4 4 4 4 5 5

4 4 1 4 5 5 4 5 5 5 5 5 5 5 5 5 4 5 4 5 4 5 5 5 5

5 5 5 4 4 4 4 5 4 4 4 5 4 5 4 4 4 4 4 5 4 4 4 5 4

4 4 3 4 4 4 3 3 4 4 4 3 4 3 4 4 4 4 3 4 4 4 4 3 4

4 4 5 5 4 5 4 4 3 4 4 3 4 5 3 3 4 4 4 5 4 4 4 3 4

2 3 2 2 2 2 2 2 2 2 1 3 1 2 2 1 3 3 3 2 2 2 2 2 2

4 4 4 4 3 4 4 3 4 3 3 4 3 4 3 3 4 5 3 4 4 4 4 3 3

102

4 3 3 4 3 3 4 4 3 3 4 3 4 4 3 4 4 4 4 3 4 4 4 4 4

5 5 5 5 5 4 4 5 5 4 5 3 5 5 4 4 4 4 5 4 5 4 4 5 5

4 3 3 4 3 3 2 2 3 2 3 1 3 2 2 3 3 3 2 4 2 3 3 2 2

5 5 4 5 5 5 5 5 4 4 5 5 4 5 4 4 5 5 4 5 5 5 4 4 4

4 4 5 5 3 5 3 4 5 3 3 4 4 4 4 3 4 4 4 4 4 4 4 4 4

4 4 5 5 3 5 5 3 4 3 4 4 4 4 3 4 4 4 4 4 4 4 4 4 4

4 4 4 4 4 4 4 4 4 3 4 5 3 5 3 3 4 4 4 4 4 4 4 4 4

3 4 5 5 4 4 5 5 4 4 4 5 4 5 4 4 4 4 4 5 4 3 4 5 5

4 4 4 3 3 4 4 3 3 4 3 4 3 4 3 3 5 5 5 4 3 3 4 4 4

4 4 4 4 4 4 4 4 4 4 4 4 4 4 3 4 3 4 4 4 4 4 4 4 4

2 2 2 2 3 3 1 1 4 4 2 3 2 3 3 2 4 4 3 3 3 3 2 3 3

3 3 3 3 4 4 3 3 4 3 3 3 3 4 2 3 3 3 3 3 3 3 3 4 4

4 3 3 3 4 4 3 4 2 3 3 3 3 4 3 2 3 3 3 4 2 4 3 3 3

5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5

5 5 5 5 5 5 5 5 4 5 5 4 5 5 5 4 5 5 5 5 5 3 5 5 5

4 3 3 3 4 4 3 3 3 3 3 3 3 4 3 2 3 3 3 4 3 3 3 3 3

5 4 4 4 5 5 4 5 5 5 5 5 5 5 5 5 5 5 5 5 4 5 5 5 5

2 4 1 5 5 3 1 5 4 1 3 2 3 2 3 3 1 1 1 4 1 1 3 4 4

3 3 3 3 3 3 2 3 3 3 3 3 3 1 3 4 3 3 3 3 3 3 3 3 3

5 5 4 3 5 4 4 4 4 4 4 4 4 5 3 3 5 4 4 4 3 4 5 4 4

3 2 2 3 3 3 2 2 3 3 2 3 2 2 2 3 3 3 3 3 3 2 2 3 3

5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5

4 4 4 4 4 4 5 3 5 3 4 4 4 5 4 3 4 4 4 4 4 4 4 4 4

5 5 4 5 5 5 4 4 4 4 4 4 4 4 4 4 5 5 5 4 4 4 5 4 4

4 3 3 4 4 3 4 4 4 4 4 4 4 5 3 4 3 3 3 4 4 4 4 4 4

5 4 4 4 4 4 4 5 4 5 4 5 4 5 4 4 4 4 4 4 5 4 4 5 4

5 3 3 4 3 3 3 3 2 3 3 3 3 1 3 4 3 3 3 3 3 3 3 3 3

4 3 2 5 3 4 2 5 4 2 3 4 3 4 3 2 5 4 5 4 1 3 4 5 4

2 2 3 2 3 3 2 4 4 2 3 3 3 3 2 3 3 2 3 3 3 3 3 3 3

4 4 3 4 4 3 3 3 2 4 3 3 3 4 2 2 3 3 2 3 3 3 3 3 3

4 4 1 1 4 4 4 3 2 4 4 2 4 3 3 4 3 3 3 5 4 3 3 3 3

4 4 5 4 3 5 3 3 3 3 3 3 3 5 1 2 3 2 3 3 4 2 2 3 4

