Ready, set, live! How Do European Consumers Perceive the Value of Live Video Shopping and What are Their Motivations to Engage in It? A Qualitative Study

• Main Authors: Andersson, Elina, Pitz, Nicolai
• Format: Others
• Language: English
• Published: Umeå universitet, Företagsekonomi 2021
• Subjects: Live Video Shopping; LVS; perceived value; consumer engagement; digital marketing; e-commerce; Technology Acceptance; Uses and Gratifications Theory; Business Administration; Företagsekonomi
• Online Access: http://urn.kb.se/resolve?urn=urn:nbn:se:umu:diva-185201

The phenomenon of Live Video Shopping (LVS) has gained increased attention in recent years. Sinceapproximately 2017, the Chinese market has brought LVSto the attention of the public. In terms of overall market share, LVS was projected to account for roughly 20% of the overalle-commerce volume in Chinauntil 2021. Despite that, within Europe LVS has not seen such rapid growth and seems to be still a neglected domain,both in practice and in academia.Most academic research on LVS has originated in China and took place in an Asian setting. From a European standpoint, these findings can onlyserve as a starting point for further researchdue to cultural differences. Sincemost extant research on the topic of LVS adopted a quantitative research design, we could clearly identify a lack of qualitative studies in a European context. Therefore, our study aims to fill this research gap by investigating European consumersperceived value of LVS and their motivations to engage in it. A qualitative research design is particularly suitable for the exploratory nature of ourresearch. For the collection of data, we conducted three synchronous online focus groups through purposive sampling of European participants. In addition to that, and as a triangulation for our data sources, Pål Burman, the CEO of the LVS provider Zellma, was interviewed. With this we were able to includedifferent perspectives on the topic. It also helped us to increase thevalidityofthemanagerial implications.Usingthematic analysis, we could identify themes that theparticipants associated with the concept of LVS. The findings suggest that the perceived value of LVS for European consumers is not indisputable. Based on the theoretical concept of perceived value,LVS has to solve the trade-off between give and get components. This means that the committed time for attending an LVS stream has to be compensated by certainbenefits, such asdiscounts, enhanced product information, exclusivity of content,or inspiration. By using the theoretical framework of Uses and Gratifications Theory (UGT), we were able to divide the motivations of European consumers to engage in LVS in three types of gratifications: hedonic, utilitarian, and social. As opposed to prior Asian research on the topic, social gratifications only played a minor role forEuropean consumers. Reasons for an interaction between the viewer and the broadcaster were primarily product-related and utilitarian by nature. Engagement for the sake of social motives could not be confirmed. Utilitarian gratifications desired byEuropean consumers were mainly connected to theobtainment of enhanced production information, leading to more informed purchase decisions. Hedonic motivations were for exampleentertainmentand inspiration. When connecting UGT to the TechnologyAcceptance Model (TAM), we have also been able to identify consumers' approachesto LVS as a new technology.Crucial here weretheperceived ease of use and perceived usefulnessof LVS.It was shown that consumers require LVS to be as easy or easier than normal e-commerce shopping is already.LVS would further be perceived as useful if it could provide the viewers with something uniquethat old technologies are not able to provide.Asa new digital phenomenon, itis expected to serve as a complement to physical and online stores. In fact, LVS might not only serve as a platform of sales, but also tocreate long-lasting relationships between a brand and its consumers with consumer engagementas a main desired outcome.