IDEAS home Printed from https://ideas.repec.org/a/bcp/journl/v6y2022i11p632-664.html
   My bibliography  Save this article

A Comprehensive Literature Review on Psychological Distance and Online Purchasing Intention Towards Big Ticket Electronics: A Mediating Effect of Online Trust and Moderating Effect of Perceived Risk

Author

Listed:
  • Aroshan Srirajakulendra

    (University of Kelaniya, Department of Marketing, Sri Lanka)

  • Ajith Medis PhD

    (University of Kelaniya, Department of Marketing, Sri Lanka)

Abstract

E-commerce provides the opportunity for retailers to attract and nurture a wider consumer base in big ticket consumer electronics trade sans the traditional high investment intensive pre-requisites such as extravagant physical presence, wide distribution networks etc. However, distrust in the mindset of the consumer in turn impede such opportunities. By using the construal level theory such reluctance could be partially explained via psychological distance; and by deploying certain tactics and manipulating the underlying dimensions of psychological distance, whether retailers have the ability to offset such reluctance in the mindset of consumers without the need for heavy investment on complicated operating structures. This research marks a unique milestone in Sri Lanka where it is the first of its’ nature to explore a heavily under-researched frontier of psychological distance in the context of e-commerce, and calls for more systematic research attention towards such. This paper offers practitioners an overview of variables such as psychological distance, online trust, perceived risk and online purchasing intention in view of expanding the local e-commerce market for big ticket electronics.

Suggested Citation

  • Aroshan Srirajakulendra & Ajith Medis PhD, 2022. "A Comprehensive Literature Review on Psychological Distance and Online Purchasing Intention Towards Big Ticket Electronics: A Mediating Effect of Online Trust and Moderating Effect of Perceived Risk," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 6(11), pages 632-664, November.
    • Handle: RePEc:bcp:journl:v:6:y:2022:i:11:p:632-664
    as

