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Spillover Effects of Livestream Promotions on E-Commerce Platform Food Sales

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  • Chang, Hung-Hao
  • Meyerhoefer, Chad D.

Abstract

We investigate the spillover effects of agri-food product sales during livestream promotions aired on Facebook Live to sales on a linked e-commerce platform. Using instrumental variables estimation to account for selection of the products chosen for livestream promotion, we find moderate spillover effects on platform sales and profits. Specifically, livestream sales of the same product category increase platform sales by 2 percent, while livestream sales of other products increase platform sales by 3.9 percent. Indirect spillovers are larger than direct spillovers due to the higher volume of promotional sales of other products. Our results suggest that livestreaming is an effective means of price discriminating and increasing agri-food e-commerce sales.

Suggested Citation

  • Chang, Hung-Hao & Meyerhoefer, Chad D., 2025. "Spillover Effects of Livestream Promotions on E-Commerce Platform Food Sales," 2025 AAEA & WAEA Joint Annual Meeting, July 27-29, 2025, Denver, CO 360841, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea25:360841
    DOI: 10.22004/ag.econ.360841
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    References listed on IDEAS

    as
    1. Hung‐Hao Chang & Chad D. Meyerhoefer, 2021. "COVID‐19 and the Demand for Online Food Shopping Services: Empirical Evidence from Taiwan," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(2), pages 448-465, March.
    2. Oksana Loginova, 2022. "Price competition online: Platforms versus branded websites," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 31(2), pages 259-283, April.
    3. Zhiyuan Yu & Kun Zhang, 2022. "The Determinants of Purchase Intention on Agricultural Products via Public-Interest Live Streaming for Farmers during COVID-19 Pandemic," Sustainability, MDPI, vol. 14(21), pages 1-22, October.
    4. Ji, Guojun & Fu, Tianyu & Li, Shuhao, 2023. "Optimal selling format considering price discount strategy in live-streaming commerce," European Journal of Operational Research, Elsevier, vol. 309(2), pages 529-544.
    5. Min Zhang & Fang Qin & G. Alan Wang & Cheng Luo, 2020. "The impact of live video streaming on online purchase intention," The Service Industries Journal, Taylor & Francis Journals, vol. 40(9-10), pages 656-681, July.
    6. 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.
    7. Zhang, Cong & Pan, Siyu & Zhao, Yanhui, 2024. "More is not always better: Examining the drivers of livestream sales from an information overload perspective," Journal of Retailing and Consumer Services, Elsevier, vol. 77(C).
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