Flash Sale vs. Continuing Sale: Timing Flow of Promotion Effects in Retail | Môn Consumer behavior - Trường Đại học Quốc tế, Đại học Quốc gia Thành phố Hồ Chí Minh
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lOMoAR cPSD| 59078336
Journal of Retailing and Consumer Services 86 (2025) 104322
Flash sale or continuing Sale? Examining the timing flow of E-tailers’ promotion effects Yiming Zhuang a, Xun Xu b,*
a Department of Management, College of Business, Engineering, and Computational & Mathematical Sciences, Frostburg State University, 101 Braddock Rd, Frostburg, MD, 21532, USA
b School of Global Innovation and Leadership, Lucas College and Graduate School of Business, San Jos´e State University, One Washington Square, San Jos´e, CA, 95192, USA A R T I C L E I N F O A B S T R A C T Keywords: e-commerce
Fierce competition in the e-commerce landscape compels retailers to leverage price promotions to boost sales. Most of the Promotion timing flow
existing promotion literature investigated the consequence of promotion effects on increasing sales but did not analyze the
Promotion promptness and continuity
process. This study fills this literature gap by discussing the timing flow of e-tailers’ promotion effects. The objective of this
Consumer seniority and experience
research is to examine how the extent of promotion discount affects the promptness and continuity of the promotion effects,
Featured channel and products e-tailers
moderated by consumer seniority and experience, featured products, and featured channels. We collected data from
Woot.com in 2022, a popular United States–based e- tailer that commonly offers discounted products, and used regressions
to analyze the data. Our findings suggest that the discount extent affects the promptness and continuity of the promotion
effect in a U-shaped way. Therefore, an intermediate discount is optimal to achieve the highest promptness and continuity of
the promotion effect. In addition, the timing flow of the promotion effects is moderated by three aspects–consumer, channel,
and product. Consumers’ historical purchase behaviors, reflected by their experience, weaken the promptness of promotion
effects. Furthermore, consumer experience and the featured channel accelerate the continuity of promotion effects. The
featured products weaken the continuity of promotion effects. Our findings yield important managerial implications to guide
e-tailers in leveraging appropriate promotional discounts to attract consumers soon and continuously enhance sales. E-tailers
should also pay attention to the particular consumer segments and the channel and product features to achieve the best timing
flow of the promotion effects. 1. Introduction
From the demand side, consumers are heterogeneous in terms of their online
purchase experience for various reasons, such as information adoption
Retailers are currently using various marketing and operational strategies
willingness and capability, risk preferences, and shopping habits (Li and
to cope with fierce competition to attract consumers and generate more sales
Popkowski Leszczyc, 2024). Thus, e-tailers’ promotional effects may vary
(Guchhait et al., 2024). Price promotions are among the common approaches
among consumers with different online shopping experiences (Lian et al.,
(Wei et al., 2025). In the e-commerce context, this is especially true for e-tailers
2019; Peschel, 2021). From the supply side, e-tailers also often implement
for two reasons. Externally, e-tailers face competition from both the brick-and-
various operational and marketing efforts to improve the effects of online
mortar stores and all other e-tailers without geographical restrictions, causing
promotion (Khouja and Liu, 2020). Understanding the timing flow of
a high level of sales rivalry. Internally, e-tailers have more flexibility to adjust
promotion effects and the corresponding influential factors is important for e-
prices without the cost of reprinting and reposting the price label and can
tailers to implement the appropriate magnitude of price discount and provide
shorten the associated lead time for price changes (Tong et al., 2022). In
the corresponding inventory for the products given the corresponding
addition, price change information can spread more quickly and widely,
prediction of demand pattern based on the price promotion.
facilitated by internet-based information technology (Feng et al., 2021).
However, understanding the timing flow of promotion effects is complex.
One of the important measurements of the timing flow is promotion
promptness (Hochbaum et al., 2011; Spiekermann et al., 2011). Promptness
refers to how quickly consumers act on a promotional offer. A higher level of * Corresponding author.
promotion promptness is meaningful for companies’ success in three aspects.
The literature has proven the positive function of price promotions, with
First, a higher level of promotion promptness shows a higher attractiveness for
the majority focusing on increased sales (e.g., Dai et al., 2022; Drechsler et al.,
promotion. The prompt first response from the promotion helps firms
2017) as the consequence of promotions. However, very few studies have
overcome the challenges reflected by the proverb “The beginning is the most
focused on the process of the promotion effects, namely, the timing flow of
difficult part” and is easy to achieve: “Well begun, half done.” This benefits
promotion effects. Although e-tailers may want to use promotions to attract
firms by enhancing their self-confidence, organizational morals, and
consumers immediately, stimulating a high level of promotion promptness, a
reputation (Greenacre et al., 2014; Yoon et al., 2014). Second, a higher level of
continuing demand flow is important for e-tailers to maintain long-term
promotion promptness can cause customers’ herd behavior to follow their
profitability (Hu and Tadikamalla, 2020). In addition, the rapid development of
peer consumers to purchase online, achieving the positive effect of “hunger
e-commerce has various features from both the demand and supply sides.
E-mail addresses: yzhuang@frostburg.edu (Y. Zhuang), xun.xu@sjsu.edu (X. Xu). https://doi.org/10.1016/j.jretconser.2025.104322
Received 14 November 2024; Received in revised form 21 April 2025; Accepted 7 May 2025 Available online 23 May 2025
0969-6989/© 2025 Elsevier Ltd. All rights are reserved, including those for text and data mining, AI training, and similar technologies. lOMoAR cPSD| 59078336
Y. Zhuang and X. Xu Journal of Retailing and Consumer Services 86 (2025) 104322
marketing” to trigger consumers to perceive the demand is higher than the
effects. E-tailers should leverage the promotion effects based on the property
supply, thus enhancing demand of the promoted products (Ali et al., 2021;
of the channel and product based on our findings.
Zhang et al., 2022). Third, a higher level of promotion promptness indicates
To answer the aforementioned four research questions, we employ
the short return of e-tailers’ effort, as a type of investment, which enhances
signaling theory that interprets price promotion as a signal sent from the e-
their cash flow and financial performance (Vorhies et al., 2009). Thus, our first
tailers to consumers. The data source is from a prominent discount platform:
research question is: How does the e-tailers’ price discount extent affect the
Woot.com, which sells various types of discounted products. We employed
promptness of the promotion effect? Understanding this research question is
regression techniques to find empirical evidence.
important because the intuition is that a higher discount can attract consumers
Our findings suggest that the extent of the discount affects the promptness
more immediately. However, although the larger discount can save consumers
and continuity of the promotion effect in a U-shaped pattern. In addition,
more purchasing costs, it is also possible that the discount, at a certain high
consumer seniority and experience weaken the promptness of promotion
level, may be unfavorably perceived by consumers as an indication of the low
effects. Furthermore, consumer experience and the featured channel
quality of the products or sellers’ eagerness to get rid of the existing inventory
strengthen the continuity of promotion effects. The featured products weaken
(Buil et al., 2013). This trade-off needs to be considered by e-tailers to
the continuity of promotion effects.
determine the optimal discount to attract consumers sooner to achieve a
The findings of our study provide both theoretical and managerial
relatively instant market response and financial return.
implications. Theoretically, our study extends the existing literature about
In addition, the second research question of this study is: how does e-
price promotion effects from the consequence perspective (e.g., Choi et al.,
tailers’ price discount extent affect the continuity of the promotion effect?
2024; Guan et al., 2024; Wei et al., 2025) to the timing flow aspect. Our
Continuity reflects the stability of the sales flow of the prompted products
findings are different from some previous studies that claimed the higher
(Deleersnyder et al., 2004; Forti et al., 2020). The importance of addressing
promotion extents can yield more positive effects on generating sales (e.g., Dai
this research question lies in the fact that although e-tailers may want to use
et al., 2022; Dreschsler et al., 2017) but demonstrate the intermediate
a flash sale to attract consumers in a short time period, a continuing demand
discount is most effective in achieving promptness and continuity of the
flow is important for e-tailers to maintain long-term profitability (Hu and
promotion effects. Our study is also the first to find the moderating factors of
Tadikamalla, 2020). A higher discount may contribute to the continuity of
these effects from a comprehensive framework including three dimensions,
promotional attractiveness due to consumers’ perceived larger benefits.
including consumer, product, and channel perspectives. Managerially, the
However, it may also stimulate consumers’ feelings about the non-specialty of
findings of our study urge e-tailers to take a holistic view of the timing flow of
the promotions, considering the promotions as a normal case (Zhang and
promotion effects, namely, the process of promotion effect rather than simply
Gong, 2023). Therefore, we want to help e-tailers determine the appropriate
the consequence. Our findings guide e-tailers in using intermediate discounts
discount extent to achieve a continuing flow of the promotion effect to
to achieve the promptness and continuity of the promotion effects as a
maintain the positive influence brought by price promotion.
marketing strategy. In addition, e-tailers should pay attention to the consumer
However, the promptness and continuity of promotion effects may depend
segment and their operational efforts to have the featured channel and
on various factors from consumer, channel, and product perspectives.
products accelerate the promptness and continuity of the promotion effects.
