An enterprise information systems perspective on live-streaming mode selection: virtual vs. human influencers

Virtual streamers have emerged as an alternative to influencer streamers. How to balance virtual streamers’ cost-efficiency and influencer streamers’ cross-channel information spillover is crucial for manufacturers. We study a dual-channel model including traditional online and live-streaming (LS) channels, where the manufacturer chooses LS modes (virtual or influencer streamer). We show that the virtual streamer is optimal for the manufacturer when the influencer’s commission rate is high and the LS channel holds a large market share. Surprisingly, the traditional retailer prefers competing with the influencer streamer, as the virtual streamer intensifies competition by lowering prices, while the influencer streamer differentiates channels.