Abstract To cater to consumers’ lifestyles and generate more demand, a manufacturer sells products by launching a live-streaming channel, in addition to a traditional online channel, on a retail platform. This paper studies two modes of live-streaming selling: merchant live-streaming and influencer live-streaming. Using linear demand functions, we model a game involving the manufacturer, streamers, and the platform. We derive the equilibrium results under these two modes: retail prices, streamer’s promotional effort level, and corresponding profits for all members. The results show that the appropriate mode of live-streaming adopted by the manufacturer is contingent on the commission rate of the streamer and the fixed signing bonus paid to the influencer. Secondly, introducing a live-streaming channel leads to more sales. However, the change in the retail price of the traditional online channel depends on the intensity of price competition between the traditional and live-streaming channels. Compared with the merchant live-streaming channel, although the influencer puts more effort into selling products, the retail price of the influencer live-streaming channel is not always lower, and the product sales are not always higher. Finally, by extending to the hybrid mode (i.e., merchant and influencer live-streaming channels are simultaneously adopted), numerical studies show that the manufacturer and the platform prefer the hybrid live-streaming mode but not streamers under certain conditions.

    Highlights We study two modes of live-streaming selling including merchant live-streaming and influencer live-streaming. The manufacturer’s optimal live-streaming mode is contingent on the streamer’s commission rate and the fixed signing bonus paid to the influencer. Compared with the merchant live-streaming channel, the influencer live-streaming channel is not always optimal.


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    Title :

    Live-streaming selling modes on a retail platform


    Contributors:
    Zhang, Wen (author) / Yu, Lili (author) / Wang, Zhenzhen (author)


    Publication date :

    2023-03-09




    Type of media :

    Article (Journal)


    Type of material :

    Electronic Resource


    Language :

    English




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