Blog #1 - How Nike Adds Value for its Consumers

Every sport has types of clothing or equipment that are a necessity for the athlete to own. Football players need pads and cleats. Runners need running shoes. Baseball players need a glove and a bat.  Golfers need clubs, appropriate clothes, and golf balls. 

 

           These products all provide utilitarian value to the consumer in that they allow athletes to accomplish tasks in their respective sports. These products allow the consumer to get the job done. Running shoes allow the consumer to run and golf clubs allow the consumer to play golf.

            By offering a wide variety of these products, Nike offers utilitarian value to their consumers. However, providing utilitarian value to the consumer is not how Nike separates themselves from their competitors. After all, Adidas, New Balance, and many other companies offer some of the same products, providing relatively the same utilitarian value to consumers.

            The main differentiating factor for Nike over its competitors stems from the hedonic value it provides to its consumers. This type of value “is provided entirely by the actual experience and emotions associated with consumption, not because some other end is or will be accomplished” (Babin 29). 

One way Nike achieves this type of experience is through their celebrity sponsorships and celebrity product lines. For example, basketball players who admire LeBron James, Kevin Durant, or Kobe Bryant are in luck. Nike offers product lines sponsored by these athletes, who wear their gear in their games. Wearing the same shoes LeBron James wears when he plays is something that entices consumers. It makes the consumer feel cooler and more confident, while building a connection between the consumer and superstar athletes. Knowing that you’re wearing the same basketball shoes as one of the best basketball players in the world enhances the end experience for the consumer. 

 

           Another way Nike provides hedonic value is by allowing the consumer to make the product more personal. Using the convenient Nike ID, consumers can customize their own shoes. Nike ID allows the consumer to change everything from the color of the shoelaces to the color of the sole. It even allows you to imprint your name or initials on the shoe. Creating one’s own shoe allows the consumer to become more emotionally attached to the product, rather than simply walking into an outlet store and choosing one. Nike ID lets you create a unique, customized shoe that has never been made before. It truly is one of a kind.

www.nike.com. Just Do It.