Shallow or prudent? A firm’s optimal streamer choice in live-streaming e-commerce
研究了垄断企业在直播电商中选择浅薄型(低可靠性)或谨慎型(高可靠性)主播的最优策略,发现产品类型和消费者对误导推荐的容忍度影响选择,浅薄主播在某些情况下可能不损害消费者福利。
In light of the significant influence of streamers’ recommendations on consumer purchase intentions in live-streaming e-commerce, this paper investigates the optimal strategy for a monopoly firm in selecting a cooperative streamer. We develop an analytical model to capture the distinct recommendation strategies employed by the shallow (low-reliability) and the prudent (high-reliability) streamers. Our findings reveal that cooperating with the prudent streamer who possesses a significant reliability advantage over the shallow one is more beneficial for the firm when marketing mass products. Conversely, cooperating with the shallow streamer is more profitable when the prudent streamer’s reliability advantage is minor, or even significant but the firm promotes niche products. The prudent streamer outperforms in profitability when marketing mass products with a high price or when consumers are less tolerant of misleading recommendations, while the shallow streamer performs better when recommending niche products or when consumers exhibit a high tolerance for misleading recommendations. Interestingly, the shallow streamer may not harm consumer surplus, especially when their reliability is relatively high and promoting products that target niche markets, and can even benefit social welfare if consumers are tolerant of misleading recommendations. These findings generate novel managerial insights into live-streaming practice.