How livestream selling strategy interacts with product line design

Yu Jiang, Wei Lu, Xiang Ji () and Jie Wu
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Yu Jiang: University of Science and Technology of China
Wei Lu: University of Science and Technology of China
Xiang Ji: University of Science and Technology of China
Jie Wu: University of Science and Technology of China

Electronic Commerce Research, 2024, vol. 24, issue 2, No 17, 1187-1214

Abstract: Abstract Livestreaming, now one of the most popular selling methods in e-commerce, affects consumers’ shopping behaviors and firms’ operations management. Compared with the traditional post-price strategy, livestreaming has many advantages such as strong interactivity, but it also has some defects, such as purchase time limits and the time cost of watching livestreams. This paper considers the characteristics of livestreaming and examines the strategic interaction with product line design. We find that the seller prefers to adopt livestreaming when the streamers’ selling ability is high enough. In addition, the product line design can also affect the adoption of the livestream strategy. When the seller offers a single product, a high-quality product incentivizes the adoption of livestreaming; when the seller offers a product line, the upward-line extension can incentivize the adoption of livestreaming. We also test the robustness of our main results through numerical analysis and related extensions.

Keywords: Livestream; Post-price strategy; Product line design; Agency contract (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1007/s10660-022-09648-3

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