Shandee Blackburn, who was named after the band's track "Shandi", died by stabbing last month in the small city of Mackay in the state of Queensland, Australia.
Classic Rock reports that frontman Paul Stanley reduced Shandee's family to tears when he told the crowd: "I think everybody knows about a girl called Shandee Blackburn. We lost her. We wish she could be here with us so why don't we sing little something for her, all of us?"
Her mum, Vicki, told News.com.au: "I wasn't looking forward to the concert. It was just another one of those days where she should have been there."
Tickets for the show had been part of Shandee's birthday present. Vicki explained: "One of the detectives said that his interpretation of Shandee was that she would have told me to go out and have fun and enjoy the night."
She admits she was moved after the audience joined in during the acoustic version of "Shandi" (see the video of performance below).
"It was just really sweet. At the end Paul said, 'Let's say goodnight and goodbye to Shandee.' I wasn't crying at all until then. It was a very special moment."
Investigating officers remain interested in anyone who may have seen anything suspicious on the night of February 9 around 12:30 a.m. in Mackay.