Propelling consumer engagement via entrepreneurs' live streaming?

Abstract

Entrepreneurs' live streaming (ELS) is an important tool for marketing, and it can increase consumer engagement, especially during the COVID-19 pandemic. Previous live streaming literature mainly focused on third-party live streaming, targeted at professional streamers and online celebrities. This study aims to discuss the factors underlying consumer engagement in the ELS. Using a mixed method of a quasi-experiment and an online survey, we analyzed the impact of the ELS on consumer engagement and the factors that drive consumer engagement in the ELS in each of 231 samples. In the enterprises' live streaming, the ELS has a significantly higher influence on consumer engagement compared with the employees' live streaming. In the ELS, based on source credibility theory and signaling theory, this study concludes that factors of ELS's credibility consist of internal factors (reputation, expertise, and interactivity) and external factors (guarantee, authenticity, and money-saving). The authors demonstrate that both internal and external factors positively affect trust in activities. Trust in activities positively affects consumer engagement and mediates the effects of reputation, expertise, interactivity, guarantee, and authenticity on consumer engagement. Moreover, reputation and expertise positively improve consumers' admiration toward the entrepreneur streamer and in turn, positively increase consumer engagement. Interactivity and expertise shorten the psychological distance. Psychological distance negatively affects consumer engagement and only helps increase the positive effect of interactivity on consumer engagement. These findings have theoretical and practical implications for live streaming e-commerce.