Would you Snap up the Deal?: A Study of Consumer Behaviour under Flash Sales

Abstract

Flash sales refer to an emerging e-commerce practice in which a firm offers one or more products/service at a substantial discount within limited time. Macro-economic environment (residential areas), demographic (age, income and occupation) and ad media decision may collectively affect purchase behaviour on flash-sale websites. This study investigates the unique characteristics of consumer behaviour under flash sales in developing countries, based on large-scale survey data from a major flash-sale website in China. We find that purchase behaviour differs substantially across regions and, within each region, purchase propensity is moderated by income. Regional marketing strategy is therefore of great importance. Contrary to our expectations, flash-sale websites are less likely to attract impulse purchase. Rather, consumers who make more purchases exhibit higher levels of cautiousness. TV commercials and social media are currently the major ad media, yet shopping engines and search engines should not be overlooked.

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