MKT201-Consumer Behavior

Assignment Cover Sheet

Group Project (Report -20%)

Student GROUP 3 No of
Name: Words:
Topic Analyze target consumer behavior in Word 3,000
Chosen: buying NIKE product Limit:

MKT201-Consumer Behavior
Contribution Sheet
Group Project (Report -20%)

Percentage of
Student Name Parts in-charge
contribution*
Introduction + Background +
Mouhammach Yusoh 20%
Conclusion
Lam Thuy Vy Project Overview (Target Audience) 20%
Project Overview (Report your
Tran Ngoc Lien 20%
implementation plan)
Le Thi Nhu Huynh Result and Discussion (1 + 2) 20%
Nguyen Ngoc Anh Thu Result and Discussion (3) 20%
Total: 100%
 TABLE OF CONTENTS
I. INTRODUCTION ..............................................................................................3
II. BACKGROUND ................................................................................................4
1. About Nike .........................................................................................................4
2. About Jordan.....................................................................................................4
III. PROJECT OVERVIEW.................................................................................5
1. Target audience .................................................................................................5
2. Report your implementation plan ...................................................................6
a. Lower product cost in a short time ..................................................................7
b. Advertising campaign: .....................................................................................7
IV. RESULTS AND DISCUSSION ......................................................................8
1. Describe your target customer ........................................................................8
2. Describe the behavior in a three-step process ..............................................11
3. Analyze and point out the factors affecting the buying behavior of
consumers. ...........................................................................................................12
V. CONCLUSION.................................................................................................14
VI. REFERENCES ...............................................................................................14
MKT201-Consumer Behavior SP22

I. INTRODUCTION
Analyze Consumer Behavior of Nike
The importance of paper
underlines the fact that brand
is an effective factor in the
consumer buying decision
process. Brands provide
information about products
and create relationships that
influence consumers' minds
during the buying process. A
very important category of
consumer behavior research
is brand awareness. Brands
convey a specific value in the minds of consumers. This study will include 5 sections
Introduce, Background, project overview, decision, and conclusion. Our main research
objective is to analyze Nike's consumer behavior with the product Sneakers. Nike has
been a corporate brand for the past few decades and dominates the market as a
sportswear manufacturer. Nike invests a huge amount of money in their research
departments to statistically measure consumer behavior based on their purchasing
decisions and how long it can produce effective results. Nike has been a corporate brand
for the past few decades and dominates the market as a sportswear manufacturer. Nike
invests a huge amount of money in their research departments to statistically measure
consumer behavior based on their purchasing decisions and how long it can produce
effective results. Nike’s strategies are based on customer satisfaction and keep them
motivated to buy branded products. Nike management also worked on the pricing issue,
which was not warmly welcomed by new customers. Minimize the cost of sneakers by
recycling defective items. Intent and preference factors make a difference in a customer's
purchasing decision. The habitual nature of specific customers is highly focused to
redirect the purchase of Nike sneakers regularly and promptly to encourage customers
to purchase the product and create word of mouth to attract new customers.

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II. BACKGROUND
1. About Nike

Nike is the world's number one global supplier of shoes, apparel, and sports equipment.
Founded on January 25, 1964, as Blue Ribbon Sports by Bill Bowerman and Phil
Knight, then officially known as Nike on May 30, 1971. Besides, Nike established a
portfolio. Strong brands with several subsidiaries including Cole Haan, Converse Inc.,
Hurley International LLC, NIKE Golf and Umbro Ltd.m Today, Nike operates in more
than 160 countries globally with more than 30,000 Nike employees across six
continents, each of them contributing their energies to fulfilling the brand's mission:
to bring inspiration and innovation to every athlete in the world.
2. About Jordan
Jordan is a line of shoes and sportswear owned
by Nike. After signing a contract with Michael
Jordan - one of the most famous basketball
players in the world and soon became a legend
thanks to his rare talent. Signed with Nike at a
very young age because the most famous
publisher of this sports fashion soon discovered
and recognized his talent. The Jordan shoe line
was launched very early and is a big step forward
not only for Jordan but also for Nike. When the
first Jordan models came out, people were
amazed not only because of the practicality, and the ability of a shoe to be so great
but also because of the fashion value that this shoe brings. Today, this line of Jordan
shoes is also sought after by many sneakerheads around the world and has become an
MKT201-Consumer Behavior SP22

