How regulatory focus affects perceptions of online limited-time promotions

Prior research on online limited-time promotions has not yet examined the role of regulatory focus and culture.

Introduction

E-tailers often use limited-time price promotions as incentives to increase sales. These price tactics can be promotion-framed (i.e., receive a reward)—such as, "Purchase within 5 minutes and instantly get a 25% discount"—or prevention-framed (i.e., avoid a loss)—such as, "Purchase within 5 minutes to avoid missing a 25% discount" (Lee et al., 2014). Each framing is appealing to customers with a particular regulatory focus. Specifically, promotion-focused (e.g., Caucasian)customers consider promotion-framed information as more persuasive, whereas prevention-focused (e.g., East Asian) customers deem prevention-framed information as more convincing (Higgins, 2000). Prior research that has examined the impact of price promotions...

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