1. Introduction
Live commerce has redefined an exciting new chapter in the world's retail environment and is among the many strategies China used towards the retail revolution. This means that the brand/company and consumers can interact directly as e-commerce and live stream merge and promptly showcase the items for purchase. Such a creative marketing strategy has been very effective, especially among the tech-savvy Internet Chinese customers. Live commerce has become a powerful force in China, changing the way that consumers make purchases. In the context of the Chinese market, this study aims to investigate the substantial benefits of live commerce in enhancing consumer buying intention.
The revolutionary nature of live commerce, which offers businesses a unique chance to engage with customers and increase sales, is why the study is important. Comprehending the determinants that propel consumer buying intention in live commerce is crucial for marketers, businesses, and legislators (Akram et al., 2021). This study aims to disentangle the complex web of pricing strategies, product engagement, social impact, consumer behavior, and trust-building in China's live commerce market. In order to help industry practitioners and decision-makers, it aims to provide practical insights and data-driven results.
The primary objective of this study is to find out how live commerce influences Chinese consumers' buying intentions. In order to accomplish this goal, we have framed our study around the following essential questions:
1. What effect does live commerce have on Chinese consumers' intentions to buy?
2. What are the main determinants of consumer purchasing intention in China's live commerce environment?
3. In live commerce environments, how do trust, product display, social impact, and pricing affect consumers' intention to make a purchase?
4. In what ways can companies use the results to improve their live commerce tactics in the Chinese market?
The existing literature on live commerce has predominantly focused on the global phenomenon. Still, it often needs more in-depth exploration of the Chinese market, which has proven to be a live commerce hub. A thorough investigation is required due to China's distinct digital ecosystem, customer preferences, and market dynamics (Cai et al., 2018). Although several insightful research studies have been conducted, there still needs to be more understanding of the complex dynamics that influence customer purchase intention in the setting of live commerce, particularly in China.
Although there has been some research on the impact of live commerce on consumers' purchase intentions, there has yet to be much in-depth research on the subject in the Chinese setting. This report closes this gap by focusing on the specifics of live commerce in the Chinese market, pinpointing the crucial elements influencing consumer choices, and outlining the best course of action for companies looking to expand their customer base and achieve success (Chang et al., 2021). Moreover, the earlier studies frequently needed a thorough methodological framework for gathering earlier research. In order to ensure the validity and rigor of our findings, this study used the PRISMA strategy, which methodically collects and evaluates peer-reviewed literature.
As live commerce continues to change the retail industry, this study aims to offer helpful information about how companies may take advantage of this emerging trend and improve their interaction with Chinese customers (Chao-Hsing & Chien-Wen, 2021). Our goal is to provide a new angle on this developing industry and aid in its expansion by studying the distinct dynamics at work in the Chinese live commerce market. This will ultimately help consumers and businesses in China and other regions.
2. Literature Review
The combination of e-commerce and live broadcasting, or "live commerce," has revolutionized consumer behavior and buying intents in the worldwide retail sector (Gu, 2020). This chapter thoroughly analyzes the body of research on live commerce, highlighting its influence on consumer behavior and particular use in the Chinese market. Even though live business has attracted much interest globally, this study aims to fill a specific research vacuum by exploring the Chinese context and looking at the variables that affect consumers' intentions to purchase in this unique environment.
2.1. Live Commerce: An Overview
The method encompasses live-stream shopping or live commerce, which involves marketing and selling products through live videos. This involves using a creative strategy that enables customers to interact with hosts, search through products or services, get live demonstrations, and decide which items to purchase (Han & Kang, 2020). China has been leading the way in adopting live commerce, which provides a distinctive fusion of entertainment, interaction, and ease of shopping.
Live commerce has become incredibly popular in the Chinese market and a powerful force influencing consumer behavior and preferences (Chen & Yang, 2021). Live commerce has become a crucial component of the retail ecosystem, led by platforms like Taobao Live from Alibaba and JD Live from JD.com. The allure of live commerce is its capacity to close the gap between online and in-store purchasing experiences by giving customers an immersive and captivating means of finding, assessing, and buying things in real time.
