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1233. Product bundling strategy for co-live streaming E-commerce considering consumer subscription

Invited abstract in session WA-45: Decision Support for Operations Management, stream Decision Support Systems.

Wednesday, 8:30-10:00
Room: 30 (building: 324)

Authors (first author is the speaker)

1. Cai Shoujie
School of Economics and Management, Southeast University

Abstract

Livestreaming e-commerce has emerged as a highly effective channel for manufacturers and retailers recently. When two streamers from different rooms collaborate to host a co-live streaming event and individually promote products in their respective rooms, it attracts various types of consumers with assessments to products. In this background, we explore the optimal decisions and the best sales strategy for three common ivestreaming sales strategies: pure component (PC), mixed bundling (MB), and pure bundling (PB). The study shows that it is more advantageous for streamers of similar or identical types to collaborate in a co-live streaming event, and MB and PB strategies consistently outperform PC strategy; however, a co-live streaming event doesn’t offer significant advantages over a solo-live one when there is already sufficient traffic. The extended studies explore the robustness of the findings and uncover two additional insights. Firstly, a co-live streaming room with a higher proportion of co-subscribers yields more profits. Secondly, if two streamers sell similar or identical products, PB strategy is more effective if valuation discounts are low, whereas MB strategy shines. However, when co-live streaming sells significant different products, MB strategy is advantageous only when streamers with lower traffic recommend higher value products.

Keywords

Status: accepted

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