A Mixed-Methods Study on Psychic Distance, Perceived Value, and the moderating role of Product-origin Image

Abstract

Purpose: To examine how perceived psychic distance to a product's country-of-origin influences consumer perceived value dimensions in international retail, and whether product-origin image moderates this relationship, within a product–country congruency setting. Design/methodology/approach: The study employed an exploratory sequential mixed-methods design. In Study Phase 1, we used an abductive approach to generate hypotheses and refine the research agenda through 11 exploratory interviews and a review of the relevant literature. In Study Phase 2, these insights were tested through deductive generalisation using a four-condition survey design with 234 respondents. Findings: Study Phase 1 identified "convenience" and “novelty” as context-specific value dimensions. Study Phase 2 revealed that perceived psychic distance negatively impacts functional-, social-, and novelty value, and that these effects turn positive with product-origin moderator. Additionally, findings indicate a positive effect on convenience value and a non-significant effect on emotional value. Theoretical/Practical implications: The study contributes useful insights to the academic fields of psychic distance, perceived value, and country-of-origin effects by providing a detailed analysis specific to the context of international retail of consumables. It offers practical implications for managers operating in psychically distant markets, emphasising risk-mitigating mechanisms. Originality/value: This study is among the first to empirically assess the effect of psychic distances on perceived value dimensions. Product-origin image as a moderator in this context represents a novel contribution to the academic field.