What Pricing Strategies Does Nike Utilize?
As of February 2015, Nike uses a premium pricing strategy in which it continues to raise its prices despite other companies in the market lowering theirs, and it is considered a customer value-driven model. This strong brand is able to use premium price points because customers see its products as dominant in the market. Therefore, customers are willing to pay more for Nike’s products because of loyalty to the brand.
Nike is primarily known for selling shoes, although it also makes apparel such as shirts, shorts and socks. It’s the world’s top sports brand, and it is endorsed by several athletes. Some of the sports for which it tailors its products include running, golf, soccer and basketball.