Impact of Live Streaming on Social Media on Impulse Buying
Nur Hazrini Mohd Zahari1*, Nik Nuraisyah Nik Azmi1, Wan Nur Izni Wan Ahmad Kamar-BODIAN2, Maisarah Syazwani Othman1
1 Faculty of Business and Finance, Universiti Tunku Abdul Rahman, Perak, Malaysia
2 Institut de Langues, Groupe Ecole Supérieur de Commerce de Dakar, Dakar, Senegal
*Corresponding Author: [email protected]
Accepted: 15 February 2021 | Published: 1 March 2021
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Abstract: Social media live streaming services have recently become the new method for online sellers to showcase their products and show the viewers or the potential customers the real products with details and price. In 2019, almost 88% of internet users in Malaysia were estimated to be searching online products or services to buy and about a third of Malaysians preferred to shop via social media platforms such as Facebook and Instagram. With more than half of Malaysians nowadays buying the products on social media it is very important to examine the impact of social media live streaming on the customers’ impulsive buying behaviour. In this study, a conceptual framework is built to establish the relationship between live streaming of social media towards the impulsive buying behaviour of customers. Hence, the authors aim to emphasize the relationship of website characteristics, trust, product characteristics, variety seeking and social influence in studying the impulsive buying among the social media users in Malaysia through the live streaming marketing on social media.
Keywords: live streaming marketing, online market, impulsive buying behaviour
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1. Introduction
Malaysia has high rates of e-Commerce usage as a result of Malaysia’s internet and mobile connectivity as well as public sector encouragement. Malaysia boasts 16.53 million online shoppers which is 50% of Malaysian population. Meanwhile 62% of mobile users in Malaysia use their device to shop online. As in January 2019, 88% of internet users in Malaysia was reported to search online products or service to buy and 88% was reported to visit an online retail store on web by any device. Meanwhile, it was also reported that 75% of Malaysian purchased a product or service online by any device, 44% made an online purchase via laptop or desktop and 58% made an online purchase via mobile device.
Most categories of items bought by Malaysians have been reported to include fashion and beauty, electronics and physical media, food and personal care, furniture and appliances, and toys and hobbies or sports. More than 95% of Malaysians are reported to be happy with their experience of shopping online. Moreover, since the discovery of social media, nearly 100% of Malaysians are now buying products through social media which continues to be one of the huge drivers of online purchasing decisions. Selling through social media has increasingly become as one of the most significant variables in a purchasing decision. On top of the formal channels like online marketplace and e-commerce websites, about a third of Malaysians prefer shopping through social media like Facebook and Instagram. It is confirmed that Facebook is among the top three social media sites in Malaysia for online shopping.
Recently online sellers utilise the social media live streaming especially the Facebook Live to showcase their products and show the viewers or the potential customers the real products with details and prices. Through live streaming, the sellers are able to demonstrate how products are used, showing different perspectives of products and organize entertaining live activities to encourage the customers to buy on the spot (Lu et al., 2018). Customers who are interested are able to query about the products and able to get the answers immediately through the live showcase on social media. Besides, live streaming on social media could encourage the customers to trust online transactions and purchase more as a result of social presence and interaction which happen during the live streaming. This will enhance the shopping experience and reduce shoppers uncertainty as live streaming takes place in real-time without editing and with immediate interactions (Hajli, 2015) and the present of the sellers when the live streaming takes place. Customers now can enjoy almost similar experiences as during the normal face to face shopping at the comfort of their homes through online purchasing especially through the live streaming on social media. It was found out that most online shoppers are motivated by price advantage, product range and availability of reviews. Malaysian shoppers look for free shipping, convenience and exclusive deals offered by online stores.
