Does Place Matter When Shopping Online? Perceptions of Similarity and Familiarity as Indicators of Psychological Distance

ABSTRACT

This research investigates the role of physical location in online consumer purchases, as demonstrated through the concept of distance. Distance conveys a sense of not only space between objects in the physical world but also psychological distance between people and others. This study tests various combinations of both physical and psychological distance between subjects and companies, brands, and cities in which the companies are located. The findings affirm the power of relationships to reduce feelings of mistrust and suggests a new avenue for research into the role of similarity and familiarity as important variables in purchase decisions online.

Keywords:

• Distance
• Psychological Distance
• Trust
• Store Location

ACKNOWLEDGMENT

The review of this paper was managed by Associate Editor Karen Lancendorfer.

Additional information

ABOUT THE AUTHORS

Steve Edwards (Ph.D., University of Texas at Austin) is an associate professor at the Temerlin Advertising Institute at Southern Methodist University. His research explores feelings of intrusiveness and reactions of consumers to three-dimensional interactive experiences online. Other research explores product placements, motivations for using the Internet, and advertising in textbooks. He advocates for the profession of advertising and highlights socially responsible advertising on the Web site advirtues.com. Edwards teaches innovative courses on social media marketing, commercialization of virtual space, and interactive advertising. Dr. Edwards's most recent journal articles examine the impact of negative information on the effectiveness of celebrity endorsers in the Journal of Promotion Management; media use patterns in China, Taiwan, and the United States in the Journal of Global Marketing; and product placements in television in the Journal of Advertising. Prior to his work in academia, Edwards was a marketing research analyst at the Press Enterprise newspaper in Southern California. E-mail: [email protected].

Jin Kyun Lee (Ph.D. Candidate, University of Texas at Austin) is a doctoral student in the advertising department at the University of Texas at Austin. His research interests are cross-border strategic brand alliance, new media, advertising on the Internet, and online consumer psychology and behavior. Previously he worked in Circle of Friends for American Veterans and the Dongbu group brand consulting team, Seoul, Korea. E-mail: [email protected].

Carrie La Ferle (Ph.D., University of Texas at Austin) is a professor in the Temerlin Advertising Institute at Southern Methodist University. For the past decade, she has taught classes in international advertising and advertising ethics. Her research examines culture in relation to credibility, attitudes toward advertising, ethnic minority media use, language preferences, and diffusion of innovations. Other research interests include product placement and new media channels, as well as assessments of the effects of advertising on society. Dr. La Ferle has authored more than 25 publications in the Journal of Advertising, Journal of Advertising Research, International Journal of Advertising,Journal of Current Issues and Research in Advertising, Journal of Global Marketing, and Journal of Consumer Marketing, among others. Her research has been awarded a variety of grants, and she is listed in several Who's Who publications. She has been a Visiting Fellow at Nanyang Technological Institute in Singapore and received the prestigious university-wide Teacher-Scholar Award while at Michigan State University. Prior to academia, Dr. La Ferle worked in the private sector at a major advertising agency in Toronto, a media buying firm in Los Angeles, and a licensing and merchandising company in Tokyo. E-mail: [email protected].