What makes deal-of-the-day promotions really effective? The interplay of discount and time constraint with product type

Deal-of-the-day (DoD) promotions are nowadays very popular. As a special form of a price promotion, they allow firms to offer products at substantial price discounts, usually at or above 50%, for a very limited period of time, usually between one and seven days. Conventional wisdom suggests that both characteristics, high discount levels and tight time constraints, should make DoDs an effective form of a price promotion. However, the two...