IDEAS home Printed from https://ideas.repec.org/a/eee/joreco/v67y2022ics0969698922000893.html
   My bibliography  Save this article

Short-term or long-term cooperation between retailer and MCN? New launched products sales strategies in live streaming e-commerce

Author

Listed:
  • Mao, Zhaofang
  • Du, Zelin
  • Yuan, Ruiying
  • Miao, Qiqi

Abstract

Nowadays, live streaming e-commerce has become popular all over the world. In this paper, we study the pricing strategy of new products when they are launched in live streaming considering the consumer uncertainty and network externalities. We characterize the impact of live streaming into two dimensions, emotional support and information support, and investigate how those two dimensions impact the choice of cooperation types and the revenue distribution between the retailer and MCN (Multi-Channel Network). Using a two-stage vertical model, we find that, with the low consumer uncertainty, the MCN induces the retailer to choose the cooperation type depending on the emotional support level, but with the high consumer uncertainty, it depends on the information support level. For new-product pricing strategy, whether to adopt the penetration pricing strategy or the skimming pricing strategy depends on the impact of live streaming, the consumer uncertainty and network externalities. Interestingly, the commission price does not increase with the consumer uncertainty. An important implication for the retailer is that, reducing consumer uncertainty may not be beneficial to the total profit.

Suggested Citation

  • Mao, Zhaofang & Du, Zelin & Yuan, Ruiying & Miao, Qiqi, 2022. "Short-term or long-term cooperation between retailer and MCN? New launched products sales strategies in live streaming e-commerce," Journal of Retailing and Consumer Services, Elsevier, vol. 67(C).
    • Handle: RePEc:eee:joreco:v:67:y:2022:i:c:s0969698922000893
    DOI: 10.1016/j.jretconser.2022.102996
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0969698922000893
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jretconser.2022.102996?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Wongkitrungrueng, Apiradee & Assarut, Nuttapol, 2020. "The role of live streaming in building consumer trust and engagement with social commerce sellers," Journal of Business Research, Elsevier, vol. 117(C), pages 543-556.
    2. Dirk Bergemann & Juuso Valimaki, 1997. "Market Diffusion with Two-Sided Learning," RAND Journal of Economics, The RAND Corporation, vol. 28(4), pages 773-795, Winter.
    3. Baojun Jiang & Bicheng Yang, 2019. "Quality and Pricing Decisions in a Market with Consumer Information Sharing," Management Science, INFORMS, vol. 65(1), pages 272-285, January.
    4. Meng, Lu (Monroe) & Duan, Shen & Zhao, Yijun & Lü, Kevin & Chen, Siyun, 2021. "The impact of online celebrity in livestreaming E-commerce on purchase intention from the perspective of emotional contagion," Journal of Retailing and Consumer Services, Elsevier, vol. 63(C).
    5. Niu, Baozhuang & Yue, Haoran & Luo, Huajiang & Shang, Weixin, 2019. "Pricing for newly-launched experience products: Free trial or not?," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 126(C), pages 149-176.
    6. Li, You & Li, Xiaolin & Cai, Jiali, 2021. "How attachment affects user stickiness on live streaming platforms: A socio-technical approach perspective," Journal of Retailing and Consumer Services, Elsevier, vol. 60(C).
    7. Hsing Kenneth Cheng & Yipeng Liu, 2012. "Optimal Software Free Trial Strategy: The Impact of Network Externalities and Consumer Uncertainty," Information Systems Research, INFORMS, vol. 23(2), pages 488-504, June.
    8. Nelson, Phillip, 1970. "Information and Consumer Behavior," Journal of Political Economy, University of Chicago Press, vol. 78(2), pages 311-329, March-Apr.
