To Gift or Not: Understanding Gifting Behavior on Live Streaming Platforms from the Perspective of Social Influence and Herding

Live streaming has been increasingly popular worldwide, with gift-giving emerging as a pivotal revenue stream for many streamers. While prior research has delved into the influence of streamers' emotions and viewer-streamer interaction on viewers' gift-giving behaviors, we suggest that peer viewers also play an essential role. In line with the principles of social influence and herding theory, the behaviors of peer viewers and the size of the viewing group are integral factors shaping individual behaviors. Hence, in the context of lives streaming, we focus on examining the impact of peer viewers' gift-giving behaviors and the audience size on the gift-giving behaviors of individual viewers, respectively. Additionally, we examine the moderating role of viewers' identities. We collected data from a popular live streaming platform in China and employed a panel regression model based on a sample of 651,678 viewers. This study contributes to the gift-giving literature by revealing the influence of peer viewers on focal viewers' likelihood of gifting, gifting frequency and gifting value, and the moderating effect of viewers' identities. Overall, these results have significant implications for both the theoretical understanding of social influence and herding in online setting, as well as the practical implications for future live streaming management. Future research could delve deeper into understanding the impact of various types of live streaming content and cultural differences on individual's gift-giving behavior.