The Impact of Impulsive Consumption on Supply Chain in the Live-Streaming Economy

Abstract

Live e-commerce is an emerging business model in one form of which online influencers sell goods through live-streaming platforms. In this paper, we develop a live e-commerce supply chain pricing model with online influencers as retailers, with which we investigate the effects of consumers’ impulsive consumption behavior, satisfaction. This paper analyzes the impact of consumers’ impulse purchases on both manufacturers and retailers, and separately, on supply chains. We also assess consumers’ purchase decisions when they watch online influencers promoting products via live-streaming. The results reveal that the impact of impulse spending on supply chain agents is non-monotonic. Rational pricing decisions and ensuring high-value products are the keys to profitability and impulse spending that lead to consumer satisfaction and can increase competition in the market. Therefore, supply chain decision makers should increase customers’ satisfaction by offering products and enhancement following impulse consumption, rather than simply encouraging further impulse consumption behavior, which can often result in buyer’s remorse and returned merchandize.