The impact of live-streaming interactivity on live-streaming sales mode based on game-theoretic analysis

Abstract

Many manufacturers who sell products through e-tailers in e-commerce channels launch a real-time interactivity live-streaming channel. The live-streaming interactivity includes consumer-streamer interaction (CSI) and consumer-consumer interaction (CCI). Thus, manufacturers generally hire influential streamers to expand the market size (i.e., Mode L) to improve live-streaming interactivity. However, some manufacturers act as streamers, i.e., merchant live-streaming mode (Mode M), to save the commission costs of hiring influential streamers. Therefore, we explore the manufacturer's live-streaming sales mode choice from a live-streaming interaction perspective through a game-theoretic method. We find when CCI is more positive (negative), Mode L is more helpful (unhelpful) in alleviating the double marginal effect of e-commerce channels than Mode M, increasing (reducing) e-commerce demand, and ultimately increasing (damaging) the e-tailer's profit. However, the size relationship between live-streaming prices in the two sales modes also relies on the streamer's commission rate, in addition to CCI. Finally, the conditions for the manufacturer to profit from either mode rest on the streamer's commission rate and CCI.