4 3 2 4 4 5 3 4 4 5 4 4 4 4 4 4 2 3 4 4 3 4 4 5 5

5 5 5 5 5 5 1 4 3 3 3 2 3 2 2 4 3 3 3 3 4 2 2 3 3

3 2 2 3 3 4 4 3 3 4 3 3 4 4 3 3 4 4 3 3 3 4 3 4 5

5 5 5 5 5 4 5 2 3 4 4 3 4 4 4 3 4 4 4 4 4 3 4 4 4

5 4 4 5 5 5 5 4 5 5 5 4 5 5 4 5 3 4 2 5 4 5 5 5 4

5 5 5 4 5 4 5 5 5 5 5 5 5 5 5 5 4 4 4 5 5 5 4 5 5

4 5 3 5 4 4 5 4 5 4 4 5 4 4 4 5 4 4 4 5 4 4 4 4 5

3 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5

5 5 4 5 3 5 5 5 5 5 5 5 5 5 5 5 5 5 3 5 5 5 5 5 4

5 5 5 5 5 4 5 5 5 5 5 5 5 5 5 5 4 4 4 5 5 4 5 5 5

5 2 2 5 4 3 2 4 4 4 3 4 4 4 4 3 3 3 3 4 3 3 4 4 5

4 4 3 4 3 3 2 4 3 4 3 3 4 2 4 4 3 3 3 3 3 3 3 5 4

4 4 4 4 4 4 2 4 4 3 3 3 3 4 2 3 3 4 3 4 3 3 4 3 3

4 3 3 3 3 3 3 4 1 4 3 3 3 2 3 4 3 3 3 3 3 3 3 3 3

3 2 2 3 4 2 4 4 4 4 4 4 4 5 3 4 4 4 3 5 2 5 5 4 4

5 4 4 4 4 4 4 4 4 3 4 3 4 4 3 4 4 5 4 4 4 5 4 3 3

103

3 3 2 4 4 2 4 4 4 4 4 4 4 4 4 4 3 3 2 5 3 4 4 4 4

3 2 3 3 4 4 2 3 3 2 2 3 2 4 2 2 3 3 3 3 2 2 3 3 3

5 5 3 5 4 5 5 3 3 4 5 5 5 5 5 5 5 5 4 5 5 5 5 5 5

5 4 3 4 3 3 5 3 4 3 4 4 4 4 4 4 4 4 4 5 4 4 3 4 4

4 3 3 3 3 2 3 3 3 3 2 4 2 3 2 3 3 3 3 3 2 3 3 3 3

3 3 2 3 3 1 3 2 2 3 3 3 3 3 3 2 3 4 4 3 2 3 3 3 3

5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5

3 2 3 3 4 4 2 2 3 4 3 3 3 2 3 3 4 3 3 4 3 2 2 3 3

2 2 1 2 2 2 1 2 2 2 1 2 1 1 1 1 1 2 1 2 2 2 1 1 1

4 3 3 3 4 4 3 3 4 4 3 3 3 3 3 3 3 4 4 3 3 2 3 4 4

1 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5

4 3 3 4 4 4 3 4 4 4 3 3 4 5 3 2 4 4 4 5 3 3 3 3 5

4 4 4 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5

5 5 5 5 4 5 5 5 5 4 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5

5 5 5 5 5 5 3 5 5 5 4 5 4 5 3 5 5 5 5 3 4 4 5 5 5

3 3 3 4 4 3 1 3 3 4 2 4 3 2 2 4 2 2 1 3 2 2 2 4 4

4 4 4 5 4 4 5 4 4 4 4 4 4 5 5 5 4 4 3 4 5 4 4 4 4

4 4 5 4 4 4 4 3 3 4 2 3 2 4 4 3 3 3 3 3 2 4 2 2 3

4 3 2 4 4 3 4 3 5 4 5 5 5 5 3 4 3 4 4 5 4 5 5 5 5

4 4 3 4 4 4 4 4 4 4 3 4 3 4 4 3 4 3 4 4 4 3 3 3 4

3 2 2 4 3 3 2 2 2 3 3 4 3 4 3 3 2 3 3 3 3 4 3 5 4

5 3 5 5 3 3 5 5 5 3 5 5 5 5 3 3 3 3 3 5 5 4 5 5 5

