Unveiling the Presentation Threshold Effect: The Impact of Product Rotation on Real-time Sales in Live Streaming Commerce

Abstract

This research investigates a largely unexamined feature within the realm of live streaming, product rotation. Leveraging the minute-level product sales data from TikTok, we delve into the impact of product rotation on real-time sales. Our study unveils a novel phenomenon dubbed the “presentation threshold effect,” wherein a significant increase in sales preceding the end of the product presentation, followed by a distinct drop at the moment of product rotation. Further analyses of the underlying mechanism causally reveal that the threshold effect occurs primarily among live streams with high viewer stickiness. Additionally, we find that factors such as inter-product similarity, repetition of products, and timing of presentation significantly impact the magnitude of the presentation threshold effect. These findings contribute to the literature on live streaming strategies while offering streamers valuable insights into consumer purchasing behavior. By examining factors related to product sequencing, streamers can craft more strategic product lineups, including decisions on the placement of similar or identical products and the optimal timing for implementing lucky draws.