Consumer’s Re-Participation in Online Flash Sale after Service Failure: A Moderated-Mediation Study

Abstract

Online flash sales (OFS) have gained significant popularity in recent times. Interestingly, despite encountering service failures such as server errors, stockouts, and website crashes due to heavy online traffic, many consumers opt to re-participate in future OFSs offered by the same provider. Our study delves into the underlying reasons for such behavior. We formulated and tested our model based on scarcity theory and consumer deal proneness literature. We employed a 2 (deal type: planned vs. incidental) × 2 (consumer motivation: utilitarian vs. hedonic) between-subjects design. We used SPSS PROCESS Macro to test the moderation and moderated mediation effects. Findings indicate that deal-prone consumers tend to overlook service failures and choose to re-participate in online flash sales. Consumer competition mediates the relationship between deal proneness (DP) and re-participation intention (RPI). The effect of deal proneness on re-participation intention is decreased in incidental OFS compared to planned OFS, with the indirect effect moderated by the deal type. Additionally, consumption motivation moderates the main effect, with hedonic motivation significantly attenuating the effect compared to utilitarian motivation. Our research makes a significant contribution to the literature by highlighting the boundary conditions—namely deal type and consumer motivation—that influence the impact of deal proneness on re-participation intention in the context of OFS. This study offers a process-oriented view, highlighting the mediating role of consumer competition in the OFS landscape. We also illuminate new avenues by examining the impact of consumer motivation on the link between deal proneness and re-participation intention. Specifically, our findings related to the moderating effect of deal type present a fresh perspective to the existing body of knowledge. This study provides valuable insights for practitioners, particularly concerning segment targeting and the strategic incorporation of competition to bolster overall OFS participation. Moreover, our research underscores the importance for online retailers to pay heightened attention to service failures during incidental OFS, as these can significantly undermine their profitability.