This article investigates the impact of cultural and psychographic factors on perceptions of travel risk, anxiety, and intentions to travel internationally. The study involved 246 Australian and 336 foreign respondents who were surveyed as to their cultural orientation, personality, lifestyle, travel motivation, risk and safety perception, anxiety, and intentions to travel. The results of a path analysis showed that the travel risk perception was a function of cultural orientation and psychographic factors in both samples, and anxiety was a function of type of perceived risk. The terrorism and sociocultural risk emerged as the most significant predictors of travel anxiety. Intentions to travel internationally were determined by travel anxiety levels and level of perceived safety. Implications for future research and marketing practices are discussed.

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The authors propose a conceptual model of the psychic distance-organizational performance relationship that incorporates organizational factors (international experience and centralization of decision making), entry strategy, and retail strategy implications. The findings suggest that when entering psychically distant markets, retailers should adopt lowcost/low-control entry strategies and adapt their retail strategy to a greater extent than in psychically close markets. However, the authors find that such strategic responses have an adverse effect on performance. They find that international experience, psychic distance, entry strategy, and retail strategy adaptation are significant drivers of organizational performance and factors that determine critical success in international retailing.Psychic distance has attracted heightened research interest of both a conceptual and empirical nature over the past decade. Much of the recent literature in the field of psychic distance has concentrated on the conceptualization and operationalization of the construct (Brewer 2007;Dow 2000; Dow and Karunaratna 2006; Evans and Mavondo 2002;Sousa and Bradley 2006), but few researchers agree on the empirical usefulness of psychic distance. In the current literature, there is no clear consensus regarding the role of psychic distance, or its constituent elements, in determining foreign market selection (Stottinger and

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