BUSINESS/ACCOUNTING RESEARCH
RESEARCHERS:
CLARIFYING THE RESEARCH PROBLEM – Identifying the Management Dilemma
FORM 1
Sample Area of Study
Area of Study 1
Multilevel Marketing Companies
Accounting Professionals
I. Advocated Behavior/Desirable
State
(What should be happening?)
I. Advocated Behavior/Desirable
State
(What should be happening?)
Multi-level marketing has some clear
benefits that make it not only
profitable, but also attractive to
potential members. First,
participants are often referred to as
“business owners.” The idea that
somebody can join an organization,
gain a support group, and run their
own company is obviously extremely
attractive. They can essentially run
their own independent business
while enjoying the camaraderie that
exists in these organizations. Those
who do it well are able to make an
excellent income, gain a support
system, and create financial security
moving forward (Thorpe, 2017).
The field of accounting is
multifaceted and complex. In this
ever-changing field,
accounting professionals are
responsible for serving many
stakeholders by providing
accurate and timely financial
information that is useful for
decision-making purposes. As the
industry continues to grow, it
needs motivated, qualified, and
skilled individuals who can build
continuing public trust in the
profession. A certified public
accountant (CPA) adds value to
organizations by applying
technical accounting knowledge
and demonstrating strong client
Area of Study 2
Area of Study 3
I. Advocated Behavior/Desirable
State
(What should be happening?)
I. Advocated Behavior/Desirable
State
(What should be happening?)
relations. However, the demands
of the profession can result in job
burnout, affecting an employee’s
willingness to perform optimally
in the workplace. In the highprofile field of accounting, CPAs
must experience meaningful
work and job satisfaction to make
greater contributions to decisionmaking in business enterprises
(Haddad, 2017).
II. Management Dilemma
(What is happening?)
II. Management Dilemma
(What is happening?)
Despite the promises of financial
security among MLM companies,
there is a high dropout rate among
MLM participants.
Accounting professionals are
experiencing high levels of
burnout.
III. Evidence of the Dilemma
(Surveys, news reports, statistics,
etc.)
III. Evidence of the Dilemma
(Surveys, news reports,
statistics, etc.)
At least 50% of Multi-level
Marketing participants dropout after
1 year (Perry, 2020). After five years,
90% to 95% or more have dropped
out, and after 10 years, almost
everyone has dropped out (Taylor,
2021). Furthermore, an MLM survey
in 2020 reported that only 25% of
participants earn a profit (Perry,
2020).
A recent survey revealed that
73% of working professionals are
burned out. Before the
pandemic, finance and
accounting professionals
recorded a 58.6% burnout rate.
This escalated to 71.5% during
the pandemic. Furthermore,
66.7% of finance and accounting
professionals experienced
burnout before the pandemic.
II. Management Dilemma
(What is happening?)
III. Evidence of the Dilemma
(Surveys, news reports,
statistics, etc.)
II. Management Dilemma
(What is happening?)
III. Evidence of the Dilemma
(Surveys, news reports,
statistics, etc.)
This number rose up to 82%
during the pandemic.
IV. Management Question
(What should be done?)
What should be done to reduce
dropout rate in Multi-level
Marketing Companies?
V. Research Questions
(Possible Research Topics in
Question Form. Write 3)
IV. Management Question
(What should be done?)
IV. Management Question
(What should be done?)
V. Research Questions
(Possible Research Topics in
Question Form. Write 3)
V. Research Questions
(Possible Research Topics in
Question Form. Write 3)
What should be done to reduce
burnout among accounting
professionals?
V. Research Questions
(Possible Research Topics in
Question Form. Write 3)
What are the factors that affect
dropout rate in MLM Companies?
Does job satisfaction influence
burnout among accounting
professionals?
Does level of satisfaction in MLM
influence dropout rate?
Does professional regulatory
pressure like CPD units influence
burnout among accounting
professionals?
Does transparency in earning
potential influence dropout rate in
MLM?
Does job work and life balance
influence burnout among
accounting professionals?
Other Possible Research
Questions/Topics as May be
Suggested by the Adviser
(To be filled up by the adviser)
Other Possible Research
Questions/Topics as May be
Suggested by the Adviser
(To be filled up by the adviser)
What are the preferences of
participants for multilevel marketing
IV. Management Question
(What should be done?)
