Enchanted but Regretful: Exploring the Impact of Flow Induced Impulse Buying and Return Intention in the Domain of Live Streaming Commerce

Abstract

Social media live streaming has gained popularity among small sellers for real-time selling. Although favourable facets of live streaming have been studied, the potential for these advantages to result in negative outcomes is unexplored. The surge in small businesses embracing live streaming has led to a corresponding increase in product returns, impacting the profitability of these sellers. Therefore, this study aims to investigate how the shopping experience, particularly the sense of flow generated by live streaming, shapes the inclination to return the products. This impact is elucidated through the mediating role of impulse buying and regret (process and outcome regret). Moreover, the research examines the moderating role of flow consciousness in these relationships. A cross-sectional study was conducted using self-administered questionnaire from 463 participants in India. Data was then analysed using covariance-based structural equation model. Additionally, the impact of flow consciousness as a moderator was examined using process macro. The findings highlight three aspects: first, live streaming attributes induce a state of flow for users; second, impulse buying serially mediates with its sequential parallel mediators’ process and outcome regret, the relationship between flow and return intention. Third, heightened awareness of the flow intensifies customer’s regret. This study offers valuable insights to online retailers, as it provides insights into diverse tactics for mitigating the adverse effects of shopping encounters arising from live streaming. The study provides novel perspectives by delving into the path that influences customer in deciding whether to return products they have purchased through live streaming on social media platforms.