69. Retailer’s Optimal Pricing Strategies and Channel Dynamics in Live Streaming Sales
Invited abstract in session WA-47: Consumer Demand and Marketing II, stream Retail Operations.
Wednesday, 8:30-10:00Room: Parkinson B08
Authors (first author is the speaker)
| 1. | Asmita Mukherjee
|
| Quantitative Methods and Operations Management, Indian Institute of Management Kozhikode | |
| 2. | Arqum Mateen
|
| Quantitative Methods and Operations Management, Indian Institute of Management Kozhikode |
Abstract
The retail platform sector has witnessed the emergence of live stream e-commerce, a novel approach where products are showcased by streamers, and consumers make purchases in real-time during live broadcasts. This trend has gained traction on social media platforms such as YouTube and Facebook. Moreover, platforms like Amazon, Walmart, and Taobao have integrated live streaming capabilities into their e-commerce infrastructure, further expanding the reach of this innovative retail model. This study focuses on the pricing and channel choice problem of a retailer opting to sell goods through live streaming wherein they also have the option of collaborating with social media content creators, popularly known as influencers. We utilise game theory to find the retailer’s optimal pricing and sales channel choices by incorporating several variables such as product prices, commission structures and the influencer’s effort level towards consumer engagement. We provide several strategic insights for the platform stakeholders to increase their profits which is prone to be influenced by consumer’s sensitivity towards the overall quality of live streaming in different channels and also suggest potential future directions.
Keywords
- E-Commerce
- Revenue Management and Pricing
- Game Theory
Status: accepted
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