4 5 4 5 4 5 4 4 4 4 5 5 5 5 4 5 5 5 4 4 5 5 5 5 5

4 3 4 4 4 4 4 4 3 4 4 4 4 4 4 4 4 5 5 4 4 4 4 4 4

5 5 5 5 5 5 5 3 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5

4 5 4 5 5 5 5 5 5 5 5 4 5 5 4 5 5 5 5 4 4 5 5 5 5

4 5 4 4 4 4 4 3 4 4 4 4 4 4 4 3 4 4 4 4 3 4 4 4 4

3 3 4 3 3 2 4 3 2 3 4 2 2 4 3 3 3 3 2 3 3 3 3 4 3

5 4 5 5 3 4 5 5 5 5 5 5 4 3 3 4 5 4 4 5 4 5 5 4 5

4 4 3 4 4 4 1 3 4 4 4 4 4 4 3 3 4 4 4 4 4 3 3 4 4

5 5 5 5 5 5 4 5 5 5 5 5 5 3 3 4 4 4 4 4 3 5 3 4 3

5 4 3 4 4 3 3 3 4 4 4 3 3 5 3 4 4 4 3 4 3 4 4 4 4

5 5 5 5 5 5 5 5 5 5 5 3 5 5 5 5 5 5 5 5 5 5 5 5 5

4 2 2 5 4 5 2 4 2 5 5 5 5 5 5 5 5 5 5 5 3 2 5 5 5

4 4 4 4 5 5 5 5 4 4 4 4 5 4 3 4 3 3 4 4 5 4 5 2 3

4 4 4 4 5 5 5 5 4 4 4 4 5 4 3 4 3 3 4 4 5 4 5 2 3

4 3 3 4 2 3 4 3 3 4 3 3 3 3 2 3 4 4 4 4 4 3 3 4 3

4 3 3 4 2 3 4 3 3 4 3 3 3 3 2 3 4 4 4 4 4 3 3 4 3

4 4 2 2 3 5 5 3 3 2 5 4 5 5 5 3 3 3 5 4 4 3 3 5 5

4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4

3 3 1 2 2 4 3 3 2 2 3 3 4 3 3 3 3 3 3 3 2 3 3 3 3

4 5 5 4 3 4 5 5 5 4 5 5 4 4 5 5 4 4 5 4 5 4 4 4 4

5 3 3 3 3 3 5 5 5 3 5 5 3 5 2 5 5 5 5 3 3 5 5 5 5

3 2 1 5 5 3 1 4 1 5 1 2 3 2 3 5 3 1 1 5 1 1 3 3 3

5 5 5 5 5 5 5 5 5 5 5 5 5 4 5 5 5 4 4 4 5 5 5 5 5

3 3 3 4 5 4 5 3 3 4 3 3 4 5 3 3 4 3 3 5 5 5 5 5 5

5 5 5 5 5 5 4 5 5 5 5 5 5 5 4 5 4 5 4 4 4 4 4 4 4

3 2 3 3 4 3 2 4 4 3 3 3 3 4 4 4 4 3 4 4 3 3 3 3 4

104

3 2 3 3 4 3 2 4 4 3 3 3 3 4 4 4 4 3 4 4 3 3 3 3 4

5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5

4 3 3 4 3 3 4 3 3 4 3 3 3 4 2 2 2 2 2 3 4 4 3 3 4

4 4 4 4 5 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 5 5 4 5 5

4 4 4 4 5 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 5 5 4 5 5

4 5 4 4 3 3 4 4 3 4 4 4 3 5 4 4 4 3 4 3 3 5 4 3 3

4 2 3 3 4 3 2 3 1 3 2 2 3 3 2 3 2 2 3 3 2 4 3 4 3

5 5 5 5 4 4 5 4 4 5 4 5 4 5 5 5 5 5 5 5 5 5 5 5 5

4 3 3 5 4 5 5 4 4 5 4 3 5 5 4 4 4 4 4 4 3 5 5 5 5

4 3 3 5 4 5 5 4 4 5 4 3 5 5 4 4 4 4 4 4 3 5 5 5 5

4 4 5 5 4 4 4 5 5 5 4 4 4 5 4 4 4 5 4 5 5 5 5 5 3

