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

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.