Ch. 6 - Consumer Decision Making
Nike has won over the majority of the
athletic shoe wear industry by offering style. Nike has taken into
account that not only do people want, Nike has realized that most of its
consumers seek not merely shoes that perform but they expect Nike to deliver a
shoe that has style. Most of Nike's basketball sneakers like Lebrons and
Jordans that are sold are bought by consumers not to wear to play a sport but
to wear casually in their everyday lives. The product Nike sells now carry a
heavy retail price with some ranging from $160 up to $270 for their sneakers as
the increase in demand for them, Nike realized that it’s products are not a person
need but more of a want, with that in mind Nike makes stylish athletic sneakers
with a expensive price tag because most of Nike's popular sneakers sell out
instantly so as long as the consumer is willing to pay Nike is willing to charge.
One of Nike's most popular sneakers aside from their Jordan Brand is the very
popular shoe called The Foamposite One made famous my Penny Hardaway back in
the 90's. Back in the 90's when this shoe was released by Nike the sneakers
were popular but still at times even sat on shelves, not as popular as they are
now due to the large amount of "sneaker-heads" out there who jump at
every release of this popular Nike sneaker model. Now for this Foamposite One
model consumers line up in front of the store for several hours just for a
chance at purchasing the $220 + tax pair of sneakers. Therefore i believe Nike
has taken a luxury over performance target in producing their shoes. Although
Nike still does provide sneakers for those of its consumers who still seek
performance with their soccer, baseball, football, golf, etc.
The consumer decision-making process is a longer
thought now since the economy is in a recession. There is a five step process
when making a decision. The steps included are need recognition, information
search, evaluation of alternatives, purchase and post purchase behavior. Nike
tries to make this decision process easier with their advertisements using
stimulus. For example, the Nike fuel band is one of Nike's newest products that
most people did not know much about it when it released, so Nike came up with
an ad that will catch ones attention. That is not all; Nike's commercial
explains what this product is in great detail using two of the stimuli sight
and hearing. Just by watching the commercial, Nike completes the first two
steps of the decision-making process for the consumer which only leaves you
with 3 more steps.
Nike has won over the majority of the
athletic shoe wear industry by offering style. Nike has taken into
account that not only do people want, Nike has realized that most of its
consumers seek not merely shoes that perform but they expect Nike to deliver a
shoe that has style. Most of Nike's basketball sneakers like Lebrons and
Jordans that are sold are bought by consumers not to wear to play a sport but
to wear casually in their everyday lives. The product Nike sells now carry a
heavy retail price with some ranging from $160 up to $270 for their sneakers as
the increase in demand for them, Nike realized that it’s products are not a person
need but more of a want, with that in mind Nike makes stylish athletic sneakers
with a expensive price tag because most of Nike's popular sneakers sell out
instantly so as long as the consumer is willing to pay Nike is willing to charge.
One of Nike's most popular sneakers aside from their Jordan Brand is the very
popular shoe called The Foamposite One made famous my Penny Hardaway back in
the 90's. Back in the 90's when this shoe was released by Nike the sneakers
were popular but still at times even sat on shelves, not as popular as they are
now due to the large amount of "sneaker-heads" out there who jump at
every release of this popular Nike sneaker model. Now for this Foamposite One
model consumers line up in front of the store for several hours just for a
chance at purchasing the $220 + tax pair of sneakers. Therefore i believe Nike
has taken a luxury over performance target in producing their shoes. Although
Nike still does provide sneakers for those of its consumers who still seek
performance with their soccer, baseball, football, golf, etc.
The consumer decision-making process is a longer
thought now since the economy is in a recession. There is a five step process
when making a decision. The steps included are need recognition, information
search, evaluation of alternatives, purchase and post purchase behavior. Nike
tries to make this decision process easier with their advertisements using
stimulus. For example, the Nike fuel band is one of Nike's newest products that
most people did not know much about it when it released, so Nike came up with
an ad that will catch ones attention. That is not all; Nike's commercial
explains what this product is in great detail using two of the stimuli sight
and hearing. Just by watching the commercial, Nike completes the first two
steps of the decision-making process for the consumer which only leaves you
with 3 more steps.
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