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Paper Number
2074
Paper Type
Completed
Description
With the rise of the live streaming industry, streamers are facing stiff competition. While there is a common perception that loyalty generates more profits for the firm, there is also conflicting evidence that loyal customers may not be charged more. The live streaming context provides an ideal setting to empirically examine the value of loyal customers and offers a new dimension for measuring behavioral loyalty. Our results suggest that customers with higher consumption loyalty generally pay less while those with higher social loyalty tend to voluntarily pay more. Moreover, there is a crowding-out effect for the same type of resources and a compensation effect between different types of resources concerning the relationship between historical and current inputs. Theoretical explanations drawn on the social exchange theory and practical implications are discussed.
Recommended Citation
Yao, Xinyan; Wang, Alex; and Liu, Hongju, "Do Loyal Customers Pay More in Live Streaming?" (2023). ICIS 2023 Proceedings. 2.
https://aisel.aisnet.org/icis2023/user_behav/user_behav/2
Do Loyal Customers Pay More in Live Streaming?
With the rise of the live streaming industry, streamers are facing stiff competition. While there is a common perception that loyalty generates more profits for the firm, there is also conflicting evidence that loyal customers may not be charged more. The live streaming context provides an ideal setting to empirically examine the value of loyal customers and offers a new dimension for measuring behavioral loyalty. Our results suggest that customers with higher consumption loyalty generally pay less while those with higher social loyalty tend to voluntarily pay more. Moreover, there is a crowding-out effect for the same type of resources and a compensation effect between different types of resources concerning the relationship between historical and current inputs. Theoretical explanations drawn on the social exchange theory and practical implications are discussed.
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