2.2. Effects of Live Commerce on Consumer Purchase Intention
Numerous studies have examined how live commerce affects consumers' purchase intentions. The increased sense of product engagement that live commerce offers is one of the main effects. In contrast to conventional online shopping, live commerce provides customers with in-the-moment interactions with hosts, allowing them to acquire knowledge, ask questions, and form a closer bond with the items (Chen et al., 2022). Because consumers are more likely to feel confident in their purchasing decisions, this greater engagement frequently correlates to higher purchase intention
Furthermore, social impact plays a significant part in live commerce contexts. Customers may be persuaded to buy products by influencers, celebrities, or close friends appearing on live streams (Choi & Lee, 2019). Because they see these prominent voices as trustworthy and credible, those who might not have otherwise considered purchasing are frequently persuaded by their endorsements and suggestions.
In live commerce, pricing tactics are also essential in determining a customer's likelihood of purchasing (Choudhury, 2020). Limited-time offers, flash sales, and special deals during live-streaming sessions inspire customers to make hasty purchasing decisions by fostering a sense of urgency and scarcity. Live commerce differs from conventional e-commerce platforms due to its dynamic pricing environment, which significantly influences customer behavior and buying intentions (Dai et al., 2018).
2.3. Live Commerce in China
China is a notable example of a country leading the world in live commerce acceptance and development. Live commerce has been able to flourish in the country because of the growing middle class and the highly tech-savvy populace (Fu & Hsu, 2023). The Chinese live commerce market is enormous in both size and power. For instance, live commerce sales during Alibaba's annual Singles' Day shopping event have soared into the billion-dollar range in a single day, demonstrating the immense potential of this marketing strategy in the Chinese market.
In this unique ecosystem, Chinese consumers display a particular affinity for live commerce. Cultural characteristics, including group purchasing, group decision-making, and a feeling of community, are what motivate this choice (Guo et al., 2021). A vast array of commodities, including electronics, clothes, cosmetics, and even agricultural products, are displayed and sold in Chinese live commerce. The range of products highlights how live commerce can be flexible and accommodating to a wide range of customer preferences.
2.4. Research Gap
The research gap in the existing literature is particularly conspicuous when understanding the nuances of live commerce in the Chinese market (Hair Jr et al., 2020). Although a number of studies have examined how live commerce affects consumer behavior globally, less attention has been paid to the particular dynamics and distinctive characteristics of the live commerce environment in China. China's significant influence in the live commerce industry creates a crucial gap in the literature (Hilvert-Bruce et al., 2018).
The Chinese market is very different from the rest of the world due to its unique cultural traits and consumer preferences. Chinese customers have demonstrated a striking propensity for live commerce, motivated by their love of group buying, communal decision-making, and a sense of community (Hou et al., 2020). Unfortunately, a thorough examination of these particular factors within the Chinese context is lacking in the current publication literature, which concentrates on general trends and effects.
Furthermore, previous research frequently provides a broad summary of how live commerce affects customer behavior without delving into the crucial elements that influence purchase intention in Chinese live commerce (Hsu et al., 2020). This study aims to fill the large knowledge gap left by this gap in the literature. This research seeks to provide a more thorough and nuanced understanding of what influences consumer purchase intention by exploring the factors of trust, product engagement, social influence, and pricing strategies within the Chinese live commerce environment, setting it apart from previous studies (Hu & Chaudhry, 2020). In doing so, it aims to offer valuable insights that firms and practitioners looking to navigate China's changing live commerce landscape successfully can put to use.
Table 2: The Flow of the Literature to Figured out the Gap
3. Study Design
3.1. Collecting Prior Studies
A structured methodology was used to guarantee a thorough and methodical examination of earlier research pertinent to the effects of live commerce on customer purchase intention (Nguyen et al., 2022). The Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) strategy, which is well known for its efficiency in carrying out thorough literature reviews, is followed by this technique.
This method's first step was determining the scope of the investigation and creating exact search phrases. With a particular emphasis on the Chinese market, the search phrases were created to gather research on the impact of live commerce on consumer purchase intention (Lau, 2020). To find peer-reviewed articles published between 2017 and 2023, pertinent academic databases such as China Knowledge Resource Integrated (CNKI), PubMed, Scopus, Web of Science, and others were carefully searched (Lee & Chen, 2021; Nantharath et al., 2016; Kang, 2023). This database selection aimed to focus on scholarly research while including a broad range of publications.
3.2. Screening and Selection Procedures
The PRISMA technique was adhered to in the systematic cycle of finding, screening, and selecting publications. Predefined keywords like "live commerce," "live-stream shopping," "consumer purchase intention," and "China" produced a large number of possibly pertinent research in the first search.
The next stage was preliminary screening when the titles and abstracts of the found papers were evaluated for their pertinence to the subject of the study. At this point, articles that did not meet the study's objectives or that had yet to undergo peer review were eliminated (Li & Han, 2021). This procedure made the pool of studies for additional review more manageable.
