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Strategic live modes and channel incentive in an e-commerce supply chain considering impulsive consumers
Journal article   Peer reviewed

Strategic live modes and channel incentive in an e-commerce supply chain considering impulsive consumers

Lingchen Huang, Wenjing Shen, Bin Liu and Yaobin Wu
Expert systems with applications, v 331, 133462
15 Dec 2026
Featured in Collection :   Drexel's Newest Publications

Abstract

Channel strategy Impulsive buying KOL-live Live streaming Self-live Supply chain management
This paper examines the retailer’s selection between KOL (Key Opinion Leader)-live and self-live selling when introducing a live-streaming channel alongside an existing traditional e-channel and investigates how pricing decisions regulate demand and align channel incentives. While KOLs expand market size, they also incur commission fees and may trigger impulsive buying, leading to higher returns. Our results show that the retailer’s selection of selling formats depends on both impulsive buying behavior and the channel structure. In the centralized structure, the retailer adopts KOL-live at a high commission fee when KOL’s market expansion efficiency is high in the absence of impulsive consumers (ICs). Specifically, the retailer leverages KOL-live for market expansion, while setting a lower price on the traditional e-channel than on the live-streaming channel to divert purchases away from the live-streaming channel and avoid a high commission fee. Otherwise, self-live is adopted. However, ICs discourage the retailer from adopting KOL-live under a high commission fee. When the commission fee is moderate, the retailer can utilize the live-streaming channel (traditional e-channel) to target ICs (Non-Impulsive consumers) by setting a relatively high price for live-streaming channel. In the decentralized structure, the manufacturer can strategically lower the wholesale price to increase the retailer’s preference for KOL-live. Moreover, decentralization alleviates the negative impact of ICs.

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