    9. Yugang Yu & Yanjun Wang & Yan Liu, 2021. "Product quality and quantity with responsive pricing," International Journal of Production Research, Taylor & Francis Journals, vol. 59(23), pages 7160-7178, December.
    10. Dmitri Kuksov & Chenxi Liao, 2019. "Opinion Leaders and Product Variety," Marketing Science, INFORMS, vol. 38(5), pages 812-834, September.
    11. Guo, Yuanyuan & Zhang, Kexin & Wang, Chaoyou, 2022. "Way to success: Understanding top streamer's popularity and influence from the perspective of source characteristics," Journal of Retailing and Consumer Services, Elsevier, vol. 64(C).
    12. Pavel Kireyev & Vineet Kumar & Elie Ofek, 2017. "Match Your Own Price? Self-Matching as a Retailer’s Multichannel Pricing Strategy," Marketing Science, INFORMS, vol. 36(6), pages 908-930, November.
    13. Ghobadi, Somayeh Najafi- & Bagherinejad, Jafar & Taleizadeh, Ata Allah, 2021. "A two-generation new product model by considering forward-looking customers: Dynamic pricing and advertising optimization," Journal of Retailing and Consumer Services, Elsevier, vol. 63(C).
    14. Sridhar Balasubramanian & Shantanu Bhattacharya & Vish V. Krishnan, 2015. "Pricing Information Goods: A Strategic Analysis of the Selling and Pay-per-Use Mechanisms," Marketing Science, INFORMS, vol. 34(2), pages 218-234, March.
    15. Man Yu & Laurens Debo & Roman Kapuscinski, 2016. "Strategic Waiting for Consumer-Generated Quality Information: Dynamic Pricing of New Experience Goods," Management Science, INFORMS, vol. 62(2), pages 410-435, February.
    16. Abril, Carmen & Sanchez, Joaquin, 2016. "Will they return? Getting private label consumers to come back: Price, promotion, and new product effects," Journal of Retailing and Consumer Services, Elsevier, vol. 31(C), pages 109-116.
    17. Khorshidvand, Behrooz & Soleimani, Hamed & Sibdari, Soheil & Seyyed Esfahani, Mir Mehdi, 2021. "Revenue management in a multi-level multi-channel supply chain considering pricing, greening, and advertising decisions," Journal of Retailing and Consumer Services, Elsevier, vol. 59(C).
    18. Schmalensee, Richard, 1982. "Product Differentiation Advantages of Pioneering Brands," American Economic Review, American Economic Association, vol. 72(3), pages 349-365, June.
    19. Park, Hyun Jung & Lin, Li Min, 2020. "The effects of match-ups on the consumer attitudes toward internet celebrities and their live streaming contents in the context of product endorsement," Journal of Retailing and Consumer Services, Elsevier, vol. 52(C).
    20. Duan, Yongrui & Feng, Yixuan, 2021. "Optimal pricing in social networks considering reference price effect," Journal of Retailing and Consumer Services, Elsevier, vol. 61(C).
    21. Pnina Feldman & Yiangos Papanastasiou & Ella Segev, 2019. "Social Learning and the Design of New Experience Goods," Management Science, INFORMS, vol. 65(5), pages 1502-1519, April.
    22. De Nijs, Romain & Rhodes, Andrew, 2013. "Behavior-based pricing with experience goods," Economics Letters, Elsevier, vol. 118(1), pages 155-158.
    23. repec:hal:pseose:halshs-00916563 is not listed on IDEAS
    24. Martin Spann & Marc Fischer & Gerard J. Tellis, 2015. "Skimming or Penetration? Strategic Dynamic Pricing for New Products," Marketing Science, INFORMS, vol. 34(2), pages 235-249, March.
    25. Xiao Huang & Dan Zhang, 2020. "Service Product Design and Consumer Refund Policies," Marketing Science, INFORMS, vol. 39(2), pages 366-381, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zhai, Mengfan & Chen, Yuan, 2023. "How do relational bonds affect user engagement in e-commerce livestreaming? The mediating role of trust," Journal of Retailing and Consumer Services, Elsevier, vol. 71(C).
    2. Li, Yanran & Li, Bo & Wang, Minxue & Liu, Yang, 2023. "Optimal sales strategies for an omni-channel manufacturer in livestreaming demonstration trends," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 180(C).