The next step was carefully going over each of the remaining articles' full texts to see if they qualified for the study. In this stage, articles were carefully examined to make sure they met the study goals, followed the correct methodology, and made sense in the context of live commerce in China (Li et al., 2022). The review team carried out all screening and selection processes independently as a fundamental component of the PRISMA methodology. Careful consideration and agreement settle Any differences or conflicts (Li et al., 2021).
The use of PRISMA brings about several advantages. This makes the review process transparent and organized, reducing the chance of bias or mistake. Additionally, it guarantees the incorporation of high-quality, peer-reviewed studies directly relevant to the study (Liao et al., 2021; Kang, 2022). By taking this strategy, the study improves the overall quality of the findings reported in Chapter 4 and validated the thoroughness of the literature review.
This systematic methodology strengthens the validity and comprehensiveness of the literature review, providing a solid foundation for the subsequent analysis in Chapter 4. It strengthens the validity and dependability of the study's conclusions, especially when comprehending how live commerce affects consumers' intentions to make purchases—with a focus on the Chinese market (Liu & Kim, 2021). The technique used in this analysis is rigorous, transparent, and replicable thanks to the PRISMA approach, which also guarantees that the chosen studies fulfill strict selection criteria (Phommahaxay et al., 2019).
Figure 1: PRISMA Statement for this Research
4. Results
This chapter's studies explore the ways that live commerce can boost consumer purchase intentions, with a particular emphasis on the Chinese consumer market. Using the PRISMA approach to systematically evaluate previous studies, as described in Chapter 3, we have discovered four major effects that highlight the significant impact of live commerce on customer behavior.
4.1. Effect 1: Heightened Product Engagement
Chinese consumers' greater propensity to purchase is primarily due to live commerce's ability to enable more intense product engagement. Live commerce allows users to communicate in real-time with hosts, who are frequently influencers or brand representatives, in contrast to typical e-commerce platforms where users can only browse static product images and descriptions (Liu et al., 2020). Customers can clarify any doubts they may have, ask questions, and—possibly most importantly—watch in-person product demonstrations during these exchanges (Han & Kang, 2020).
4.1.1. Supporting Points
Research by Lu and Chen (2021) highlighted the significant influence of increased product interaction in the live commerce setting. According to their research, customers who actively engaged in live commerce exchanges said they felt noticeably closer to the items they were contemplating. There was a significant correlation found between this increased engagement and the likelihood of making a purchase. Live commerce's real-time element improves product discovery while also creating a sense of community that is difficult for traditional e-commerce platforms to match.
The interactive dynamics of live commerce contribute to the reduction of consumer uncertainty and the establishment of trust, both of which are crucial factors influencing purchase intention. Customers feel less hesitant and more confident in their purchase selections when they can get rapid answers to their inquiries and concerns during live feeds. According to a study (Lu et al., 2018), Chinese customers' purchase intentions were considerably increased by this instantaneous response and participation in the live commerce context. This illustrates how live commerce offers customers direction, assurance, and the ability to make well-informed decisions, surpassing the constraints of traditional e-commerce.
4.2. Effect 2: Influential Social Factors
In China's lives commerce environment, social influence shows up as a vital and significant component influencing purchase intention (Lv et al., 2020). During live streaming, the presence of celebrities, influencers, or even friends has the unique power to impact viewer decisions. Their recommendations and endorsements foster credibility and trust, which effectively encourages customers to make purchases they might not have otherwise thought about.
4.2.1. Supporting Points
A thorough investigation carried out by Meng et al. (2021) associates brought attention to the prominent function those celebrities and key opinion leaders (KOLs) play in the live commerce space, especially in the Chinese market. Their findings suggest that Chinese customers' purchasing decisions are significantly influenced by the endorsements and suggestions offered by these influential individuals. Customers are persuaded to trust and follow the advice of these influencers by the respect and trust that are attached to them.
Preference for Collective Decision-Making: The social components of live commerce are nicely complemented by the Chinese consumer landscape's inclination for group buying and collective decision-making. Because live streaming sessions are engaging, they generate a sense of community and shared experiences, which makes customers feel more connected and at ease while making purchases. According to the study by Park and Lin (2020), customers are more likely to join the community and make purchases that are recommended by peers or influencers when they feel that they are part of a larger group.
