Ch. 6 - Consumer Decision Making

In this current market with so many competitors and a variety of athletic wear companies lie Adidas, Under Armor, and Lululemon as Nike's competitors. Nike has put more emphasis on its consumer decision making model. Typical the first stage of CDP starts with a need recognition, most buyers comprehend what their problem or what they're in need of between current motivation and desired motivation. For example, I saw a commercial for brand new pair of Nike shoe, endorsed by Lebron James, which stimulated me to go out and buy that Nike shoe. Customers may need to pass through the stage step by step in every purchase which involves doing the research and going from store to store or brand to brand to find something that suites them. However, in a daily purchase customer, whom usually shops off inputs, they can skip the stage of information search, evaluation and go  straight to the  purchase decision.

With Nike having so many different competitors, they need something to set them apart from the competition. Something they've prided themselves on is improving the relationship between their customers. Nike knows their core customer is an athlete. Instead of simply offering that person a 10% discount on merchandise, Nike delivered an app that helps their customer track their runs. Nike is engaging with their customer every single time they lace up their shoes. More importantly, Nike isn’t simply engaging their clients on a logical, “you get a discount” level, they’re engaging their customers emotionally by supporting their running goals. In result this has led to an improving the relationship between Nike and it's loyal customers by touching them not only in their pockets with discounts, but being apart of their day to day life and goals, through apps, and now wearable technology. Also with new gadgets such as the Nike Fuel band, which tracks how many steps you take, how many calories you've burned etc and the Nike watch which tracks your running pace, and distance. 

They've made subtle but huge advancements to building their customer loyalty.Today’s customer expects to be engaged no matter where they are. Businesses like Nike are connecting with their customers on a day to day basis – a connection that is the golden standard for mobile loyalty programs. This connection turns into emotional loyalty, which turns into great results. A mobile loyalty program is one of the better ways to retain customers. As an added bonus, mobile programs that are really good may even capture the attention of new customers.