| Title | Optimal quality effort strategy in supply chain of live streaming e-commerce considering herding effect and anchor influence |
| Author | ZHANG Cuihua; ZHAO Xiangru |
| Abstract | The emerging trend in the e-commerce industry is live streaming e-commerce, which involves characteristics such as tangibility, interactivity, and following suit, distinguishing itself from traditional e-commerce. These novel features have instigated changes in consumers′ purchase intentions and behaviors, consequently influencing decision-making among members of the live streaming e-commerce supply chain. Given the rapid development of live streaming e-commerce, quality issues associated with it have become increasingly prominent and cannot be disregarded. Therefore, studying quality effort strategies for live streaming e-commerce supply chains that consider herding effects and anchor influence holds significant importance.We study a live streaming e-commerce supply chain comprising a brand supplier, a streamer, and an e-commerce platform equipped with live streaming capabilities. Our study considers the impact of herd effect and anchor influence on consumer utility and builds a quality effort strategy model for the live streaming e-commerce supply chain that integrates two sales forms (resale form and agency form) along with three live streaming modes (no live streaming mode, seller self-broadcast mode, and entrusted celebrity streamer to live streaming mode). The objective of this study is to analyze the decision-making process for quality and the optimal mode selection strategy in the live streaming e-commerce supply chain under the interaction of the herd effect and anchor influence. Subsequently, we determine the optimal quality effort strategy, pricing strategy, and equilibrium profit for each member in six scenarios by employing game theory. Furthermore, we compare and analyze these equilibrium outcomes to gain insights into their implications. Finally, through numerical simulation, we explore how herd effect, anchor influence, and market size affect the optimal quality effort strategy as well as the optimal profit and mode selection strategy for members of the live streaming e-commerce supply chain; conclusions are drawn along with its management implications.Our research indicates that 1) both product quality effort and live streaming service quality effort are positively correlated with herd effect and anchor influence. However, the optimal quality effort and its growth rate vary under different scenarios. To provide consumers with higher quality products, suppliers should adopt the seller self-broadcast model in the resale form or choose to cooperate with celebrity streamers in an agency form when both the herd effect and the market size are large. 2) For suppliers aiming to increase their market share, it is advisable to use the seller self-broadcast model and sign a resale contract with the platform when both the herd effect and the market size are small; alternatively, they can opt for an entrusted celebrity streamer live streaming model when both factors are large. When the market size is small, it is more beneficial for suppliers to opt for a seller self-broadcast model to maximize their profits. As both the herd effect and the market size increase, collaboration between suppliers and celebrity streamers will yield higher profits for suppliers. 3) For platforms seeking to improve product quality sold on their platform, signing a resale contract with suppliers after introducing live streaming would be more conducive to reputation building and long-term development. If a platform wants to expand its market share, choosing a seller self-broadcast mode when both the herd effect and market size are relatively small would be better, whereas collaborating with celebrity streamers would be more effective at increasing sales when both factors are high. 4) If the supplier and platform choose the celebrity live streaming mode during periods of high herd effect and market size or choose the seller self-broadcast mode when the herd effect is high but the market size is low, then both parties can achieve a win-win situation.In summary, this study builds quality effort decision models for live streaming e-commerce supply chains under various sales formats and live streaming scenarios based on game theory. The study aimed to explore the influence of herd effect, anchor influence, and market size on the optimal strategies for quality effort and mode selection in the live streaming e-commerce supply chain. This study comprehensively considers the quality effort strategy among multiple members of the live streaming e-commerce supply chain under the interaction of herd effect and anchor influence. Furthermore, two sales formats are combined with three live streaming models to enhance the existing theoretical research on quality effort and mode selection strategies in the context of live streaming e-commerce supply chains. Additionally, this study provides decision support for members of live streaming e-commerce supply chains regarding their strategies for quality effort and mode selection. |
| Keywords | Live streaming e-commerce supply chain; Quality effort; Herding effect; Anchor influence |
| Issue | Vol. 39, No. 6, 2025 |