Dawson and Kim (2009) have found that, customers today appear to favour online shopping due to particular reasons as online shopping is associated with convenience compared to offline shopping. The convenience of online shopping eventually becomes the motivations for the consumers to make impulse buying in their purchasing decisions. Based on past researchers, Dennis et al. (2010), discovered that marketing through social media can influence the shopping behaviour of young women. Meanwhile, Hajli (2014) in his research has found out that the consumers purchasing behaviour has changed dramatically and significantly ever since the appearance of social media as a platform of marketing. Besides that, it is expected that in 2020, no people would be going out to malls and markets for shopping anymore as stated in Chaiprasit (2014). Instead, the consumers would be doing their shopping more on the Internet and precisely through social media. As the usage of live streaming on social media is growing day to day, online sellers are starting to use a new method during the live streaming to increase their viewers and sales by encouraging the viewers to share the live streaming for a number of times to their own Facebook profile as well as to other Facebook groups with the promise to give free gift. This could also attribute to the impulse buying behaviour among the social media users.
With these factors and the ever-growing live streaming on social media as one of the marketing methods as well as the growing usage of social media, it is crucial to look into these factors to examine whether or not the live streaming on social media has any influence on the consumers’
impulse buying behaviour.
2. Literature Review
Social Media Live Streaming Marketing
Electronic commerce has become popular especially in recent years. In the line with the popularity of electronic commerce, researchers have paid extra attention to research more on online impulsive behaviour. Studies done by Sirhindi (2010) have found out that there are different characteristics between the traditional shopping and online shopping for example the online impulsive buying can be resulted to the easy access of resources, opportunity to access various promotion without having to go to the physical store, the use of credit card, the transportation of goods and the low price of goods. All of these factors are the major factors to encourage the customers to make impulsive purchase decision when online purchasing.
Live streaming shopping has progressively become popular through various platforms especially Facebook, as most of the sellers embrace the latest digital trend to attract savvy consumers. As sellers or advertisers decided to stand out from their rivals, they had to respond to the evolution of the needs of customers and build brand recognition through live streaming in order to help them to reach a larger as well as various audience at a time. It is reported on The Star (2018), hundreds of online users participated in every session of live streaming conducted by a seller and higher sales can be recorded during the promotion period. As a live streaming give a real time engagement with sellers and live product demonstration, this gives the consumers a true picture of the nature of the products as they purchase without having to visit a store.
Marketers have begun to realize and effectively use the importance of social media platforms in order to sell their products and brands. Besides that, they also use social media to reach out their target customers easily (Hafele, 2011; Nielsen, 2011; Tanuri, 2010). Recently, online sellers have used Facebook Live to advertise their product while display the actual products with information and prices to viewers or to the prospective customers. Therefore, the sellers are able to explain on how to use the products through live streaming, and showing various products experiences as well as arranging exciting live events to inspire consumers to purchase the product on the spot (Lu et al., 2018).
Live streaming utilises one or more communication technologies which through it people can share images and sounds instantly to the viewers and allow the perceived presence of the streamers (Chen & Lin, 2018). As it makes it easier to consumers to view goods from multiple perspectives and can immediately ask relevant questions, many consumers have begun to appreciate the ability to purchase through live streaming (Lu et al., 2018). Live streaming allows the products to be visualized and at the same time it makes the product presentation highly visible. Customers are also able to feed their needs of product information instantaneously in order to help them to make purchase decisions.
One of the main advantages of live streaming is a real time and interaction, as consumer now want sellers to be more open and approachable for more interactive communication. The sellers now can create even more personal bonds with the customers by giving them to participate and discuss in real time. Besides, the sellers get to utilize the live marketing for free and make profit at the same time (Richman, 2017).
Impulse Buying Behaviour
In consumer behaviour studies, impulsive buying behaviour is often an important topic that always stimulates many researchers and marketers to figure it out (Muruganatham & Bhakat, 2013; Sirhindi, 2010). Impulsive buying behaviour refers to an unplanned purchase (Tinne, 2010) to a decision-making style characterized by a sudden, irresistible, strong, sustained and immediate urge to purchase a product (Rook & Fisher, 1995). However, beyond a simple unplanned purchase, researchers have expanded the concept to include emotional elements or a desire to make the purchase. Rook (1987) has defined impulsive buying behaviour as the experience of the customers on a sudden, often powerful and persistent urge to purchase something immediately. Impulse buying may be due to external stimuli that marketers manipulate to encourage consumers to purchase (Youn & Faber, 2020).