Correspondingly, from the consumer perspective, our third research question
The remainder of our paper is organized as follows. Section 2 reviews the
is: how do the various types of consumers with different historical purchasing
relevant literature and elaborates on the theoretical background of this study.
behaviors, reflected by their seniority and purchase experience, moderate the
Section 3 proposes hypotheses. Section 4 presents our methodology, including
promptness and continuity of promotion effects? Understanding the answer
data collection, variable measurements, and analytical approach. Section 5
to this research question is essential because e-tailers’ promotion effects may
presents our empirical results. Section 6 discusses results and the theoretical
vary among various consumers with different online shopping experiences
and managerial implications. Section 7 concludes the study and provides
(Lian et al., 2019; Peschel, 2021). First, various consumers have different levels
directions for future research.
of seniority in terms of their membership. A longer membership can 2. Literature review
strengthen the ties with a provider (Chang et al., 2014) but could also allow
consumers to either value promotions more owing to the stronger attachment
In this section, we first review the relevant literature about promotions.
with the provider or less because of perceived accustomed promotional
Then, we elaborate on the theoretical background of this study.
activities with less excitement. Second, various consumers can have different
purchase experiences, being either new, having no or limited past purchases 2.1. Promotions
from the e-tailers, or being experienced purchasers with rich transaction
records. The purchase experience could also affect the consumer’s perception
Previous studies have discussed various impacts of price promotions, as
of the promotional discount. Therefore, e-tailers should have targeted actions
shown by the following five aspects. These aspects include purchase intention,
for each consumer segment based on their seniority and experience to achieve
sales, revenue and profits, consumer conversion rate, and consumer the best promotion effects.
perception. First, price promotions can enhance consumer purchase intention.
Last, from the channel and product perspectives, our fourth research
For example, using an experimental approach, Büyükdag et al. (2020)˘ found
question is: how do the highlighted channels and products affect the
that price promotion positively affects consumers’ purchase intention.
promptness and continuity of promotion effects? Knowing the answer to this
Second, price promotions have a positive effect on sales increase. For
question is essential because e-tailers also often implement various
example, Dai et al. (2022) found that price promotions can generate more
operational and marketing efforts to improve online promotion effects (Khouja
online sales, whereas price increase reduces online sales. The positive
and Liu, 2020). On the operational side, to better manage inventory and
promotion effects on bumping sales are also demonstrated in Drechsler et al.’s
distribution channels, e-tailers often draw support from a well-known platform
(2017) and McColl et al.’s (2020) study.
for fulfillment, using it as a featured channel and highlighting this information
Third, price promotion can generate more revenue and profit for firms.
on the product’s web page (McKay, 2022). On the marketing side, many
Although the lowered price reduces the marginal profit of the product, the
retailers make efforts to highlight products’ functions and advantages and list
positive promotion effects on revenue and profit were still demonstrated in
them in a featured program (MacDonald, 2021). Both the featured channels
previous research (e.g., Feng et al., 2021; Lin and Bowman, 2022). These
and the products in the featured program (i.e., featured products) may affect
effects are particularly significant for customers with high price and promotion
the aforementioned features of the promotions and the various promotion
sensitivity (Lin and Bowman, 2022). Regarding the detailed approach to lOMoAR cPSD| 59078336
Y. Zhuang and X. Xu Journal of Retailing and Consumer Services 86 (2025) 104322
enhance revenue, Feng et al. (2021) built theoretical models to guide the listed
positive externality. Zhang et al. (2021) demonstrated that price promotions
sellers on the platform to implement the optimal promotional pricing
can make consumers feel they have more resources, which ultimately incurs
strategies to maximize the revenue.
the positive social externality that they have more donation behavior. The
Fourth, price promotions have a significant impact on consumers’
positive promotion externality can also be reflected by consumers’ green
conversion rate and engagement. For example, Tong et al. (2022) claimed that
awareness and trust and their green consumption (Guan et al., 2024). The
price promotions increase consumers’ conversion rates. This effect is stronger
effects of the promotion on consumer perception may not be linear. Zheng et
if the platforms serve the reseller mode rather than the marketplace mode. In
al. (2022) found that price promotion has an inverted U-shape effect on
addition, this effect is accelerated if the product has a longer line length. Zhang
consumers’ attribution ambiguity.
et al. (2020) found that price promotions enhance consumers’ engagement on
However, the achievement of promotion effects can be conditional, which
the platform by viewing more product webpages.
is examined in some of the previous research (e.g., McColl et al., 2020; Wei et
Fifth, price promotion affects consumers’ perceptions. Price promotions
al., 2025). For example, Chen et al. (2020) found that the high competition
enhance consumers’ perceived price attractiveness (Büyükdag ˘ et al., 2020).
level of retailers prevents the achievement of a mutual benefit for the
Choi et al. (2024) argued that price discounts can reduce consumers’ guilty
suppliers and e-tailers for their price promotion. Drechsler et al. (2017) found
feelings for hedonic consumption. However, besides the positive effects of
that the effect of price promotion of “X for $Y” on increasing sales is significant
price promotions, the negative effects can also exist. For example, Buil et al.
for utilitarian products but not for hedonic products. McColl et al. (2020)
(2013) found that price promotions reduce consumers’ perceived quality and
showed that the magnitude of the positive promotion effects on sales depends
brand association with the products. In addition, Shaddy and Lee (2020) found
on store size. This result is verified by Sinha and Verma (2020) study to find
that price promotions can trigger consumers’ psychology of reward-seeking
product categories moderate promotion effects. Fong et al. (2019) focused on
and eventually make them impatient. In addition, price promotion can have a targeted Table 1
Literature about the effects of Price Promotions. Authors (Year) Consequence Moderators of Key Findings Subject of Promotion Effects Promotion Effects Drechsler et Sales Product categories Promotion effects on al. sales are stronger for (2017) utilitarian products than hedonic products. Büyükdag ˘ Purchase intention N/A Promotion increases et al. purchase intention. (2020) Shaddy and Impatience N/A Promotion triggers Lee consumers’ reward- (2020) seeking psychology and makes them impatient. Zhang et al. Donation N/A Promotion leads (2021) consumers to feel more resources to have more donation behaviors.
Dai et al. (2022) Online sales Platform types Promotion generates more online sales. However, this effect is different between O2O and traditional B2C platforms. Lin and Revenue and Price sensitivity Promotion enhances Bowman profitability revenue and (2022) profitability, especially for consumers with high price sensitivity. Tong et al. Conversion rate Platform mode and Promotion increases (2022) product line length consumer conversion rate more for the platforms with the reseller mode and for the products with a longer line length. Zheng et al. Attribution N/A Promotion has an (2022) ambiguity inverted U-shape impact on consumers’ attribution ambiguity. Choi et al. Guilty feeling N/A Promotion reduces (2024) consumers’ guilty feelings about the consumption of hedonic products. lOMoAR cPSD| 59078336 Y. Zhuang and X. Xu
Journal of Retailing and Consumer Services 86 (2025) 104322 Guan et al. Green trust and N/A Promotion enhances (2024) consumption consumers’ green trust and consumption. Wei et al. Purchase intention Quality cues The promotion effect on (2025) customer purchase intention is moderated by quality cues. This study Promptness and Consumer seniority, The discount extent continuity consumer affects the promptness experience, featured and continuity of the channel, and featured promotion effect in a U- product shaped way. Consumer experience weakens the promptness of promotion effects. In addition, consumer experience and the featured channel accelerate the continuity of promotion effects. Further, the featured products weaken the continuity of promotion effects.
promotions based on the history of individual purchases on an e-book
risk than brick-and-mortar store shopping, owing to the separated processes
platform. They found that the targeted promotions incur costs for crowding
of transaction and fulfillment (Yang et al., 2016).
out consumers’ dissimilar product purchases, although they can increase the
The information posted by e-tailers serves as signals to convey information
sales of the promoted products along with similar products. Wei et al. (2025)
about products and sellers, as an indication of product quality and
empirically tested that the positive promotion effect on customer purchase
specification and sellers’ capabilities and reputation (Rao et al., 2018).
intention is moderated by quality cues and mediated by consumers’ perceived
Signaling theory serves as the main theoretical foundation of this study.
quality. Table 1 summarizes the literature on the effects of price promotions.
