The interplay between different introducers and live streaming modes with spillover effect

Abstract Accepted by: Aris Syntetos The rapid expansion of e-commerce has led many businesses to adopt live streaming as a means to enhance product sales. This paper investigates two adoption strategies: one involving manufacturers implementing the live streaming, and the other where retailers utilize the live streaming. Additionally, we also consider two live streaming modes: live streaming agency mode and self-built live streaming mode. Based on different introducers and live streaming modes, there exist four scenarios: (i) the manufacturer introduces the live streaming agency mode; (ii) the retailer introduces the live streaming agency mode; (iii) the manufacturer establishes his own live streamer and (iv) the retailer establishes her own live streamer. We build theoretical models to derive and analyze the equilibrium outcomes across four distinct scenarios. Our results show that consumers may not always benefit from the live streaming since the retail price under this channel may be higher than that under the traditional channel. Given the introducer of the live streaming, the manufacturer and the retailer can achieve a win–win situation. From the perspectives of the entire supply chain and consumer surplus, the optimal strategy is that the manufacturer implements the self-built live streaming mode. These primary findings remain the same in the presence of spillover effects. Our study is of significant value to business practices.