Flash Sales and the Idea of Scarcity: A Double-edged Sword

Abstract

Flash sales help online portals to push sales and profits temporarily by creating a false sense of scarcity of the products. However, often an inability to procure a product due to its limited quantity as propagated by flash sales, may influence consumer perceptions and negatively buying behavior. This alteration in behavior could be temporary or permanent and forever affect the brand’s reputation in consumer’s minds. There has been limited research on how flash sales may lead to negative consumer responses due to their inability to buy products that they need. This paper aims at converging the concept of scarcity with flash sales, and then discuss the possible negative outcome responses by customers when they are unable to get better off a flash sales. The study shows that consumers not only feel dissatisfied when they are unable to get their hands on the product they need but may feel and express anger towards the brand, leading to brand switch and in some cases activism.