indispensable piece of the whole history of fashion. Nike products are amazing not
only because of the beauty of the outside, the beauty that has brought Nike's product
line beyond the level of practicality in sports but also highly appreciated for its fashion
value. Beauty. Not only that, the quality of each item released by Nike is further
confirmed by continuously applying new and modern technologies.
Nike and Michael Jordan, after collaborating, launched the first product in 1984
called Nike Air Jordan 1 which immediately became a craze in the world of sneaker
fashion in the world. This is also the first step in the formation of the Nike Jordan line
of shoes and also the answer to the question of which brand of Jordan shoes?

III. PROJECT OVERVIEW

1. Target audience
While the market for clothing and sports can be broad, Nike primarily targets
consumers between the ages of 15 and 40. The company caters to both male and female
athletes, and it is increasingly focusing on teenagers and young adults to build long-
term brand loyalty. Nike is currently targeting a distinct customer segment. Nike's
worldwide revenue by customer segment from 2017 to 2021, according to statistics.

More specifically, the target audience that Nike is most interested in is:

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● Women
Nike intends to expand its women's clothing line, particularly sports bras and
tights. Nike's running and training apparel sales for women increased by double
digits in the fourth quarter, outpacing men's sales. In addition, the company released
a new haute couture collection that included unusual items such as lace-trimmed
dresses and shirts. Women in their twenties and thirties are largely driving the
"sports trend," in which customers buy leggings to wear to the gym, errands, and
brunch. Nike estimates that its women's line will grow by $2 billion by 2017.
● Young athletes
According to Parker, children participating in sports is also a factor in Nike's
growth. Through a sponsorship with local leagues, clubs, and federations, it attracts
young athletes to wear its products. Partnerships with professional athletes, it
claims, are also an important way to attract younger customers.
Nike apparel is now worn by all NFL teams. The brand also has collaborations
with well-known athletes, such as basketball star Kobe Bryant and tennis champion
Roger Federer. To attract younger customers, Under Armour has begun to sign
celebrity athletes.
● Runner
Nike's innovation efforts are primarily focused on the running genre. Despite the
above emphasis, the category isn't performing as well as the brand would like.
Parker told investors, "The pace of innovation at Nike has never been faster, and
our systems have never been stronger." "Running is our legacy and our most
successful performance category."
The LunarTempo is a new running shoe designed for distance runners, and Nike
is also reinventing its running apparel to compete with Lululemon, Under Armour,
and Adidas. The Nike+ running app is being updated as well.
Nike+ tracks runners' route, distance, pace, time, and calories. They can also share
photos and compare their progress with their friends.
Nike sponsors grassroots running events all over the world to attract new customers.
2. Report your implementation plan
According to the consumption behavior of some customers in Vietnam Nike is a
famous sports fashion brand for the elite. To change that perspective of Vietnamese
MKT201-Consumer Behavior SP22

consumers and want to let them know that not only the rich can use Nike products,
but, middle-income people can still access them. To do that, Nike needs to come up
with a strategy to change consumer attitudes and behaviors, to bring Nike products
to all customers in Vietnam. According to statistics, the per capita income of Vietnam
is about 4.2 million/month (While most Nike products are over 1 million, this is an
out-of-reach need for many people. If Nike wants to change this view, it needs to
have a strategy to adjust product prices, specifically as follows:
a. Lower product cost in a short time
- Implement discount programs for products with medium and low prices many times
a year
- High-end products will also drop in price but with as much space as mid- and low-
priced products
• Implementation time: On occasions such as Nike Birthday, Pride Month, new store
opening, when the brand's products/services are out of season, about to expire, or
there are signs of inventory for some reason. any other objective…
b. Advertising campaign:
Make a promotional video with the message saying "Nike is present in all daily
activities of life" Video content: Use familiar images and Nike's brand image such
as mothers, and housewives wearing Nike shoes to go shopping at popular markets,
students wearing Nike shoes in movement activities (exercise, walking, going to
school...), uncles neighbors wearing Nike t-shirts drinking coffee and playing chess
with friends; the shipper brought Nike to work,….
Through the above advertising campaigns, Nike has taken measures to deal with
inventory, these methods not only bring good revenue for the business but also help
Nike reach more potential customers. That confirms that this campaign has brought
a positive effect to the business and helped many customers to access the company's
products. In addition, the presented e-group advertising campaign also changed
consumers' attitudes and buying behavior. This can help customers understand that
Nike is not only for high-income customers but also for low-middle-income
customers who can access products.

