Saturday, September 22, 2018

5 Concepts related to Economics on NIke


ELASTICITY OF DEMAND:
As Nike is a branded company people have an attraction towards it due to the Brand Value. So when the price of the product decreases due to the discounts the demand of that product generally increases.
QUANTITY OF DEMAND:
This year we had FIFA world cup so Nike boot’s price went up to 30% than that of the moderate price due to the increase of the demand.
NON-PRICE DETERMINANTS:
Nike actually did a niche marketing where they came with the concept of Hyper Venom Boots where the boots can be easily being carried and wear without struggling. So most of the footballers went for this because it was comfortable and easy to wear.
ELASTICITY:
Last month I went to buy a Nike shoe for around 5000 bucks but I went for a shoe of about 6000 bucks. This was because of the discount price of the shoe of 6000 was more which actually rounded to about less than that of 5000 bucks.
PEOPLES RESPONSE TO INCENTIVES:
During the off-seasons of the sale Nike usually gives a discount upto 50% off here we find that people often response to this and goes to shop to buy the discounted products.

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