The Power of Live Streaming: Driving Consumer Purchases in China's E-Commerce

The study explores how live streaming in China's e-commerce sector influences consumer purchase intentions, highlighting the importance of trust, product presentation, and platform engagement in driving impulsive buying behavior. It provides valuable insights for businesses on leveraging live streaming effectively to boost sales.

Research conducted by the KMITL Business School at King Mongkut's Institute of Technology Ladkrabang, Bangkok, investigates the increasingly significant role of live streaming in shaping consumer purchase intentions within China's dynamic e-commerce sector. This study is particularly relevant as live streaming has become a powerful tool in digital marketing, merging entertainment with commerce to create a unique and engaging shopping experience. The researchers applied a Structural Equation Modeling (SEM) approach to explore how various attributes of live streaming, such as the characteristics of live streamers, the quality of products, and the features of streaming platforms, impact consumers' intentions to purchase. The study draws on the Stimulus-Organism-Response (SOR) theory, which provides a conceptual framework for understanding how external stimuli, in this case, live streaming content influence consumers' internal states, such as trust and emotional arousal, which subsequently affect their purchasing behavior.

The Power of Live Streamers: Building Trust in Real-Time

The study's findings highlight several key factors that significantly influence consumer purchase intentions during live streaming sessions. One of the most critical factors identified is the role of the live streamer. Live streamers, particularly those who are popular, professional, and engaging, have a profound impact on building trust with their audience. This trust is crucial because, in the absence of physical product examination, consumers rely heavily on the credibility and persuasiveness of the live streamer. The more trusted the streamer, the more likely viewers are to make a purchase. The research also found that the interactivity of live streamers, their ability to engage with the audience in real-time, and their responsiveness to viewer questions and comments further enhance this trust, making viewers feel more confident in their purchase decisions.

The Key to Capturing Consumer Interest

Another significant finding from the study is the importance of product characteristics in influencing purchase intentions. Products that are perceived to be of high quality, practical, and well-presented during live streaming sessions tend to attract more consumer interest. The study suggests that consumers are more likely to trust and buy products that are clearly demonstrated and endorsed by the live streamer, especially when the product's attributes are effectively communicated. This finding underscores the importance for businesses to carefully select the products they promote during live streams and to ensure that these products are showcased in a way that highlights their value and appeal.

Engaging Consumers Through Immersive Experiences

The research also emphasizes the role of the live streaming platform itself in shaping consumer behavior. The platform's features, such as its entertainment value, promotional activities, and the overall atmosphere of the live streaming session, contribute significantly to creating an immersive shopping experience. The study found that platforms that offer a lively and engaging environment, coupled with attractive promotions and discounts, are more likely to encourage impulsive buying behavior among viewers. This impulsiveness is further amplified by the sense of urgency created during live streams, where limited-time offers and real-time interactions make consumers feel compelled to make quick purchase decisions.

The Driving Forces Behind Purchase Decisions

Trust and impulsiveness are identified as the two key mediators in the relationship between live streaming attributes and purchase intentions. Trust, both cognitive and emotional, plays a central role in determining whether a consumer will proceed with a purchase. Cognitive trust refers to the consumer's belief in the reliability and competence of the live streamer and the platform, while emotional trust is related to the consumer's emotional attachment and confidence in the product being promoted. The study found that when consumers trust the live streamer, the platform, and the product, they are more likely to have positive purchase intentions. Impulsiveness, on the other hand, is driven by the immediate gratification that live streaming offers. The study suggests that the interactive nature of live streaming, where consumers can ask questions and receive instant feedback, creates a sense of personal connection and exclusivity, which can lead to impulsive purchases.

Leveraging Live Streaming for E-Commerce Success

The implications of these findings are significant for businesses and marketers operating in the e-commerce space. To maximize the effectiveness of live streaming as a marketing tool, companies should focus on selecting charismatic and credible live streamers who can build trust with the audience. Additionally, businesses should ensure that the products featured in live streams are of high quality and are presented in a way that highlights their benefits and practicality. Finally, the design and atmosphere of the live streaming platform should be optimized to create an engaging and immersive experience that encourages impulsive buying.

The research provides valuable insights into the factors that influence consumer purchase intentions in the context of e-commerce live streaming. By understanding the roles of trust and impulsiveness, businesses can better tailor their live streaming strategies to enhance consumer engagement and drive sales. As live streaming continues to grow in popularity, especially in markets like China, the findings of this study offer a useful framework for businesses looking to leverage this powerful marketing tool effectively. Future research could explore the impact of emerging technologies, such as augmented reality (AR) and virtual reality (VR), on live streaming commerce and how these innovations might further enhance the consumer shopping experience.