<p>Utility mismatch not only compromises customers’ satisfactions but may also damage brand reputation, ultimately harming brand profitability. To address this issue, this paper introduces Mismatch Appeasement Strategy (MAS) as a proactive post-purchase intervention and develops Stackelberg game models to examine which party, brands or key opinion leaders (KOLs) should initiate MAS. The results reveal that higher utility loss can benefit both parties depending on the MAS initiator and production costs, suggesting that market friction can be strategically managed rather than just minimized. We identify the optimal MAS initiator for different market conditions, showing that KOL-led MAS is generally superior in consumer retention. Specifically, we uncover a Pareto-improving zone exclusive to KOL-led strategies when production costs are moderate; this indicates that empowering influencers to handle post-purchase mismatches creates a win-win synergy that brand-led interventions cannot achieve. Rank aggregation simulations further demonstrate that KOL-led MAS delivers a significantly higher boost to brand reputation (9.85%) compared to brand-led efforts (0.39%), highlighting the critical role of influencer credibility in long-term brand equity. This study provides valuable insights for responsibility allocation in live-streaming commerce, shifting the focus from mere cost-sharing to strategic value co-creation.</p>

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Who should sweeten the deal? Mismatch Appeasement Strategy in live-streaming selling

  • Yawen Liu,
  • Yaru Shang,
  • Junwu Chai,
  • Yilin Liu,
  • Ziqing Ye

摘要

Utility mismatch not only compromises customers’ satisfactions but may also damage brand reputation, ultimately harming brand profitability. To address this issue, this paper introduces Mismatch Appeasement Strategy (MAS) as a proactive post-purchase intervention and develops Stackelberg game models to examine which party, brands or key opinion leaders (KOLs) should initiate MAS. The results reveal that higher utility loss can benefit both parties depending on the MAS initiator and production costs, suggesting that market friction can be strategically managed rather than just minimized. We identify the optimal MAS initiator for different market conditions, showing that KOL-led MAS is generally superior in consumer retention. Specifically, we uncover a Pareto-improving zone exclusive to KOL-led strategies when production costs are moderate; this indicates that empowering influencers to handle post-purchase mismatches creates a win-win synergy that brand-led interventions cannot achieve. Rank aggregation simulations further demonstrate that KOL-led MAS delivers a significantly higher boost to brand reputation (9.85%) compared to brand-led efforts (0.39%), highlighting the critical role of influencer credibility in long-term brand equity. This study provides valuable insights for responsibility allocation in live-streaming commerce, shifting the focus from mere cost-sharing to strategic value co-creation.