Impulsive buying behaviour has a significant influence to boost the sales of the product (Amos et al., 2014). Marketers play an important role in leading an individual to make an impulse purchase as they play a vital role in preparing their tactics, starting from raising awareness of
the product placement in the store (Floh & Madlberger, 2013). On the other hand, consumers are more worried with the immediate gratification of purchasing goods before they are prepared to embrace the impulse buying without taking into consideration of any alternatives or possible inferences.
Besides the consumers characteristics and products characteristics, further research reported that emotional state enhanced the factors of impulsive buying. With the advancement of modern communication and information technology, consumers are more encouraged to have impulse access to services and products. Besides that, the advancement of technology has made the purchase and payment processes simpler and easier. This might also be the contributors to the impulse buying behaviour among consumers especially during the live streaming on social media.
Website Characteristics
Website characteristics are a traditional factor to trigger the impulsive buying behaviour among customers. Nevertheless, the variables that affect the online impulsive buying are not similar to the variables of traditional impulsive buying behaviour. Online impulsive buying behaviour that is website characteristic such as ease of use of the website and visual appeal, are also measured as factors that influencing behaviour of online shopping (Liu et al., 2013; Verhagen
& Dolen, 2011). There are two characteristics of online shopping environment related to the website characteristics that are highly task-relevant with the aim of facilitating the consumer’s shopping goal which consist of security, download delay or navigability. On the other hand, the low-task nature of the relevant features focuses on making the shopping experience of consumers pleasurable, consisting of visual appeal or website pleasure (Eroglu et al., 2001).
As live streaming gives details and prices to the live showcase of the products, these characteristics are consistent with the low-task characteristics of the relevant website, which could trigger an impulsive buying behaviour.
In addition, website communication can also trigger positive emotions that show how impulsive buying behaviour is encouraged. Website communication can be defined as a factor of excitement towards consumers. Another important feature is the availability of products which refers to the diversity of goods that can have a positive effect on the website, which will directly influence impulsive buying behaviour. According to Liu et al. (2013), when consumers see the website that can provide difference interesting goods, they will see it more visually appealing. Furthermore, website communication and product availability can be achieved through live streaming as sellers are able to communicate and demonstrate on how the products are used, show different product perspectives, arrange fun live activities to inspire consumer to purchase on the spot (Lu et al., 2018) and show the products available that they have in stock.
Besides, people watch live streaming to enjoy social interactions with online communities (Hamilton et al., 2014).
Trust
Trust plays a major role in affecting the purchasing decision of consumers related to online store (Kim et al., 2008). Besides, trust is when a customer established a tacit understanding with a seller. That is also when the seller can be trusted and counted upon on to act in a way that will represent the customer’s best interest (Crosby et al., 1990). Trust occurs when a party has faith in the power, honesty and benevolence of an exchange partner (Gefen & Straub, 2004). Moreover, trust is adapted by consumers to participate in the online economic exchange process during online shopping where confusion is present (Gefen et al., 2003). Mcknight et al. (2002) indicated that trust has a substantial effect on the intention of consumers to purchase
in the different online store environments as online store deals with uncertainty. Online trust includes the perceptions of customers on the competence of a site to provide honest information and meet expectations, their perceptions of the good intentions of the businesses and their experiences of the structures of the site. Consumer’s trust is a key factor in the context of online commerce since there is a lack of face-to-face contact between customers and sellers and between customers and product (Brynjolfsson & Smith, 2000). Furthermore, comprehensive previous research has found that trust is a key factor that defines the intention of a customer towards online shopping (Cheung et al., 2005; Corbitt et al., 2003).
Live streaming would have a positive impact on a customers’ trust. As consumers nowadays want sellers to be more transparent and approachable for more interactive contact during live streaming of the goods and at the same time, increase the trust of customer (Peter, 2016) as one of the advantages of live streaming is that it is real time and close interaction between customers and sellers. By using the live streaming on social media, seller can reveal their face as one of the marketing strategies to make them more trusted and transparent (Svart, 2018). Hence, this would increase the interaction between buyer and sellers face-to-face because, as described above, the absence of face interaction is a key factor in the online commerce context (Brynjolfsson & Smith, 2000). Trust will lead to positive feelings towards the online seller and increase the desire to revisit and purchase from the same platform (Chiu et al., 2009).
