There is a good paper:
Gibbs, G. and Simpson, C. (2004), Conditions under which assessment supports students' learning. Learning and Teaching in Higher Education, 1, pp. 3-31.
Apologies if you cannot easily get thorough academic publisher paywalls to read it. Ah, Google scholar finds http://www2.glos.ac.uk/offload/tli/lets/lathe/issue1/articles/simpson.pdf
Anyway, the key point there is that they have a list of conditions under which assessment supports students' learning (strangely, the paper gives 10 conditions, but the short list I have in a summary has eleven:
1. Assessed tasks capture sufficient study time and effort.
2. These tasks distribute student effort evenly across the course.
3. These tasks engage students in productive learning activity.
4. Assessment communicates clear and high expectations.
5. Feedback is provided, both often enough and in enough detail.
6. The feedback is provided quickly enough to be useful to students.
7. Feedback focuses on learning rather than on marks.
8. Feedback is linked to the purpose of the assignment.
9. Feedback is understandable to students, given their level.
10. Feedback is received by students and attended to.
11. Feedback is acted upon by students to improve their learning.
Anyway, the key points for this discussion are 6. and 11. and 6 might suggest why you want to use immediate feedback mode. The student gets the feedback while they can still remember what they were thinking as they tried to answer the question.
11. is really a suggestion to let the student have another go if they get the question wrong the first time. That is one of the drivers that led to the new 'Interactive with multiple tries' behaviour (To use that you need to add some hints to your questions). Then, if the student gets the question wrong the first time, they get the hint as feedback (which may be as little as 'Your answer was incorrect, please try again' for the first hint) and can then immediately try a different answer for less marks.
Another way to let students act on the feedback is to just allow them multiple attempts at the quiz.