Signaling theory refers to a case in which two parties, either individuals or
From Table 1 and the above review of price promotion literature, we can
organizations, have information asymmetry in the environment; one party, as
find that three aspects of literature gaps still exist, which highlight the
the sender, conveys the information to communicate with the other party, with
contributions of this study. First, existing literature on price discount
the expectation that the information is interpreted by this party as the receiver
promotion (i.e., price markdown) (e.g., Choi et al., 2024; Wei et al., 2025)
(Li et al., 2019). At the product level, positive signals can reduce information
focused on the consequences of price promotions without investigating the
asymmetry, motivating consumers to support products, trust sellers, and thus
process of promotion effects, namely, the timing effects of promotions. That
enhance their purchase intentions and behaviors (Mavlanova et al., 2012).
is, it is still unexplored how the consequences are incurred within a timeline
Pricing is one of the most important decisions for e-tailers and is also one
framework. This study fills in this literature gap by examining the timing effects
of the prominent signals perceived by consumers, as well as being among the
of price promotions from two dimensions–promptness and continuity. Second,
key elements for consumers’ purchase consideration (Feng et al., 2021). In this
most existing price promotion research (e.g., Dai et al., 2022; Tong et al., 2022)
study, we focus on the price promotion information posted by the e-tailers.
assumed the higher magnitude of price promotion has a more substantial
According to signaling theory, the key features of signals include
unidirectional effect. In this study, we investigated the nuanced impact of
observability, credibility, and reliability, which affect the effects of price
discounts with the change of the discount magnitude and found extreme
promotion signals. First, the observability of signals refers to the “degree to
discounts may not achieve the strongest effect. Instead, an intermediate
which a signal is easily attended to by an organizational outsider,” which can
discount can have the most significant impact, which can guide e-tailers’
affect signal strength (Drover et al., 2018; Zhang et al., 2022). In this study, the
promotion actions. Third, among the price promotion research that discussed
observability of signals is reflected by the magnitude of promotions. Different
the moderating factors, most of them investigated this issue from a single
magnitudes of promotions can be observed from consumers with different
dimension, such as from the perspectives of product (Drechsler et al., 2017),
efforts, which reduces information asymmetry by different levels, making the
platform (Dai et al., 2022), and consumer (Lin and Bowman, 2022). In this
unobservable product information, such as product quality, more indicatable,
study, we examine the moderating factors that affect price promotions from a
influencing consumers’ purchase decisions (Kirmani and Rao, 2000).
comprehensive framework including three dimensions–consumer historical
In addition, the credibility of signals is defined as the combination of a
shopping behavior (i.e., seniority and experience), product (featured product),
signal’s honesty (i.e., the degree to which communicators engage in deception)
and channel (featured channel). In this way, our study can provide a holistic
and fit (i.e., the degree to which the signal accurately reflects the desired
view of the multi-perspective factors that can potentially affect the price
attributes of the signaler) (Connelly et al., 2011). In this study, we focus on the
promotion effect that guides e-tailers to focus on certain aspects to achieve
factors of featured channels and products and investigate how they influence the promotion effects best.
promotion effects. In e-commerce, where physical examination of products is
not possible and the credibility of sellers varies, the information asymmetry 2.2. Signaling theory
between buyers and sellers is particularly pronounced. Therefore, consumers
frequently depend on alternative signals to guide their purchasing decisions.
The delivery of information is key to enhancing consumers’ purchase
Featured channels, known for their reliability and reputation, and featured
intentions and behavior (Onofrei et al., 2022). This is particularly true in the e-
products, distinguished by their endorsement by platforms, act as such signals.
commerce context, which brings both more convenience and higher perceived
The mark of featured channels and products serves as an endorsement from lOMoAR cPSD| 59078336
Y. Zhuang and X. Xu Journal of Retailing and Consumer Services 86 (2025) 104322
the platforms to enhance the credibility of the signals, which improves the
3.2. Continuity of promotion effect
strengths of the signals (Bergh et al., 2014).
Furthermore, the reliability of signals shows the magnitude of the reliable
Signaling theory suggests that a high promotion acts as a signal that has a
indicators for the signals (Connelly et al., 2025). A more reliable signal is
high strength to consumers, significantly influencing their perceptions and
perceived more favorably by the receivers, stimulating their decisions based
decision-making processes (Mitra and Fay, 2010). Such promotions can create
on the signals (Taj, 2016). Consumers with different historical purchase
a lasting impression, boosting product sales (Xia et al., 2020), and enhancing
behaviors have different seniority and purchase experiences, which may
product attractiveness, thereby giving products a competitive edge (Singh,
perceive different reliability of the signals because they have experienced
2012). This signal can have a higher level of observability due to the larger
promotions with varying frequencies in the past, affecting their purchasing
discount extent, which thus can persuade consumers to purchase a product
decisions. In this study, we examine the effect of the magnitude of price
even after an intensive online information search for substitutes, extending the
promotion on promptness and continuity, moderated by consumers’ seniority
duration of the promotion effects (Laroche et al., 2003).
and experience and featured channel and product, which thus reflects all of
However, a low discount may also yield higher continuity for the promotion
the three features of signals–observability, reliability, and credibility in
effect. This is because the low discount is not so attractive that consumers signaling theory.
would not worry that the products will be out of stock owing to large sales
(Natter et al., 2007). In addition, consumers have less perceived potential
3. Hypothesis development
regret if they miss a deal owing to a low discount (Liu et al., 2021). Further, the
low discount is less likely to incur clustered purchasing behavior because
3.1. Promptness of promotion effect
consumers’ purchases are more rational or need-oriented, rather than
impulsive (Rajan, 2020). Hence, the low discount may achieve the essence of
The price promotion effect can have different levels of promptness,
the proverb “A steady stream flows long.” Therefore, based on the preceding
depending on the level of the promotion. Price promotions act as
discussion, we propose the following hypothesis:
communicative signals offered by the seller as the signaler to the consumer as
H2. The promotion extent has a U-shaped, curvilinear effect on the continuity
the receiver. These signals vary in strength and can significantly influence
of promotion effects, such that it decreases at low levels of the promotion
consumer perceptions and behaviors. Consumers often conduct a cost-benefit
extent but increases at high levels.
analysis in their shopping process (Lee and Cunningham, 2001). As compared
to a lower level of promotion, a higher level of promotion is a potent signal
3.3. Moderating effect of consumer seniority
that has a higher level of signal observability because it reduces consumers’
purchase cost, thus being more attractive and generating their purchase
From the perspective of signaling theory, promoting a product is a crucial
intentions and behavior, which helps them make their purchase decisions in a
signal that reflects the seller’s marketing strategies and commitment to sales,
shorter time. Consumers thus tend to pay more attention to this promotional
influencing consumer perceptions favorably (Chen, 2018). However,
signal due to this higher signal observability (Sheehan et al., 2019). Further, as
consumers with different tenure on the platforms may have different
a stronger stimulus, a higher price promotion generates consumers’ positive
perceptions of the seller’s brand effect, thus motivating consumers’ intentions
consumption emotions and stimulates impulsive buying behavior (Zielke,
to explore the seller’s online store and other products differently (Feng et al.,
2014). Moreover, consumers are more likely to worry about regrets if they miss
2021). Consumers with different seniority levels have different time durations
a great deal or the products are more likely to be sold out owing to more
with the providers, which affects the tightness and thickness of the buyer-
purchases by other consumers when the promotion is high, and thus they are
supplier relationship (Autry and Golicic, 2010). The seniority level also affects
more likely to view the promotion as a flash sale, rapidly purchasing the
consumer loyalty on the platform. For the new consumers, they may be product (Liu et al., 2021).
enrolled in the platform due to price promotion (Walsman and Dixon, 2020). A
However, an extremely high discount can signal potential negative
higher promotion thus has a higher observability for them to attract more
attributes, leading to consumer skepticism and hesitancy in purchasing. When
purchases from new members owing to increased likelihood of surprise and
the discount is extremely high, consumers may view this signal as less
excitement about the higher discount, increased curiosity about exploring the
favorable because it may indicate that sellers want to get rid of the inventory
online shopping process on the platform, and increased eagerness about
quickly (Chen, 2018). The possible unfavorable reasons could be that the
exploring the benefits of membership (So et al., 2015). Consumers with a
products are approaching their expiration date and are historically unfavored
longer membership period tend to have less impulsive responses to high
by consumers, resulting in low sales. In addition, consumers may have
discounts, viewing the promotional signal as more reliable because they
concerns about the signal credibility, namely, view the signals as trustworthy
perceive the promotions as less unusual than new members might (Goel et al.,
because they may perceive the quality of the product as low, especially when
2022). Thus, highly senior consumers exhibit a weaker acceleration in purchase
the quality is often unobservable online and before consumption (Buil et al.,
timing in response to extreme discounts than newer consumers, which
2013; Kirmani and Rao, 2000). In addition, consumers may perceive the
weakens the promptness of promotion effects. Therefore, based on the above
production and distribution cost of the products skeptical and have concerns discussion, we hypothesize:
about whether additional charges can occur in the purchase, such as shipping
and handling fees in the online shopping environment (Jing, 2011). All of these
H3a. Consumer seniority weakens the promptness of promotion effects.
factors make consumers hesitant to purchase, weakening the price promotion
Consumers with a higher seniority level tend to be more cognitive rather
effect. Therefore, based on the preceding discussion, we propose the following
than emotional when facing promotions (Aydinli et al., 2014). This is because hypothesis:
they have observed the promotions more frequently than the new consumers.
