Short-term or long-term cooperation between retailer and MCN? New launched products sales strategies in live streaming e-commerce

Zhaofang Mao, Zelin Du, Ruiying Yuan and Qiqi Miao

Journal of Retailing and Consumer Services, 2022, vol. 67, issue C

Abstract: Nowadays, live streaming e-commerce has become popular all over the world. In this paper, we study the pricing strategy of new products when they are launched in live streaming considering the consumer uncertainty and network externalities. We characterize the impact of live streaming into two dimensions, emotional support and information support, and investigate how those two dimensions impact the choice of cooperation types and the revenue distribution between the retailer and MCN (Multi-Channel Network). Using a two-stage vertical model, we find that, with the low consumer uncertainty, the MCN induces the retailer to choose the cooperation type depending on the emotional support level, but with the high consumer uncertainty, it depends on the information support level. For new-product pricing strategy, whether to adopt the penetration pricing strategy or the skimming pricing strategy depends on the impact of live streaming, the consumer uncertainty and network externalities. Interestingly, the commission price does not increase with the consumer uncertainty. An important implication for the retailer is that, reducing consumer uncertainty may not be beneficial to the total profit.

Keywords: Live streaming shopping; Consumer uncertainty; Two-stage pricing; Game theory (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (22)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:joreco:v:67:y:2022:i:c:s0969698922000893

DOI: 10.1016/j.jretconser.2022.102996

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