Investigating the psychological and social mechanisms of impulse buying through loss aversion in flash sales a case study in Ho Chi Minh City

Abstract

Research Purpose: This study investigates the psychological and social drivers of impulse buying in flash sales among Gen Z consumers, specifically examining how flash-sale characteristics trigger loss aversion, Fear of Missing Out (FOMO), and social interaction, subsequently influencing purchase decisions. Research Motivation: Despite flash sales' ubiquity and impact, existing research often isolates emotional or cognitive factors, overlooking crucial social influences. This study integrates SOR theory and CAM to bridge this gap, offering a holistic understanding of impulse buying in dynamic e-commerce environments. Research design, approach and method: A quantitative approach was employed, collecting survey data from Gen Z online shoppers in Ho Chi Minh City, Vietnam. Partial Least Squares Structural Equation Modeling (PLS-SEM) was used to rigorously test the hypothesized relationships. Main findings: Flash sale attributes (scarcity, entertainment) significantly amplify loss aversion, which drives FOMO and, consequently, impulse buying. Importantly, social interaction mediates this FOMO-impulse buying link. Notably, visual presentation showed no impact on loss aversion, suggesting Gen Z's desensitization to conventional aesthetic cues. Practical/managerial implications: These insights offer practical implications for e-commerce platforms and marketers, enabling them to craft more effective and psychologically resonant flash-sale strategies that responsibly leverage consumer behavior.