This study examines the inverted U-shaped relationship between a live-streaming seller’s disclosure of two-sided product information and consumers’ trust in the seller and product. It also explores the interaction between these two types of information disclosure and their impact on purchase intention in the live-streaming sales context.
An e-questionnaire survey was conducted in China, followed by multiple regression and structural equation modeling analyses.
The disclosure of both negative and positive product information is positively correlated with consumers’ trust in the seller or product but does not directly affect their purchase intention. Negative information disclosure neither enhances nor diminishes the positive impact of disclosing positive information on consumer trust.
Live-streaming sellers (i.e. retailers or manufacturers) should disclose both positive and negative product information to form consumers’ trust toward them (or products) and enhance sales.
Live-streaming sellers often worry about the negative effects of excessive promotions or disclosure of positive or negative product information. However, these negative effects were not statistically significant.
Since some researchers have found nonlinear effects of two-sided product information in other contexts, this study is the first to focus on the impact of live-streaming sellers’ disclosure of two-sided product information on consumers’ trust in the live-streaming sales context rather than on the information per se.
