HOW CAN LIMITED-TIME DISCOUNTS (SUCH AS FLASH SALES AND LIMITED-TIME OFFERS) AFFECT THE URGENCY AND IMPULSIVE BUYING BEHAVIOR OF CONSUMERS?
DOI:
https://doi.org/10.53555/eijbms.v10i1.172Keywords:
Limited-time discounts, Consumer behavior, Impulsive buying, Scarcity marketing, Fear of missing out (FOMO)Abstract
In this article, the author aims to investigate the effects of time-limited promotions, including flash sales, coupons, and countdown timers on the consumer’s behavior and the tendency to make impulse purchases. Based on commodity theory, reactance theory, and regret theory, the paper analyses the impact of scarcity and time factors on decision-making. The study shows how firms use these mechanisms to increase consumption, repeat purchases, and build brand equity. To support this, the author provides examples of Amazon, Starbucks, and BJ’s Restaurants to show how limited time offers work with consumer psychology by making people feel the FOMO and making them make quick decisions. Also, the article looks at how the consumer is likely to make an irrational decision when under the pressure of time and as such, make an impulsive purchase. Different kinds of temporary scarcity including flash sales, coupons, and seasonal offers are discussed and their impact on consumer behavior is explained. The article also gives tips on how to avoid being influenced by persuasive techniques and how to engage in conscious consumption. The study provides important implications for organizations interested in using time-limited promotions and for customers wishing to avoid the negative consequences of promotion-induced urgency.
References
Adgully. (2021, September 1). Five-day flash sale with savings of up to 60% for your staycation on Yas Island. Adgully. https://www.adgully.com/
Amazon. (n.d.). Countdown clocks and lightning offers: Creating urgency through time-sensitive promotions. Amazon.
Brock, T. C. (1968). Commodity theory of social exchange. In T. C. Brock (Ed.), Theories of cognitive consistency: A sourcebook (pp. 243-261). Rand McNally.
Example of a countdown timer pop-up to encourage customers to buy now. (n.d.). Claspo. https://static.claspo.io/var/www/html/public/photos/shares/ContentImages/Countdown%20Timer%20Pop%20Up%20Encourage%20Your%20Customers%20Buy%20Now/Example_10.png
Groupon. (n.d.). How coupons and time-related scarcity drive consumer behavior. Groupon.
Inman, J. J., & McAlister, L. (1994). Do coupon expiration dates affect consumer behavior? Regret theory in marketing. Journal of Marketing Research, 31(4), 423-432.
Inman, J. J., McAlister, L., & Hoyer, W. D. (1997). Promotion signal: Proxy for a price cut? Journal of Consumer Research, 24(1), 30-40.
Harrington, K. (n.d.). Selling with scarcity: Lessons from TV infomercials and home shopping networks. Shark Tank.
Lessne, G. J., & Notarantonio, E. M. (1988). The effect of limits on choice freedom on consumer preference. Journal of Consumer Research, 15(4), 500-505.
Lynn, M. (1991, 1992). Scarcity effects on desirability: A commodity theory perspective. Journal of Consumer Research, 17(2), 221-227.
Simonson, I. (1992). The influence of anticipating regret and responsibility on purchase decisions. Journal of Consumer Research, 19(1), 105-118.
Sinha, I., & Smith, M. F. (2000). Use it or lose it: Purchase acceleration effects of time-limited promotions. Journal of Marketing Research, 37(2), 239-252. https://doi.org/10.1108/10610420710763967
StartUs Insights. (n.d.). Emerging technologies: Full guide. StartUs Insights. https://www.startus-insights.com/innovators-guide/emerging-technologies-full-guide/
Weinstein, M. (n.d.). The power of scarcity: Leveraging urgency and demand to influence customer decisions. Journal of Product & Brand Management. https://doi.org/10.1108/10610420710763967
Woot.com. (n.d.). The role of daily deals in retail survival during the US financial crisis. Woot.com.
Zak, P. (n.d.). The happiness effect: How coupons promote well-being and reduce stress. Neuroeconomics Research Lab.
