Informational cascade, regulatory focus and purchase intention in online flash shopping

Abstract

Online flash shopping has continued to gained popularity since its emergence. From the perspective of informational cascade, our study explores the psychological processes of consumer purchase decision-making in online flash sales. We investigate how external environment influences user purchase intention, as well as the psychological variables and cognitive aspects involved. Our analysis demonstrates that consumers’ propensity to imitate others and their positive perceptions of value markedly enhance their purchase intention, and that preorder size and consistency of product reviews significantly strengthen the psychology of imitation. Moreover, consumers’ regulatory focus moderates the effects of imitation, weakening self-information, and perceived value on purchase intention. Introducing the informational cascade perspective into online flash sales research, our study provides new insights into how information elements and perceived value influence consumers' impulse purchase intention. Using these insights, e-commerce retailers can develop strategies that foster a sense of urgency and excitement among consumers in online flash shopping. By ensuring consistency in customer reviews, and tactically highlighting essential product details such as pre-sale quantities, retailers can enhanced the perceived value of their products. Furthermore, meticulous management of sale duration, product assortment, and information visibility can strengthen purchase intention during flash sales. Our study enriches the understanding of consumer decision-making under the influences of herding and informational cascades.