The Impact of Live-Streamed Selling on Consumer Purchasing Behavior

Research Article
Open access

The Impact of Live-Streamed Selling on Consumer Purchasing Behavior

Shitong Xiao 1*
  • 1 Yucai Senior High School, Wuhan, 430000, China    
  • *corresponding author Kaaaaa0216@ldy.edu.rs
Published on 18 October 2024 | https://doi.org/10.54254/2754-1169/114/2024BJ0151
AEMPS Vol.114
ISSN (Print): 2754-1177
ISSN (Online): 2754-1169
ISBN (Print): 978-1-83558-616-7
ISBN (Online): 978-1-83558-615-0

Abstract

In recent years, with the rapid development of the Internet and major e-commerce platforms, "live-streamed selling" as a novel marketing method has entered the vision of consumers and gradually become an important way to market goods to consumers. In addition, economic development has enriched people's material life and increased the frequency of people using the Internet, which further increases the possibility of live streaming to attract consumers and increase purchasing behavior. This paper aims to discuss the impact of live-streamed selling on consumer behavior, mainly focusing on the impact of commodity characteristics, anchor characteristics, atmosphere and after-sales service on consumer behavior in the process of live delivery. In addition, this paper also discusses the impact and distress of live delivery on consumer behavior and puts forward some countermeasures. However, live-streamed selling faces challenges like information asymmetry, false propaganda, and counterfeiting due to inadequate supervision. The study suggests strict product quality checks, enhanced after-sales services, and improved supervision mechanisms to ensure reliable, authentic, and safe sales practices.

Keywords:

E-commerce platforms, live-streamed selling, purchasing behavior

Xiao,S. (2024). The Impact of Live-Streamed Selling on Consumer Purchasing Behavior. Advances in Economics, Management and Political Sciences,114,40-44.
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1. Introduction

In the existing literature, the definition of "live-streamed selling" is mentioned: live streaming e-commerce refers to a new marketing method in which anchors use live streaming technology to explain commodity information to consumers with the help of Internet platforms, and interact with consumers in real time to promote commodity transactions [1]. As a new marketing method, live streaming of goods takes the network and platform as the medium to implement targeted push through products suitable for different groups and live streaming styles in line with the preferences of different groups, which can more accurately meet the needs of different types of consumers and attract the attention of more potential consumers of the same kind, so as to promote more consumption

2. Factors Influencing Consumer Behavior

2.1. The Effect of Product and Promotion

Existing studies mentioned that: the influence of commodity factors on consumers' purchasing psychology can be judged from the actual situation after the purchase and use of products, among which goods with better use conditions can be called benefit [2]. This study divides benefits into psychological benefits, functional benefits and social benefits. Among them, psychological benefits include commodities indirectly show the identity and status of consumers; Functional benefits include the convenience brought to consumers by the functions of the product, such as buying a mobile phone with good performance and taking high-quality photos. Social benefit refers to the reaction that the consumer receives from others, such as the recognition and praise of the consumer's use of the product after the purchase of the product by friends, family, etc. The study points out that commodity factors can affect consumer psychology. The benefits brought by goods to consumers are actually the emotional values brought by goods to consumers, such as satisfaction, sense of value, vanity, which will stimulate consumers' purchase behavior, because they want to get more benefits. One limitation of the study is that it does not show how consumers perceive the benefits of the goods. Therefore, there needs to be a medium between the commodity and consumer perception, the promotion in live broadcast. In another study it is mentioned that: With regard to product and promotion, the existing studies are classified as the definition, the influence, the extension, and the application [3]. These studies verified that product and promotion could stimulate consumers' purchase intention. The study showed that: Promotion could directly affect consumers' purchase intention and indirectly exert influence through the mediating role of positive emotion. In the broadcast room, marketing builds a bridge between commodities and consumers. The benefits and value of commodities are presented to consumers more completely and comprehensively through marketing, and consumers judge whether the commodities meet their needs through the information received. For example, women need clothes that can show charm and figure, and children need clothes with safe, non-toxic and soft materials. But it is difficult for them to find the desired products without introduction and recommendation. Therefore, consumers can be live in the intensive marketing to dig their potential or non-potential needs to match, and then complete the purchase.

