EXPRESS: Fan Badges Signal Friendships: How Viewer-Influencer Parasocial Relationship Drives Conversion Funnel in Livestream Commerce

Influencer-hosted livestream commerce has surged in popularity. Yet, little empirical research has examined what drives viewers along the conversion funnel in these time-compressed sessions. Drawing on the cognitive-affective interpersonal involvement framework from parasocial relationship (PSR) theory, this research proposes that PSR strength propels viewers from initial interest to purchase, mediated by two viewer-generated situational stimuli, namely product-related informational density and positive emotional engagement. The research first introduces a novel operationalization of PSR via digital fan badges and validates these badges as behavioral proxies for PSR using both qualitative and quantitative evidence. Observational analysis of over 1,500 influencer-hosted live sessions supports the hypothesized pathway: both product-related informational density and positive emotional engagement significantly mediate the effect of a viewer’s PSR strength on product interest, but only positive emotional engagement significantly influences actual purchase behavior beyond interest. Path analysis indicates that positive emotional engagement is the strongest mediator linking PSR strength to both product interest and purchase. These findings highlight the critical role of PSR-driven positive emotion in shaping the conversion funnel in livestream commerce. This research also offers a promising approach to capturing viewer-influencer PSR at scale using behavioral proxies.