Investigation of the Influence of Social Networks on the E-commerce Live Streaming Industry from Consumers’ and Firms’ Points of View

In this largely internet-based era, it is found that utilizing social media as a transaction platform is an increasingly popular trend for both customers and firms. Even though they make use of social media for different purposes, its commonly recognized convenience, which allows a wider and faster information dissemination process via social networks, has great positive impacts on the streaming e-commerce industry. This paper uses different models and theories to explore the significance of social networking to both customers and firms. However, there are some drawbacks associated with such wide and quick dissemination of information because of the inability to distinguish between correct and false information and potential rumors. Then, suggestions will be given to both buyers and sellers of the products sold in live-streaming chatrooms to maximize the use of social media and social networking. This paper will mainly study the effects of social networks on electronic word-of-mouth and incentive mechanisms.