H1. The promotion extent has a U-shaped, curvilinear effect on the
Thus, highly senior consumers tend to view the promotion signal as more
promptness of promotion effects, such that it decreases at low levels of the
reliable because they are more cognitive and have more understanding of
promotion extent but increases at high levels.
online shopping, which makes their buying patterns habits of purchasing
products more established and continuous based on promotions and their
preferences rather than impulsive buying, enhancing the continuity of
promotions. That is, consumers with a higher seniority level extend the
duration of the promotion effects due to their cognition and the more rational lOMoAR cPSD| 59078336
Y. Zhuang and X. Xu Journal of Retailing and Consumer Services 86 (2025) 104322
attitude toward the promotions rather than simply exhibiting impulsive buying
3.5. Moderating effects of featured channel
behavior (Karbasivar and Yarahmadi, 2011). Therefore, based on the preceding
discussion, we propose the following hypothesis:
The featured channel, being well-known and reputable (Tong et al., 2022),
acts as a highly credible signal in the e-commerce context. Its prominence and H3b.
Consumer seniority strengthens continuity of promotion effects.
brand effects enhance the visibility and credibility of the signals it sends,
Fig. 1. The conceptual framework of this study.
3.4. Moderating effect of consumer experience
making these signals more easily attended to and valued by consumers. The
consumers thus have a high level of familiarity with the featured channel. It
Consumers with different purchasing experiences may perceive price
often offers an extra guarantee and additional services, which can reduce
promotions differently. An aggressive promotion gives consumers a strong
perceived risk in the e-commerce context, strengthening the signal credibility
signal that has a higher observability of the product’s value, enhancing its
(Vos et al., 2014). Thus, consumers have more trust in the featured channel,
market competitiveness (Singh, 2012). However, this signal not only indicates
valuing it highly (Jiang et al., 2008).
economic savings but also triggers a psychological response, stimulating the
Therefore, when the products distributed by the featured channel are
thrill and satisfaction for consumers derived from making a financially savvy
being promoted, the promotion signal tends to be viewed as having more
choice (Tu et al., 2017). This is particularly true for consumers with less
credibility because the featured channel serves as an endorsement or
historical purchasing experience because they may view the promotion as a
guarantee. The signals that have endorsement or guarantee can thus be
scarce resource and have a higher desire to grasp the opportunity (Wu et al.,
interpreted by consumers more favorably (Shek et al., 2003), leading them to
2021). The existing consumers with mature purchasing experience are more
weigh the signals more and value the promotions more highly. This way, the
likely to carefully consider the various attributes of the products, letting the
promotion effects can increase consumer promptness and continuity.
price play a less significant role in their purchase decisions (Jiang and
Particularly in the online context, consumers typically perceive higher risks
Rosenbloom, 2005). Thus, according to the above discussion, we raise the
than in the physical stores due to the loss of the opportunity to touch and feel following hypothesis:
the products before purchasing (Akram and Lavuri, 2024). Therefore,
consumers tend to find credible signals from the featured channel that are
H4a. Consumer experience weakens the promptness of promotion effects.
especially reassuring. Thus, the featured channel reduces the concerns of
In addition, experienced consumers typically have a clearer understanding
these consumers and strengthens the effects of the promotion. Therefore,
of the product value and more consistent purchasing patterns, which tends to
based on the preceding discussion, we propose the following hypotheses: H5a.
make them perceive promotions less as a stunt and more as a marketing
The featured channel strengthens the promptness of promotion effects.
strategy of the providers (Allender and Richards, 2012). As they have more
H5b. The featured channel strengthens the continuity of promotion effects.
experience, these consumers understand the duration of the promotion better
without too much negative influence from hungry marketing, which worries
about the scarcity of the promotion and the likelihood of stockout of the
3.6. Moderating effects of featured products
products (Zhang et al., 2022). That is, they view the promotion signal as having
higher reliability. Therefore, experienced consumers tend to exhibit a
Price promotions have a higher impact on price-sensitive and price-
continuing purchase flow when viewing the promotions, showing their higher
oriented consumers (Kim et al., 1999). Price typically signals the product
rationality toward the promotions (Li et al., 2023). Based on the preceding
quality, with a higher price indicating a higher production cost, thus signaling
discussion, we hypothesize the following:
a higher quality (Ho et al., 2011). Businesses often invest more effort in
H4b. Consumer experience strengthens continuity of promotion effects.
marketing their featured products (Zhu and Chen, 2015). The featured
products signal the competitive advantages of the products based on their lOMoAR cPSD| 59078336
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unique features, higher quality, and added value (Choi and Ahn, 2011). Thus,
included and excluded observations, as category-level patterns would most
consumers who care more about quality with unique features rather than price
likely reveal any non-random missing data mechanisms due to our data favor featured products more.
collection approach via Woot.com’s category-based scraping. The analysis
Therefore, when featured products are on promotion, they align more with
revealed highly similar distribution patterns across both groups. For example,
the needs of quality-oriented consumers rather than price-sensitive
the “Sports” category remained the largest, followed by “Home” and “Tools”
consumers, reducing the attractiveness of these promotions (Drechsler et al.,
in both the included and excluded sets. This consistency provides strong
2017). Therefore, price promotion effects on featured products may not be as
evidence that the missing data pattern is random.
strong as those on non-featured products, which are characterized by lower
In addition, potential concerns may exist regarding reduced statistical
prices and quality that attract price-oriented consumers (Han et al., 2001).
power due to the drop in observations due to missing data. To address this, we
This, in turn, leads to reduced consumer promptness and continuity in
conducted a power analysis to ensure that our final sample size of 1656
responding to the promotions of featured products (Aw et al., 2021).
observations provides adequate statistical power for our analysis. Specifically,
Therefore, based on the preceding discussion, we propose the following
our model incorporates 29 predictors, including main effects (Promotion, hypotheses:
Promotion2), moderators (Seniority, Experience, Channel, Product), interaction
terms, and control variables. The power analysis revealed the following
H6a. The featured products weaken the promptness of promotion effects.
minimum sample size requirements to detect different effect sizes: for small
H6b. The featured products weaken the continuity of promotion effects.
effects (f2 = 0.02), 423 observations are needed; for medium effects (f2 = 0.15),
We visually describe the conceptual framework of this study in Fig. 1.
83 observations are required; and for large effects (f2 = 0.35), 53 observations
are sufficient. With a final sample size of 1656 observations, we far exceed 4. Methodology
these thresholds. Thus, the drop in observations is not a concern for our study.
In this section, we first illustrate the process of data collection. Then we
4.2. Independent and dependent variables
discuss the construction of each variable in the model.
The core independent variable in this study is the extent of promotion 4.1. Data collection
(Promotion), measured as the discount in percentages. We obtained this
number by subtracting the final price from the original price and then dividing
We collected data from an e-tailer platform called Woot.com. Woot is a
the new number by the original price. The range of promotion extent was from
United States–based e-tailer. It was launched in July 2004 and later acquired 0 % to 93 %.
by Amazon in 2010. Since then, Woot has continued to run independently.
In this study, we have two dependent variables. First, we captured
Woot is known for offering a variety of discounted products. We chose Woot
Promptness as time lapses in seconds between the availability of the product
for two major reasons. First, the focus of this study is promotion, and Woot
and the first purchase. That is, a lower value of Promptness indicates the
offered a suitable context because it specializes in selling discounted products.
product is sold quickly. We divided this variable by 1000 to better interpret the
The Woot website shows the original price, list price, and discount percentage
regression results. In addition, we measured promotion continuity (Continuity)
for its products when available. In other words, consumers can notice
as the inversed value of the standard deviation of the percentage of sales per
discounts in percentages easily. Although some products on Amazon and eBay
hour. Woot offers distribution regarding the percentage of products sold
also show the discount percentages, that is not so common as it is on Woot
during each hour of each day. Standard deviations of these percentage
because Woot’s focus is discounted products. Second, this platform offers
numbers reflect the dispersion of the sales. That is, a product with a smaller
unique data to test our hypotheses. E-tailer websites such as Amazon and eBay
standard deviation indicates longer continuity in promotion. We took the
usually do not disclose the backgrounds of their consumers owing to privacy
inversed value of the standard deviation for the purpose of easy
issues. Although Woot does not disclose individual consumer information, it
interpretations. This approach means that higher values correspond to more
offers aggregate-level information about consumers for each product sold on
continuous promotion effects, which makes the data more straightforward to
its website. Specifically, on the page of each product, Woot displays descriptive interpret.
information about consumers who have purchased that product. For instance,
this information includes how long it took for the first unit to be sold. Woot
4.3. Moderating variables
also presents information regarding how many products consumers have
purchased on Woot before, how long the consumers have been registered on
In this study, we tested the moderating effects of four variables: purchase
Woot, and how many units are included in every order and are purchased in
seniority (Seniority), purchase experience (Experience), the featured channel every order.
