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Understanding the dynamics of online karaoke virtual gift sending helps maximize its utility for all participants, including viewers, broadcasters, and platforms. However, extant paid gift-sending studies lack an integrated theoretical explanation of its incentives as well as practical implications that can facilitate the quantifiable implementation of service improvement. This study has successfully uncovered the motivation of paid gift-sending in an online karaoke context from a social exchange perspective using social exchange theory. By observing the activities of 11,640 online karaoke users over one year, it was discovered that their gift-sending behaviors adhere to the patterns of more-follower-more-gift-sending and receive-more-send-more. Moreover, such patterns are more pronounced for collaborative users and are accentuated over time. Theoretically, this study extends the scope of social commerce studies from B2C to C2C scenarios with more complicated interpersonal dynamics. Meanwhile, managers are advised to encourage following, stimulate collaboration, inject additional virtual gifts into the “market”, and retain their customers to generate long-term profits.

One Good Turn Deserves Another: Antecedents of Online Karaoke Paid Gift-Sending from Social Exchange Perspectives