DEM Lunch Seminar: Lijue LU, NEOMA Business School, FR

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Dynamic Promotion Planning in Live Streaming Commerce

Abstract

We study a promotion-planning problem in the context of live streaming commerce. Consumers’ purchasing decisions are influenced not only by current prices but also by their reference price, shaped by past promotions. We formulate a dynamic game between a brand and an influencer: the brand, acting as the leader, chooses the retail price and visibility investment to attract viewers, while the influencer, as the follower, sets the discount rate during promotions. The problem is formulated as an impulse control model, where promotions can boost short-term demand but gradually lower consumers’ reference price over time. Using numerical simulations, we investigate how the number of live-stream events, the size of the influencer’s fan base, base demand, price sensitivity, and the strength of reference-price effects shape optimal discount and visibility decisions.

About the speaker

Lijue LU is an Assistant Professor in the Information Systems, Supply Chain Management & Decision Support department at NEOMA Business School. Her research lies at the intersection of decision science, operations management, supply chain management, and marketing. She focuses on strategic interactions and coordination in supply chains, with particular interests in advertising and pricing decisions, as well as sustainability and resilience issues. A significant part of her work uses dynamic game-theoretic models and studies decision-making under uncertainty. Her research has been presented at international conferences and published in journals such as the European Journal of Operational Research, the International Journal of Production Economics, and the Journal of the Operational Research Society.

Language

English

This is a free seminar. Registration is mandatory.

Supported by the Fond National de la Recherche,
Luxembourg (19441346)