(Channel) and the featured product (Product). We captured purchase seniority
We obtained data of interest from Woot in two steps. First, we used Woot’s
(Seniority) as the average number of days since consumers registered on
Application Programming Interface (API) to collect all available information in
Woot.com. Further, we measured purchase experience (Experience) as the
its database. Second, we developed a customized Python program to obtain
average number of products consumers had purchased before. Channel was
data that are not available via the API. We used the URL links of the products
operationalized as a binary variable to indicate whether a product is fulfilled
from the first step to retrieve all available products in the second step. We
by Amazon. Although Woot has operated independently after it was acquired
obtained 2206 products from Woot based on a search dated February 2, 2022.
by Amazon, some products sold on Woot are fulfilled by Amazon. Fulfillment
After dropping the observations with missing values in any variable following
by Amazon means products are stored, packaged, and then shipped by previous studies (e.
Amazon. However, all transaction processes are still completed on Woot. com.
g., Dong and Peng, 2013; Enders, 2003), we obtained 1656 products for the
Consumers can see a noticeable tag on the product web page, showing that
analysis. To ensure that the missing data mechanism did not introduce
this specific product is fulfilled by Amazon. We used 1 to denote if the product
systematic bias, we conducted a thorough analysis of the data structure.
is fulfilled by Amazon, otherwise 0. We captured
Specifically, we examined the distribution of product categories between the lOMoAR cPSD| 59078336
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Descriptive statistics. Product to indicate whether the product was classified as Woot Plus product or not. A Woot Plus product is a featured product by Woot and is
highlighted on the product web page with a corresponding mark. We used 1 Variable Measure Mean Std. Dev. Min Max
to denote a Woot Plus product and 0 to denote a non-Woot Plus product.
Dependent Variables Promptness Numeric 27.188 77.117 0.194 522.270 4.4. Control variables Continuity Numeric 0.173 0.081 0.067 0.428
Independent Variables
We included product-related and transaction-related control variables in our Promotion Numeric 0.379 0.246 0.000 0.930 Moderators
models. The product-related control variables included Pictures, Condition, Seniority Numeric 321.370 40.827 183.000 365.000
Category, Replies, and Likes. Pictures referred to the number of pictures shown on Experience Numeric 17.800 3.981 6.000 25.000
the web page for the product. We divided this value by 10 for the purpose of easy Channel Binary 0.431 0.495 0.000
1.000 interpretation. A higher number of pictures would facilitate consumers’ knowledge Product Binary 0.910 0.286 0.000 1.000
Control Variables
of and familiarity with the product and thus could influence their purchase behavior Pictures Numeric 0.552 0.366 0.100
1.800 (Hou, 2007). In addition, Woot sells both new products and refurbished products, Condition Binary 0.921 0.269 0.000
1.000 and consumers may behave differently in relation to them (Neto et al., 2016). We Replies Numeric 0.295 1.005 0.000
7.000 thus included Condition as a control variable with the value of 1 meaning that the Likes Numeric 0.370 1.593 0.000 12.000 Mobile
product is new and 0 otherwise. Further, a variety of products are available on Woot Binary 0.005 0.069 0.000 1.000 Weekend Binary 0.030 0.170 0.000
1.000 under different categories, including groceries, home, PC, shirts, sports, technology, Category_Grocery Binary 0.063 0.243 0.000
1.000 and tools, which could generate consumers’ different purchase behaviors Category_Home Binary 0.270 0.444 0.000
1.000 (Kushwaha and Shankar, 2013). Thus, we included a binary variable (i. Category_PC Binary 0.066 0.248 0.000 1.000 Category_Shirt Binary 0.046 0.209 0.000 1.000 Category_Sport Binary 0.307 0.461 0.000 1.000 Category_Tech Binary 0.081 0.273 0.000 1.000 Category_Tools Binary 0.168 0.374 0.000 1.000 lOMoAR cPSD| 59078336
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e., Category) for each category and included them in the model. In addition, Woot platform offers a discussion forum for each item, functioning lOMoAR cPSD| 59078336
Y. Zhuang and X. Xu Journal of Retailing and Consumer Services 86 (2025) 104322
similarly to reviews by providing user-generated content and social proof. We retrieved the number of discussion threads (Replies) and “likes” (Likes)
from these forums for each product and included them as control variables.
Transaction-related control variables included the distribution channel and sales ending time. We included Mobile as a control variable to
indicate whether the product was available on mobile only or not. We coded Mobile as 1 if the product was available on mobile only and 0 otherwise.
The mobile-only products were only available to consumers who used Woot’s mobile app, and the availability of distribution channel affected
consumers’ purchase behavior (Wang et al., 2015). In addition, we also considered whether the sales ending time was during the weekend
(Weekend) as a binary variable. Product sales that end during the weekend are more likely to attract more potential consumers due to their
availability (Subramanian and Subramanyam, 2012). We used 1 to indicate discounts for products that ended on weekends and 0 otherwise. Table
2 presents the descriptive statistics of all variables. Note, all continuous variables are winsorized at the 1st and 99th percentiles. The correlations
between the variables are presented in Table 3. 4.5. Analysis
DVi =β0 + β1 Promotioni + β2 Promotion2i + β3 Channeli + β4Producti + β5 Picturesi +
β6 Conditioni + β7 Repliesi + β8 Likesi + β9 Mobilei + β10
Weekendi + Viφ + εi, (1)
To test for the curvilinear relationship of Promotion with Promptness (H1) and Continuity (H2), we include both the linear terms and quadratic terms
of Promotion in the regression. We specify the estimated model in Eq. (1):
where subscript i indicates each Woot product listing. The DV is Promptness or Continuity. Vi is a vector that includes all of the product category
dummy variables, and εi is the error term.
To test the moderating effects of consumer seniority, consumer experience, featured channels, and featured products on the impact of
promotion on Promptness and Continuity, we have included both the interaction terms between the moderators (i.e., Seniority, Experience, Channel,
Product) and the linear terms of Promotion and the moderators and the quadratic term of Promotion into the regression based on Eq. (1), which forms Eq. (2):
DVi =β0 + β1 Promotioni + β2 Promotion2i + β3 MODi + β4Promotioni × MODi + β5Promotion2i × MODi + β6 Picturesi + β7 Conditioni + β7 Repliesi + β8 Likesi +
β9 Mobilei + β10 Weekendi + Viφ + εi, (2)
where MOD refers to the moderator, which is Seniority, Experience, Channel, or Product. All other notations and variables are the same as in Eq. (1).