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IV. RESULTS AND DISCUSSION
1. Describe your target customer
The influence of demographics and social stratification on consumer behavior
- Characteristics: The current population of Vietnam is 97,319,345 people as of May
19, 2019, according to the latest figures from the United Nations. Vietnam is ranked
14th in the world in the ranking of the population of countries and territories, the
population density of Vietnam is 314 people/km2. Nike shoes are growing in the
trend that both men and women can wear them, so the uneven growth between the
number of men and women is not important.
- Since Nike entered Vietnam, there have been more than 40 stores spread across the
country: Hanoi 13 stores - Ho Chi Minh City - 25 stores - Hai Phong 2 stores - Da
Nang 3 stores - Nha Trang 2 stores - Binh Duong 1 store - Can Tho 1 store - Ca Mau
1 store - and many different import and retail locations nationwide.

Type Segment Mentality Behavior Geography Education

Children Under 13 years Lifestyle: Search Density: Depends on

old Active, interests: Urban uses parents, so
eager to Hobby, expensive their
learn Fashion, Fit Nike preferences
Gender: Active Size products. and
men who like shopping for
sports will Personality: Nike shoes
choose to buy dynamic, Usage rate: Rural: few depend on
Nike shoes like to Regular options for their parents
more than compete expensive for the most
women. products like part
Loyalty Nike shoes
status: Weak
Income: no
income

Teenagers From 13-25 Lifestyle: Seeking Density: The higher

years old Busy with Benefits: Urban uses you study,
studies, Full Convenience expensive the more
of energy, , Fashion, Nike you care
MKT201-Consumer Behavior SP22

Gender: Male: spirit Reputation, products about your

likes sports, Reasonable needs, learn
shows his PriceUsage about the
Personality: Rural: few beautiful
dusty fashion Curious, options for
personality, and trendy
easily Rate: expensive products,
and also attracted to Frequently products like and evaluate
chooses to buy inspirational Stable Nike shoes
because the the quality
fashion ads of the
idol is the
brand Condition: products you
representative Moderate to choose to
or the idol. Strong buy more
carefully.

Female:
personality, Education is
choose to buy also an
because the important
idol is a person factor
Brand leading to
representative employment
or idol with. as well as
income,
shopping
Income: no frequency
income or low expensive
income brand

Middle- Over 25 years Lifestyle: Personality: Density: Upper class:

aged and old Busy, take Careful Urban use care about
elderly care of work about health expensive the health
people and family, Nike and accept
Gender: Male, healthy products investment
Female The benefits in Nike
sought: products
Quality, Rural: few

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 Income: Specialized options for
medium and Needs expensive
high Usage products like middle
Nike shoes class:
because
Rate: Nike has a
Frequent suitable
Loyalty price, for
Status: them,
Strong buying Nike
should also
think about
the low
class:
choosing to
buy Nike
shoes seems
to be quite
small

Education is the main factor that can lead to a career and income for each person. It can
also be said that social class is divided according to each person's education, occupation,
and income. Members receive different educations, have different beliefs and value
systems, and have different income levels. different:
- High-class: leader, businessman, highly professional. They will learn to choose and buy
famous brands that suit their needs. Nike shoes to serve their needs are also a top choice
- Middle-class: employees, merchandising, service, workers. Income level and education
level also seem to be quite suitable to choose to buy Nike products, Nike's prices are
diverse, but the quality is good.
- The middle-class segment chooses Nike for the most part and the majority. Celebrities
and stars choose to buy Nike because of the fashion style they pursue and because of the
famous brand. The spirit of prayer wants to rise.
MKT201-Consumer Behavior SP22

