The theory is relativistic because it suggests that there may be no absolute "reality," due to evidence showing how language impacts the perception of reality. In other words, reality is relative to language. The categories people make, and the objects or ideas that fit into those categories, shape perceptions of the world in ways that are fundamentally important. It is language that creates those categories, enforces them, and thus impacts the ways people think. For example, linguistic relativity theory shows how language can impact spatial relations. Begley (2009) points out the Australian Aboriginal Kuuk Thaayorre people's incredible sense of spatial reasoning and navigational ability. Linguistic relativity suggests that the Kuuk Thaayorre keen sense of direction in new places is due to their using compass point directions for everything, rather than relying on the relational terms "left" and "right" like we do in English. If a person has been thinking in terms of absolute directions from the compass, then it makes sense that they would not get lost as easily.

In general, "having a name for something allows you to perceive it more sharply," (Begley 2009). This point of linguistic relativity is made best in experiments with color. Some cultures have words for colors that do not exist in other languages, which means that their perception of color is radically different. Such findings may seem trivial, but they have huge implications for various fields in the social sciences. For example, linguistic relativity theory may have a bearing on how to best teach new languages. Kousta, Vinson, and Vigliocco (2008) show that bilingual people think in the language they are speaking in, which also proves the common adage that in order to learn a language, a person must learn to "think" in that language rather than translate word for word directly. If, as Boroditsky (n.d.) points out, Koreans have a different word for something that fits tightly vs. loosely, then learning Korean would require a fundamental understanding of this difference in representing reality. The same is true for languages that have gendered categories. As Begley (2009) points out, the Germans describe bridges using words that the French would never use -- partly because the word bridge is feminine in German and masculine in French.

The findings of linguistic relativity studies show that the theory may also be crucial for improving cross-cultural communications in business. It is important, for example, to know how another person perceives and conceives of the world in order to avoid misunderstandings and miscommunications. Another meaningful application of linguistic relativity theory is highlighted by Bowers & Pleydell-Pierce (2011). Bowers & Pleydell-Pierce (2011) show that linguistic relativity can be applied to everyday communications even among people of the same linguistic background. Curse words have an impact on people's autonomic nervous system responses, whereas neutral or more euphemistic words did not. These findings can also be applied to the world of advertising, which relies heavily on keywords and cue words to solicit customers.