    3. Da, Yuwen & Gou, Qinglong & Liang, Chao, 2023. "Will self-gifting of streamers hurt unions? Analyzing the union’s compensation mechanism for a live streaming supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 177(C).
    4. Gao, Wei & Jiang, Ning & Guo, Qingqing, 2023. "How do virtual streamers affect purchase intention in the live streaming context? A presence perspective," Journal of Retailing and Consumer Services, Elsevier, vol. 73(C).
    5. Zheng, Shiyong & Chen, Jiada & Liao, Junyun & Hu, Hsin-Li, 2023. "What motivates users' viewing and purchasing behavior motivations in live streaming: A stream-streamer-viewer perspective," Journal of Retailing and Consumer Services, Elsevier, vol. 72(C).
    6. Datta, Alotosh & Sarkar, Biswajit & Dey, Bikash Koli & Sangal, Isha & Yang, Liu & Fan, Shu-Kai S. & Sardar, Suman Kalyan & Thangavelu, Lakshmi, 2024. "The impact of sales effort on a dual-channel dynamical system under a price-sensitive stochastic demand," Journal of Retailing and Consumer Services, Elsevier, vol. 76(C).
    7. Yanyan Wu & Hongqing Huang, 2023. "Influence of Perceived Value on Consumers’ Continuous Purchase Intention in Live-Streaming E-Commerce—Mediated by Consumer Trust," Sustainability, MDPI, vol. 15(5), pages 1-19, March.
    8. Chaoyong Qin & Xinyu Zeng & Shichang Liang & Ke Zhang, 2023. "Do Live Streaming and Online Consumer Reviews Jointly Affect Purchase Intention?," Sustainability, MDPI, vol. 15(8), pages 1-19, April.
    9. Zhen, Xueping & Wang, Ping & Li, Xinran, 2024. "The Streamer's sales strategy choice considering sales effort," Journal of Retailing and Consumer Services, Elsevier, vol. 78(C).
    10. Lu, Yusheng & Duan, Yongrui, 2024. "Strategic live streaming choices for vertically differentiated products," Journal of Retailing and Consumer Services, Elsevier, vol. 76(C).
    11. Ki, Chung-Wha (Chloe) & Chenn, Ashley & Man Chong, Sze & Cho, Erin, 2024. "Is livestream shopping conceptually New? a comparative literature review of livestream shopping and TV home shopping research," Journal of Business Research, Elsevier, vol. 174(C).
    12. Xiao, Quan & Wan, Shanshan & Zhang, Xing & Siponen, Mikko & Qu, Lu & Li, Xia, 2022. "How consumers’ perceptions differ towards the design features of mobile live streaming shopping platform: A mixed-method investigation of respondents from Taobao Live," Journal of Retailing and Consumer Services, Elsevier, vol. 69(C).
    13. Li, Li & Chen, Xiaoting & Zhu, Peng, 2024. "How do e-commerce anchors' characteristics influence consumers’ impulse buying? An emotional contagion perspective," Journal of Retailing and Consumer Services, Elsevier, vol. 76(C).
    14. Xin, Baogui & Hao, Yaru & Xie, Lei, 2023. "Strategic product showcasing mode of E-commerce live streaming," Journal of Retailing and Consumer Services, Elsevier, vol. 73(C).
    15. Zhang, Yanfen & Xu, Qi & Zhang, Guoqing, 2023. "Optimal contracts with moral hazard and adverse selection in a live streaming commerce market," Journal of Retailing and Consumer Services, Elsevier, vol. 74(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Yang, Xiao & Liu, Ying & Dong, Jichang & Li, Sirui, 2023. "Impact of streamers’ characteristics on sales performance of search and experience products: Evidence from Douyin," Journal of Retailing and Consumer Services, Elsevier, vol. 70(C).
    2. Luo, Xi & Cheah, Jun-Hwa & Hollebeek, Linda D. & Lim, Xin-Jean, 2024. "Boosting customers’ impulsive buying tendency in live-streaming commerce: The role of customer engagement and deal proneness," Journal of Retailing and Consumer Services, Elsevier, vol. 77(C).
    3. Li, Li & Chen, Xiaoting & Zhu, Peng, 2024. "How do e-commerce anchors' characteristics influence consumers’ impulse buying? An emotional contagion perspective," Journal of Retailing and Consumer Services, Elsevier, vol. 76(C).
    4. Luo, Lijuan & Xu, Meiling & Zheng, Yujie, 2024. "Informative or affective? Exploring the effects of streamers’ topic types on user engagement in live streaming commerce," Journal of Retailing and Consumer Services, Elsevier, vol. 79(C).
