How You Remind Me! The Influence of Mobile Push Notifications on Success Rates in Last-Minute Bidding

Abstract

Last-minute bidding is a prevalent strategy in which bidders submit their bids at the very end of an online auction; mobile push notifications can remind these bidders of upcoming deadlines and thus might determine bidding success. Using field data, this study demonstrates that last-minute bidders use mobile push notifications purposefully and strategically as well as more frequently than bidders with different bidding patterns. Among last-minute bidders, chances of winning the auction increase with their use of push notifications. In detail, mobile push notifications are particularly effective when last-minute bidders place less serious bids in search of a bargain, yet they lose effectiveness if the bids are placed closer to the auctions' end. They prove to be equally useful tools for last-minute bidders with varying experience levels and for bids placed through both mobile and stationary devices. Managers of online (auction) platforms therefore should design and market their mobile push notifications as customizable, helpful features. © 2020 Direct Marketing Educational Foundation