{"title":"Brands’ Livestream Selling with Influencers’ Converting Fans into Consumers","authors":"","doi":"10.1016/j.omega.2024.103195","DOIUrl":null,"url":null,"abstract":"<div><div>Livestream selling is booming in the digital economy era. In practice, for the benefits such as consumer utility enhancement and the reduction of supply-preference mismatch, many brands are adapting their strategies to livestream selling, wherein some brands cooperate with top influencers to livestream as they can exert efforts to convert the fans into consumers. By contrast, some other brands choose to livestream by themselves to save the commission cost for the influencer, even at the expense of losing fan consumers. In this study, we characterize brands’ key tradeoffs between top influencer-livestream and self-livestream selling strategies. We find that a higher commission rate can incentivize the influencer to exert more efforts to convert fans, but also harms the brand by reducing the proportion of the livestream profit allocated to it and inhibiting it from transferring commission cost to consumers. Therefore, the brand may (not) be suggested to cooperate with the influencer when the commission rate is at a moderate (either low or high) level such that the twofold impacts of the commission rate are balanced (imbalanced). For consumers, their surplus may first decrease and then increase with the influencer commission rate. Our study deepens the understanding of the roles of top influencers and their fans in livestream e-commerce operations.</div></div>","PeriodicalId":19529,"journal":{"name":"Omega-international Journal of Management Science","volume":null,"pages":null},"PeriodicalIF":6.7000,"publicationDate":"2024-09-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Omega-international Journal of Management Science","FirstCategoryId":"91","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S0305048324001609","RegionNum":2,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"MANAGEMENT","Score":null,"Total":0}
引用次数: 0
Abstract
Livestream selling is booming in the digital economy era. In practice, for the benefits such as consumer utility enhancement and the reduction of supply-preference mismatch, many brands are adapting their strategies to livestream selling, wherein some brands cooperate with top influencers to livestream as they can exert efforts to convert the fans into consumers. By contrast, some other brands choose to livestream by themselves to save the commission cost for the influencer, even at the expense of losing fan consumers. In this study, we characterize brands’ key tradeoffs between top influencer-livestream and self-livestream selling strategies. We find that a higher commission rate can incentivize the influencer to exert more efforts to convert fans, but also harms the brand by reducing the proportion of the livestream profit allocated to it and inhibiting it from transferring commission cost to consumers. Therefore, the brand may (not) be suggested to cooperate with the influencer when the commission rate is at a moderate (either low or high) level such that the twofold impacts of the commission rate are balanced (imbalanced). For consumers, their surplus may first decrease and then increase with the influencer commission rate. Our study deepens the understanding of the roles of top influencers and their fans in livestream e-commerce operations.
期刊介绍:
Omega reports on developments in management, including the latest research results and applications. Original contributions and review articles describe the state of the art in specific fields or functions of management, while there are shorter critical assessments of particular management techniques. Other features of the journal are the "Memoranda" section for short communications and "Feedback", a correspondence column. Omega is both stimulating reading and an important source for practising managers, specialists in management services, operational research workers and management scientists, management consultants, academics, students and research personnel throughout the world. The material published is of high quality and relevance, written in a manner which makes it accessible to all of this wide-ranging readership. Preference will be given to papers with implications to the practice of management. Submissions of purely theoretical papers are discouraged. The review of material for publication in the journal reflects this aim.