High versus Low: The Effect of AURs and Brand Equity in Live Stream Shopping

Sammanfattning: Live Stream shopping is a rising phenomenon expected to transform retail worldwide. Despite the eminent need for practitioners to understand the best case use of live stream shopping, the subject is scarcely explored in academic research. The purpose of this thesis was firstly to investigate how high versus low viewer- and like counts, referred to as Aggregate User Representations (AURs), affect viewer's evaluation of a live stream shopping broadcast. Through a quantitative experimental study design, this thesis established that viewers had higher purchase intention when exposed to high versus low AURs. A possible mechanism behind the result is viewers' reliance on cognitive heuristic processing cued by AURs in a live stream shopping environment. In contrast, comparing viewers exposed to high versus low AURs, the study found no support for an effect on broadcaster credibility perceptions or attitudes. Secondly, the moderating role of brand equity was examined. For a high equity brand, the study confirmed a lack of effect on viewer's evaluations when comparing groups exposed to high versus low AURs. An explanation of the result is the advantage of pre- existing brand knowledge and associations in viewers' minds. Unexpectedly, no statistically significant results were found comparing viewers exposed to high versus low AURs, when a low equity brand was promoted. This study brings live stream shopping into limelight and contributes to academia. Moreover, practitioners are provided with actionable guidance to enhance their business results. Lastly, opportunities for future research have been suggested.