Given the potential correlation between the error terms in our promptness and continuity models, we employ Seemingly Unrelated Regression
(SUR) to account for this interdependence. SUR can estimate multiple equations simultaneously while accounting for cross-equation error
correlation and achieve more efficient estimation (Aruoba and Drechsel, 2024). To address the potential concerns of inference under
heteroskedastic, we adopted robust variance-covariance. Additionally, we calculated variance inflation factors for all explanatory variables, with all
values falling well below 10, offering evidence that multicollinearity is not a concern for our study (Kim, 2019; Shrestha, 2020). Table 4
5. Results and discussions Results of main effects. Variables Model 1(a) Promptness Model 1(b)
5.1. Results of promptness and continuity of promotion effect Based on the Continuity
results of Model 1(a) shown in Table 4, we find that the impact of promotion Promotion Promotion2 − 72.035** (29.329) − 0.033 (0.029) 57.062** (27.413) 0.112*** (0.030)
on promptness follows a U-shaped curve (β = 57.062,p = 0.037). Therefore, H1 Channel − 1.355 (4.327) 0.006 (0.004)
is supported. This finding indicates that a greater promotion discount first Product − 4.906 (3.177) − 0.036*** (0.008)
attracts consumers to purchase the product quickly. However, consumers Pictures 7.498 (5.808) 0.016*** (0.006)
become more hesitant when the promotion extent increases even more. Condition − 36.652** (15.098) 0.037*** (0.011)
Greater discounts attract the consumer to place the order quickly for two Replies − 2.040 (3.121) 0.008** (0.004) Likes 3.165 (2.322) 0.007*** (0.002)
major reasons. First, it is easier to get consumers’ attention immediately when Mobile − 39.327** (18.839) 0.033 (0.043)
the promotion extent is relatively higher. Second, Woot is a smaller e-tailer Weekend − 9.588* (5.189) 0.050*** (0.012)
with limited inventory. Therefore, consumers may worry that products with Category_Home − 0.478 (3.611) − 0.018** (0.008)
greater discounts will sell out quickly without sufficient stock. However, Category_PC 2.910 (13.365) 0.003 (0.013) Category_Shirt − 23.200*** (7.619) 0.036** (0.014)
consumers have more hesitation when the promotion extent is extremely high, Category_Sport 4.868 (3.251) 0.009 (0.009)
based on two concerns. Although Woot is backed up by Amazon, it is still less Category_Tech 127.532*** (15.880) 0.049*** (0.011)
well known than other main e-tailers in the United States, like Amazon itself or Category_Tools 9.010** (4.267) − 0.013 (0.009)
eBay. Consumers may be concerned that Woot is a scam, often indicated by Constant 65.108*** (17.719) 0.142*** (0.016)
extremely large discounts. The second concern is that consumers may suspect # of Observations 1656 0.262 1656 0.180
the quality of the product owing to the discount size. Therefore, consumers R2
may need to take additional time to conduct research on the product to make χ2 153.377*** 339.806***
sure of its quality. These two concerns together delay consumers’ purchase of
Note: *p < 0.1, **p < 0.05, ***p < 0.01. Robust standard errors are in parentheses.
the products with an extremely high promotion extent. lOMoAR cPSD| 59078336
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The results of Model 1(b) in Table 4 show a U-shape between promotion (0.168) (0.000) (0.070) (0.000)
extent and promotion continuity (β = 0.112,p < 0.001), which offers evidence Promotion × Seniority 1.101 − 0.001*
supporting H2. That is, the continuity of a promotion effect follows a U-shaped (0.707) (0.001)
curve depending on the promotion’s extent. The turning point is at 0.153. Experience − 0.494 − 0.002*** − 3.456** 0.000
When the promotion extent is low, it is not so attractive that consumers hurry (0.768) (0.001) (1.586) (0.001)
to purchase it, which yields a steady sales flow. However, when the promotion
extent is high, the promotion can attract consumers over time so that the Promotion × 17.896** − 0.015*** (7.410) (0.006)
promotional continuity is also high. Thus, our findings suggest two alternative Experience Promotion2 386.047*** − 0.183
ways for e-tailers to keep a high promotional continuity, either by offering a 390.303* − 0.075
low or a high discount, but not by staying in the middle. We plot these U- (233.348) (0.222) (147.955) (0.132)
shaped relationships in Fig. 2. As we can observe from Fig. 2(a), when Seniority × − 1.041 0.001
promotions are either very low or very high, customers take longer to make Promotion2 (0.712) (0.001)
purchases (higher promptness values). The optimal discount level for the Experience × − 18.728** 0.017**
fastest purchases appears to be around 60 %. Similarly, Fig. 2(b) shows a U- Promotion2 (7.815) (0.007)
shaped relationship between promotion level and continuity but with a much Channel − 0.877 0.005 − 1.171 0.006
more gradual curve. The minimum point occurs at around a 20 % discount (4.311) (0.004) (4.328) (0.004)
level. After this point, there is a steady increase in continuity as promotion levels increase. Product − 5.089 − 0.032*** − 4.411 − 0.034*** (3.352) (0.008) (3.311) (0.008)
5.2. Results of moderating effects of consumer seniority and experience Pictures 7.311 0.013** 7.756 0.013** (5.732) (0.006) (5.713) (0.006)
Table 5 shows the results regarding the moderating effect of consumer
seniority and consumer experience. Specifically, the results from Model 2(a) Condition − 33.328** 0.040*** − 29.954** 0.038***
show that there is no statistically significant difference (15.249) (0.011) (14.992) (0.011)
(β =− 1.041,p = 0.144) in how highly senior and newer consumers accelerate Replies − 2.128 0.008** − 2.151 0.008**
their purchase timing in response to extreme discounts. Thus, H3a is not (3.111) (0.003) (3.112) (0.003)
supported. Psychologically, strong forces like the fear of missing out, scarcity- Likes 3.272 0.006*** 3.333 0.006***
driven urgency, and loss aversion apply universally, pushing all consumers to (2.312) (0.002) (2.314) (0.002)
act quickly on an extreme deal. Behaviorally, Woot’s customers–whether new
or long-standing–tend to be deal-oriented individuals who remain sensitive to Mobile − 40.421** 0.039 − 40.472** 0.039 price cuts. (18.673) (0.042) (18.213) (0.042)
The results from Model 2(b) show that consumer seniority does not Weekend − 10.052* 0.049*** − 11.761** 0.051***
weaken or strengthen the U-shaped relationship between promotion and (5.188) (0.012) (5.196) (0.012)
promptness (β = 0.001, p = 0.395). Thus, H3b is not supported. This could be
because extreme discounts can sustain consistent sales over time regardless of Category_Home − 0.876 − 0.021*** 0.259 − 0.022*** (3.706) (0.008) (3.666) (0.008)
buyer seniority. When prices drop significantly, both new and veteran shoppers
may find the deal too attractive to pass up, leading to more uniform purchasing Category_PC 1.842 − 0.004 1.875 − 0.004
activity. In addition, while senior customers may have more established buying (13.649) (0.013) (13.523) (0.013) patterns that could Table 5 Category_Shirt − 20.988*** 0.029** − 18.530** 0.028**
Moderating effects of consumer seniority and experience. (7.652) (0.013) (7.181) (0.013)
Variables Model 2(a) Model 2(b) Model 2(c) Model 2(d) Promptness Continuity Promptness Category_Sport 4.363 0.003 5.872 0.002 Continuity (3.732) (0.009) (3.689) (0.009) Promotion − 425.280* 0.261 − 388.052*** 0.232** (233.693) (0.171) (143.180) (0.106) Category_Tech 127.363*** 0.037*** 129.146*** 0.036*** Seniority − 0.175 0.000** 0.021 0.000
Fig. 2. Effects of promotion on promptness and continuity. lOMoAR cPSD| 59078336
Y. Zhuang and X. Xu Journal of Retailing and Consumer Services 86 (2025) 104322 (16.448) (0.011) (16.497) (0.011)
rushed decision-making (Simcock et al., 2006), thereby neutralizing the
moderating impact of featured channel on the impact of promotions on Category_Tools 8.606** − 0.017* 10.073** − 0.018** promptness. (4.377) (0.009) (4.372) (0.009)
According to Model 3(b), a featured channel strengthens the U-shaped Constant 127.566** 0.115*** 111.991*** 0.146***
relationship between promotion and continuity (β = 0.156, p = 0.078), which (51.254) (0.030) (33.694) (0.024)
offers evidence in support of H5b. That means the nonlinear effect of
promotion on continuity increases when the products are fulfilled by Amazon.
The branding of Amazon increases consumers’ trust and reduces their # of 1656 1656 1656 1656
perceived risks. This benefit is particularly recognizable given that Woot is a Observations
relatively small e-tailer and is less well known. These products backed up by R2 0.265 0.197 0.268 0.197 χ2 156.075*** 385.212*** 150.147*** 394.239***
Amazon can continuously attract consumers for longer periods. In addition to
the enhancement of credibility, featured channels typically offer enhanced
service features such as better tracking systems, more flexible return policies,
Note: *p < 0.1, **p < 0.05, ***p < 0.01. Robust standard errors are in parentheses.
and superior customer support. These value-added services reduce post-
purchase anxiety and encourage consumers to maintain consistent purchasing
stabilize sales flow, they might also be more selective in their purchases due to
behavior. We plot this moderate effect in Fig. 4(a). This figure shows a more
accumulated experience with the platform’s promotional patterns. These
pronounced U-shaped relationship between promotion and continuity for
opposing forces could cancel each other out, resulting in no significant net
products sold through featured channels (shown by the solid line). In contrast,
moderating effect on the impact of promotions on promotion continuity.
non-featured channels (represented by the dashed line) display a much flatter,
The results from Model 2(c) show that the U-shaped effect of promotion almost linear upward trend.
