Strategic streamer selection and channel design in live-stream commerce

Purpose This study aims to explore the strategic decisions manufacturers make when balancing the abilities of live-streamers against the extra value and hassle costs they create for consumers across various product types. Design/methodology/approach The research employs a comparative analysis of single-channel and dual-channel strategies, examining how these strategies impact manufacturers’ profits. It also investigates the influence of product type and consumer type on manufacturers’ channel selection. An extended model is introduced to capture consumer heterogeneity by incorporating varying sensitivities to hassle costs. Findings The study reveals that dual-channel strategies are consistently more profitable than single-channel strategies. Channel selection is significantly influenced by product type and consumer type. For consumer goods, manufacturers choose either an H-streamer or a traditional online channel in single-channel strategies, while the optimal dual-channel strategy combines an H-streamer with a traditional online channel. For information goods, both single- and dual-channel strategies are influenced by consumers' sensitivity to hassle cost and the ability gap between streamers. The extended model further shows that the proportion of consumer groups also plays a key role in determining the optimal channel strategy. Originality/value This manuscript offers original insights into the strategic integration of live-stream channels in sales, revealing dual-channel strategies’ superior profitability over single-channel ones. It uniquely assesses how product type and consumer preferences dictate optimal channel selection, providing actionable guidance for manufacturers in the evolving e-commerce landscape.