- Low class: handicraft industry, simple labor, farmers. The price is quite high for
consumers in this class, and the income is not high, so they only find products that are often
suitable.
2. Describe the behavior in a three-step process
Before buying:
The first step in the consumer decision-making process. Consumers need to buy a pair
of Nike shoes. Or a need may arise from an external stimulus, such as from the press,
advertising, friends, society introducing Nike products, etc.
Information search: After recognizing a need, consumers will search for information
about the shoes they want to buy to evaluate - review and choose a store or e-commerce
site to buy. Information can come from any number of sources: family and friends, search
engines, Google reviews, personal observations, consumer reports, salespeople, product
samples, and more. The importance of the information will depend on the consumer and
the model of the shoe they want to buy.
Evaluation of options: When choosing a shoe model to buy, consumers want to satisfy
their needs to the highest degree with the Nike shoes themselves. They look for certain
benefits the shoes bring. Consumers view each pair of shoes as a set of attributes with
capabilities that provide benefits that they want as beautiful - durable - smooth -
affordable,...to satisfy their needs at different levels. The attributes they are interested in
may vary depending on the product that NIKE offers.
While buying
Buying decision: In the evaluation stage, the buyer selects the shoes and then groups
them into a group of products and rates them in order from low to high, thereby starting to
form an intention to buy the highly rated shoe model. best. But there are still two factors
that can lead to the difference between the intention to buy and the decision to buy.
Attitudes of others, such as family, friends, and co-workers. Circumstances factors, such
as expectations of increased income, expected price levels, and substitutes. Making a
buying decision, they consider which store to buy, when to buy, and whether the payment
method is convenient so that they decide to take action to satisfy their needs.
Post-purchase behavior
After buying a pair of shoes that they like, in the process of consumption, consumers
will feel a level of satisfaction or dissatisfaction with these shoes. And then, if they are
satisfied, they will return to the business to continue buying or recommend it to their

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relatives to buy together. If they are not satisfied with the product or the warranty does not
satisfy them, customers tend to urge others to boycott the business or ask for the product
to be returned.
3. Analyze and point out the factors affecting the buying behavior of consumers.
Motivation
It has a significant impact on consumer behavior. Motivation is closely related to
human needs. At any given time, a person has numerous needs. Some needs are biological
or physiological, arising from physiological stress states such as hunger, thirst, or
irritability.
Other needs are psychological or psychological, arising from stressful psychological
states such as recognition, esteem, or belonging. Motivation comes from the engine;
motivation is an expression of a need, or an increased need becomes a motive. Motivations
are generally divided into two categories: instincts and extrinsic influences. Instincts are
factors shaped by self-satisfaction, whereas extrinsic factors can be money or compliments.
For example, in middle and high school, your social needs may come to the fore. You want
to have friends and date. Perhaps this prompted you to purchase clothing or an electronic
device. After graduating from high school, you start thinking about how people will see
you in life, so you decide to pay to go to college and get a professional degree, to fulfill
your need for a heart. your self-esteem. At some point, you will believe that you have
become the person you feel you should be in life.
Favorite shopping channel
It is a significant factor affecting consumer buying behavior. Consumers tend to buy
at stores or channels that they love because they have experienced the services and products
that the store brings and makes them happy. feel satisfied. So, whenever there is a
possibility or need, customers will especially think of the store they already love and make
their choice. In addition, most customers often do not want to experience services and
products that are not good or not as per their expectations, so choosing from their favorite
stores is always a priority and safe for them without spending a lot of time and money.
Marketing campaign
Marketing campaigns are also one of the important factors determining consumer
buying behavior. Marketing campaigns, if built and implemented properly and regularly,
combined with the selection of an appropriate marketing message, businesses can persuade
consumers to change brands or choose solutions. The alternative is more expensive.
MKT201-Consumer Behavior SP22