on promptness is weakened for more experienced consumers (β = − 18.728, p
In addition, the regression results for the moderating effect of featured
= 0.017). Thus, H4a is supported. More experienced consumers often
product appear in Table 6. The findings from Model 3(c) show that featured
understand product value more clearly and are less prone to impulse buying
product does not weaken or strengthen the U-shaped relationship between
when promotions arise. Their familiarity with price trends lets them discern
promotion and promptness (β = 60.612, p = 0.191). This means that whether
which deals are genuinely advantageous, making extreme discounts less likely
or not a product is highlighted as a featured product does not materially
to shift their purchasing timelines drastically. We plot this moderate effect in
change how consumers speed up their purchase timing in response to varying
Fig. 3(a). From the figure, we can observe a pronounced U-shaped relationship
discount levels. On the sale platforms like Woot, multiple promotions and deals
for less experienced consumers (represented by the dashed line). In contrast,
vie for consumer attention. In such an environment, a “featured” tag can get
more experienced consumers exhibit an almost linear, gradually declining
lost among the myriad of discounts, leading shoppers to focus more on price
relationship between promotion and promptness (shown by the solid line).
or brand familiarity rather than on special labeling. Thus, H6a is not
Meanwhile, the results from Model 2(d) show that the U-shaped effect of
promotion on continuity is strengthened for more experienced consumers (β
= 0.017, p = 0.019). Therefore, H4b is supported. This means that experienced
consumers react more strongly to both very low and very high promotion
levels, showing more consistent purchasing patterns in these extreme cases
compared to less experienced consumers. Experienced consumers usually
have extensive platform knowledge, which leads to more consistent
purchasing patterns. This is because they can better assess true value at low
promotion levels while also quickly identifying and acting on genuinely
attractive deals at high promotion levels. This behavior contrasts with less
experienced consumers, who tend to show more moderate and less strategic
responses across the promotion range. We plot this moderate effect in Fig.
3(b). As we can see, for consumers with high purchase experience (shown by
the solid line), there is a more pronounced U-shaped relationship between
promotion and continuity. In contrast, consumers with low purchase
experience (represented by the dashed line) exhibit a flatter and more gradual upward curve.
5.3. Results of moderating effects of featured channel and product
Table 6 shows the results regarding the moderating effect of the featured
channel. Specifically, the results from Model 3(a) show that a featured channel
does not weaken or strengthen the U-shaped relationship between promotion
and promptness (β = − 44.352,p = 0.639). Thus, H5a is not supported. This
nonsignificant moderating effect could stem from countervailing mechanisms.
On the one hand, a reputable featured channel could foster greater trust and
potentially shorten decision time. On the other hand, knowing a product
comes through a highly reliable channel might reduce the urgency to “buy
now,” which may lead consumers to deliberate longer. This finding aligns with
prior research indicating that lower perceived risk can reduce the need for lOMoAR cPSD| 59078336
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Fig. 3. Moderating effect of consumer experience in relationship between promotion and promptness or continuity. supported.
Shankar and Kushwaha, 2021), while our results about featured products
Results from Model 3(d) show that featured product weakens the U-
weakening continuity present an interesting contrast to traditional
assumptions about product featuring (e.g., Ku and Hsu, 2023; Wang and Qiu,
shaped relationship between promotion and continuity (β = − 0.291, p = 0.055). 2024).
Thus, H6b is supported. That means, while discount extent might normally
magnify or diminish sales consistency, featured products maintain steadier
sales regardless of promotional fluctuations. This could be explained by the
6.1. Theoretical implications
fact that being featured for a product confers an additional level of
endorsement and visibility on the platform, which can attract a steady stream
The findings of this study contribute to signaling theory and existing
of buyers who value the platform’s recommendation. As a result, these
promotion literature. First, the findings of our study extend signaling theory.
products may experience consistent demand that does not fluctuate
We find that the effects of the signals depend on the extent of the promotion
dramatically with different discount levels. In addition, featured products
discounts. Previous studies (e.g., Li et al., 2019; Martín et al., 2011) categorized
typically undergo more rigorous selection processes with superior product
various signals as positive or negative based on their effect. However, in this
attributes or unique value propositions. These inherent product qualities
study, we find that the positive or negative signals not only depend on the type
create a more sustainable competitive advantage that is less dependent on
of information posted but also on the magnitude reflected in the information.
price promotions to drive sales. We plot this moderate effect in Fig. 4(b). This
From the signalers’ perspective, the different magnitudes of promotion reveal
figure shows a more pronounced U-shaped relationship between promotion
the different reliabilities of the signals and have different observability. This
and continuity for non-featured products (represented by the dashed line). In
adds a new dimension to signaling theory, emphasizing that signal strength, in
contrast, featured products (shown by the solid line) demonstrate a much
terms of promotional discounts, influences its visibility and credibility.
flatter, more linear relationship.
Further, from the receivers’ perspective, the different magnitudes of
promotion may receive different levels of attention from various consumers 6. Discussion
and will be interpreted by them differently. Our findings reveal that the
magnitude of the signal strengths—namely, the promotion effects—depends
Our finding of a U-shaped relationship between promotion extent and both
on three aspects–consumers’ historical purchase behaviors, including their
promptness and continuity extends previous research in several ways. While
seniority and purchase experiences, channels, and products, which let the
prior studies (e.g., Dai et al., 2022; Drechsler et al., 2017) suggested that higher
signals be perceived with different credibility and reliability and lead
promotions generally yield stronger effects, our results reveal a more nuanced
consumers to have different valuations of the promotion.
relationship. The U-shaped pattern we found challenges the conventional
In addition, our study extends the promotion literature by focusing on the
wisdom that “more is better” in promotional discounting. This aligns with Buil
effect of platform promotions. Although most previous studies of promotion
et al.’s (2013) concerns about excessive discounts potentially reducing
effects have focused on the positive influence of promotion on sales (e.g.,
perceived quality while extending their work by identifying the specific
Parshakov et al., 2020; Zhang et al., 2020), in our study, we focused on the
patterns in consumer response timing. Additionally, our findings regarding
process rather than the consequence of promotions. Specifically, we
consumer characteristics provide interesting contrasts with existing literature.
investigate the timing effect of e-tailers’ promotions: promptness and
While studies found that consumer experience generally enhances promotion
continuity. The findings suggest that the promotion discount at an
effectiveness (e.g., Maity and Gupta, 2016; Peschel, 2021), our results show
intermediate level can amplify a promotion’s attractiveness by stimulating
that experience weakens promptness but strengthens continuity. This nuanced
consumers to purchase promptly and continuously. Further, our study
finding suggests that experienced consumers are less likely to make immediate
uncovers that the promotional effect is not uniform across all consumers;
purchases but maintain more consistent purchasing patterns over time. These
instead, it varies significantly based on consumer attributes such as seniority
results add important temporal dimensions to our understanding of how
and purchase history, channel attributes, and product attributes. Our findings
consumer characteristics influence promotion effectiveness. Moreover, our
thus support the moderating effects of these three aspects of attributes on
findings about featured channels and products both support and challenge
promotion performance. This finding introduces a new perspective to
existing research. The strengthening effect of featured channels on continuity
understanding promotion effects, suggesting that e-tailers’ promotions should
aligns with findings about channel credibility (e.g., Lee and Sharma, 2024;
segment the specific consumer, lOMoAR cPSD| 59078336
Y. Zhuang and X. Xu Journal of Retailing and Consumer Services 86 (2025) 104322 Table 6
channel, and product groups. These findings thus offer a theoretical expansion
Moderating effects of featured channel and product.
