The Dual-path Psychological Mechanism Of Limited Time and Limited Promotion

Abstract

In the context of the digital economy, corporate promotion methods are becoming increasingly diversified, among which limited-time promotion and limited-quantity promotion play an important role due to their high scarcity. This article discusses the differences in the mechanisms of the two promotional methods, and systematically reviews the consumer psychology and behavioral literature, and analyzes the cognitive paths and applicable situations of the two promotional methods. Research has found that limited-time promotion activates loss aversion and heuristic decisions through time pressure, causing consumers to accelerate purchases; limited-quantity promotion activates competitive anxiety and possessive desire due to the scarcity of quantity, increasing perceived value, but also leading to questioning of transparency. The effect of the two promotional methods is regulated by the nature of the product, the unique needs of consumers and the promotional methods. Businesses need to weigh the intensity of scarcity and transparency in execution to avoid consumers feeling offended or lack of trust. Future research can explore the application of cultural differences and digital scenarios.