Inventory and pricing decisions of brand owners and streamers under demand uncertainty

Abstract

Purpose In the practice of live streaming e-commerce, the consumer demand is usually uncertain, and the inventory and prices can be decided by brand owners or streamers. To this end, this study examines the inventory and pricing decisions of the brand owner and streamer in a live streaming e-commerce supply chain under demand uncertainty. Design/methodology/approach In this study, four scenarios are considered, i.e. the brand owner determines the inventory and price (Scenario BB), the brand owner determines the inventory and the streamer determines the price (Scenario BS), the streamer determines the inventory and the brand owner determines the price (Scenario SB), and the streamer determines the inventory and price (Scenario SS). Findings The results show that the inventory and prices, as well as the profits of the brand owner and streamer increase with the consumer sensitivity to streamer’s sales effort level under the four scenarios. The inventory (price) is the highest under Scenario SS (SB), while that is the lowest under Scenario BB (BS). In addition, when the sensitivity is low, the brand owner’s profit is the highest under Scenario BB, otherwise, the profit is the highest under Scenario SS. Regardless of the sensitivity, the streamer’s profit is always the highest under Scenario SS. Originality/value Few studies focused on the inventory and pricing decisions of brand owners and streamers in live streaming e-commerce supply chains under demand uncertainty, while this work bridges the research gap. This study can provide theoretical basis and decision support for brand owners and streamers.

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