in understanding promotion dynamics by revealing that the choice of the
Variables Model 3(a) Model 3(b) Model 3(c) Model 3(d) Promptness Continuity Promptness
above three aspects of groups crucially influences the effectiveness of price Continuity promotions. Promotion − 203.847*** 0.067* 7.155 − 0.181 (57.423) (0.040) (41.790) (0.171)
6.2. Managerial implications Channel − 49.459*** 0.044*** − 1.237 0.009** (13.896) (0.012) (4.381) (0.004)
Many businesses currently are aware of the positive function of
promotions, making promotions among the most common approaches to
Promotion × Channel 156.124** − 0.176***
increase sales. E-tailers should carefully design their promotion strategies with Promotion2 (69.710) (0.065)
comprehensive considerations (Dong et al., 2021; Okazaki et al., 2012). The 163.142*** 0.025 − 2.918 0.364**
findings of this study provide important managerial implications guiding (50.894) (-0.038) 0.156* (39.627) (0.152)
businesses, especially platforms or e-tailers, to implement promotions in Promotion2 − 44.352 (0.088) × awareness of their effects. (94.496) Channel
First, e-tailers should not evaluate promotion effects from a single Product − 4.517 − 0.035*** 17.331 − 0.033
perspective, such as sales generation. Instead, they should have a holistic view (2.991) (0.008) (11.830) (0.043)
of the promotion effect, including its properties, such as promptness and Promotion × Product − 81.490 (50.411) 0.175
continuity, rather than only focusing on aggregated sales quantities. That is, e- Promotion2 ×
tailers should pay attention to the consequences of promotional effects and 60.612 (0.171) Product (46.393) − 0.291*
the process, namely, the timing effect of promotions. This is because (0.152)
promptness and continuity affect the cash flow of e-tailers, which further
influences their operations and ultimately generates increased sales. In Pictures 8.516 0.014** 7.421 0.017*** (5.873) (0.006) (5.823) (0.006)
particular, e-trailers should focus on the long-term flow effect of promotions
by continuing to attract consumers’ purchases rather than pushing consumers Condition − 27.706* 0.030*** − 36.681** 0.035***
to purchase within a short period. In this way, continuous purchases can (15.031) (0.011) (15.076) (0.011)
smooth e- tailers’ cash flow to ensure their normal operations and create a
positive cycle to enhance their sales performance in the long run. An ideal Replies − 2.349 0.008** − 2.093 0.008**
situation for the timing flow of the promotion effects is to let consumers have (3.020) (0.003) (3.129) (0.003)
a quick response to the price promotions and a continuing flow to generate Likes 3.160 0.007*** 3.192 0.006***
sales. To achieve a high level of promptness and continuity of the promotion (2.265) (0.002) (2.325) (0.002)
effects, sellers should not offer steep discounts as it does not always increase
purchases but also hurts the marginal profits. On the one hand, e-tailers should Mobile − 39.260** 0.036 − 38.979** 0.034
offer a significant discount, rather than making the promotions “public stunts,” (17.090) (0.043) (18.822) (0.040)
to make the promotions visible to consumers. On the other hand, e-tailers
should not provide extremely high discounts because they increase Weekend − 21.973*** 0.055*** − 9.734* 0.049*** (6.842) (0.013) (5.204) (0.012)
consumers’ hesitation and reluctance to purchase and reduce the promptness
of the promotion’s effects. Thus, a balanced promotion discount, considering Category_Home − 2.959 − 0.016* − 0.547 − 0.021**
the aforementioned factors, should be implemented. That is, e-tailers should (4.060) (0.008) (3.638) (0.008)
have an intermediate discount extent to follow the less (discount) is more (sales) rule. Category_PC − 11.282 0.013 2.773 0.002 (14.138) (0.013) (13.354) (0.013)
In addition, e-tailers should pay particular attention to the moderators of
the timing flow of the promotion effects from three perspectives–consumer, Category_Shirt − 57.972*** 0.061*** − 23.918*** 0.036***
channel, and product attributes. That is, e-tailers should understand the (14.373) (0.016) (7.802) (0.014)
heterogeneity of consumers, channels, and products in the promotion context
and target specific attributes of the three aspects to adjust their operational Category_Sport 5.100 0.008 4.843 0.004
strategies based on these heterogeneities. In this way, the best timing flow of (3.314) (0.009) (3.275) (0.009)
promotion effect can be achieved. In detail, first, from the consumers’ Category_Tech 121.152*** 0.052*** 127.572*** 0.045***
perspective, their historical purchase behaviors are important. If e-tailers want (15.445) (0.011) (15.871) (0.011)
to shorten the response time from consumers regarding their price promotion
actions to achieve an instant promotion effect, they should focus on attracting Category_Tools 6.657 − 0.011 9.093** − 0.017*
consumers with less shopping experience. For example, they can launch some (4.245) (0.009) (4.332) (0.009)
icebreaking activities such as discounts to motivate these consumers to join
the membership and purchase more on a platform. Or, they can have some Constant 90.259*** 0.125*** 43.672** 0.140*** (19.033) (0.016) (17.389) (0.045)
targeting advertising to the consumer groups who are not familiar with the
platforms. However, e-tailers should also understand the value of consumers
who have rich purchase experiences on the platform because they can increase
the continuing flow of sales. E-tailers should not expect these consumers to # of 1656 1656 1656 1656 Observations
have much impulsive buying behavior. Rather than that, e-tailers can introduce R2 0.278 0.189 0.263 0.195
the quality, function, and value of the products and compare the price of the χ2 157.164*** 373.140*** 157.042*** 392.971***
products across platforms to give these experienced consumers a condition
regarding the high benefits and low costs of the products. In this way, these
Note: *p < 0.1, **p < 0.05, ***p < 0.01. Robust standard errors are in parentheses.
experienced consumers will continue to purchase the products even if the lOMoAR cPSD| 59078336
Y. Zhuang and X. Xu Journal of Retailing and Consumer Services 86 (2025) 104322
promotion was launched a relatively long time ago. E-tailers do not need to
online shopping behaviors, channel attributes, and product attributes.
relaunch promotions for these experienced consumers.
Consumers’ historical purchase behaviors, reflected by their experience,
Moreover, from the channel’s perspective, e-tailers should make an effort
weaken the promptness of promotion effects. Moreover, consumer experience
to cooperate with the platforms to highlight the promptness and reliability of
and the featured channel strengthen the continuity of promotion effects. The
the fulfillment of the products. That is, e-tailers can draw support from well-
featured products weaken the continuity of promotion effects. The findings of
established platforms to fulfill their orders and thus use their brand effect and
this study provide guidelines for e-tailers to view promotion effects holistically
reputation to enhance consumers’ favor, trust, and familiarity toward them. In
and implement the optimal promotion strategy with an intermediate discount
this way, the effects of the promotion can continue for a long time. For
rate to best achieve promotion effects in a sooner and continuing way. Our
example, e-tailers can provide transparent information about the fulfillers and
findings also urge e-tailers to pay attention to the heterogeneity of consumers,
the estimation time of each step, including order processing and delivery, to
channels, and products in affecting the timing flow of the promotion effects. In
let consumers familiar with the fulfillment channel to reduce the perceived
this way, e-tailers can achieve the optimal financial flow over time based on
risks of online shopping due to the separation from ordering and consumption their promotional actions. (Akram and Lavuri, 2024).
Our study has several limitations, which provide several directions for
Further, from the product’s perspective, e-tailers should understand that
further research. First, our study focuses only on price promotions in the form
although featuring products is one way to market the products to attract more
of price markdowns. However, other forms of price promotions can be
attention from consumers, it generates a weak effect in achieving the
common, such as coupons and rebates. Future research can explore the timing
continuing flow of promotion effect. E-tailers should understand that the
flow of these forms’ price promotion effects. Second, our study only focuses
featured products show their competitive advantage based on the unique
on the promotional strategies of e-tailers in the e- commerce context.
function and quality of the products rather than the price. Therefore, they
However, brick-and-mortar stores’ price promotions may have a different
should attract consumers from this perspective rather than launching price
timing flow for the promotion effects because consumers need more monetary
Fig. 4. Moderating effect of featured channel or featured product in relationship between promotion and continuity.
promotions or competing on price with other e-tailers. Instead, e-tailers should
and hassle costs but can feel and touch the products before purchasing.
launch price promotions on non- featured products. Although these products
Therefore, examining the timing flow of price promotion effect in the offline
are not highlighted, consumers are more likely to be attracted from a price
setting can be another direction for future studies. Third, online reviews may
perspective, especially when the price promotion is launched. The lowered
affect consumers’ purchase behavior. However, due to the data limit of online
price for non- featured products can attract consumers in a more continuing
reviews on Woot.com, we did not include text mining in our study. Future
flow, typically because these products have a high level of need and have a
research can examine the role of online reviews in the timing flow of
stable market for demand. E-tailers thus can prioritize markdown of the price
promotion effects to provide insights about the electronic word-of-mouth
for these non-featured products but do not need to advertise these effects.
promotions as the promotion effects of these products will be continuous.
CRediT authorship contribution statement 7. Conclusion
Yiming Zhuang: Writing – review & editing, Writing – original draft,
E-tailers have commonly used price promotion, yet it deserves further
Visualization, Validation, Software, Methodology, Investigation, Formal
investigation regarding the optimal discounts and a holistic view of promotion
analysis, Data curation, Conceptualization. Xun Xu: Writing – review & editing,
effects. Most of the existing promotion literature investigated the
Writing – original draft, Validation, Methodology, Investigation, Formal
consequences of promotion effects on sales increases. However, this study analysis, Conceptualization.
focuses on the timing effect of promotions regarding how soon and how long
the promotion effects happen and last. The findings of this study suggest that
Declaration of competing interest
a higher discount extent only sometimes achieves a better timing effect of
promotions. That is, the discount extent affects the promptness and continuity
The authors declare no conflict of interest.
of the promotion effect in a U-shaped pattern. In addition, we find that the
timing flow of the promotion effects varies across consumers with different Data availability lOMoAR cPSD| 59078336
Y. Zhuang and X. Xu Journal of Retailing and Consumer Services 86 (2025) 104322
Data will be made available on request.
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