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The Impact of Online Promotions on Online Impulsive Buying Behavior:

Mediating Effects of Perceived Value, Positive Emotion, and Moderating
Effects of Online Reviews

Conference Paper · October 2017

DOI: 10.26480/icemi.01.2017.280.282

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 Economics & Management Innovations (ICEMI) 1(1) (2017) 280-282

ISBN: 978-1-948012-02-7

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Economics & Management Innovations(ICEMI)

The Impact of Online Promotions on Online Impulsive Buying Behavior: Mediating

Effects of Perceived Value, Positive Emotion, and Moderating Effects of Online
Reviews
Chiang-Kuo Tu1, Kuan-Wei Wu2*, Chii-Huei Jean3 and Yue Huang4

1234China-ASEAN International College, Dhurakij Pundit University, Thailand

*email: kuan-wei.wu@dpu.ac.th

ARTICLE DETAILS ABSTRACT

Article History:
The expansion of China's online shopping market has built a new business online promotion model and changed the
online shoppers’ consumption behavior. There was little research done concerning the impact of promotions on
Received 02 october 2017 impulsive buying behavior and exploring the mediating effects of perceived value and positive emotion and the
Accepted 06 october 2017 moderating effect of online reviews, in the context of online promotions of China. The data were collected from 330
Available online 11 october 2017 individuals in China, providing their online shopping experience for the proposed research model. The conclusions
showed that online promotions positively impacted on online impulsive buying behavior. Perceived value and
Keywords: positive emotion played a mediating role between online promotions and online impulsive buying behavior
Online Promotions; Online respectively, but online reviews didn’t play a moderating role. These findings are expected to help online shopping
Impulsive Buying Behavior; enterprises design their online promotions programs.
Perceived Value; Positive Emotion;
Online Reviews.

1. Introduction 2009). Jeffrey and Hodge (2007) pointed out that under external stimuli,
the consumers presented perceived impulsive buying behavior, often
According to the China Internet Network Information Center (CNNIC) accompanied with emotional and cognitive responses. Businesses using
Statistical Reports (2017), China had 467 million online shoppers, a 12.9% online promotions to attract consumers, consumers are satisfied in the
of increase in 2015, where 441 million were mobile online shoppers, a psychological need, further delivering the impulsive buying behavior.
29.8% of increase in 2015. The data above-mentioned show that the rapid Therefore, the following hypothesis is proposed: H2. The impact of online
growth of online shopping users provides a huge potential market. Having promotions on online impulsive buying behavior will be mediated by
noticed such a trend, more and more companies use a variety of online perceived value.
shopping promotions strategies to gain more customers and increase the
sales. China's online shopping development, it’s often been seen that 2.3 Mediating Effect of Positive Emotion
online promotions activities, such as "6.18 Online Shopping Festival" and
"Double 11 (China Largest Online Shopping Day)", prompting many Swinyard (1993) suggested that consumers with better emotional status
consumers following the stimulation emotions to consume a great deal. would have more aggressive shopping behavior than those with worse
Before consumers make such a purchase, they may not have a purchase emotional state. Beatty and Ferrell (1998) showed that consumers'
plan, and online impulsive buying behavior is indeed increasing the sales impulsive buying behavior would be affected by their emotional state or
of many commodities. After reviewing the literature about online mood. Thus, the following hypothesis is proposed: H3. The impact of online
promotions affecting online impulsive buying behavior (Lai, 2017; promotions on online impulsive buying behavior will be mediated by positive
Madhavaram & Laverie, 2004), we found that hardly perceived value or emotion.
positive emotions were discussed as mediating variable, and online
reviews were little discussed as moderating variable either to examine the 2.4 Moderating Effect of Online Reviews
above-mentioned relationship. To fill this literature gap, this study is
focused on this issue. Park and Kim (2008) believed that the number of online reviews reflects
indirectly the popularity of goods and have the confidence on their
2. Literature Review and Research Hypotheses decision-making. Park et al. (2007) argued that the quality of online
reviews has a positive effect on consumers’ purchasing intention. Thus, the
2.1 Online Promotions and Online Impulsive Buying Behavior following hypothesis is proposed: H4. Online reviews moderate the effect of
online promotions on online impulsive buying behavior.
According to the works of Chan (1996) and Campbell and Diamond (1990),
this study classified four online promotion forms: “Price Discounts; Buy 3. Research Methodology
More Save More; Discount Coupon; Flash Sale”. With stimulation from the
online promotions information, the customers improve their perception 3.1 Research Model
ability of products, further leading to their impulsive purchasing behavior
(Madhavaram & Laverie, 2004). Therefore, the following hypothesis is Based on the literature, this study proposed the research model, as shown
proposed: H1. Online promotions positively affect online impulsive buying in Figure.1.
behavior.