    Download full text from publisher

    File URL: https://www.rsisinternational.org/journals/ijriss/Digital-Library/volume-6-issue-11/632-664.pdf
    Download Restriction: no
    File URL: https://www.rsisinternational.org/virtual-library/papers/a-comprehensive-literature-review-on-psychological-distance-and-online-purchasing-intention-towards-big-ticket-electronics-a-mediating-effect-of-online-trust-and-moderating-effect-of-perceived-risk/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ambos, Björn & Håkanson, Lars, 2014. "The Concept of Distance in International Management Research," Journal of International Management, Elsevier, vol. 20(1), pages 1-7.
    2. Gatignon, Hubert & Anderson, Erin, 1988. "The Multinational Corporation's Degree of Control over Foreign Subsidiaries: An Empirical Test of a Transaction Cost Explanation," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 4(2), pages 305-336, Fall.
    3. Li, Suhong & Ragu-Nathan, Bhanu & Ragu-Nathan, T.S. & Subba Rao, S., 2006. "The impact of supply chain management practices on competitive advantage and organizational performance," Omega, Elsevier, vol. 34(2), pages 107-124, April.
    4. Kim, Jeong-Bon & Li, Yinghua & Zhang, Liandong, 2011. "Corporate tax avoidance and stock price crash risk: Firm-level analysis," Journal of Financial Economics, Elsevier, vol. 100(3), pages 639-662, June.
    5. Bruce Kogut & Harbir Singh, 1988. "The Effect of National Culture on the Choice of Entry Mode," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 19(3), pages 411-432, September.
    6. Chang, Yuan-Ching & Polachek, Solomon W. & Robst, John, 2004. "Conflict and trade: the relationship between geographic distance and international interactions," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 33(4), pages 491-509, September.
    7. Darke, Peter R. & Brady, Michael K. & Benedicktus, Ray L. & Wilson, Andrew E., 2016. "Feeling Close From Afar: The Role of Psychological Distance in Offsetting Distrust in Unfamiliar Online Retailers," Journal of Retailing, Elsevier, vol. 92(3), pages 287-299.
    8. So-Yun Kim & Gong-Soog Hong & Catherine Montalto, 2012. "The Effect of Long-Term Care Insurance on Home Care Use Among the Disabled Elders," Journal of Family and Economic Issues, Springer, vol. 33(3), pages 353-362, September.
    9. Pauline Ratnasingam & Paul A. Pavlou, 2003. "Technology Trust in Internet-Based Interorganizational Electronic Commerce," Journal of Electronic Commerce in Organizations (JECO), IGI Global, vol. 1(1), pages 17-41, January.
    10. Nuno Fortes & Paulo Rita & Margherita Pagani, 2017. "The effects of privacy concerns, perceived risk and trust on online purchasing behaviour," Post-Print hal-02312002, HAL.
    11. Katherine J. Stewart, 2003. "Trust Transfer on the World Wide Web," Organization Science, INFORMS, vol. 14(1), pages 5-17, February.
    12. Leila MORADI & Yazrina YAHYA & Ibrahim MOHAMED & Komeil RAISIAN, 2017. "A Study of Factors Influencing Online Purchasing Intention within E tourism Setting," Journal of Advanced Research in Management, ASERS Publishing, vol. 8(4), pages 882-895.
    13. Kuisma, Tuire & Laukkanen, Tommi & Hiltunen, Mika, 2007. "Mapping the reasons for resistance to Internet banking: A means-end approach," International Journal of Information Management, Elsevier, vol. 27(2), pages 75-85.
    14. Bai, Chong-En & Wu, Binzhen, 2014. "Health insurance and consumption: Evidence from China’s New Cooperative Medical Scheme," Journal of Comparative Economics, Elsevier, vol. 42(2), pages 450-469.
    15. Dowling, Grahame R & Staelin, Richard, 1994. "A Model of Perceived Risk and Intended Risk-Handling Activity," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 21(1), pages 119-134, June.
    16. Nuno Fortes & Paulo Rita & Margherita Pagani, 2017. "The effects of privacy concerns, perceived risk and trust on online purchasing behaviour," International Journal of Internet Marketing and Advertising, Inderscience Enterprises Ltd, vol. 11(4), pages 307-329.
    17. repec:srs:journl:jemt:v:8:y:2017:i:4:p:882-895 is not listed on IDEAS
    18. Benedicktus, Ray L. & Brady, Michael K. & Darke, Peter R. & Voorhees, Clay M., 2010. "Conveying Trustworthiness to Online Consumers: Reactions to Consensus, Physical Store Presence, Brand Familiarity, and Generalized Suspicion," Journal of Retailing, Elsevier, vol. 86(4), pages 322-335.
    19. Forsythe, Sandra M. & Shi, Bo, 2003. "Consumer patronage and risk perceptions in Internet shopping," Journal of Business Research, Elsevier, vol. 56(11), pages 867-875, November.
    20. Darden, William R. & Babin, Barry J., 1994. "Exploring the concept of affective quality: Expanding the concept of retail personality," Journal of Business Research, Elsevier, vol. 29(2), pages 101-109, February.
    21. Ganesh, Jaishankar & Reynolds, Kristy E. & Luckett, Michael & Pomirleanu, Nadia, 2010. "Online Shopper Motivations, and e-Store Attributes: An Examination of Online Patronage Behavior and Shopper Typologies," Journal of Retailing, Elsevier, vol. 86(1), pages 106-115.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kotler, Philip & Manrai, Lalita A. & Lascu, Dana-Nicoleta & Manrai, Ajay K., 2019. "Influence of country and company characteristics on international business decisions: A review, conceptual model, and propositions," International Business Review, Elsevier, vol. 28(3), pages 482-498.
