Highlights Offline skimming pricing strategy is not applicable with high livestreaming cost. Online penetration price and time-limited measures should not be adopted together. Livestreaming modes may hurt the manufacturer even when the cost is negligible. Time-limited measures benefit the manufacturer only with moderate mismatch cost. Demonstration effort level affects differently in the two livestreaming modes.

    Abstract In practice, online livestreaming demonstration and in-store demonstration services for product sales have experienced rapid development. In response to consumers’ cross-channel access to product demonstration and showrooming behavior of purchasing products at the lowest price via each channel, manufacturers increasingly offer consumers more comprehensive product demonstration services by establishing an omni-channel market. Considering this emerging trend, this paper analyzes the optimal sales strategies for the livestreaming demonstration modes and the pricing strategies for an omni-channel manufacturer. Additionally, this paper further digs into the manufacturer’s dilemma under the influence of omni-channel retailing and consumer showrooming behavior when adopting livestreaming demonstrations. Initially, we consider a scenario where a manufacturer sells a product through the omni-channel, demonstrating its products in the offline store and hiring an online shopping influencer as the sales agent for the livestreaming demonstration. Subsequently, three modes are examined: non-livestreaming mode, basic livestreaming mode, and time-limited livestreaming mode. Through game theory modeling, we compare each mode’s optimal pricing strategies and analyze the omni-channel manufacturer’s preference for livestreaming demonstration modes and the influencing factors. The results indicate that while livestreaming demonstrations enhance consumers’ product valuation, the manufacturer cannot always achieve higher profits through the livestreaming demonstration. Besides, the time-limited promotion measures of the livestreaming mode are not always beneficial to the manufacturer. Furthermore, the impact of the livestreaming demonstration effort level of the sales agent, the browsing cost of different channels, and the impact of the livestreaming demonstration on product suitability are analyzed.


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    Title :

    Optimal sales strategies for an omni-channel manufacturer in livestreaming demonstration trends


    Contributors:
    Li, Yanran (author) / Li, Bo (author) / Wang, Minxue (author) / Liu, Yang (author)


    Publication date :

    2023-07-09




    Type of media :

    Article (Journal)


    Type of material :

    Electronic Resource


    Language :

    English