Customers tend to purchase from companies they trust, hence live streaming on social media is an outstanding chance for companies to create trust with customers with all the functionality that live streaming can provide.
Product Characteristic
Product’s characteristics can be one of the factors of impulsive buying behaviour. Products characteristics can be divided into price and various categories of product (Mesiranta, 2009).
According Verhagen and Dolen (2011), the attractiveness of merchandise can cause a positive emotion to affect the action of impulsive buying behaviour. It is difficult for consumers to rely on the data coming from static image on the conventional e-commerce website, which has generated confusion for consumer to make buying decision, hence it will have a negative effect on their purchasing intention on online products (Bock et al., 2012; Faraji-Rad & Pham, 2016;
La & Choi, 2012; Pires et al., 2004). Therefore, live streaming is an efficient way to provide consumers with the uniqueness of products (Chen et al., 2018) as it offers the sight, sound and motion to deliver accurate knowledge about the products (Yen, 2018) through real-time interaction.
Live streaming however, provides many opportunities for businesses to use real time in their marketing communication. The promotional event is one of the excellent ways to use live streaming (Wasen, 2017). Whereas, in store promotion is more targeted and aggressive to consumers such as abrupt pop-out commercials, while the online promotional approach is somewhat difference. However, the types of promotion on live streaming with the traditional marketing in real stores can be similar for example offering buy-one-get-one offers, vouchers and membership discounts and offering free shipping (Dawson & Kim, 2009). These promotional tactics can cause customers to buy impulsively during live streaming (Sirhindi, 2010). In traditional marketing, marginally more impulse purchases were promoted by promotional prices relative to non-promotional priced products (William & Dardis, 1972). In addition, the prices of products is seen as the key factor in leading individuals to buy impulsively, whether in online shopping or in-store shopping (Karbasivar & Yarahmadi, 2011).
However, some individuals have stated that their online shopping is going to cost more than traditional shopping (Mesiranta, 2009).
Variety seeking
Apart from that, the busy lifestyle of the majority of consumers have led them to seek for alternatives when it comes to shopping to maximize their shopping time. Majority of consumers would most likely prefer to be able to browse varieties of products from one source and this is only possible through an online shopping platform. Variety-seeking consumers can be defined as someone who is in search of diversity in their choices of goods and services (Kahn,1995; Muruganantham & Bhakat, 2013). For this group of consumers, they are not only seeking for varieties in their choices of goods and services but also the most convenient way of getting these goods. Consumers can fall into being variety-seeking consumers when they have the need to have other options when it comes to buying something.
Nowadays, sellers or marketers have taken the use of social media to another level when it comes to online shopping as they do live streaming. During live streaming, sellers often not only introduce the products but also demonstrate the use of the products, the reliability, and many other selling features to the consumers. This will consequently build the interest in consumers to buy the product. However, this will most likely lead to impulse buying behaviour.
Having the interest to buy something does not always mean that people actually need the product. On top of that, when people buy online, they also get to enjoy various promotions, vouchers, schemes and etc., (Donthu & Garcia, 1999). This will be an add-on factor towards the building of interest in consumers to buy products online and end up being impulsive shoppers.
Moreover, stores that offer a wide selection of products become the most important criteria for impulsive shoppers (Chen-Yu & Seock, 2002). This is also true for online shoppers as they tend to browse websites that offer a various selection of products due to variety-seeking behaviour (Donthu & Garcia, 1999; Lim & Dubinsky, 2004; Moe, 2003; Park, et al., 2012).
Live-streaming shopping channels that are available now like GoShop shows overwhelming responses from consumers. This could partly be due to its transparency in the marketing of the products that attracts shoppers and the varieties of products that are sold on the platform.