Other Possible Research
Questions/Topics as May be
Suggested by the Adviser
(To be filled up by the adviser)
Other Possible Research
Questions/Topics as May be
Suggested by the Adviser
(To be filled up by the adviser)
programs in terms of type of
product, earning capability, and
registration price?
Should MLM Companies increase
their level of support towards
participants to reduce dropout rate?
BUSINESS/ACCOUNTING RESEARCH
Researchers:
CLARIFYING THE RESEARCH PROBLEM – Identifying the Research Gap
FORM 2
INSTRUCTIONS:
1. Discuss with your adviser the possible topics listed in FORM 1 per area of study.
2. Narrow down your research topic by choosing ONE area of study.
3. Fill out the following form.
Chosen Area of Study
Chosen Area of Study
Multi-level Marketing Companies
VI. Chosen Research Question
(Choose 1 from Section V)
VI. Chosen Research Question
(Choose 1 from Section V of Chosen Area of Study)
Note: This should only be filled out after consultation with your adviser since the adviser
will help determine what research direction/ variables will be pursued.
Does transparency in earning potential influence
dropout rate in MLM?
VII. State of Knowledge
VII. State of Knowledge
(What do we know so far?
List down results of studies that answer your
research question. Write at least 20. Add rows as
needed. Cite your references using APA format)
(What do we know so far?
List down results of studies that answer your research question. Write at least 20. Cite
your references using APA format)
We analyze two types of MLM network architectures
— the unilevel and binary, in terms of growth
behavior and earning potential among members. We
show that network growth decelerates after
reaching a size threshold, contrary to claims of
unrestricted growth by MLM recruiters. We have
also found that the earning potential in binary
MLM’s obey the Pareto “80 20” rule, implying an
earning opportunity that is strongly biased against
the most recent members. On the other hand,
unilevel MLM’s do not exhibit the Pareto earning
distribution and earning potential is independent of
member position in the network. Our analytical
results agree well with field data taken from realworld MLM’s in the Philippines. Our analysis is
generally valid and can be applied to other MLM
architectures (Legara, Monterola, Juanico, Marisciel,
& Saloma, 2008).
A simulation was conducted for a uni-level MLM’s
potential for earning. Findings revealed that as the
average number of recruits is increased, the total
number of members, number of levels and the net
income of the company exponentially increased.
However, the average net income of the distributor
members was found to be almost the same among
the simulated systems (Daquis, Castañ eda, Sy, &
Abgona, 2013).
VIII. Research Gap
(Based on your readings in Section VII, is there
something we do not know yet? What is the Gap
that will be addressed by your research? Identify
the research gap based on the 7 types given.)
VIII. Research Gap
(Based on your readings in Section VII, is there something we do not know yet? What is
it? Identify the research gap based on the 7 types given.)
Based on my readings of available literature, no
studies have been conducted about the relationship
between perceived level of transparency in earnings
potential and dropout rate among MLMs.
This research will seek to address this knowledge
gap.
OR
Based on the available literature regarding earnings
potential and dropouts among MLM participants,
most studies have been conducted among
Americans. No studies have been conducted in the
Philippines or among Filipinos.
This research will seek to address this population
gap.
BUSINESS/ACCOUNTING RESEARCH
Researchers:
CLARIFYING THE RESEARCH PROBLEM – Refining the Research Question
FORM 3
INSTRUCTIONS:
1. Discuss with your adviser the final topic or direction of your paper based on the research gap.
2. Restate the research question, if needed, based on the research gap.
3. Fill out the following form.
Area of Study
Area of Study
Multilevel Marketing Companies
Research Gap
Research Gap
Population Gap / Knowledge Gap
IX. Revised/Final Research Question
IX. Revised Research Question
Does transparency in earning potential influence
dropout rate in MLM participants in the Philippines?
X. Specific Research Questions based on Section IX
(Establish the Variables through Measurable
Terms)
X. Specific Research Questions based on Section IX
(Establish the Variables through Measurable Terms)
What is the level of perception among MLM
participants on the transparency of earning potential
among MLM companies?
What is the length of participation in MLM
Companies among the participants?
Is there a relationship between level of perception on
transparency of earning potential and length of
participation in MLM companies?