Who should livestream first? Sequence of dual self-livestreaming rooms for manufacturers

Abstract

Livestreaming e-commerce has emerged as a highly effective online shopping format, capturing significant attention from manufacturers and retailers. A novel variant, self-livestreaming, is gaining traction. When manufacturers conduct multiple self-livestreaming events across different platforms, each livestreaming room or streamer resonates differently with consumers. In this context, two distinct consumer segments emerge: loyal consumers and regular consumers. This study examines the dual self-livestreaming strategy adopted by manufacturers, incorporating factors including room attractiveness and consumer types to determine the optimal pricing and sequencing for three distinct livestreaming strategies: S (simultaneous livestreaming in both rooms), L (the low-attractiveness room livestreams first), and H (the high-attractiveness room livestreams first). The results reveal that a lower proportion of loyal consumers or higher room attractiveness leads to greater profits for manufacturers. Moreover, the choice of livestreaming strategy for manufacturers varies based on room attractiveness and the proportions of the two consumer types. In the extended model, we analyze the impact of operational costs on the decision to use one or two rooms, particularly when the low-attractiveness room has no loyal consumers. Specifically, we explore how room attractiveness and the proportion of regular consumers influence room adoption decisions. These insights not only provide practical operational guidance but also enrich the existing literature on self-livestreaming operations.