2.2 Mediating Effect of Perceived Value

Online promotions are one of the important factors in improving the

perceived value of consumers (Mathwick et al., 2002; Park and Lennon,

Cite the article: Chiang-Kuo Tu, Kuan-Wei Wu, Chii-Huei Jean And Yue Huang (2017). The Impact Of Online Promotions On Online Impuls ive Buying Behavior: Mediating
Effects Of Perceived Value, Positive Emotion, And Moderating Effects Of Online Reviews , Economics & Management Innovations, 1(1) :280-282.
 Economics & Management Innovations (ICEMI) 1(1) (2017) 280-282 281

Independent Dependent
β T Sig. ΔR2 F VIF
Variable Variable
Online 0.14 2.5 0.0
Price discounts
Impulsive 21 62 11 0.2 62.6 1.3
Perceived
Buying 0.49 7.8 0.0 72 03 86
Value
Behavior 0 98 00
Buy More, Save Online 0.11 2.1 0.0
Figure. 1: Research Model More Impulsive 32 24 34 0.2 61.2 1.2
Perceived Buying 0.51 8.7 0.0 68 12 46
Value Behavior 9 86 00
3.2 Sampling and Data Collection Discount Online 0.10 2.0 0.0
Coupons Impulsive 23 11 40 0.2 58.5 1.2
The questionnaires were collected during the period of September to Perceived Buying 0.55 9.2 0.0 59 79 68
October in 2016 in the way of network or on-site survey. There are 330 Value Behavior 2 22 00
valid responses, after screened for outliers and missing data. The valid Flash Sale
Online 0.15 2.9 0.0
response rate is 91.7%. According to the responses, age between 20-30 Impulsive 74 10 04 0.2 63.8 1.2
Perceived
years old was 76.1%, occupation as students was 82.7%, monthly Buying 0.49 8.3 0.0 77 95 70
Value
Behavior 5 52 00
shopping expense over 1,000 RMB is 94.8%, and monthly online shopping
frequency over twice is 80.3%. The results showed that the sampling
respondents were experienced online shoppers. The sampling As Table 3, after adding positive emotion to the analysis, the β between
characteristics are in line with the requirements of this study. online promotions and on online impulsive buying behavior decreased
(e.g., price discounts=β1 from 0.372 to 0.202) and ΔR2 were 0.295-0.313.
3.3 Measures Thus, positive emotion partially mediated between online promotions and
on online impulsive buying behavior. The analysis of discount coupons, a
In this research, variables are measured with five-point scale. Online previously significant was no longer significant (P=0.143). This was
promotions measured by 3 items scale adapted from Chan (1996) and complete mediation. Thus, H3 was partially supported.
referred to Campbell and Diamond (1990) to classify online promotions
into 4 forms. Cronbach’s α value were 0.842, 0.837, 0.831, 0.838. Online Table 3: Result of Regression Analysis for Examining Mediating Effect
impulsive buying behavior measured by 4 items scale adapted by the work of Positive Emotion
of Madhavaram and Laverie (2004). Cronbach’s α value was 0.853.
Perceived value measured by 5 items scale adapted from Oh (2000) and Independent Dependent
β T Sig. ΔR2 F VIF
Mathwick et al. (2002). Cronbach’s α value was 0.849. Positive emotion Variable Variable
measured by 5 items scale adapted from Yoo et al. (1998). Cronbach’s α Online 0.20 4.0 0.0
Price discounts
Impulsive 21 94 00 0.3 75.9 1.1
value was 0.846. The construct of Online reviews comprised three Positive
Buying 0.51 9.2 0.0 13 58 64
dimensions, including the number of reviews (4 items) adapted from Park Emotion
Behavior 3 04 00
and Kim (2008), the quality of reviews (4 items) adapted from Park et al. Buy More, Save Online 0.13 2.6 0.0
(2007), and reviewer’s expertise (3 items) adapted from Bansal and Voyer More Impulsive 42 36 09 0.2 69.1 1.1
(2000). Cronbach’s α value was 0.848. Positive Buying 0.54 9.5 0.0 97 24 74
Emotion Behavior 1 62 00
4. Data Analysis and Results Discount Online 0.07 1.4 0.1
Coupons Impulsive 03 66 43 0.2 65.7 1.1
Positive Buying 0.56 9.9 0.0 87 8 76
4.1 Confirmatory Factor Analysis Emotion Behavior 6 20 00
Online 0.14 2.8 0.0
The indexes obtained from CFA, which indicated an acceptable model fit Flash Sale
Impulsive 94 18 04 0.2 69.8 1.2
Positive
(χ2=1584.7, degrees of freedom(df)=584, RMR=0.039, GFI=0.780, Buying 0.52 8.9 0.0 95 16 59
Emotion
AGFI=0.749, IFI=0.84, CFI=0.839，RMSEA=0.072). Each construct has Behavior 3 49 00
good convergent and discriminant validity (the factor loadings greater
than 0.5, square root of AVE greater than inter-construct correlations). As shown in Table 4, an interaction term was putting into the regression
model. The results of M3 showed that online reviews cannot significantly
4.2 Hypotheses Testing moderate the effect of online promotions on online impulsive buying
behavior (β=-0.037, p>0.05). Thus, H4 was not supported.
For testing H1, we conducted the multiple regression analysis. As shown
in Table 1, online promotions (price discounts; buy more save more; Table 4: Result of Hierarchical Regression Analysis (Online Reviews
discount coupons; flash sale) positively impacted on online impulsive as a Moderator)
buying behavior (β1=0.372, β2=0.321, β3=0.255, β4=0.364), supporting H1.
Independent Dependent ΔR
β T Sig. F VIF
Table 1: Result of Regression Analysis for Online Promotions on Variable Variable 2

