How virtual backgrounds influence livestream sales

The rise of livestream selling has transformed the global e-commerce landscape. This sales format combines real-time video streaming with the ability to purchase products instantly. Unlike traditional television home shopping, which often relies on pre-recorded segments, livestreaming is synchronous. It allows hosts to interact with viewers directly, answer questions, and demonstrate products in the moment.

This dynamic market is already massive in China, where over 700 million people participate in livestream shopping. The trend is also gaining traction in the United States. Market projections suggest that the U.S. livestream market will more than triple in value by 2026, reaching an estimated $68 billion.

Despite this growth, businesses face a significant hurdle: consumer trust. Shoppers cannot physically touch or inspect the items being sold. They must rely entirely on the visual information presented on their screens. This limitation forces sellers to find new ways to signal credibility and foster engagement through a digital interface.

Psychology of Selling

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A new study published in the International Journal of Retail & Distribution Management investigates a specific visual element of this experience: the virtual background. The research examines whether the digital backdrop behind a host influences a viewer’s decision to spend money. The findings suggest that matching the background to the product type is a key factor in closing the sale.

Investigating the Digital Atmosphere

Stefania Farace of the University of Bologna and Anne Roggeveen of Babson College conducted this investigation. They sought to understand how “atmospherics”—a concept traditionally applied to physical stores—translate to a digital screen. In a physical store, elements like lighting, music, and layout shape a customer’s mood and spending behavior. Farace and Roggeveen proposed that in livestreaming, the virtual background serves a similar function.

Livestreaming software allows hosts to replace their real physical environment with a digital image. This technology gives sellers total control over the visual context of their sales pitch. They can appear to be in a high-end boutique, a cozy living room, or a generic office space. The researchers aimed to determine if these choices act as subconscious cues that alter how viewers perceive the host and the merchandise.

To explore this, the team designed a multi-step investigation. They began by consulting industry professionals to understand current practices. Following those interviews, they designed two controlled experiments. These experiments were created to isolate the specific effects of background visuals on consumer behavior.

Insights from Luxury Retail Experts

The first phase of the research involved a qualitative survey of 14 luxury retail experts. These participants represented major global brands such as Armani, Bulgari, and Louis Vuitton. The researchers asked them to describe their strategies for selling high-end goods through video channels.

The experts generally agreed on the importance of the visual setting. Most recommended a formal background when interacting with new clients or selling expensive items. They noted that a professional atmosphere helps establish the credibility required to sell luxury goods.

However, the experts also highlighted a nuance in client relationships. They observed that once a relationship with a client becomes established, the dynamic changes. In these cases, a more casual or intimate setting can be beneficial. It can signal a deeper, more personal connection similar to friendship. This feedback provided the researchers with a baseline hypothesis to test in a controlled setting.

Experiment 1: The Watch and the Wall

The researchers designed their first experiment to test the impact of background formality on a consumer’s willingness to buy. They recruited 253 participants for this study. The team created a simulated livestream session featuring a host named “Francesca.”

In the video, Francesca promoted a luxury wristwatch from a fictitious brand called Plasir. To ensure the results were not influenced by other factors, the host wore the same clothes and used the exact same sales script in every version. The only variable that changed was the image behind her.

Half of the participants watched a video where Francesca stood in front of a formal background depicting a jewelry store. The other half watched her pitch the same watch in front of an informal background depicting a living room. After viewing the content, participants rated their willingness to purchase the watch.

The analysis revealed a clear preference. Participants who saw the host in the professional “store” setting were significantly more interested in buying the watch. The formal background appeared to align better with the high-end nature of the product. This confirmed that the visual context alone could sway purchase intentions.

Experiment 2: Coffee Makers and Context

Building on the first experiment, the researchers designed a second study to dig deeper. They wanted to see if the type of product changed the effectiveness of the background. They also sought to understand the psychological processes that were driving these decisions.

This study involved 217 participants. The researchers created a new livestream scenario featuring a seller promoting a cappuccino maker. This time, they manipulated the product description to create two different categories. One group heard a pitch for a “high-end” machine described as high-tech and fully digital. The other group heard a pitch for a “mainstream” machine described as basic and manual.

As with the previous study, the host appeared against either a formal background or an informal, home-like background. This created four distinct scenarios for analysis. The researchers measured the participants’ willingness to buy. They also asked questions to gauge how trustworthy the host seemed and how “intimate” or personal the interaction felt.

Matching the Mood to the Machine

The results of the second experiment illustrated a distinct interaction between the product and the setting. When the host sold the high-end cappuccino maker, the formal background performed best. Viewers were more willing to buy the expensive item when the setting looked professional.

The data analysis revealed a chain of psychological events explaining this outcome. The formal background signaled professionalism to the viewers. This perception of professionalism led the viewers to view the host as more competent and trustworthy. That increased sense of trust ultimately made them more comfortable purchasing a complex, expensive item.

A different pattern emerged for the mainstream, manual coffee maker. For this product, the informal living room background resulted in higher sales interest. The formal background actually performed worse in this context.

The analysis showed that a different psychological process was at work here. The home-like background created a sense of self-disclosure, as if the host were inviting the viewer into their private space. This feeling generated a sense of intimacy between the viewer and the host. For a basic, everyday product, this feeling of connection and intimacy was the primary driver that led to a willingness to buy.

Insights for Sellers

The study offers concrete guidance for businesses and independent sellers using livestream platforms. The central takeaway is that there is no single “best” background. Success depends on aligning the visual environment with the product category.

Sellers dealing in luxury or high-tech goods should prioritize professional, formal backgrounds. These visuals help construct an image of competence. Since customers view high-end purchases as riskier, the background must work to reduce uncertainty by establishing authority.

Conversely, sellers of everyday mainstream items should consider using informal, home-like backgrounds. In these scenarios, the goal is not to prove competence but to foster connection. A casual setting can make the interaction feel more personal and social, which facilitates the sale of standard goods.

Future Questions for the Field

This research opens several avenues for further investigation. The current study used short video clips to simulate the shopping experience. Future research could explore whether these effects hold true during longer, live broadcast sessions where real-time interaction occurs.

The researchers also suggest exploring how these findings apply to other industries. Livestreaming is expanding into sectors beyond retail, such as healthcare, education, and entertainment. Understanding which atmospheric cues work best in those contexts could help professionals optimize their digital presence.

Finally, the study utilized fictitious brands to control for prior brand reputation. Future studies could investigate how real-world brand equity interacts with virtual backgrounds. It remains to be seen if a well-known brand like Rolex or Nespresso would be less dependent on background cues than a new or unknown market entrant.