Live streaming is reshaping retail strategies and prompting manufacturers to reconsider their channel choices. This study develops a game-theoretic model to examine how the informativeness of online reviews affects the manufacturer’s decisions regarding live streaming adoption, sales format (resale vs. agency), and pricing. We find that live streaming is adopted in both formats when the setup cost falls below a threshold. In particular, the informativeness of online reviews affects the decision differently: its impact is non-monotonic and shaped by entertainment value under the resale format, while under the agency format, it is moderated by the proportion of multi-channel consumers. The selection between sales formats is governed by different factors depending on whether live streaming is adopted. Furthermore, under the resale format, the informativeness of online reviews may increase or decrease product prices, depending on market conditions. These findings underscore how multiple elements jointly affect manufacturers’ pricing and channel choices.
- Decision-making in sales formats and live streaming adoption: the influence of online reviews
- Xiao-Jing Chu (Author) - Northeastern UniversityKhaled Hadj-Hamou (Author) - Institut National des Sciences Appliquées de LyonTian-Hui You (Corresponding Author) - Northeastern UniversityYacine Rekik (Author) - emlyon business school
- Electronic Commerce Research
- Springer
- 55
- 9952963209453
- Department of Operations, Data & Artificial Intelligence; AIM - Artificial Intelligence in Management Institute; QUANT - Quantitative Methods in Business
- English
- Journal article