• Journal of Distribution Science
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• v.7 no.2
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• pp.63-87
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• 2009

The conclusions shown by this study are as follows: Firstly, Despite the similarity of the objective distance caused by the geographic distance and cultural similarities. it is found that the psychic distance factor still exists. Secondly, a new affective factor of psychic distance has been noted. As to the shaping method, even though culture and psychic distance involve homeogenic factors, psychic distance is more complex in that it is affected not only by cultural changes but also by other affective factors. Culture is a very significant factor, which can have an effect on forming psychic distance, but it is short of being a measurement variable for measuring psychic distance. Thirdly, psychic distance can have a direct effect on customers' buying response. If it is just a belief shared among the people of a nation, it can't become an important notion.

• The Journal of the Korea Contents Association
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• v.6 no.10
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• pp.53-61
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• 2006

Culture, consumers' value and attitude play an important role for global marketing strategy on cross-cultural perspectives. The aim of this research was to investigate how consumer ethnocentrism and cultural affinity affect psychic distance, country image and competitive brand choice. data were collected through personal interview. A total of 234 responses are put to final analysis. The results are as follows: First, cultural affinity play an important role for psychic distance and country image. Second, consumer ethnocentrism has directly affected country image and psychic distance. Finally, country image has affected competitive brand choice, but psychic distance doesn't have affected.

• The Journal of the Korea Contents Association
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• v.11 no.11
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• pp.444-456
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• 2011

The purpose of this study is multi-faceted. Firstly, it is to examine the perceived differences in novelty experience, psychic distance, and satisfaction among Japanese, Chinese, and American tourists visiting Korea. Secondly, it is to investigate the effects of novelty experience on their overall satisfaction in Korea. Lastly, this study attempts to examine the role of psychic distance on the level of perceived novelty experience in Korea. A survey was conducted to 307 international tourists departing Korea at the In-Cheon International Airport. The results show that there is a significant difference in the perceived psychic distance, novelty experience, and overall satisfaction in Korea among Japanese, Chinese, and American tourists. Also, there is a significant effect of novelty experience on tourist overall satisfaction. The results further reveal that the degree of psychic distance is a significant determinant of the perceived novelty experience, which supports the effectiveness of psychic distance concept in predicting the novelty experience. The results of this study make a significant contribution to advancing our understanding of tourist behavior through the re-constructed concept of novelty.

• Korea Trade Review
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• v.48 no.2
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• pp.71-94
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• 2023

The purpose of this study is to prove the effect of psychic distance between home country and host country on overseas foreign direct investment(OFDI) of Spanish companies through panel analysis. The panel data was based on cultural, institutional, economic, and geographical distance data over the past decade between Spain and Spain's OFDI countries. According to the Random Effect Model(REM) analysis, cultural distance(CULD) had a negative effect on OFDI, while institutional distance(INSD) had a positive effect. Among economic distances, income size distance(GDP) had a positive effect on OFDI, but export size distance(EXPO) had a negative effect. Geographic distance(PKM) had a negative impact. Meanwhile, according to the results of quantile regression analysis to prove the psychic distance effect by OFDI size, the effects of CULD and INSD in the quartile (75%) to which Korea belongs were the same as the REM analysis results. In addition, GDP and EXPO had a positive effect, and PKM had a negative effect but EXPO had a positive effect. Therefore, FDI host countries need to establish differentiated strategies through quantile analysis while making continuous efforts to improve the system.

• Journal of the Korean Society of Clothing and Textiles
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• v.42 no.1
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• pp.104-120
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• 2018

The contribution of foreign tourist consumption on national economies is becoming increasingly important for many countries. This study examines the relationship of home-host country psychic distance (HHCPD), tourism shopping motivation and attitudes towards local and global fashion brands in host countries. Survey data from a sample of 500 Chinese tourists were collected at an international airport in Korea. The results reveal that all three key factors of HHCPD (economic, geographic and cultural distance) positively affect social shopping motivation. Moreover, only economic distance has a positive effect on commodity shopping motivation, while both cultural and economic distance positively influence souvenir shopping motivation. All three factors of tourism shopping motivation positively affect local fashion brand attitudes, while only commodity shopping motivation positively affects consumer attitudes towards global fashion brands. Thus, fashion marketers should trigger the shopping motivation of foreign tourists by maximising the psychic distance from their home in order to satisfy fashion-seeking tourists.