2.2. The Effect of Anchor Characteristics

Anchors are the most critical and core figures in live streaming e-commerce, connecting the supply side and the demand side. In live broadcasting, anchors are equivalent to shopping guides in offline shopping and serve as the basis for connecting consumers and products [4]. Anchors play an important role in live broadcasting, mainly explaining products according to the planned live broadcasting process, attracting consumers' attention, introducing the performance and price of the products and the preferential activities in the live broadcasting room, and making consumers feel positive emotions. Therefore, live streamers have an impact on consumer behavior. Relevant studies point out that the influence of anchors on consumer behavior includes professionalism, attraction and interactivity [2]. As for professionalism, the professionalism of the anchor includes the depth and multi-dimension of his product introduction, and the professionalism also includes the authority of the anchor in the commodity industry. Therefore, a professional anchor will attract more consumers who pay attention to the practicability of the commodity; As for attractiveness, those purchasing behaviors that are not induced by practicality may be influenced by the attractiveness of anchors. Anchors with attractiveness are better at attracting consumers with their own appeal, appearance and responsiveness, and have a positive impact on consumer behavior. As for the interactivity, the interactivity of the anchor includes the frequent and active interaction between the anchor and the consumer in the live broadcast room, and the discount and welfare of the anchor to the consumer. Studies have shown that the good interaction of anchors themselves can enhance consumers' consumption experience, enrich consumers' psychological state, and form a good shopping experience, so as to promote consumption. The limitation of this study is the lack of analysis of the characteristics of anchors that will have a negative impact on consumer behavior. For example: deception, procrastination. Deception refers to the anchor's vague introduction of the product, exaggerating the use of the product and concealing the shortcomings of the product. Procrastination is a reflection of a lack of professionalism, meaning that anchors need a lot of time to introduce the focus, which will consume consumers' patience and hinder consumer behavior. The results show that the various characteristics of anchors have an impact on consumer behavior.

2.3. The Effect of Live Broadcast Atmosphere

Live broadcast atmosphere refers to the live broadcast mode, background picture, product preferential mechanism, music, tone and attitude of anchors displayed in the live broadcast process. These factors will shape the live broadcast atmosphere of passion, professionalism or humor, which has a positive effect on attracting consumers' attention and gaining consumers' trust, so as to achieve more consumption transformation. Therefore, consumers' internal states caused by live broadcast atmosphere will affect their purchasing behaviors. Internal states include users’ cognitive and emotional states, such as perceptions, experiences, and evaluations [5]. In addition, studies have pointed out that after the COVID-19 pandemic lockdowns, when a lot of companies started to use live streaming for its advantages, live broadcasting is conducive to allowing consumers to see convincing introductions and real products and services in a more comprehensive way [6], thus strengthening consumers' trust in products and sellers, which is the advantage of live broadcasting sales over traditional industries. Another document shows that customers love the option to purchase through live-streaming shopping since it is simple to inspect things from different angles and ask pertinent questions [7]. All these mean that the consumer trust shaped by the live broadcast atmosphere is conducive to increasing consumers' positive emotions and even purchasing behaviors, which has something to do with environmental psychology. The stimulus organism and response (S-O-R) theory presented by Mehrabian and Russellis an approach to environmental psychology. [8] The SOR model has three stages, i.e., environmental or external stimuli, consumers’ internal state or organism and response. First, stimuli affect consumers’ organism, which ultimately influences consumers' responses [9]. By analogy, the live broadcast atmosphere can stimulate the strengthening of consumers' trust in products, and consumers' trust is related to consumers' purchase intention to a certain extent.

One study conducted data analysis using Structural equation modeling (SEM) [10]. Their research shows that trust in both the products and the sellers during live-streaming shopping positively correlates with the customer’s intent to purchase. However, one of the limitations of this study is that their data comes from consumers' purchase intention rather than consumers' actual purchase behavior, which may cause some data bias and affect the accuracy of conclusion judgment. Another limitation of this study is that its research sample is mainly composed of live streaming e-commerce in China, and the universality of the conclusions that can be reflected by the data of e-commerce in China is limited. The Chinese e-commerce market is not representative of the global e-commerce market. The study should begin with data collection for countries at different stages of development and with different cultures. To sum up, live broadcast atmosphere can have a positive impact on the establishment of consumer trust, and the increase of consumer trust is positively correlated with the increase of consumer purchase behavior.