4.3. Effect 3: Dynamic Pricing Strategies
Within China's live commerce environment, dynamic pricing techniques have a significant impact on consumer purchase intentions. These tactics establish a sense of scarcity and urgency in customers, encouraging them to make judgments about purchases quickly and with confidence—live commerce leverages dynamic pricing to differentiate itself from conventional e-commerce platforms.
4.3.1. Supporting Points
Li et al. (2021) highlighted the powerful effects of dynamic pricing schemes in the context of live commerce. When making an online sale during live commerce, offering time-limited discounts to participants substantially increased the proportion of purchases. Since customers are driven to buy before it is too late when they think they have got value for their money, the chances of making such purchases are increased greatly.
Combination with ‘Real-Time Interactions’: The real-time communication of customers with hosts, asking questions, and demonstrating products go hand in hand with dynamic pricing solutions. The combination of this increases the feeling of necessity among consumers at high prices, hence creating the urge to buy. Dynamic pricing is supported by interactivity that ensures the client gets more than expected. This involves a time-limited bargain and real-time communication between the customer and the merchant (Sharma & Bhatt, 2018). Customers are compelled to act quickly in live commerce because of the dynamic price environment, matching their purchase intentions with the attractive offers that are displayed (Sheng et al., 2019).
4.4. Effect 4: Trust and Credibility Building
Building Trust and credibility is crucial in the live commerce environment since it influences consumer purchase intention, especially for Chinese consumers. When Chinese consumers have a high degree of trust in the host, the product being pushed, and the platform hosting the live commerce session, they are more likely to make purchases (Sohn & Kim, 2020). Genuine conversations, open information exchange, and trustworthy product demos all help to build this trust.
4.4.1. Supporting Points
The research conducted by Song and Liu (2021) underscored the significant role of trust in the live commerce context. According to their research, customers were far more likely to make purchases if they felt that the hosts and the things, they were showcasing were trustworthy. Trust is a critical motivator that allays customer fears and gives them the confidence to move on with their purchase intentions.
Transparency and Authenticity: In the live commerce setting, a sense of transparency and authenticity is fostered by the combination of real-time interactions, product demonstrations, and Q&A sessions. This openness strengthens trust, quick access to information, and the chance to ask questions. Customers feel more secure in their purchasing decisions in an environment where they can see the product in use and get prompt answers to their questions, which lends the product a sense of reliability (Stahle, 2020)—a higher purchasing intention results from this increased trust.
These four effects collectively underscore the transformative power of live commerce in increasing consumer purchase intention within the unique context of the Chinese market. The consumer landscape has changed due to the interaction of increased product engagement, social influence, dynamic pricing methods, and trust-building techniques (Xiao et al., 2019). This has given businesses new ways to interact with and impact consumers in real-time. Businesses and practitioners can create more successful live commerce strategies that encourage increased consumer engagement and, eventually, higher purchase intention among Chinese consumers by identifying and utilizing these benefits.
Table 2: Summarization of the Findings
Figure 2: Cycling Process for Better Live Commerce Environment.
5. Discussions
The preceding chapters have examined how live commerce significantly influences consumers' intentions to make purchases, especially in the specific setting of the Chinese market. Live commerce practitioners in businesses looking to prosper in this changing environment must comprehend these implications (Xie et al., 2022). This chapter offers recommendations and practical implications that can help practitioners better understand how to use live commerce to increase consumer engagement and purchase intention.
5.1. Effect 1: Heightened Product Engagement
Implication: In order to promote more product engagement, live commerce practitioners should take advantage of the interactive features of the platform. Urge hosts to give thorough explanations, respond to questions very quickly, and interact with guests in a kind and educational way.
Recommendation: Create policies and training materials for hosts that stress the value of product interaction. Please give them the resources and know-how needed to efficiently present items and promote in-person encounters with customers (Yin et al., 2019). Additionally, think about enhancing product imagery with technology to provide customers with an immersive experience.
5.2. Effect 2: Influential Social Factors
Implication: Acknowledge how crucial social impact is to the ecosystem of live commerce. Engage in alliances or collaborations with celebrities or other influential individuals to use their persuasive influence while endorsing products (Li & Han, 2021).
Recommendation: Form alliances with well-known KOLs and influencers who complement your product line or brand. Use their popularity and authority to your advantage to reach a larger audience (Zhang & Yeap, 2023). Promote user-generated material and interact with user groups to foster a feeling of group decision-making and community development.
5.3. Effect 3: Dynamic Pricing Strategies
Implication: Using dynamic pricing techniques to increase purchase intention and provide a sense of urgency is effective. To prevent undermining trust, they should be utilized sparingly, nevertheless.