• The Korean Journal of Franchise Management
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• v.11 no.2
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• pp.17-22
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• 2020

Purpose: As consumers have difficulty in brand choice due to excessive information, using brand popularity as an advertising cue (e.g., Sales No. 1, Hit Product) has been getting more attention as an effective curation strategy for decreasing consumers' cognitive efforts. Accordingly, recent studies empirically demonstrate that consumers tend to prefer and choose a brand with a popularity cue and offer a useful information regarding how to use a popularity cue in marketing communication. However, extant research has mainly focused on investigating the impact of "brand popularity in a domestic market" on consumer behaviors. Thus, little is known about the effect of "brand popularity in a foreign market" on local consumers' decision-making process. Given that domestic consumers tend to purchase imported products from overseas countries, it can be meaningful information for global companies. Therefore, this research derives and tests the five hypotheses to examine how local consumers respond to brand popularity in a foreign market as an advertising cue. Specifically, it tests the three hypotheses regarding the direct and indirect effects of brand popularity in a foreign market on risk perception and purchase intention. Then, it tests two additional hypotheses about moderating effects of psychic distance on the relationship between brand popularity and risk perception as well as on the relationship between brand popularity and purchase intention. Seventy participants are exposed to an advertisement for an Indian cosmetic brand using a popularity cue in Indian market and answer the questions about brand evaluation. For data analysis, regression analysis is employed. The findings of this research show that perceived brand popularity lowers local consumers' perceived risk with a foreign brand. However, perceived brand popularity does not have a direct impact on purchase intention while it has an indirect effect through perceived risk. Meanwhile, psychic distance moderates the effect of perceived brand popularity on perceived risk level, but it has no impact on the relationship between brand popularity and purchase intention. This research is one of the first studies that demonstrate the positive impact of brand popularity in a foreign market on a local consumer's purchase decision, and it shows the effect can be moderated by psychic distance.

• Journal of Korea Trade
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• v.25 no.6
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• pp.20-33
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• 2021

Purpose - The growth in consumers' online shopping has even been accelerated by the COVID-19 pandemic. While the purchase can be made from any countries online, the purpose is to examine the effect of the country of the online retailer (COOR) on consumers' perceived risk and purchase motivation, focusing on the retailer not on the brand. Design/methodology - Survey data from online shoppers are analized using the structural equation model. Findings - COOR, like COO of the brand manufacturer, positively affect consumer's purchase intension. First, the images and the perceived psychic distances of the COOR affects both perceived risk and purchase confidence. Secondly, this perceived risk and confidence they put on the transaction then affect the purchase intension of the consumer. Originality/value - We show that the quality of the signal comes not only from the manufacturer-branded product item itself with a certain COO, but also from the retailer who carries it.

• 한국체육학회지인문사회과학편
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• v.55 no.1
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• pp.457-467
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• 2016

Understanding professional baseball fans' expenditure is expected to provide fundamental marketing information that help increase each team's marketing profits and values and produce a better economic impact on its community. In this regard, this study employed a survey method with a total of 372 residents located in Changwon. A questionnaire included factors such as demographics, consumption patterns and perceived socio-psychic effect(PSE), all of which were derived from literature review. A binary logistic regression was modeled with a dichotomous dependent variable, expenditure(30,000 won more or less). The following were input in the model as the independent variables in order to see the relationships; gender, marriage, education, occupation, income, location, age, leisure type, distance, companion, transportation, interest, and PSE. The results of the logistic regression analysis are as follows. Overall, the model was statistically significant, χ²(21, N=372)=59.159, p=.000. Cox and Snell R² was reported as .147 and .200 respectively. So, the model accounted for between 14.7% and 20.0% of the variation in expenditure. Among the independent variables, income, location, companion, and PSE were found to be the significant factors to expenditure. For income, subjects with 2 million won less of income, compared to those with 4 million won more, were .38 times less likely to pay the money of 30,000 won more. For location, subjects in Masan, compared to those in Jinhae, were 3.49 times more likely to pay 30,000 won more. Subjects in Changwon, compared to those in Jinhae, were 3.05 times more likely to pay 30,000 won more. For companion, people visiting the stadium alone, compared to those with friends/colleague, were .36 times less likely to pay 30,000 won more. For PSE, the odds of 30,000 won more paid increased by 1.37 times with one-unit increase in PSE.