3. Problems with Live-streamed Selling

The consumption model of live- streamed selling is also facing some problems while developing rapidly

3.1. Information Asymmetry and False Propaganda

Live- streamed selling can introduce and market products to thousands of consumers at the same time, which can bring a lot of sales and high profits to sellers and anchors. In order to get more income, anchors may hide negative information about products from consumers or exaggerate the advantages and functions of products. For example, in 2020, Simba's team sold ready-to-eat bird's nest in the broadcast room, and their promotion mentioned that this ready-to-eat bird's nest is a bird's nest product, which contains enough bird's nest and has good efficacy. However, the authoritative test of professional organizations found that the actual content of the ready-to-eat bird's nest with fire was less than 2%. Sugar water accounts for the main component, and the actual cost is very low. The quality and efficacy are seriously substandard.

In the end, the Simba team admitted the mistake of exaggerating the publicity and took responsibility for compensation [11]. These situations are mainly due to the fact that during the live- streamed selling, the introduction of the anchor is the main source for consumers to obtain product information, so the wrong publicity of the anchor will greatly mislead consumers, which infringes on the legitimate rights and interests of consumers

3.2. Widespread Counterfeiting and Insufficient Supervision

Live- streamed selling helps to promote products that are difficult to be seen by consumers in traditional markets, and it greatly increases the diversity of traded goods by taking advantage of online sales and network platforms. However, the lack of supervision and the different quality levels of sellers and anchors allow the sale of fake and shoddy products to flow into the market, which is not an optimistic phenomenon. For example, in 2020, Liao, the owner of the broadcast, did not clearly indicate the brand name of the product when selling goods with exclusive designs and patterns of luxury goods in the broadcast room, but used highly directional and suggestive expressions, and also blurred the trademark of the product when displaying [11]. The luxury goods sold in the studio were identified by authorities as fake and shoddy goods. This situation caused by insufficient supervision will greatly reduce the shopping experience of consumers, and even destroy the consumer market and shopping environment of live streaming with goods.

4. Suggestions for Improvement of Live- streamed Selling

4.1. Strict Inspection of product Quality and Improve After-sales Service

After-sales service is an extended service for live- streamed selling, which is beneficial for protecting consumers' purchase experience and legitimate rights and interests. The seller should strictly control the quality of the product with high standards, and the agent and anchor team should also conduct a comprehensive inspection and trial of the product quality and efficacy before deciding to sell the product, which has a positive impact on reducing the return rate. In addition, the platform should improve after-sales service and simplify the process of returns and exchanges, and solve problems as soon as possible when consumers ask for returns, so that consumers can get a better consumption experience

4.2. Improvement in the Supervision Mechanism for Live Delivery of Goods

For illegal sales practices in live broadcasts, supervision can play a big role. In order to ensure the stability of the economic market and the orderly competition of the livestreaming industry, the government needs to strengthen supervision on the reliability, authenticity and safety of the sales behavior in the livestreaming process. Specifically, a series of technical means can be used to conduct real-time monitoring of the livestreaming process of voice, picture and data, and improve the reward mechanism and punishment mechanism. To encourage e-commerce anchors to sell goods legally and crack down on sales behaviors that violate consumer rights and interests

5. Conclusion

This study explored how various factors such as product characteristics, anchor attributes, and the overall live broadcast atmosphere influence consumer behavior. Key findings indicate that the detailed presentation of products, the professionalism and charisma of anchors, and a conducive live broadcast environment can significantly impact consumer trust and purchasing intention. However, information asymmetry, false advertising, and the prevalence of counterfeit products present substantial risks to consumers. These problems underscore the need for stringent quality control measures and robust after-sales services Furthermore, enhancing supervision mechanisms is crucial to ensure the reliability, authenticity, and safety of live-streamed selling practices.


References

[1]. Gong, L., Zhan, S., Kong, D., & Yu, T. (2023). The current state, research subjects, and prospects of live e-commerce: A systematic literature review (Part 1). Journal of Nanyang Institute of Technology, (01), 70-75.

[2]. Li, Q. (2023). Analysis of the development logic of "e-commerce + live streaming" and the factors influencing consumer purchasing psychology. Modernization of Shopping Malls, (21), 22-24.

[3]. Zhou, R., & Tong, L. (2022). A study on the influencing factors of consumers' purchase intention during livestreaming e-commerce: the mediating effect of emotion. Frontiers in psychology, 13, 903023.

[4]. Wang, B. (2021). The nature, logic, and trend prospects of live e-commerce. China Business and Market, 35(04), 48-57.

[5]. Friedrich, T., Schlauderer, S., and Overhage, S. (2019). The impact of social commerce feature richness on website stickiness through cognitive and affective factors: an experimental study. Electron. Commer. Res. Appl. 36:100861. doi: 10.1016/J.ELERAP.2019.100861

[6]. Zhang, L., Chen, M., & Zamil, A. M. (2023). Live stream marketing and consumers’ purchase intention: An IT affordance perspective using the SOR paradigm. Frontiers in Psychology, 14, 1069050.