Recommendation: Carefully implement dynamic pricing techniques. Make sure that when you offer flash deals and limited-time discounts, customers see them as real possibilities. To build trust, be open and honest about the worth and limited availability of these incentives (Zhou et al., 2021). To optimize pricing strategies based on customer behavior and preferences, think about utilizing data analytics.
5.4. Effect 4: Trust and Credibility Building
Implication: In live trade, developing trust is crucial. To increase consumer trust, practitioners need to put honesty, openness, and dependability first.
Recommendation: Educate hosts on how to foster trust through genuine relationships, truthfulness, and transparency. Put quality control procedures in place to guarantee that the products are high-quality and reflect their descriptions. Provide strong customer service channels to rapidly and competently handle client complaints.
Practitioners of live commerce should understand the significance of encouraging more product interaction, utilizing social influence, using dynamic pricing tactics sparingly, and placing a premium on credibility and trust. Businesses can increase consumer purchase intention by putting these recommendations into practice and creating a live commerce environment that is more trustworthy and engaging (Akram et al., 2021). When these data are effectively incorporated into live commerce plans, businesses can be well-positioned to prosper in China's competitive live commerce market, where customers are looking for immersive, engaging, and real-world buying experiences.
6. Limitation of the Research
Although the present study has illuminated the favorable impacts of live commerce on customer purchase intention within the Chinese environment, it is imperative to recognize a number of limitations that warrant consideration in the interpretation of the results. These restrictions point out areas that need more investigation and study.
Geographic Specificity: The study's conclusions cannot be applied to other areas due to its concentration on the Chinese market. The consequences of live commerce can change depending on the culture, economy, and consumer behavior of a given place (Liu & Kim, 2021). For a more thorough understanding, future studies should examine actual trading in various international situations.
Evolving Nature of Live Commerce: The dynamic nature of live commerce is driven by changing consumer preferences, market strategies, and technological advancements. The conclusions may not include the most recent advancements because they reflect the situation of live trade as of 2022. To keep current, continuous monitoring is necessary.
Research Scope: The study focuses only on the advantages of live trade, leaving out any potential drawbacks. Subsequent studies must thoroughly investigate the positive and negative features, such as privacy worries, trust issues, and regulatory obstacles.
Methodological Restrictions: The effectiveness of the study's systematic review approach depends on the caliber and extent of earlier research. The results are impacted by the accessibility and applicability of these studies (Li & Han, 2021). For a more complex understanding of live commerce, future studies can take a variety of different techniques and various methodologies into account.
Temporal Relevance: The conclusions are based on research that will be accessible through 2022. Updates must be made frequently in order to keep up with the dynamic live commerce scene and all of its latest trends and advancements.
Cultural Factors: While the study acknowledges the existence of cultural subtleties in the Chinese market, it needs to delve deeper into examining the impact of these nuances on customer behavior in live commerce (Liao et al., 2021). Future studies should examine these cultural elements and how they affect consumers' intentions to make purchases.
Researchers and practitioners can more effectively evaluate the results and pinpoint areas for more study by being aware of these limitations. Because live commerce is a rapidly evolving topic, further research is essential to fully comprehending its ramifications and effects.
This study has delved into the profound effects of live commerce on consumer purchase intention, with a specific focus on the vibrant and dynamic Chinese market. After conducting a comprehensive analysis of previous studies, we have identified four primary outcomes that support the revolutionary potential of live commerce: increased product engagement, significant social influences, dynamic pricing tactics, and the establishment of trust and credibility.
The study's conclusions highlight how significantly live commerce has changed the way consumers interact with brands. Chinese customers have embraced live commerce enthusiastically, driven by their demand for exciting and dynamic buying experiences. Customers' purchase intentions have changed as a result of the live commerce platform's real-time interactions, dynamic pricing schemes, and reliable hosts. They are now more involved, decisive, and confident in their purchasing decisions.
As we draw to a close, it is clear that live commerce is a dynamic force influencing the direction of e-commerce and retail, not just a fad. We acknowledge that our study has limits, such as its geographic exclusivity and the dynamic nature of the live commerce environment. Nevertheless, we strongly recommend continued research to stay up to date with the field's swift advancements and account for regional variations.
The ramifications are evident for practitioners and businesses. Success in this cutting-edge field requires leveraging the power of live commerce through increased product engagement, social influence, dynamic pricing, and trust-building. Businesses may take advantage of the enormous potential of live commerce to encourage more significant customer interaction and buy intents by putting the advice given in Chapter 5 into practice.
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