The adoption of live streaming channel considering impulse buying and product returns

Live streaming commerce has experienced rapid development in the past several years. One of the prominent advantages of live streaming is that streamers can stimulate impulse buying. However, impulse buyers may return the product when they calm down, leading to a high loss for the retailer. In this research, considering impulse buying and product returns, we explore the retailer's channel strategy within three channel structures: single traditional channel, single live streaming channel, and dual channel. We find that dual channel strategy dominates single live streaming channel strategy, and adopting live streaming may not always benefit the retailer. When there is a large proportion of impulsive customers and the product has a low marginal loss of return, it is better to adopt the dual channel strategy. Interestingly, the retailer will be more inclined to add a live streaming channel when there are more loyal consumers in the traditional channel. Moreover, considering the influence of product returns will make the retailer less likely to adopt live streaming e-commerce. Additionally, our analysis shows that consumer returns will significantly affect live streaming price. Under the single live streaming channel strategy, as the streamer possesses superior sales ability or there are more impulsive consumers, it is better to reduce the price. If the retailer neglects product returns, he will raise the price. Under the dual channel strategy, the retailer considering product returns will announce a low price in the live streaming channel and a high price in the traditional channel. However, if the retailer neglects product returns, he will announce a high price in the live streaming channel and a low price in the traditional channel.