[7]. Lu, Z., Xia, H., Heo, S., and Wigdor, D. (2018). “You watch, you give, and you engage,” in Conference on Human Factors in Computing Systems, Montreal. QC, Canada, 1–13.

[8]. Mehrabian, A., and Russell, J. A. (1974). An Approach to Environmental Psychology. Cambridge, MA: MIT Press.

[9]. Zhang, H., Lu, Y., Gupta, S., and Zhao, L. (2014). What motivates customers to participate in social commerce? The impact of technological environments and virtual customer experiences. Inf. Manag. 51, 1017–1030. doi: 10.1016/J.IM.2014.07.005

[10]. Zhang, L., Chen, M., & Zamil, A. M. (2023). Live stream marketing and consumers’ purchase intention: An IT affordance perspective using the SOR paradigm. Frontiers in Psychology, 14, 1069050.

[11]. Pu Z.Z. & Cheng H.G. (2023). Consumption risk and industry ecological optimisation of e-commerce live broadcasting. Journal of Langfang Normal College (Social Science Edition) (01), 118-122. doi:10.16124/j.cnki.cn13-1390/c.2023.01.014.


Cite this article

Xiao,S. (2024). The Impact of Live-Streamed Selling on Consumer Purchasing Behavior. Advances in Economics, Management and Political Sciences,114,40-44.

Data availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

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About volume

Volume title: Proceedings of ICEMGD 2024 Workshop: Innovative Strategies in Microeconomic Business Management

ISBN:978-1-83558-616-7(Print) / 978-1-83558-615-0(Online)
Editor:Lukáš Vartiak, Xinzhong Bao
Conference website: https://2024.icemgd.org/
Conference date: 26 September 2024
Series: Advances in Economics, Management and Political Sciences
Volume number: Vol.114
ISSN:2754-1169(Print) / 2754-1177(Online)

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References

[1]. Gong, L., Zhan, S., Kong, D., & Yu, T. (2023). The current state, research subjects, and prospects of live e-commerce: A systematic literature review (Part 1). Journal of Nanyang Institute of Technology, (01), 70-75.

[2]. Li, Q. (2023). Analysis of the development logic of "e-commerce + live streaming" and the factors influencing consumer purchasing psychology. Modernization of Shopping Malls, (21), 22-24.

[3]. Zhou, R., & Tong, L. (2022). A study on the influencing factors of consumers' purchase intention during livestreaming e-commerce: the mediating effect of emotion. Frontiers in psychology, 13, 903023.

[4]. Wang, B. (2021). The nature, logic, and trend prospects of live e-commerce. China Business and Market, 35(04), 48-57.

[5]. Friedrich, T., Schlauderer, S., and Overhage, S. (2019). The impact of social commerce feature richness on website stickiness through cognitive and affective factors: an experimental study. Electron. Commer. Res. Appl. 36:100861. doi: 10.1016/J.ELERAP.2019.100861

[6]. Zhang, L., Chen, M., & Zamil, A. M. (2023). Live stream marketing and consumers’ purchase intention: An IT affordance perspective using the SOR paradigm. Frontiers in Psychology, 14, 1069050.

[7]. Lu, Z., Xia, H., Heo, S., and Wigdor, D. (2018). “You watch, you give, and you engage,” in Conference on Human Factors in Computing Systems, Montreal. QC, Canada, 1–13.

[8]. Mehrabian, A., and Russell, J. A. (1974). An Approach to Environmental Psychology. Cambridge, MA: MIT Press.

[9]. Zhang, H., Lu, Y., Gupta, S., and Zhao, L. (2014). What motivates customers to participate in social commerce? The impact of technological environments and virtual customer experiences. Inf. Manag. 51, 1017–1030. doi: 10.1016/J.IM.2014.07.005

[10]. Zhang, L., Chen, M., & Zamil, A. M. (2023). Live stream marketing and consumers’ purchase intention: An IT affordance perspective using the SOR paradigm. Frontiers in Psychology, 14, 1069050.

[11]. Pu Z.Z. & Cheng H.G. (2023). Consumption risk and industry ecological optimisation of e-commerce live broadcasting. Journal of Langfang Normal College (Social Science Edition) (01), 118-122. doi:10.16124/j.cnki.cn13-1390/c.2023.01.014.