4 4 4 4 3 3 3 4 4 4 4 4 3 4 4 4 4 4 4 4 4 3 4 4 4

4 3 3 4 4 3 3 4 3 4 3 3 3 4 3 3 3 3 3 4 4 4 3 3 4

4 4 4 5 5 3 4 4 4 5 4 4 3 2 3 4 4 5 3 3 4 4 4 4 3

5 5 3 5 4 5 5 3 3 5 4 5 5 5 4 5 5 5 4 5 5 5 5 5 5

3 2 2 3 2 3 2 2 2 3 3 3 3 3 2 2 3 3 3 3 2 2 2 3 3

3 2 2 3 2 2 3 2 2 3 3 3 2 3 3 3 3 3 3 3 3 3 3 3 3

4 4 4 4 4 3 4 4 4 4 4 5 3 5 5 5 3 4 4 4 4 4 4 5 5

4 4 4 4 4 3 3 3 3 4 3 3 3 5 4 4 4 3 3 3 3 4 3 4 4

3 3 3 5 4 4 3 4 5 5 5 4 4 5 4 5 1 2 2 2 2 2 3 2 1

4 1 3 4 5 4 4 5 5 4 3 3 4 4 4 4 3 4 3 4 1 4 4 4 4

4 3 3 3 3 3 4 3 3 3 4 3 3 4 3 3 4 4 4 4 3 4 4 4 4

5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 3 5 5 5

4 3 3 3 4 4 2 3 3 4 4 3 4 4 3 2 3 3 3 4 3 3 3 3 3

5 4 4 4 5 5 5 4 3 5 4 5 4 5 3 5 5 5 5 5 4 5 5 5 5

2 4 1 5 5 3 1 4 4 5 1 2 1 4 1 1 1 1 1 4 1 1 3 4 4

3 3 3 3 3 3 2 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3

5 5 4 3 5 4 2 4 5 5 5 4 5 5 5 5 5 4 4 4 3 4 5 4 4

3 2 2 3 3 3 3 4 2 3 2 3 2 3 3 3 3 3 3 3 3 2 2 3 3

5 5 5 5 5 4 3 4 4 5 5 4 5 4 3 4 4 4 4 4 4 3 4 4 4

5 4 4 5 5 5 5 3 5 5 5 5 5 5 3 4 3 4 2 5 4 5 5 5 4

5 5 5 4 5 4 4 5 5 5 5 4 5 5 5 5 4 4 4 5 5 5 4 5 5

5 5 5 5 5 4 4 4 5 5 5 5 5 5 5 5 4 4 4 5 5 4 5 5 5

5 2 2 5 4 3 3 3 4 4 3 4 3 5 3 3 3 3 3 4 3 3 4 4 5

4 3 3 3 3 3 4 4 3 3 4 3 4 3 3 3 3 3 3 3 3 3 3 3 3

3 2 2 3 4 2 2 2 4 4 3 4 3 4 3 4 4 4 3 5 2 5 5 4 4

3 2 3 3 4 4 2 4 4 4 4 3 4 3 3 2 3 3 3 3 2 2 3 3 3

5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5

3 2 3 3 4 4 2 2 3 4 3 4 3 4 3 3 4 3 3 4 3 2 2 3 3

2 2 1 2 2 2 1 2 2 2 2 2 2 2 2 1 1 2 1 2 2 2 1 1 1

4 3 3 3 4 4 3 3 4 4 4 5 4 3 4 3 3 4 4 3 3 2 3 4 4

1 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5

4 4 4 5 5 5 5 5 5 5 5 5 5 5 5 4 5 5 5 5 5 5 5 5 5

5 5 5 5 4 5 5 5 5 4 4 5 4 5 5 5 5 5 5 5 5 5 5 5 5

5 5 5 5 5 5 3 5 5 5 5 5 5 5 3 4 5 5 5 3 4 4 5 5 5

4 5 4 5 4 5 4 4 4 4 5 5 4 5 4 5 5 5 4 4 5 5 5 5 5

4 3 4 4 4 4 4 4 3 4 4 4 4 4 4 4 4 5 5 4 4 4 4 4 4

5 5 5 5 5 5 5 3 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5

105

