76 / 2024-04-19 11:02:15

Influencer live-streaming or merchant live-streaming: Manufacturer’s sales mode selection with streamer characteristics

Live-streaming selling; streamer flow effect; streamer display effect; pricing strategy.

With the rapid development of e-commerce, manufacturers have expanded their product sales beyond traditional online retail channels to include live-streaming commerce platforms. Firstly, this study categorizes consumers based on whether they engage during live-streaming periods. Using characteristics of the streamers (streamer traffic effect and display effect) and consumer utility theory, demand functions are constructed. Then, by introducing fundamental remuneration and commission coefficients, revenue models are established for three modes: no live-streaming, merchant live-streaming, and influencer live-streaming. Subsequently, equilibrium outcomes under different modes are derived: retail prices and streamer display effort are analyzed, shedding light on pricing and display strategies for live-streaming commerce. Finally, the findings are validated through numerical examples. Results indicate that the impact of influencers on different situations can affect the direct sales prices in influencer live-streaming modes. A stronger influence may lead to lower or higher prices, whereas moderate influence could maintain prices relatively stable. Moreover, the magnitude of direct sales prices under live-streaming commerce influences consumers’ emphasis on streamer recommendations, thereby affecting streamer display effort and manufacturer revenue. Lastly, manufacturers can choose sales modes based on streamer influence and consumer perception differences. In cases of significant perception differences, manufacturers benefit more from adopting live-streaming modes. When direct sales prices are lower or moderate, merchant live-streaming generates greater profits for manufacturers. However, with excessively high direct sales prices, influencer live-streaming, which boasts stronger flow effects, becomes more beneficial for manufacturers.