Proceedings of the 2018 2nd International Conference on Management, Education and Social Science (ICMESS 2018)

The Impact of Online Live Broadcasting on Consumer Online Shopping Decision: From the Perspective of Behavioral Economics

Zhanbing Huang, Bin Zhang
Corresponding author
Bin Zhang
Behavioral economics; Online live broadcasting; Consumer decision-making; Mental cost; Visceral factors
In the traditional online shopping mode, consumers expense a lot of mental cost in order to get enough commodity information, which leads to the decline of consumer shopping utility. The online live broadcasting mode improves the short-term utility of consumer shopping by reducing the mental cost of searching for commodity information and enhancing the visceral factors of consumers. Based on the behavioral economics theory, this paper analyzes the consumer purchase preference by adding the mental cost and visceral factors into the consumer utility function, and establishes the agent-based simulation model to study the interaction between the mental cost and the visceral factors through simulation experiments. Both mental cost and visceral factors have significant influence on consumer purchase rate, but mental cost has more influence on consumers' online shopping choice than visceral factors. Increasing commodity Information acquisition Speed can significantly increase the rate of consumer purchases.
Download article (PDF)