Case Study

Topics: Costs, Electronic commerce, Localization Pages: 2 (655 words) Published: August 2, 2013
TEAM: The ladies – G7.
Members: VoThi Phuong Linh – s3357656
To Nguyen Thu Thao – s3372852
Nguyen Thu Huong – s3357609
Words count: 490.

CASE STUDY 4.1 – The implications of globalisation for consumer attitudes With the strong development of the globalisation trend nowadays, many companies have invested a lot of money into expanding their e-commerce network to other countries. Along with the expansion is the issue of localisation to penetrate those countries’ markets. When a company opens an e-commerce website in another country, the ultimate goal is to increase sales and profits, meaning seeking to achieve high purchase amount from customers. According to Nitish et al (2006), a low purchase intent is the result of the lack of cultural adaptation, also, the case study indicates that customers from different countries are very differentiated in terms of needs and wants, and even the basic similarities that they have can be quite different as well (an example from the case study is “family”, it’s a common similarity of all the customers in the world, but deep down, the definition of “family” can be quite distinct from one region to another). Hence, a deep analysis of the cultures of the countries where the e-commerce is operated is essential to the success of that company in those countries. In other words, the localisation of the e-commerce can help the organisation penetrate the markets and understand customers’ cultures in order to be able to offer the products and services matching their needs and wants. Besides the benefit of increasing purchase, localisation also helps build relationship with customers. Loyalty is one of the essential things to make a company sustainable and achieve long-term development. With all the information translated to the local language and providing local staff to contact and serve the customers, the business will become easier to do and more appreciated by the customers. The...
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