Whether and how to adopt live streaming Selling: A perspective on interaction value creation

Abstract

As live streaming selling continues to be an emerging channel with many uncertainties, brand manufacturers must adopt a deliberate approach to utilize this medium and develop their capabilities effectively. This study examines the adoption of live streaming selling by considering customers interacting with the streamer in real-time to acquire more product information and additional interaction value. Three sales models are constructed: the traditional selling channel (Model T), the live streaming selling channel (Model L), and the dual channel that combines traditional selling and live streaming selling (Model TL). The impact of live streaming selling on value creation is revealed through a comparative analysis. Finally, as an extension model, we consider the scenario where manufacturers pay streamers different commissions based on actual market demands. The results show that adopting live streaming selling depends on the commission and operating costs of live streaming. When the commission paid to the streamer is low, contemplating live streaming selling can create more value for all parties. When the commission is moderate, the manufacturer should adopt the dual channel of traditional selling and live streaming selling to create more value. Conversely, when the commission and operating costs are high, adopting live streaming selling is not recommended. Furthermore, when market demand is high, manufacturers achieve greater profits by paying streamers a fixed commission. Conversely, when market demand is low, manufacturers gain higher profits by paying streamers different commissions based on actual market demand.