KOREASCHOLAR

The paper presents the longitude study of Internet technologies introduction into business model. Rapid spread of Internet technologies has a significant impact on the business models transformation. Today, information technology has become an integral part of communication with customers. In 2017 the penetration rate of the Internet in Russia reached 73%. Thus, almost 3/4 of the population is currently Internet users and be reached online. On the one hand, Internet communication speeds up and simplifies the processes; on the other hand, the key competitive advantage of direct selling business model is blurred. For ages business model was based on direct interpersonal contacts between the distributor and the customer. In this business model relationship creates more value than the product itself [Luk, Fullgrabe, Yi, 1996] and face-to-face meeting is the key descriptor [Sanan, 1997]. Direct selling is cultivated through relationships and provides customer-centric marketing opportunities [Harrison, Hair, 2017]. The question of this study is whether introduction of innovative Internet technologies into communication with customers is beneficial for traditional direct selling business model. Empirical research is based on comparative analysis of data from three survey waves (6380 respondents in 2011, 5638 respondents in 2014 and 6800 respondents in 2017). Effectiveness of Internet usage the for communicate with customers was analized in dynamics over the three waves of 2011, 2014, 2017. Using the one-way analysis of variance (ANOVA) method 15 (fifteen) hypotheses were checked. Nine (9) out of 15 (fifteen) hypotheses were confirmed. Research revealed that personalization determines the effectiveness of communication with customers via internet-based tools (e-mail, web site, social networks, professional social networks, video channels, blogs, microblogs, videoconferences and webinars, messaging applications and files). Nevertheless, face-to-face communication remains significant communication channel for success in direct-selling

• Kolesnik Nadezda(National Research University Higher School of Economics, Russian Federation)
• Tretyak Olga(National Research University Higher School of Economics, Russian Federation)