    2. Sohn, Stefanie, 2024. "Consumer perceived risk of using autonomous retail technology," Journal of Business Research, Elsevier, vol. 171(C).
    3. Herhausen, Dennis & Binder, Jochen & Schoegel, Marcus & Herrmann, Andreas, 2015. "Integrating Bricks with Clicks: Retailer-Level and Channel-Level Outcomes of Online–Offline Channel Integration," Journal of Retailing, Elsevier, vol. 91(2), pages 309-325.
    4. Marina Papanastassiou & Robert Pearce & Antonello Zanfei, 2020. "Changing perspectives on the internationalization of R&D and innovation by multinational enterprises: A review of the literature," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(4), pages 623-664, June.
    5. Darke, Peter R. & Brady, Michael K. & Benedicktus, Ray L. & Wilson, Andrew E., 2016. "Feeling Close From Afar: The Role of Psychological Distance in Offsetting Distrust in Unfamiliar Online Retailers," Journal of Retailing, Elsevier, vol. 92(3), pages 287-299.
    6. Chikhouni, Abdulrahman & Edwards, Gwyneth & Farashahi, Mehdi, 2017. "Psychic distance and ownership in acquisitions: Direction matters," Journal of International Management, Elsevier, vol. 23(1), pages 32-42.
    7. Zhen Li & Fangzhou Li & Jing Xiao & Zhi Yang, 2020. "Topic Features in Negative Customer Reviews: Evidence Based on Text Data Mining," The Review of Socionetwork Strategies, Springer, vol. 14(1), pages 19-40, April.
    8. Anne-Wil Harzing & Markus Pudelko, 2016. "Do We Need to Distance Ourselves from the Distance Concept? Why Home and Host Country Context Might Matter More Than (Cultural) Distance," Management International Review, Springer, vol. 56(1), pages 1-34, February.
    9. Davari, Arezoo & Iyer, Pramod & Rokonuzzaman, Md, 2016. "Identifying the determinants of online retail patronage: A perceived-risk perspective," Journal of Retailing and Consumer Services, Elsevier, vol. 33(C), pages 186-193.
    10. Ilhan-Nas, Tulay & Okan, Tarhan & Tatoglu, Ekrem & Demirbag, Mehmet & Wood, Geoffrey & Glaister, Keith W., 2018. "Board composition, family ownership, institutional distance and the foreign equity ownership strategies of Turkish MNEs," Journal of World Business, Elsevier, vol. 53(6), pages 862-879.
    11. Ye, Silin & Zhou, Jing & Jiang, Yunwen & Liu, Xiaming, 2023. "Managers as the bridge: How cultural friction influences the integration of cross-border mergers and acquisitions," International Business Review, Elsevier, vol. 32(4).
    12. Manolis, Chris & Nygaard, Arne & Stillerud, Bård, 1997. "Uncertainty and vertical control: An international investigation," International Business Review, Elsevier, vol. 6(5), pages 501-518, October.
    13. Conti, Claudio Ramos & Parente, Ronaldo & de Vasconcelos, Flávio C., 2016. "When distance does not matter: Implications for Latin American multinationals," Journal of Business Research, Elsevier, vol. 69(6), pages 1980-1992.
    14. Di Guardo, Maria Chiara & Marrocu, Emanuela & Paci, Raffaele, 2016. "The effect of local corruption on ownership strategy in cross-border mergers and acquisitions," Journal of Business Research, Elsevier, vol. 69(10), pages 4225-4241.
    15. Mutinelli, Marco & Piscitello, Lucia, 1998. "The entry mode choice of MNEs: an evolutionary approach," Research Policy, Elsevier, vol. 27(5), pages 491-506, September.
    16. Timothy Fisher & Malik Ranasinghe, 2001. "Culture and foreign companies' choice of entry mode: the case of the Singapore building and construction industry," Construction Management and Economics, Taylor & Francis Journals, vol. 19(4), pages 343-353.
    17. Yung-Heng Lee & Yann-Haur Huang & Mei-Jane Chan, 2009. "An Empirical Study Of Wholly-Owned Subsidiaries And Joint Ventures For Entry Into China Markets," Global Journal of Business Research, The Institute for Business and Finance Research, vol. 3(2), pages 9-22.
    18. Meents, S. & Verhagen, T. & Vlaar, P.W.L., 2011. "How sellers can stimulate purchasing in electronic marketplaces: Using information as a risk reduction signal," Serie Research Memoranda 0014, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    19. Del Bosco, Barbara & Cristina Bettinelli, 2020. "How Do Family SMEs Control Their Investments Abroad? The Role of Distance and Family Control," Management International Review, Springer, vol. 60(1), pages 1-35, February.
    20. Lazarova, Mila & Peretz, Hilla & Fried, Yitzhak, 2017. "Locals know best? Subsidiary HR autonomy and subsidiary performance," Journal of World Business, Elsevier, vol. 52(1), pages 83-96.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bcp:journl:v:6:y:2022:i:11:p:632-664. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr. Pawan Verma (email available below). General contact details of provider: https://rsisinternational.org/journals/ijriss/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.