Besides that, sellers often promote varieties of their products during live streaming with interesting and strategic advertisements, promotions, etc. This can be seen as a method to stir interest in buyers that later will stimulate the impulsive buying behaviour (Sun & Wu, 2011).
Social Influence
Social influence may play an important role in encouraging impulsive buying behaviour. Social influence is the meachanism in which people will modify their feelings, emotions, attitudes or action after engaging with other individuals (Amblee & Bui, 2011). Social influences can be separated into two types which are “normative” and “informational”. Normative social influence is “an influence to conform with the positive expectations of another” (Deutsch &
Gerard, 1955). Consumers that are normatively influenced tend to behave in line with the influencers. They care about the influencers’ opinions, preferences, wishes and expectations.
Informational social influence refers to “an influence to accept information obtained from another as evidence about reality” (Deutsch & Gerard, 1955). The experience and reliability of judgements shared by other members can motivate greater trustworthiness of a consumer.
Hence, these could induce impulsive purchases behaviour.
In general, consumers see reference groups or peer-based groups as their role models such as friends and family when they shop (Pradhan, 2016). Peers can play an influential role and put pressure on a consumer to perform a particular behaviour such as buying impulsively during live streaming sales. Unlike family, peers may influence consumers’ perceptions, preferences
and decisions to engage in impulse buying (Chuang et al., 2015; Grange & Benbasat, 2010;
Huang & Benyoucef, 2013). According to Kusmaharani and Halim (2020), three reasons that influence consumers to purchase the Indonesian cosmetic products are that they like the products, friends’ recommendations and the product having good reviews. Therefore, online reviews can be considered as a part of social influence on online impulse buying (Zhang et al., 2018). Online reviews message the expressions and opinions of consumers toward a product or a seller and it is also known as the electronic form of word of mouth (eWOM) (Lee et al., 2006). The photographs, videos or recommendations shared by other consumers can influence the external stimulus that motivates the impulse buying (Aragoncillo & Orús, 2018). The hedonistic importance of online reviews can influence the browsing behaviour of consumers, as it will encourage their desire to buy impulsively (Kusmaharani & Halim, 2020; Zhang et al., 2018).
There is a high level of penetration on Facebook and Instagram (Aragoncillo & Orús, 2018).
The relationships built through these social media can strongly influence consumers. Other than the website's quality, positive reviews from other consumers also could alter consumers’
shopping needs and increase the consumer’s buying intention (Hasanov & Khalid, 2015). The real-time interactions and engagements between sellers and consumers, number of likes, perceptions, recommendations and purchase intentions of other consumers during the live streaming sales through the social networks have high potential to trigger the consumers impulse buying behaviour. Therefore, social influence would play a significant factor in influencing the impact of live streaming in social media on consumer’s impulsive buying behaviour.
Proposed Conceptual Framework
Figure 1: Impact of live streaming on social media on impulsive buying behaviour
Figure 1 represents the possible factors to the impulse buying behaviour through live streaming on social media. The factors might be based on the website characteristics, trust, product characteristics, variety seeking and social influence. It is suggested that the website characteristics, trust on the live streaming and product characteristics might trigger the customers to purchase impulsively when they joined any live streaming marketing on the social media.
Website Characteristics Trust
Impulse buying behaviour through live streaming on
social media Product Characteristics
Variety-seeking Social Influence
3. Conclusion
With the increase of eCommerce usage in Malaysia, it has also increased the online shoppers among the internet users especially on social media for example through Facebook and Instagram. This has resulted in online sellers to be more creative in marketing their products and has resulted in the initiation of marketing through the live streaming on social media. This method of marketing has increased the close interaction between the sellers and the buyers and at the same time has brought the traditional in-store shopping experience to the comfort of their homes. The buyers now can query about the products offered by the sellers and will be able to receive instant feedback from the sellers through live streaming marketing. It is believed that with the increase of social media users, the live streaming shopping will be increased, and this will also result in impulse buying behaviour among the customers due to many factors.
Therefore, it is very important to identify the factors that will influence the impulse buying behaviour among the social media users especially as a result of live streaming marketing on social media.
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https://doi.org/10.1108/IntR-12-2016-0377
