Early-bird or last-minute? The impact of mobile channel adoption on purchasing behavior

Abstract

With the introduction of mobile technology, user behavior has been changed. One of the most representative features of mobile channels is that it enables users to access services regardless of time and place. The mobile channel is expected to enhance the flexibility of users. We examine whether there is a difference in purchase behavior between users who adopted mobile channels and those who did not, in a context where purchase time is limited and early purchase gives potential financial merit, using a large dataset from high-speed railway service in Korea. An interesting issue is whether mobile channel makes users purchase earlier and increase the chance to get discounts. Our results using difference-in-differences estimation with propensity score matching show that people who adopted mobile channel purchase tickets later on average and at a higher price than those who did not adopt mobile channel.