The Rising of Livestream e-Commerce in China
In the last 5-10 years, the marketing field is ushering in a big change. This big change is that marketing is becoming more and more scientific.
The United States was initially in a leading position in terms of marketing theory and marketing practice. With the rapid development of China’s mobile Internet, operational methods have become more abundant. The most representative one is TikTok’s suppression of Facebook in the United States.
Marketing is entering the field of consumer behavior science.
The so-called consumer behavior science, simply summarized is to promote consumers to complete the desired behavior through the study of human behavior. Consumer behavior science is related to economics, psychology, and marketing.
1. How are consumers convinced
When we make a certain action or decide to buy a certain product, we actually need to be persuaded first. Whether it is persuaded by friends, persuaded by family, or persuaded by advertisements.
How are we persuaded?
In 1986, American scholars proposed the ELM model. ELM believes that human beings are persuaded by two models, namely the central path and the peripheral path. Under the central path, people will make decisions after rational thinking and careful consideration. In the peripheral path, people usually do not want to spend too much energy to analyze the problem, and are more likely to be persuaded by surface factors.
2. How do we think
In the process of economics, “rational economic man” is a generally correct view. In other words, most people make decisions based on rational pros and cons. Based on economic considerations, no one will make decisions that do more harm than good.
In 2002, Israeli scholars proposed behavioral economics. Research has found that people are not completely rational when making decisions, but in many cases they will make irrational and uneconomic decisions. At this time, it reflects the “social animal” side of human beings, that is, human thinking is not entirely based on economic considerations, but is greatly disturbed by social factors.
People make many decisions every day, and most of these decisions use fast thinking. The role of advertising and marketing is to allow you to use fast thinking rather than slow thinking when making consumer decisions.
3. How to boost consumers’ fast thinking
In 2017, in the book Nudge: Improving Decisions about Health, Wealth, and Happiness, Richard H. Thaler applied the theories of two kinds of thinking to practice, and proposed to use the “boost” method to let the audience make the layout. Decision-making.
The boost is to activate the fast thinking of the audience through various methods, so that the audience can make decisions that are beneficial to them without knowing it. This method has been widely used in the fields of advertising and marketing.
4. How do e-commerce consumers make decisions
There are many changes in the current e-commerce model, one of which is livestream sales. It just uses human fast thinking and decision-making methods.
For a shopper, most of his consumption is fast thinking at work. Even the part that just needs to be consumed will be affected by quick thinking when it finally decides which brand to choose.
Judging from the trend of e-commerce in recent years, e-commerce is moving from e-commerce based on demand consumption, such as Taobao, to e-commerce based on content, such as TikTok.
Most users go to Taobao to buy things with purpose, so its search is very important. Most users of Douyin watch content on Douyin, see good things to stimulate consumption desire, and under the influence of fast thinking, they place orders quickly.
5. Livestream e-commerce allows Quick Thinking to be well applied in the marketing field
The development of content e-commerce maximized the quick thinking of consumers, and its efficiency is higher than advertising.
The fast way of thinking in traditional advertising is to use a variety of small skills to create concepts that guide consumers to become interested in their products and then make purchases. This path conversion is gradual, usually after a few days or even weeks to achieve conversion.
Livestream e-commerce allows consumers to make decisions and place orders in a short time under the action of fast thinking. Its conversion path is shorter, and the conversion time is often measured in minutes or even seconds. The emergence of livestream e-commerce can be said to have raised human fast thinking to a new height, and even created a trillion market of fast thinking consumption.
Since the birth of advertising, advertising and marketing have tried every means to make use of consumers’ quick thinking to make decisions. The emergence of Internet operations has accelerated this process. Content e-commerce, especially Livestream e-commerce, has largely tapped the fast thinking of humans, making human consumption decisions fast and perceptual.