Evaluation of Influencing Elements on Merchandise Pricing During Internet Celebrity Live Streams: A Game Theoretical Approach

Abstract

Live broadcasting with goods has become the mainstream form of product marketing, and the pricing problem in live broadcasting with goods has attracted attention. Based on the game model constructed by brand and online celebrity, this paper analyzes the influence of live broadcast with goods on product pricing factors. The model includes pure retail mode and adding live-stream mode. The optimal pricing of the two modes is discussed when the participants pursue the maximum profit and the factors influencing the optimal pricing are discussed. The results show: the factors that affect the pricing of products increase after adding live broadcast with goods, including the effort of the anchor, the fan conversion rate and the proportion of commission. Based on the conclusion of the study, the following suggestions are made: After adding live broadcast with goods, the brand should not be limited to the cost and demand of products when making pricing decisions; When selecting online media, the brand should consider both the effort of the anchor and the conversion rate of anchor fans; When negotiating the commission percentage with the brand, the anchors should properly measure their efforts.