4.3 Extended Problem Solving
This decision making process would be apparent on consumers who’s purpose for purchasing a Nike product is controlled by whether or not it suits their needs. This type of consumer would not be as concerned with branding, but whether it meets their requirements. The making process would be longer.
4.4 Routine Problem Solving
Nike’s prominent and continuous advertising campaigns ensure that consumers in the youth market are aware of the brand, as greater awareness inevitably leads to greater sales. Once these sales are secures by consumers in the youth market their interest is maintained by further advertising, which leads to repeat purchase.
4.5 Variety Seeking Behaviour
Although Nike is the market leader in sports shoes, this doesn’t guarantee consumers will switch to competitors alternatives. There are consumers who switch brands in an attempt to be different. This is often due to changes in fashion
4.6 Consumer Decision Making in the sports shoe market, for a running shoe:
4.7 The basic decisions made by consumers are ignored by the majority of Nikes customers, whose decision to purchase is based upon the appearance, the demand of the product (if it is new on the market it is often purchased by consumers who want to keep up with the latest trends) rather than its cost. Nikes fashionable image, reasons for repeated sales, brand loyalty and high sales figures is due to trend and fashion conscious young people, as these are the people who maintain the active-casual and urban trends. Research undertaken by Nike revealed that 70% of its products are purchased for casual use rather than sporting.
4.8 Typical Simple decision process model for a Nike pair of Football Boots
- Need Recognition
For the beginning of a new football season a new pair is require.
- Pre-Purchase Information
The consumer may be considering buying a pair of Nikes, considering other brands, receive recommendations from friends and research into which are the best for their needs (which? Magazine for example) Good advertisements are also paid attention to at this stage as the consumer is susceptible to it, and needs to be aware of what is available to them.
3. Evaluation of Alternatives
At this stage of the process the consumer is aware of the specification they require, and may compare with other brands.
- Purchase Decision
- Prevention of Purchase
There may be factors, which prevent the final purchase. For example a person with strong ethical beliefs may become aware of the controversy surrounding Nikes sweatshop workers, which may prevent them buying.
- Post Purchase Evaluation
It is important that the product lived up to the consumer’s expectation, in order to secure a repeat purchase.
Question 2
5.0 Example of micro-culture relating to Nike:
Age- The age group with whom shares the majority of its popularity with is the youth market; these consumers are also the most unresponsive to advertising. The youth market often respond to peer pressure though, to where the ‘right clothes and maintain the right image’
Gender- In the youth market Nike targets both girls and boys, although the majority of the adverts are more influential on boys, for example the current advert starring high profile football players. This is because they want to be able to wear the same football boots that their favourite players wear.
Region- Youths living in inner city areas are more likely to feel pressured into buying Nike to keep up with trends, compared to those living in more rural areas, as those living in inner city areas are exposed to more advertising, and perhaps attend larger schools where trends carry quickly.
5.1 Reasons that influence Buyer Behaviour in the Youth/Sports Shoe Market:
5.2 Culture
Cultural factors which may affect the decision making process of a consumer include there values and beliefs. In 1998 an investigation towards Nikes employees in Indonesia created extremely negative press coverage toward them (see appendices) To consumers this evidence could be extremely unethical, which may stop them from purchasing any of their products.
5.3 Language and Symbols
Nikes products are sold worldwide, with a brand logo immediately recognisable without the use of language. The ‘Swoosh’ logo is forever prominent on international sporting events, in magazines and on television. With such a presence the youth market is always exposed to it.
5.4 The development of the Internet over recent years has led to a growing number of retailers choosing to additionally sell their products this way. This greater availability of Nike products through the internet and catalogues is a convenient way to purchase, if the desired products isn’t available in local shops, an example of a web site selling Nike products is
5.5As the GDP of the population increases, sales of clothes and fashion do also, obviously Nike is included in this category. Social and media pressures have influenced consumers to purchase these products, to such an extent that that consumers are more concerned with the image products portray about themselves, then about the actual product. The associations of wearing products such as Nikes reflect the lifestyle of the consumer.
Question 3
6.0 The Nike brand is extremely powerful. The brand name is instantly recognisable, and immediate associations are made with it. The Nike “Just Do It” and “Swoosh” symbol are also representative. When the name Nike is thought of, the “Just Do It” campaign with Michael Jordan may be an instant association. The fact that Michael Jordan (who for many years was one of the US most popular and successful basketball player) endorsed the products helped to boost sales of those particular products. This is because he was so successful in the sport; he was widely respected with many fans old and young. The fans and consumers assumption of this was that as they aspired to be like him, by wearing the same boots and tee shirts helped them meet some of those aspirations. The consumers believed that such a great player would only where high quality products, and therefore bought them too. Particularly as there were many young sports fans that wanted the products, consumer’s brand loyalty to the products was influenced through Nikes constant presence in their childhood, through sporting icons wearing the products and through advertising.
6.1 A positive aspect of Nikes Personality was the Anti Racism and Intolerance campaign, fronted by Eric Cantona and Les Ferdinand. The aim of the campaign was to create a wholesome and ethical image of Nike; it aimed to voice the opinions of the public from all cultures.
6.2 The negative aspect of Nikes personality occurred at a football match in which Eric Cantona (who fronted the anti racism campaign) attacked a fan at a football match. This incident proved damaging to Nikes image, as it was an incident of high publicity in the media. To consumers the result was that became dubious as to whether Nikes original intention of the campaign was sincere, or whether it was just an attempt to increase their popularity by spending money on what they thought the consumers wanted to here.
6.3 Another incident which damaged Nikes image, was the press coverage surrounding the under covering of the conditions that their employees were working under. This incident was regarding employees in Indonesia, who’s working conditions
Question 4
- The market in which Nike operates in is ever changing. The products that are produced are produced using the latest technology to meet the demands of the consumer. The demands from consumers are ever changing thus it is important that the market research techniques used are not time consuming. If they take too long by the time the evidence has been collated and a decision made based ion the findings, then the trend may have already moved on, and not be of demand anymore. Nike’s image would be damaged by such an incident, as it would make their products appear dated.
7.1 Nike could consider market research through primary data, external and customer sources, and this research could be conducted either by Nike or an independent market research company. Using primary research Nike is able to find out exactly what it is that consumers want and then provide products to meet that demand.
7.2 External factors that could be researched are competitors, and changes and trends in fashion, which inevitably influence Nike. The findings of this research would allow Nike to maintain their fashionable and innovative image as well as market share.
7.3 Analysing the success of other competitors, and their current sales figures and range allows Nike to see whether there is anything their competitors are doing that they are not it also allows them to spot any gaps in the market if they wish to diversify.
Bibliography
1. Lecture Notes Andrew Davison
2. Lecture Notes Pete Johnson
3. HND Business BTEC
3. Business For Higher Awards Dave Needham
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