4 5 4 5 5 5 5 5 5 5 5 5 5 5 4 5 5 5 5 4 4 5 5 5 5

4 4 2 2 3 5 5 3 3 2 5 4 5 5 5 3 3 3 5 4 4 3 3 5 5

4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4

3 3 1 2 2 4 3 3 2 2 3 3 4 3 3 3 3 3 3 3 2 3 3 3 3

4 5 5 4 3 4 5 5 5 4 5 5 4 4 5 5 4 4 5 4 5 4 4 4 4

5 5 5 5 4 4 5 4 4 5 4 5 4 5 5 5 5 5 5 5 5 5 5 5 5

4 3 3 5 4 5 5 4 4 5 4 3 5 5 4 4 4 4 4 4 3 5 5 5 5

4 3 3 5 4 5 5 4 4 5 4 3 5 5 4 4 4 4 4 4 3 5 5 5 5

4 4 5 5 4 4 4 5 5 5 4 4 4 5 4 4 4 5 4 5 5 5 5 5 3

3 5 4 4 5 5 5 4 3 4 3 4 5 5 4 5 3 2 3 5 5 5 5 4 4

4 3 3 3 4 3 3 3 3 3 4 4 3 5 3 3 3 3 3 5 4 3 2 3 3

3 3 4 4 4 4 3 4 3 4 4 4 4 4 4 4 4 3 3 3 4 3 4 4 4

5 5 4 4 5 3 4 4 3 2 2 3 2 5 3 4 3 3 4 5 5 4 4 5 3

5 5 5 5 5 5 4 3 3 3 4 3 3 1 3 3 2 2 3 5 5 5 5 5 5

5 5 4 4 4 4 5 4 4 4 3 3 4 4 3 4 3 3 4 5 5 4 4 4 4

5 4 3 4 5 5 3 3 4 4 4 4 3 2 4 4 3 2 4 5 4 3 4 5 5

4 5 3 4 5 4 4 4 5 4 3 4 4 2 2 4 3 3 4 4 5 3 4 5 4

2 4 2 3 2 2 2 2 2 2 3 3 3 1 1 1 2 3 4 2 4 2 3 2 2

5 4 3 5 4 4 5 5 4 4 2 4 3 2 3 3 3 3 3 5 4 3 5 4 4

3 4 3 3 2 4 3 3 4 3 3 3 4 2 2 3 2 2 4 3 4 3 3 2 4

5 5 4 3 4 4 5 3 5 3 4 4 4 2 2 4 3 3 4 5 5 4 3 4 4

5 5 5 4 5 5 5 5 4 5 2 1 3 5 5 5 5 5 5 5 5 5 4 5 5

4 4 4 3 4 5 4 4 4 4 3 4 4 2 4 4 4 2 4 4 4 4 3 4 5

4 4 3 5 4 3 4 5 4 5 3 5 5 3 3 4 2 3 4 4 4 3 5 4 3

3 4 4 3 3 4 4 4 5 5 4 5 4 2 3 4 3 2 4 3 4 4 3 3 4

4 3 4 4 4 3 3 3 2 4 4 4 4 1 3 4 3 2 4 4 3 4 4 4 3

4 4 4 4 3 3 4 4 4 4 4 4 4 4 4 3 3 4 3 4 4 4 3 4 4

4 4 3 3 5 4 4 3 3 4 4 4 4 4 4 3 4 4 4 4 4 4 4 4 4

3 2 2 2 3 2 2 2 2 2 3 2 3 4 2 2 2 3 3 3 2 2 2 3 4

4 4 5 4 5 5 5 5 5 5 4 5 4 5 5 5 4 5 5 4 3 5 5 4 4

3 2 3 2 5 1 2 2 3 2 3 4 3 5 1 2 3 3 2 2 1 2 2 4 2

5 4 4 4 3 4 4 4 3 4 4 4 4 4 4 4 4 4 4 4 4 4 4 5 5

5 4 4 4 3 4 4 4 3 4 4 4 4 4 4 4 4 4 4 4 4 4 4 5 5

4 4 1 4 5 5 1 5 4 1 2 4 2 5 3 5 4 5 4 5 4 5 5 5 5

4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4

3 4 5 5 4 4 5 5 4 4 4 4 4 5 3 4 4 4 4 5 4 3 4 5 5

4 4 4 3 3 4 5 3 3 3 3 3 3 4 4 5 5 5 5 4 3 3 4 4 4

4 4 4 4 4 4 3 4 1 4 4 2 4 4 4 3 3 4 4 4 4 4 4 4 4

4 3 4 4 4 3 3 3 2 4 4 4 4 1 3 4 3 2 4 4 3 4 4 4 3

