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

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.