Live-streaming channel introduction and mode selection strategies considering trade-in programs

Purpose As digital and circular economies integrate, live-streaming has become a transformative channel that boosts consumer engagement and sales, offering opportunities for durable goods suppliers with trade-in programs. Suppliers face challenges in deciding whether to adopt live-streaming and which mode to choose. This paper addresses these challenges. Design/methodology/approach We develop three analytical models to investigate optimal live-streaming introduction and mode selection strategies for firms in the trade-in context: Model N (no introducing live-streaming), Model M (merchant live-streaming) and Model I (influencer live-streaming). Findings Results demonstrate that the supplier should introduce live-streaming channels when fixed costs or service fees are low. If the enhancement effect of influencer live-streaming is low but attracts a large number of consumers, influencer live-streaming should be considered. However, when influencer live-streaming attracts fewer consumers, if influencer live-streaming has significantly higher fixed costs, merchant live-streaming should be preferred and vice versa. Furthermore, when the enhancement effect is high, influencer live-streaming should be selected if merchant live-streaming attracts few consumers; influencer live-streaming remains the preferred choice if merchant and influencer live-streaming attract a large share of consumers. In cases where merchant live-streaming attracts a large share of consumers while influencer live-streaming draws little, the supplier should choose merchant live-streaming if influencer live-streaming has higher fixed costs; otherwise, merchant live-streaming is preferred. Originality/value This study fills a gap by exploring live-streaming introduction and mode selection in durable product firms with trade-in programs, bridging research on trade-ins and live-streaming.