Online Impulsive Buying Behavior Online

M Online Impulsive 0.4 7.7 0.0 0.1 60.3 1.0
1 Promotions Buying 71 72 00 53 97 00
Independent
Behavior
Variable Dependent
β T Sig. ΔR2 F Online Online 0.1 1.8 0.0
(Online Variable
M Promotions Impulsive 13 65 63 0.3 105. 1.3
Promotions)
2 Online Buying 0.7 11. 0.0 87 053 81
0.37 7.27 0.00 0.13 52.91
Price discounts Reviews Behavior 71 251 00
21 4 0 6 7
Online 0.1 1.8 0.0 1.3
Buy More, Save Online 0.32 6.05 0.00 0.09 36.70
Promotions 11 22 69 91
More Impulsive 12 9 0 8 6
Online
Discount Buying 0.25 5.05 0.00 0.06 25.56
Online Impulsive 0.7 11. 0.0 1.3
Coupons Behavior 53 6 0 9 1
M Reviews Buying 71 243 00 0.3 69.9 82
0.36 6.92 0.00 0.12 47.97
Flash Sale 3 Behavior 86 17
44 6 0 5 6
Online
- -
Promotions* 0.6 1.0
0.0 0.4
H2 and H3 were testing mediation with regression analysis. In Table 2 and Online
37 20
75 07
3, all VIF values were minor than 10 that meant no collinear combination. Reviews
As Table 2, after adding perceived value to the analysis, the β between
online promotions and on online impulsive buying behavior decreased 5. Conclusions
(e.g., price discounts=β1 from 0.372 to 0.142) and ΔR2 were 0.259-0.277.
Thus, H2 was partially supported. The main contribution of this paper is through the questionnaire survey
and regression analysis to demonstrate the impact of online promotions
Table 2: Result of Regression Analysis for Examining Mediating Effect on online impulsive buying behavior, mediated by perceived value and
of Perceived Value positive emotion. This paper proposes a four-dimensional model of online
promotions. Multiple regression analysis showed that “price discounts”
have the biggest impact on impulsive purchase, the second is “flash sale”,

Cite the article: Chiang-Kuo Tu, Kuan-Wei Wu, Chii-Huei Jean And Yue Huang (2017). The Impact Of Online Promotions On Online Impulsive Buying Behavior: Mediating
Effects Of Perceived Value, Positive Emotion, And Moderating Effects Of Online Reviews , Economics & Management Innovations, 1(1) :280-282.
 Economics & Management Innovations (ICEMI) 1(1) (2017) 280-282 282

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Cite the article: Chiang-Kuo Tu, Kuan-Wei Wu, Chii-Huei Jean And Yue Huang (2017). The Impact Of Online Promotions On Online Impulsive Buying Behavior: Mediating
Effects Of Perceived Value, Positive Emotion, And Moderating Effects Of Online Reviews , Economics & Management Innovations, 1(1) :280-282.
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