Optimal platform sales mode in live streaming commerce supply chains

Abstract

This paper investigates three common sales modes with live streaming commerce, including e-commerce platform mode, transferring mode and live streaming platform mode (abbreviated as E, T and L, respectively). Using game-theoretical method, we study how participants choose sales modes with consumer return. The findings show that for the seller and platforms, each mode may be the best, depending on basic net sales volume and channel rate. However, for the streamer, mode T will never be the best. On the other hand, product quality in mode L is always higher than that in mode T, and higher than that in mode E when live streaming platform's basic net sales volume is high. Furthermore, we show that hybrid mode may generate higher profits for members, except for the live streaming platform; and we also study the impacts of transferring loss, gift-giving function and streamer's dualpurpose on results through extensions, examining the robustness of the model, and deriving additional managerial insights.

Manufacturer's channel strategy in live streaming E‐commerce supply chain

“…Wang, Song, and Fan (2022) evaluated a manufacturer's live streaming launch and price plans, considering the perceived value of viewers, watching expenses, and other variables. Yang et al (2022) and Hao and Yang (2023) considered consumer return behavior and discussed model options for live streaming on platforms. The impact of live streaming sales on traditional channel sales has attracted the attention of researchers (Pan et al, 2022).…”

Indonesian marketplace: factors in purchasing decisions and impact on sales

“…Live streaming commerce has experienced substantial growth in recent years. Within this emerging industry, individuals with a public following leverage their influence to market and sell products on e-commerce platforms, live streaming platforms, or often both concurrently (Yang et al, 2022).…”

Optimal contract design for live streaming platforms under dual asymmetric information considering corporate social responsibility

“…For example, considering a system composed of a live streaming platform and a streamer, Liu and Liu (2021) examine the optimal decisions of platform's recommending effort and streamer's selling effort by differential game theory. Yang et al (2022) consider a supply chain including a seller, a streamer, an e‐commerce platform, and/or a live streaming platform and study how participants choose sales modes. Based on the social exchange theory, Zhang et al (2021) conduct an online survey and study the impact of information quality and interaction quality on swift guanxi and customers' purchase intention in the context of live streaming platforms.…”

“…Second, unlike the asymmetric information literature (Xiao & Shi, 2016), this paper focuses on not only the private service abilities of live streamers before contracting but also their noncontractible service efforts after contracting under dual asymmetric information. Third, in terms of live streaming platforms literature (Yang et al, 2022), in our model, we study the optimal contract design between a live streaming platform and live streamers with continuous types under asymmetric information. Especially, we investigate the impact of the price and service competition between live streamers.…”