Consumer flexibility and the effectiveness of limited time offers: the role of psychological reactance

Ashesh Mukherjee, Seung Yun Lee and Andrew Gershoff

Journal of Business Research, 2025, vol. 200, issue C

Abstract: Retailers, e-commerce platforms, and television shopping channels often advertise limited time offers. Past research indicates that limited time offers generally increase product evaluation by prompting consumers to make inferences of product value. We show across eight studies that the positive effect of limited time offers is attenuated or reversed into a negative effect when consumer flexibility is restricted by lower purchase timing flexibility, store layout flexibility, return policy flexibility, and personal time flexibility. We also show that psychological reactance to restrictions drives the negative effect of limited time offers on product evaluation. Finally, we show that the negative effect of limited time offers on product evaluation can be reversed back into a positive effect by including a statement that highlights future regret if the offer is missed.

Keywords: Limited time offers; Deals; Restrictions; Reactance; Regret (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:200:y:2025:i:c:s0148296325004680

DOI: 10.1016/j.jbusres.2025.115645

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