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Product selling, social utility and virtual tips in live streaming

Author

Listed:
  • Pu, Xujin
  • Dai, Mingzhuo
  • Zhang, Jianqiang
  • Zhang, Wen

Abstract

Live streaming has gained significant popularity due to its ability to foster social interaction and promote products. This paper develops a theoretical model to examine consumers’ purchasing and tipping behaviors, incorporating their social utilities during live streaming. Our findings show that product selling and virtual tipping in live streaming interact through the moderating effect of social utility. As the size of followers increases, manufacturers tend to lower product prices in live streaming to stimulate both purchasing and tipping behaviors. However, continuously reducing the price is not an optimal strategy. Additionally, we demonstrate that live stream selling represents a win-win option for both influencers and manufacturers compared to direct selling. Interestingly, influencers with relatively small follower bases are even willing to sell manufacturers’ products without charging a commission. These insights deepen the understanding of live stream selling and virtual tips, offering practical guidance for live streaming professionals to make informed strategic decisions.

Suggested Citation

  • Pu, Xujin & Dai, Mingzhuo & Zhang, Jianqiang & Zhang, Wen, 2025. "Product selling, social utility and virtual tips in live streaming," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 201(C).
    • Handle: RePEc:eee:transe:v:201:y:2025:i:c:s1366554525002480
    DOI: 10.1016/j.tre.2025.104207
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