    5. Li, Feng & Du, Timon C. & Wei, Ying, 2023. "This is what’s in store for you: How online social learning affects product positioning," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 179(C).
    6. Yang, Rui & Tang, Wansheng & Dou, Mengdi & Zhang, Jianxiong, 2021. "Pricing and investing in co-creation with customers for a duopoly," International Journal of Production Economics, Elsevier, vol. 237(C).
    7. Mark Ng & Monica Law & Lubanski Lam & Celine Cui, 2023. "A study of the factors influencing the viewers’ satisfaction and cognitive assimilation with livestreaming commerce broadcast in Hong Kong," Electronic Commerce Research, Springer, vol. 23(3), pages 1565-1590, September.
    8. Zhang, Tao & Tang, Zhongjun, 2023. "Should manufacturers open live streaming shopping channels?," Journal of Retailing and Consumer Services, Elsevier, vol. 71(C).
    9. Zheng, Shiyong & Chen, Jiada & Liao, Junyun & Hu, Hsin-Li, 2023. "What motivates users' viewing and purchasing behavior motivations in live streaming: A stream-streamer-viewer perspective," Journal of Retailing and Consumer Services, Elsevier, vol. 72(C).
    10. Ki, Chung-Wha (Chloe) & Chenn, Ashley & Man Chong, Sze & Cho, Erin, 2024. "Is livestream shopping conceptually New? a comparative literature review of livestream shopping and TV home shopping research," Journal of Business Research, Elsevier, vol. 174(C).
    11. Bingsheng Liu & Wenwen Zhu & Yinghua Shen & Yuan Chen & Tao Wang & Fengwen Chen & Maggie Wenjing Liu & Shi‐Hao Zhou, 2022. "A study about return policies in the presence of consumer social learning," Production and Operations Management, Production and Operations Management Society, vol. 31(6), pages 2571-2587, June.
    12. Gao, Wei & Jiang, Ning & Guo, Qingqing, 2023. "How do virtual streamers affect purchase intention in the live streaming context? A presence perspective," Journal of Retailing and Consumer Services, Elsevier, vol. 73(C).
    13. Liao, Miyan & Fang, Jiaming & Han, Lintong & Wen, Ling & Zheng, Qiqi & Xia, Guoen, 2023. "Boosting eCommerce sales with livestreaming in B2B marketplace: A perspective on live streamers’ competencies," Journal of Business Research, Elsevier, vol. 167(C).
    14. Wang, Jiayun & Shum, Stephen & Feng, Gengzhong, 2022. "Supplier’s pricing strategy in the presence of consumer reviews," European Journal of Operational Research, Elsevier, vol. 296(2), pages 570-586.
    15. Sirui Li & Ying Liu & Jing Su & Litao Duan & Hui Fu, 2024. "Men resist men: streamer-consumer gender match for advertising the functional benefits of heterogeneously priced utilitarian products," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-13, December.
    16. Liu, Baolong & Wang, Weilong, 2023. "Live commerce retailing with online influencers: Two business models," International Journal of Production Economics, Elsevier, vol. 255(C).
    17. Wang, Bin & Xie, Fengyuan & Kandampully, Jay & Wang, Jin, 2022. "Increase hedonic products purchase intention through livestreaming: The mediating effects of mental imagery quality and customer trust," Journal of Retailing and Consumer Services, Elsevier, vol. 69(C).
    18. Cai, Yajun & Wu, Yibin & Xue, Weili, 2024. "Social media retailing in the creator economy," Omega, Elsevier, vol. 124(C).
    19. Zhen, Xueping & Wang, Ping & Li, Xinran, 2024. "The Streamer's sales strategy choice considering sales effort," Journal of Retailing and Consumer Services, Elsevier, vol. 78(C).
    20. J. Miguel Villas-Boas, 2000. "Competing with Experience Goods," Econometric Society World Congress 2000 Contributed Papers 0771, Econometric Society.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:joreco:v:67:y:2022:i:c:s0969698922000893. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/journal-of-retailing-and-consumer-services .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.