Title
Optimal quality effort strategy in supply chain of live streaming e-commerce considering herding effect and anchor influence
Author
ZHANG Cuihua; ZHAO Xiangru
Abstract
The emerging trend in the e-commerce industry is live streaming e-commerce, which involves characteristics such as tangibility, interactivity, and following suit, distinguishing itself from traditional e-commerce. These novel features have instigated changes in consumers′ purchase intentions and behaviors, consequently influencing decision-making among members of the live streaming e-commerce supply chain. Given the rapid development of live streaming e-commerce, quality issues associated with it have become increasingly prominent and cannot be disregarded. Therefore, studying quality effort strategies for live streaming e-commerce supply chains that consider herding effects and anchor influence holds significant importance.We study a live streaming e-commerce supply chain comprising a brand supplier, a streamer, and an e-commerce platform equipped with live streaming capabilities. Our study considers the impact of herd effect and anchor influence on consumer utility and builds a quality effort strategy model for the live streaming e-commerce supply chain that integrates two sales forms (resale form and agency form) along with three live streaming modes (no live streaming mode, seller self-broadcast mode, and entrusted celebrity streamer to live streaming mode). The objective of this study is to analyze the decision-making process for quality and the optimal mode selection strategy in the live streaming e-commerce supply chain under the interaction of the herd effect and anchor influence. Subsequently, we determine the optimal quality effort strategy, pricing strategy, and equilibrium profit for each member in six scenarios by employing game theory. Furthermore, we compare and analyze these equilibrium outcomes to gain insights into their implications. Finally, through numerical simulation, we explore how herd effect, anchor influence, and market size affect the optimal quality effort strategy as well as the optimal profit and mode selection strategy for members of the live streaming e-commerce supply chain; conclusions are drawn along with its management implications.Our research indicates that 1) both product quality effort and live streaming service quality effort are positively correlated with herd effect and anchor influence. However, the optimal quality effort and its growth rate vary under different scenarios. To provide consumers with higher quality products, suppliers should adopt the seller self-broadcast model in the resale form or choose to cooperate with celebrity streamers in an agency form when both the herd effect and the market size are large. 2) For suppliers aiming to increase their market share, it is advisable to use the seller self-broadcast model and sign a resale contract with the platform when both the herd effect and the market size are small; alternatively, they can opt for an entrusted celebrity streamer live streaming model when both factors are large. When the market size is small, it is more beneficial for suppliers to opt for a seller self-broadcast model to maximize their profits. As both the herd effect and the market size increase, collaboration between suppliers and celebrity streamers will yield higher profits for suppliers. 3) For platforms seeking to improve product quality sold on their platform, signing a resale contract with suppliers after introducing live streaming would be more conducive to reputation building and long-term development. If a platform wants to expand its market share, choosing a seller self-broadcast mode when both the herd effect and market size are relatively small would be better, whereas collaborating with celebrity streamers would be more effective at increasing sales when both factors are high. 4) If the supplier and platform choose the celebrity live streaming mode during periods of high herd effect and market size or choose the seller self-broadcast mode when the herd effect is high but the market size is low, then both parties can achieve a win-win situation.In summary, this study builds quality effort decision models for live streaming e-commerce supply chains under various sales formats and live streaming scenarios based on game theory. The study aimed to explore the influence of herd effect, anchor influence, and market size on the optimal strategies for quality effort and mode selection in the live streaming e-commerce supply chain. This study comprehensively considers the quality effort strategy among multiple members of the live streaming e-commerce supply chain under the interaction of herd effect and anchor influence. Furthermore, two sales formats are combined with three live streaming models to enhance the existing theoretical research on quality effort and mode selection strategies in the context of live streaming e-commerce supply chains. Additionally, this study provides decision support for members of live streaming e-commerce supply chains regarding their strategies for quality effort and mode selection.
Keywords
Live streaming e-commerce supply chain; Quality effort; Herding effect; Anchor influence
Issue
Vol. 39, No. 6, 2025
References