Is Localization Advisable for E-Commerce Websites?

To address the possible impacts of cultural differences, companies tend to set up localized websites for different countries. These localized websites usually feature local content, local language, and local cultural elements. However, in an increasingly globalized economy, individuals around the world are now more exposed to multiple cultures and may even have internalized multiple cultures. Psychology theories suggest that these individuals’ perceptions and decision making may vary in response to different cultural cues. As such, localized websites could serve as cultural cues that impact online consumers’ building of trust and subsequent decision making. In this study, we focus on one basic consideration of localization (i.e., incorporating cultural elements into websites) and investigate whether the effects of social presence on trust building will be contingent upon it. This study intends to contribute to understanding the effectiveness of these localization strategies in building online consumers’ trust in e-commerce websites.