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Joint Optimization Decision of Online Retailers’ Pricing and Live‐Streaming Effort in the Postepidemic Era

Author

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  • Jinrong Liu
  • Qi Xu
  • Zhongmiao Sun

Abstract

The isolation requirements of the coronavirus epidemic and the intuitive display advantages of live‐streaming have led to an increasing number of retailers shifting to social live‐streaming platforms and e‐commerce live‐streaming platforms to promote and sell their products in real time. However, the provision of live‐streaming services will also incur high live‐streaming effort costs. In this paper, we develop two decision models for retailers to sell goods through a single online shop and both online shop and live‐streaming room; we also present the optimal decisions of pricing and live‐streaming efforts. Furthermore, we identify the profitability conditions for retailers to determine when to provide live‐streaming services. In addition, we examine the impact of the provision of live‐streaming services on the optimal price and live‐streaming effort. We obtain three findings. First, there is a unique optimal decision on the price and live‐streaming effort under certain conditions. Second, when the effect coefficient of the live‐streaming room reaches a certain threshold, there are enough customers who enter the live‐streaming room to watch and buy and it is profitable for retailers to provide live‐streaming service. Finally, the optimal price and live‐streaming effort increase with the increase in average return loss, the effect coefficient of live‐streaming effort, and the extra return rate and decrease with the increase in the proportion of customers who choose to buy in the online shop and the price discount coefficient in the live‐streaming room.

Suggested Citation

  • Jinrong Liu & Qi Xu & Zhongmiao Sun, 2022. "Joint Optimization Decision of Online Retailers’ Pricing and Live‐Streaming Effort in the Postepidemic Era," Complexity, John Wiley & Sons, vol. 2022(1).
    • Handle: RePEc:wly:complx:v:2022:y:2022:i:1:n:8762922
    DOI: 10.1155/2022/8762922
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    References listed on IDEAS

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    1. Li, Guo & Li, Lin & Sun, Jiasen, 2019. "Pricing and service effort strategy in a dual-channel supply chain with showrooming effect," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 126(C), pages 32-48.
    2. Minjeong Ham & Sang Woo Lee, 2020. "Factors Affecting the Popularity of Video Content on Live-Streaming Services: Focusing on V Live, the South Korean Live-Streaming Service," Sustainability, MDPI, vol. 12(5), pages 1-17, February.
    3. 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).
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    Cited by:

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    2. Tao Jiang & Youwei Guo, 2026. "The brand self-live streaming or the influencer live-streaming? The impact of dispatching time on the brand decisions," Electronic Commerce Research, Springer, vol. 26(2), pages 1141-1178, April.

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