MANAGING PSYCHOLOGICAL DISTANCE PERCEPTIONS: IMPLICATIONS FOR
VIRTUAL AND DISTANT RETAILERS
Ray L. Benedicktus
Michael K. Brady
Peter R. Darke
Ray L. Benedicktus is an Assistant Professor of Marketing, College of Business and Economics,
California State University, Fullerton, 800 North State College Boulevard, Fullerton, CA 928346848, Phone 657-278-4710, Fax 657-278-7117, email: rbenedicktus@fullerton.edu.
Michael K. Brady is the Carl DeSantis Associate Professor of Business Administration, College
of Business, Florida State University, Tallahassee, FL 32306, Phone 850-644-7853, Fax 850644-4098, email: mbrady@cob.fsu.edu.
Peter R. Darke is an Associate Professor of Marketing, Schulich School of Business, York
University, 4700 Keele Street, Toronto, ON, Canada M3J 1P3, Phone 416-736-2100 ext. 44600,
Fax 416-736-5762, email: pdarke@schulich.yorku.ca.
The authors wish to thank Michael Hartline and Molly Wasko for their helpful comments on
previous drafts of this article.
MANAGING PSYCHOLOGICAL DISTANCE PERCEPTIONS: IMPLICATIONS FOR
VIRTUAL AND DISTANT RETAILERS
ABSTRACT
Recent sales data indicate that hybrid retailers with a local bricks and mortar presence
like Wal-Mart and Target are outperforming virtual retailers like Amazon. This research
identifies psychological distance as a mechanism through which this effect operates and
examines two strategies by which virtual and distant hybrid retailers may offset this competitive
advantage. Study 1 finds that online firms with a local retail store (local hybrids) are less
psychologically distant and more trusted than non-local hybrids, and virtual retailers are more
psychologically distant and less trusted than either local or distant hybrid firms. Study 2 holds
geographic distance constant so that non-spatial elements of psychological distance may be
tested. Results indicate that familiarity with a retailer’s physical location reduces psychological
distance and elicits higher trust beliefs. Study 3 finds that virtual and distant retailers can reduce
psychological distance to a level commensurate with local hybrid retailers. Results indicate that
media conveying tangible features (i.e., buildings and/or employees) of the retailer reduces
psychological distance and enhances trust beliefs for virtual retailers and non-local hybrids, but
has no effects for hybrid firms with a local retail outlet.
Keywords: Psychological Distance, Online Trust, Bricks-and-Mortar, Internet Retailing