Are You Watching Live Stream Shopping? An Investigation of Influential Factors on Audiences’ Trust and Loyalty Intention from Elaboration Likelihood Model Perspective

Abstract

With the proliferation of online live streaming applications, a new type of shopping environment has changed the way for sellers to interact with their potential buyers. How to win the trust and loyalty from the audiences is one of the major challenges for online sellers to provide product information through online live streaming. In this study, factors on the audiences' trusting belief and loyalty intention toward the broadcaster were examined from the perspective of Elaboration Likelihood Model (ELM), in which the information in live streaming was delivered through central route (e.g., argument quality) and the peripheral route (e.g., source credibility). In addition, two moderators were included: the product scarcity and product involvement. Scenario based laboratory experiment was conducted and the research results indicated that information delivered through peripheral route showed more significant influence on audiences' trusting belief and loyalty intention toward broadcasters. However, when the product was offered with amount limitation (product scarcity), the influence of argument quality will be strengthened. In addition, people who are high in product involvement will be more influenced by argument quality, while the source credibility showed more positive influence for participants with lower product involvement. Findings from this study can provide important implications for live streaming broadcasters and platforms.