How Nike Uses Technology in Increasing Brand Loyalty & Awareness

Running head: HOW NIKE USES TECHNOLOGY IN INCREASING BRAND LOYALTY
& AWARENESS
Business research project
Name of the student
Name of the university
Author note

How Nike Uses Technology in Increasing Brand Loyalty & Awareness
2
Table of Contents
Chapter1: Introduction..............................................................................................................4
1.1 Introduction......................................................................................................................4
1.2 Background information..................................................................................................4
1.3 Rationale..........................................................................................................................5
Research aims.........................................................................................................................6
1.5 Research objectives..........................................................................................................6
1.6 Research questions...........................................................................................................6
1.7 Research structure............................................................................................................7
Chapter 2: Literature Review.....................................................................................................8
2.1 Introduction......................................................................................................................8
2.2 Technology.......................................................................................................................8
2.3 Technology and Customer Experience............................................................................9
2.4 Perceived Social Media and Brand Trust.......................................................................11
2.5 Perceived Social Media Communication and Brand Equity..........................................11
2.6 Brand Awareness and Social Media..............................................................................12
Chapter 3: Research Methodology...........................................................................................15
3.1 Introduction....................................................................................................................15
3.2 Method Outline..............................................................................................................15
3.3 Research Onion..............................................................................................................15
3.4 Research Philosophy......................................................................................................16

How Nike Uses Technology in Increasing Brand Loyalty & Awareness
3
3.5 Research Approach........................................................................................................16
3.6 Research Design.............................................................................................................17
3.7 Process of Data Collection.............................................................................................17
3.8 Sampling and Sample Size.............................................................................................18
3.9 Data Analysis Process....................................................................................................18
3.10 Ethical Consideration...................................................................................................19
Chapter 4: Result and Discussion............................................................................................20
Descriptive statistics.............................................................................................................20
Analysis of correlation.........................................................................................................30
Analysis of Regression.........................................................................................................33
Chapter 5: Conclusion, Recommendation and Future Work...................................................38
5.1 Conclusion......................................................................................................................38
5.2 Linking with the objectives............................................................................................39
5.3 Recommendation............................................................................................................39
5.4 Future Work...................................................................................................................40
Reference list............................................................................................................................41

How Nike Uses Technology in Increasing Brand Loyalty & Awareness
4
Chapter1: Introduction
1.1 Introduction
Digital media is known to provide the marketers the mechanism through which they
can interact and also communicate cheaply and effectively. Companies can develop brand
loyalty of their products with the consumer through digital media since it provides a new
platform to the marketers. The importance of internet is rising every year and therefore it is
important for every brand to crate brand awareness. The social media also helps the
consumers to get involve in various things. It also allows the companies to be up to date with
the current trends while communicating with the customers (Dilham, Sofiyah and Muda
2018). The brand awareness is basically created through advertising, promotion, direct
marketing and selling. Social media therefore acts as a tool for creating brand awareness and
marketing. Building and maintain the brand loyalty are e of the central themes of research for
the marketers for a very long period of time. Marketers are known to use various means for
maintain the brand loyalty of their customers where one of the recent means is through social
media marketing. Social media is a phenomenon which has drawn a lot of attention both to
companies and individuals who are interacting on the networking landscape.
1.2 Background information
Brand loyalty is known to create a long term relationship between the brand and
customer. The globalization of competition along with the development of information
technology known to have enhanced the consumer awareness. This paper analyses how Nike
uses technology for increasing brad loyalty and awareness (Huang, Lee and Che 2017. Nike
is presently the world’s largest retailer as well as marketer of athletic footwear, accessories
and appreal. This particular American multinational corporation was founded in 1964 as Blue
Ribbon Sports. In the year 1966, Nike opened its first store in Santa Monica, California. The

