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The live-streaming strategy for competitive manufacturers considering information disclosure and product heterogeneity

Author

Listed:
  • Liwen Liu
  • Qing Wang
  • Zonghuo Li
  • Tingting Wu
  • Yuan Yuan

Abstract

Live-streaming has become increasingly populous in recent years and a large body of manufacturers such as Apple and Huawei have adopted live-streaming strategies. Despite the live-streaming can disclose product information and enhance consumer utilities, consumers may leave the market if they realize that the product is not fit for them after watching the live-streaming. This paper studies the opening strategy of live-streaming for competitive manufacturers who sell products with differential quality. Four cases regarding whether the manufacturers open a live-streaming channel to disclose product information are modeled, namely, NN (no manufacturer opens), DN/ND (one manufacturer opens), and DD (both manufacturers open). We further analyze how product quality influences live-streaming strategies. The result shows that adopting live-streaming allows a manufacturer to charge higher prices, whereas competitor live-streaming adoption exerts downward price pressure. Interestingly, live-streaming does not universally benefit manufacturers. Rather, for the high-quality manufacturer, the manufacturer benefits from the live-streaming channel when the fitness of its product is mid-value. However, for the low-quality manufacturer, the manufacturer will be better off by opening a live-streaming channel when the fitness of its product is large.

Suggested Citation

  • Liwen Liu & Qing Wang & Zonghuo Li & Tingting Wu & Yuan Yuan, 2026. "The live-streaming strategy for competitive manufacturers considering information disclosure and product heterogeneity," PLOS ONE, Public Library of Science, vol. 21(2), pages 1-24, February.
    • Handle: RePEc:plo:pone00:0339997
    DOI: 10.1371/journal.pone.0339997
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    References listed on IDEAS

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    1. Zhang, Wen & Yu, Lili & Wang, Zhenzhen, 2023. "Live-streaming selling modes on a retail platform," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 173(C).
    2. Chen, Aihui & Lu, Yaobin & Wang, Bin, 2017. "Customers’ purchase decision-making process in social commerce: A social learning perspective," International Journal of Information Management, Elsevier, vol. 37(6), pages 627-638.
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