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

Abstract

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.

Keywords

• Limited-supply flash sale
• Discount rate
• Limited quantity
• Desirability/feasibility
• Temporal distance