How Nike Uses Technology in Increasing Brand Loyalty & Awareness
5
headquarter of the company is located near Beaverton in the Portland metropolitan area. The
first ever Nike shoe was made in the ear 1972 after the first ever retail store opened in
California. The retail stores and many distributors are widely available in more than 170
countries. The very well known swoosh logo is one of the most recognized logos in the world
(Paul and Iuliana 2018).
The main goal of the company is to be more innovative and a popular brand in the
market. Nike initially operated as a distributor for Japanese shoemaker Onitsuka Tiger.
However by 1971, the relationship came to an end and Nike made its own line of footwear.
Nike had also been associated with Wieden Kennedy for making various marketing
communication. In the year 1976, Nike have known to hire john Brown and partners as its
first advertising agency (Sasmita and Mohd Suki, 2015). Nike had also attained more than 50
percent market share in the US athletics shoe market by the end of 1980. Throughout that
year, it have known to expand its product line in order to encompass many regions and sports
throughout the world. Nike have also acquired several apparel and footwear companies over
the long period of time. The first acquisitions of Nike took place in 1988 when it acquired the
upscale footwear company, Cole Haan.
1.3 Rationale
Social media helps in facilitates the sharing of ideas, information and thoughts
through the building of virtual networks and communities. It also helps in connecting various
companies with the customers (Momany. and Alshboul 2016). The social media also helps
the consumers to get involve in various things. It also allows the companies to be up to date
with the current trends while communicating with the customers. Brand awareness act a very
important factor for launching new products and services The social media is also known to
help customers with their complaints as well as queries through emails and direct message.

How Nike Uses Technology in Increasing Brand Loyalty & Awareness
6
The purpose of the paper is to identify how technology can be harmful for a company and
what are its advantages and disadvantages. The paper also shows a way to find out how
technology will be increasing brand awareness and loyalty
Research aims
The aim of the research is to:
 Understand how technology will effect brand awareness.
 Understand how technology will affect brand loyalty.
1.5 Research objectives
The objectives of the concerned study can be seen to be as follows:
 To explain how technology is increasing brand loyalty and awareness.
 To look at how important customers think technology is.
 To look at how technology may affect brand loyalty.
1.6 Research questions
The research questions of the study are as follows:
 What can Nike do to increase brand loyalty and awareness by using technology?
 How technology is influencing Brand loyalty?
 How do customers view the importance of technology?
 How technology affects brand loyalty?

How Nike Uses Technology in Increasing Brand Loyalty & Awareness
7
1.7 Research structure
The first chapter of the paper provides the overview of the background of the research,
introduction, research rationale, research questions and aims and objectives of the paper. The
second chapter of the project consist of the literature review on how technology can affect the
brand loyalty of the famous brand, Nike. The third chapter comprises of the research
methodology which states that the tools and techniques, research approaches and analysis
method used for the concerned study, the data collected are examined and interpreted in the
fourth chapter lastly, the fifth chapter provides a brief conclusion of the topic.
Chapter 1:
Introduction
Chapter 2:
Literature
Review
Cahpter 3:
Research
Methodology
Chapter 4:
Data analysis
Chapter 5:
Conclusion

How Nike Uses Technology in Increasing Brand Loyalty & Awareness
8
Chapter 2: Literature Review
2.1 Introduction
This section of the paper mainly concentrates on undertaking an in-depth research that
has been on the current topic in order to attain more desired results. The intention has been to
collect more theoretical information in order to complete a solid research along with the help
of the data that will be gathered at the time of investigation.
The research in the area of the use of new technologies and brand loyalty has grown
to become an interesting topic for the past few years. The main factor has been two folds and
they are: 1) even though new technologies like the use of social media have been created after
the late nineties, but the use of the same has flourished in the past years. 2) The brand
marketers initiated by examining social media websites as an appropriate channel in order to
communicate with their customers.
This section of the paper will therefore look to assess and recognise the various
factors and variables that will be considered in order to understand how the use of
technologies have increased brand loyalty among the customers and thereby increasing their
sales as well. In this paper, Nike has been considered as the company and their technological
uses will be considered in order to have an understanding of their impact on brand loyalty.
2.2 Technology
With the advent of time and development in science, there have been various
processes and mediums that have been developed with the help of which the industries have
improved their manufacturing processes. Technology has been considered to be the
incorporation of the scientific knowledge for the purpose of practical use with the help of
which better performance can be undertaken by the industries (Zhang and Benyoucef 2016).
Technology has various aspects and some of them have been considered to be applied