Paper Type
Complete
Abstract
Several retailers have adopted live streaming marketing (LM) channels to boost product sales. While LM can reduce consumer uncertainty and thus impact sales positively, it may also increase product returns due to impulsive purchases, thereby affecting retailer profitability. This paper develops an analytical model to explore the optimal pricing and channel strategies of two competing retailers. Our results show that: (1) symmetric adoption of LM can intensify price competition and distort price-quality signaling; (2) price competition makes the no-LM equilibrium unstable, with the weaker retailer more inclined to adopt LM; and (3) LM adoption, whether by one or both retailers, can lead to a win–win outcome for both retailers and consumers.
Paper Number
1506
Recommended Citation
Li, Guangyu; MA, DAN; and Nan, Guofang, "Live Marketing in Duopoly Competition: Channel Strategy and Competitive Dynamics" (2026). AMCIS 2026 Proceedings. 5.
https://aisel.aisnet.org/amcis2026/sig_dspe/sig_dspe/5
Live Marketing in Duopoly Competition: Channel Strategy and Competitive Dynamics
Several retailers have adopted live streaming marketing (LM) channels to boost product sales. While LM can reduce consumer uncertainty and thus impact sales positively, it may also increase product returns due to impulsive purchases, thereby affecting retailer profitability. This paper develops an analytical model to explore the optimal pricing and channel strategies of two competing retailers. Our results show that: (1) symmetric adoption of LM can intensify price competition and distort price-quality signaling; (2) price competition makes the no-LM equilibrium unstable, with the weaker retailer more inclined to adopt LM; and (3) LM adoption, whether by one or both retailers, can lead to a win–win outcome for both retailers and consumers.
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