Attractiveness of discount rate versus limited quantity: The moderating effect of temporal distance

Purpose - This paper aims to examine how the temporal distance can influence the effect of the scarcity message. To demonstrate this effect, the authors use the limited-quantity flash sales and compare two types of mixed promotion method comprising discount rate and limited quantity. Design/methodol...

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Bibliographic Details
Main Authors: Hye-Kyung Park, Bong-Sup Shin, Jong-Ho Huh
Format: Article
Language:English
Published: Emerald Publishing 2017-01-01
Series:Asia Pacific Journal of Innovation and Entrepreneurship
Subjects:
Online Access:https://www.emeraldinsight.com/doi/pdfplus/10.1108/APJIE-12-2016-001
Description
Summary:Purpose - This paper aims to examine how the temporal distance can influence the effect of the scarcity message. To demonstrate this effect, the authors use the limited-quantity flash sales and compare two types of mixed promotion method comprising discount rate and limited quantity. Design/methodology/approach - The results of the experiment reveal that consumers in the temporally distant condition have a relatively high-level construal of the limited-quantity flash sales and are more likely to value desirability (discount rate) over feasibility (limited quantity). Findings - When the expected value is identical, consumers prefer limited-quantity flash sales with smaller limited quantity but higher discount rates. However, consumers in the temporally near condition have a relatively low-level construal of the limited-quantity flash sales and are more likely to value feasibility (limited quantity) over desirability (discount rate). Originality/value - When the expected value is identical, consumers prefer limited-quantity flash sales with lower discount rates but larger limited quantity.
ISSN:2071-1395
2398-7812