Who benefits from using a mismatch appeasement strategy in live-streaming sales?

Have you ever bought something online and felt like it wasn’t exactly what you expected? It turns out, this kind of mismatch can not only leave customers feeling unsatisfied but can also damage the reputation of the brand. But don’t worry, there’s a strategy called Mismatch Appeasement Strategy (MAS) that can help.

A recent study looked at who should take the lead in using MAS to address these post-purchase issues: brands or key opinion leaders (KOLs). The results showed that depending on who initiates MAS and the production costs involved, both parties can benefit from reducing utility loss. This means that market friction can be managed strategically rather than just minimized.

The study found that when it comes to consumer retention, KOL-led MAS is generally more effective. In fact, there’s a special zone where KOL-led strategies outperform brand-led strategies, creating a win-win situation for both influencers and brands. This is because influencers have a unique ability to handle post-purchase mismatches in a way that benefits everyone.

Rank aggregation simulations also showed that KOL-led MAS can significantly boost brand reputation compared to brand-led efforts. This highlights the importance of influencer credibility in building long-term brand equity. By empowering influencers to handle post-purchase issues, brands can create a more positive and engaging shopping experience for customers.

This study offers valuable insights into how responsibility can be allocated in live-streaming commerce. Instead of just focusing on cost-sharing, brands and influencers can work together to create strategic value that benefits everyone involved. It’s all about finding the best way to sweeten the deal for both customers and brands in the world of online shopping.