Unveiling the effects of livestream studio environment design on sales performance: A machine learning exploration

Livestreaming eCommerce companies invest a significant amount of time and resources in setting up their livestream studios. However, these companies struggle to determine how the studio environment impacts sales, leading to uncertainty regarding the return on investment in their livestream studios. To address this critical yet under-studied issue, we examine how the dual features of the B2B livestream studio environment, namely visual complexity and coherence, impact sales performance. We leveraged machine learning and deep learning algorithms to evaluate the visual complexity and coherence of the B2B livestream studio setting. We then developed the econometric model to determine how these factors affect sales during livestreaming events. Our analysis drew on a dataset of 954 B2B livestreaming events across 8 industry categories. Our study highlights the adverse effects of visual complexity and coherence on sales performance. Notably, high-involvement products are found to be more affected by visual complexity and coherence compared to low-involvement products.