Live Stream e-Commerce: Factors that Motivate the Evolving Consumer Patterns

Abstract

Live streaming e-commerce (LSE), as a product of the digital era, is a form of e-commerce that uses live streaming as a channel to achieve marketing purposes. Since the launch of the live shopping function on e-commerce platforms in 2016, live e-commerce has grown rapidly. In spite of the pandemic we find ourselves in, the live e-commerce market size has maintained an average annual growth rate of over 200% in the past two years. LSE has not only driven the consumer industry, but has also impacted consumers’ consumption habits in very many ways. It is not surprising that the highest impact of the LSE-driven market has been evidenced in China, which is considered the largest growing economy in the world with a PPP only second to the US. This paper aims to investigate LSE as an upcoming business model, leading to evolving consumer patterns, as well as exploring the motivators of such consumption. The objective of this research is to provide SMEs with recommendations on the developing markets and inputs on how to maximise sales in a pandemic-affected world. In depth interviews were conducted with LSE consumers based in China, to understand their shopping experiences, explore their psyche and motivations behind such consumption. As a result of a qualitative research approach, it was found that the use of streaming anchors act as an external stimuli in LSE which affects consumers’ perceived value. This, in turn, affects consumers’ trust and purchase intentions. The use of utilitarian and hedonic shopping motivations affect consumers’ willingness to engage in an actual purchase and consequent shopping pleasure.