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Virtuality Changes Consumer Preference: The Effect of Transaction Virtuality as Psychological Distance on Consumer Purchase Behavior

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  • Do-Hyung Park

    (School of Management Information Systems, Kookmin University, Seoul 02707, Korea)

Abstract

With the rapid development of information and communication technology, a variety of new industries and services are rapidly evolving based on the convergence between existing Information and Communication Technology (ICT) and heterogeneous industries. In the meantime, the FinTech market, created by the convergence of financial and ICT areas, is emerging and growing rapidly. The new market of virtual transaction based on digital money is growing faster than any other FinTech area. The purpose of this study is to determine whether the perceived difference in the virtuality of a consumer’s transaction affects the consumer’s purchasing behavior and how the behavior changes. Specifically, this study revealed that consumers’ perceived virtuality differs according to the type of transaction method. Consumers felt that the money was more virtual when they had digital (virtual) currency for a service than when they had cash. This virtuality of money controls the psychological distance of the consumer’s money, which is closer to cash than virtual currency. This difference in psychological distance affects consumers’ information processing, such that when psychological distances are far (vs. close), consumers prefer products that are described as abstract (vs. concrete), and have a more favorable attitude toward products with more variety.

Suggested Citation

  • Do-Hyung Park, 2019. "Virtuality Changes Consumer Preference: The Effect of Transaction Virtuality as Psychological Distance on Consumer Purchase Behavior," Sustainability, MDPI, vol. 11(23), pages 1-16, November.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:23:p:6618-:d:290104
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    Cited by:

    1. Do-Hyung Park, 2021. "Consumer Adoption of Consumer-Created vs. Expert-Created Information: Moderating Role of Prior Product Attitude," Sustainability, MDPI, vol. 13(4), pages 1-12, February.
    2. Junyoung Park & Do-Hyung Park, 2019. "A Sustainable Project Management Strategy against Multitasking Situations from the Viewpoints of Cognitive Mechanism and Motivational Belief," Sustainability, MDPI, vol. 11(24), pages 1-16, December.
    3. Bong-Goon Seo & Do-Hyung Park, 2020. "Did You Invest Less Than Me? The Effect of Other’s Share of Investment on Psychological Ownership of Crowdfunding Projects," Sustainability, MDPI, vol. 12(5), pages 1-13, March.
    4. Do-Hyung Park & Sungwook Lee, 2021. "UGC Sharing Motives and Their Effects on UGC Sharing Intention from Quantitative and Qualitative Perspectives: Focusing on Content Creators in South Korea," Sustainability, MDPI, vol. 13(17), pages 1-13, August.

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