The role of psychological distance in value creation

Holmqvist, J., Guest, D. ORCID: 0000-0003-4514-9186 and Gronroos, C., 2015. The role of psychological distance in value creation. Management Decision, 53 (7), pp. 1430-1451. ISSN 0025-1747


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Purpose – The field of service research has devoted consider able attention to the customer's role as value creator, but there is a lack of research on understanding customers' psychological processes in value creation. This paper highlights the importance of psychological distance in value-creation processes. Psychological distance is the customer's perceived distance from service interactions in terms of spatial distance, temporal distance social distance and hypothetical distance. Critically, psychological distance influences cognitive processes and can influence how customers think and feel about the service interaction. An appreciation of psychological distance within service contexts can help managers to tailor the interaction in order to facilitate value creation. Methodology/approach – In this conceptual paper, we build on psychology research and service research to develop seven propositions that explore how psychological distance can operate within service interactions and how this might influence value creation. Findings – We divide the propositions into three sections. The first concerns how perceived psychological distance from the service interaction can act as a barrier to entering a service interaction. In particular, we consider the influence of social distance and spatial distance within the context of service interactions. The second section examines how psychological distance to the expected point of service use can influence how customers construe the service and the value creation. The third aspect addresses customer-specific characteristics that can impact on value creation by influencing perceived psychological distance toward the service.

Item Type: Journal article
Publication Title: Management Decision
Creators: Holmqvist, J., Guest, D. and Gronroos, C.
Publisher: Emerald
Date: 2015
Volume: 53
Number: 7
ISSN: 0025-1747
Divisions: Schools > School of Social Sciences
Record created by: EPrints Services
Date Added: 09 Oct 2015 09:52
Last Modified: 09 Jun 2017 13:13

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