4 4 4 4 3 3 4 4 4 4 4 4 4 4 4 3 3 4 3 4 4 4 3 4 4

4 4 3 3 5 4 4 3 3 4 4 4 4 4 4 3 4 4 4 4 4 4 4 4 4

3 2 2 2 3 2 2 2 2 2 3 2 3 4 2 2 2 3 3 3 2 2 2 3 4

4 4 5 4 5 5 5 5 5 5 4 5 4 5 5 5 4 5 5 4 3 5 5 4 4

3 2 3 2 5 1 2 2 3 2 3 4 3 5 1 2 3 3 2 2 1 2 2 4 2

5 4 4 4 3 4 4 4 3 4 4 4 4 4 4 4 4 4 4 4 4 4 4 5 5

5 5 4 4 5 3 4 4 3 2 2 3 2 5 3 4 3 3 4 5 5 4 4 5 3

5 5 5 5 5 5 4 3 3 3 4 3 3 1 3 3 2 2 3 5 5 5 5 5 5

5 5 4 4 4 4 5 4 4 4 3 3 4 4 3 4 3 3 4 5 5 4 4 4 4

106

5 5 3 4 3 3 5 4 4 4 3 3 4 4 4 4 3 4 4 5 5 3 4 3 3

3 2 2 2 3 2 2 4 4 2 3 4 4 4 4 4 4 4 4 3 2 2 2 3 2

3 5 4 4 3 4 2 2 3 3 4 4 3 3 3 4 5 3 5 3 5 4 4 3 4

3 5 3 3 3 3 4 4 4 2 4 4 4 2 3 3 2 2 3 3 5 3 3 3 3

5 5 4 4 5 3 5 5 5 5 3 3 4 2 3 4 3 2 4 5 5 4 4 5 3

5 4 3 4 5 5 3 3 4 4 4 4 3 2 4 4 3 2 4 5 4 3 4 5 5

4 5 3 4 5 4 4 4 5 4 3 4 4 2 2 4 3 3 4 4 5 3 4 5 4

Amos Result

Regression Weight

Estimate S.E. C.R. P Label

CRO <--- COM ,029 ,063 ,457 ,648 par_9

CRO <--- SRV ,257 ,100 2,556 ,011 par_10

CRO <--- RSC ,164 ,077 2,117 ,034 par_11

CRO <--- TRS ,246 ,071 3,444 *** par_12

Standardized Regression Weight

Estimate

CRO <--- COM ,042

CRO <--- SRV ,359

CRO <--- RSC ,229

CRO <--- TRS ,289

Squared Multiple Correlations (R2)

Estimate

CRO ,669

Company toward career

Standardized Unstandardized (C.R.) P H1

0,042 0,029 0,457 0,648 Rejected

Service toward career

107

Standardized Unstandardized (C.R.) P H2

0,359 0,257 2,556 0,011 Accepted

Reward scheme toward career

Standardized Unstandardized (C.R.) P H3

0,164 0,229 2,117 0,034 Accepted

Trust toward career

Standardized Unstandardized (C.R.) P H4

0,289 0,246 3,444 0,000 Accepted

Evaluation of Fit Indexes Structural Model

Index Fit Result Recommended Value Model Evaluation

Chi-Square 122,407

Probability 0,000 > 0,05

Chi-Square/DF 2,226 < 2 Marginal fit

GFI 0,931 > 0,90 Good fit

RMSEA 0,070 < 0,08 Good fit

AGFI 0,886 > 0,90 Marginal fit

TLI 0,950 > 0,90 Good fit

CFI 0,965 > 0,90 Good fit

RMR 0,039 < 0,08 Good fit