How pop-ups drive online sales: moderating effects of online promotions

Abstract

Purpose This study aims to examine how the effect of pop-ups on an omnichannel brand’s subsequent online sales is moderated by the brand’s online price and premium promotions, paid search and popularity signaling. Design/methodology/approach Using a difference-in-differences approach, this study appraises variations in two similar Chinese apparel brands’ online sales before and after one of the brands’ implementations of its pop-ups and how the brand’s online promotions modify the pop-ups’ effect. Findings Unique, interactive pop-ups boost brands’ subsequent online sales. Online price promotions negatively moderate the effect; online premium promotions and paid search positively moderate it. Moreover, the product’s popularity diminishes the extent to which a pop-up stimulates online demand. These findings can be partially generalized to other categories, such as utilitarian products. Practical implications Only certain online strategies enhance the effect of pop-ups on brands’ online sales, so practitioners should strategically select appropriate promotion combinations when they operate pop-ups and allocate resources across channels. In addition, the moderating influence of online promotions on pop-ups depends on the type of product being promoted. Originality/value Pop-ups offer proven abilities to deliver sensory experiences to online shoppers, reinforce brand awareness and loyalty and boost online sales. This study extends prior research by examining how various online promotions moderate pop-ups’ effects.