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Marketing Aspects of Psychic Distance

Part 6. International Marketing

  1. Jody Evans

Published Online: 15 DEC 2010

DOI: 10.1002/9781444316568.wiem06043

Wiley International Encyclopedia of Marketing

Wiley International Encyclopedia of Marketing

How to Cite

Evans, J. 2010. Marketing Aspects of Psychic Distance. Wiley International Encyclopedia of Marketing. 6.

Author Information

  1. The University of Melbourne, Carlton, Victoria, Australia

Publication History

  1. Published Online: 15 DEC 2010


The term psychic distance was first introduced in 1956. It is the work done at the Uppsala University during the 1970s, however, that is credited with developing and popularizing the construct. Psychic distance is defined as the distance between the home market and a foreign market, resulting from the perception of both cultural and business differences. Such differences include culture, language, religion, education, legislation, politics, economic conditions, market structure, and business practices. While there is general agreement regarding the constituent elements of psychic distance, the primary source of current debate relates to the manner in which psychic distance is operationalized. In terms of outcomes, psychic distance has been linked to foreign market selection, entry mode, the standardization/adaptation of marketing strategies, and firm performance.


  • psychic distance;
  • internationalization;
  • entry mode;
  • standardization;
  • performance