The marketing campaigns implemented can be used as reminders of products and services
that customers need to buy regularly but are not necessarily closely related to a specific
audience (e.g., insurance services, for example). A good marketing message will be able
to influence the customer's purchasing decision.
For products with high value and large amounts of money to spend, such as houses,
cars, etc., economic conditions play an extremely important role in influencing customers'
purchasing decisions. A good economic environment makes users confident and willing to
buy regardless of whether they will have to go into financial debt.
The consumer buying decision process will be lengthy in the face of expensive, high-
value transactions, and it will be very susceptible to many personal factors at once.
Personal preference
Besides, when studying consumer behavior in marketing, marketers realize that
consumer behavior is also greatly influenced by individual factors such as likes, dislikes,
preferences, and preferences. priorities, ethics, and values. In particular, personal opinions
are stronger when buying fashion or food.
Advertising is a communication medium that can influence consumer behavior.
However, in the end, a customer's purchase choice is greatly influenced by their
preferences. For example, if you are a vegetarian, even if you see dozens of ads for burgers,
you certainly won't change your habits just because of it.
Group influence
Consumer behavior can be strongly influenced by the thoughts and actions of family,
friends, neighbors, and acquaintances. Therefore, marketers will focus on studying the
effects of a product on family members, such as husbands, wives, children, etc. For
example, if the purchasing decision of a particular product is influenced by a wife, then
marketers will try to target women in their advertising.
In addition, social psychology, education level, or surrounding social factors also
affect customer behavior in marketing.
Purchasing ability
Last but not least, the factor affecting consumer behavior is purchasing power.
Unless you are a billionaire, you always consider your budget before making a purchase
decision.

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 The product or service of the business is excellent, and the marketing can be very
good, but if the customer does not have enough budget for that product, the purchase action
will not happen.
Therefore, segmenting consumers according to their purchasing ability will help
businesses identify qualified consumers and achieve better business performance.

V. CONCLUSION
From all of the above, we see that Brand not only affects consumer behavior, but it
also affects attitudes about the ability to purchase a product. Through all of the above, the
Brand also affects the age of the product, culture, behaviors, demographics, and
psychology. Through the above advertising campaigns, Nike has taken measures to deal
with inventory, these methods not only bring good revenue for the business but also help
Nike reach more potential customers. That confirms that this campaign has brought a
positive effect to the business and helped many customers to access the company's
products. In addition, the presented e-group advertising campaign also changed consumers'
attitudes and buying behavior. This can help customers understand that Nike is not only
for high-income customers but also for low-middle-income customers who can access
products.

VI. REFERENCES
D.Tighe. (2021, Aug 03). Nike's wholesale revenue worldwide from 2017 to 2021, by
customer segment. Retrieved from statista.com: https://bom.so/ICsT3g
isocert. (n.d.). Hành vi người tiêu dùng là gì? Tầm quan trọng của hành vi người tiêu dùng.
Retrieved from isocert.org.vn: https://by.com.vn/ymyRlg
Lutz, A. (2015, Apr 08). Nike is going after 3 kinds of customers. Retrieved from
businessinsider.com: https://bom.so/QLvxt0
Magazine, A. (2022, May 23). Who is Nike’s target audience? Retrieved from
advertisingrow.com: https://bom.so/h5pMyy
mibrand. (n.d.). Điều gì làm nên vị thế dẫn đầu của Nike? Retrieved from mibrand.vn:
https://bom.so/VA7g69
praz. (n.d.). Hành vi người tiêu dùng trong marketing là gì? Các bước phân tích hành vi
người tiêu dùng hiệu quả. Retrieved from praz.vn: https://bom.so/lwzfLr
MKT201-Consumer Behavior SP22

vcci. (2017, 10 15). Động cơ tác động đến hành vi người tiêu dùng. Retrieved from vcci-
hcm.org.vn: https://bom.so/vjXCGg
Writer, S. (2020, March 30). Who Is Nike’s Target Audience? Retrieved from
reference.com: https://bom.so/zc0DIc

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