How Nike Uses Technology for Brand Loyalty and Awareness: A Study

This business research project investigates how Nike utilizes technology to increase brand loyalty and awareness. The project begins with an introduction, providing background information on Nike and the rationale for the research. A literature review explores the role of technology, customer experience, social media, and brand awareness. The methodology chapter outlines the research approach, including research philosophy, design, data collection, sampling, and ethical considerations. The results and discussion section presents descriptive statistics, correlation analysis, and regression analysis. The project concludes with a summary of findings, linking them to the research objectives, recommendations, and suggestions for future work. The project aims to understand how technology affects brand awareness and loyalty, and how customers perceive the importance of technology in Nike's brand strategy. The project analyzes how Nike's technology-driven marketing strategies influence brand loyalty and awareness through customer experience, digital marketing, and social media engagement.

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

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How Nike Uses Technology in Increasing Brand Loyalty & Awareness
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

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How Nike Uses Technology in Increasing Brand Loyalty & Awareness
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

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How Nike Uses Technology in Increasing Brand Loyalty & Awareness
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

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How Nike Uses Technology in Increasing Brand Loyalty & Awareness
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.

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How Nike Uses Technology in Increasing Brand Loyalty & Awareness
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?

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How Nike Uses Technology in Increasing Brand Loyalty & Awareness
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

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How Nike Uses Technology in Increasing Brand Loyalty & Awareness
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

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How Nike Uses Technology in Increasing Brand Loyalty & Awareness
science, engineering, web designing and social media. In accordance to the retail industry, it
is seen that machinery equipment as well social media has been the new technologies that
have been used with the help of which brand loyalty can be constructed.
2.3 Technology and Customer Experience
One of the forefront aspects of technology has been customer interaction as it is seen
that e-commerce and other companies have made their purchases easier in the mortar stores
and even faster and quicker with the help of online sales. Consumers are no longer in the
dilemma of online browsing and thinking about the fact that whether purchasing online will
be a risk. With the help of the latest and advanced technologies most of the online buying
facilities are easier and on the go (Paul. and Iuliana 2018). The customers can even compare
the prices and even look for substitute stores, look for a shop near their locality, attain
coupons and much more. The companies with the help of these technologies have been even
gaining more. The process of online marketing with the help of technologies assists a
business in creating their brand within overnight.
The current technology has even led to enhanced products and quality products. There
are several new products have been developed with the use of technologies as in the current
time period a door can be opened with the help of finger prints and various equipment can be
managed with the help of smart phones.
The companies have been making of social media significantly as in the current time
period the customers are more inclined towards social media and the companies advertising
their products leads to better exposure of their products.
Technology has created a significant impact on the level of shopping as shopping is
undertaken by everyone at every point of time. The companies can reach their customers at

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How Nike Uses Technology in Increasing Brand Loyalty & Awareness
any point of time with the help of their mobile applications and even the customers can utilize
these apps to gain access to the inventory of the retailers at any time of the day.
The standards of customer service has enhanced to greater heights with the use of
technology. The companies have the opportunity to easily reach to their customers and even
respond to their requests which is inclusive of tracking products, refunds and returns. Most of
the organizations have their own apps that can be accessed through phone or other electrical
gadgets with the help of which their products can be managed (Graham and Mudambi 2016).
The use of the apps can even be helpful in directly communicating with some other
businesses as well at the time o assistance. In case a customer is not happy, then they can post
a message over social media and this can have a bad impact on the organization. The
development of technologies has even made the companies more aware and therefore they
take special care in attaining their customers.
On the other hand, any sort of positive comments and feedbacks can be helpful to the
company in increasing their brand image in the market. This leads to the opening of various
new doors for the business. Many customers have the feeling that real time online chat can be
helpful to them as their queries can be easily resolved.
The mortar outlets even gain the help of technologies and their advantages. It is seen
that various kinds of technological developments have created in-store facilities and
experiences much better than the past. Customers at the current period still prefer in-store
shopping experience and this experience mainly increases at the time of vacations and
holidays. The assistance the customers receive from technology about the mortar outlets have
been that the customers gain access the information of any kind of discount that is given by
the shops in their phones (Ferreira and Dias 2015). Various discounts and redeem coupons
are even given to the customers that attracts them to shop more. One of the best achievements

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How Nike Uses Technology in Increasing Brand Loyalty & Awareness
that have been attained by technology has been providing an advantage to the small
companies and businesses. They have gained the power to compete with the bigger stores by
taking assistance of social media and other internet marketing plans and strategies as they can
now gain access to a bigger client base. It is therefore seen that there has been a huge
development in the overall industry with the use of technology. It has been observed that one
of the most used technologies has been the development of social media and therefore further
research can be done in this section of the paper.
2.4 Perceived Social Media and Brand Trust
Social media has been known to be a web dependent application, which is prepared
on the basic network tools that permit humans to share and communicate their views and
knowledge. Therefore communication via social media can be considered to be either user
created or company generated. It is seen that brand trust can be explained as the emotion of
trust and satisfaction that is held by the consumers at the time of communication with the
companies and this generally undertaken at the current time period with the help of social
media. The aim of creating brand trust has been to generate competitive edge and thereby
improve the performance of the company (Erdoğmuş. and Tatar 2015). Brand trust is looked
down upon to be important in developing the loyalty and satisfaction of the customers
towards a brand and this supervised by the sincerity and truthfulness of the social media
personnel who are either user created or company generated.
2.5 Perceived Social Media Communication and Brand Equity
(Zhang, Benyoucef and Zhao 2016) explained brand equity to be a group of brand
liabilities and assets that are associated to a brand, their symbol and name that add in or
subtract from the value that is given by any service or product by a company to their
customers. It is known to be the premium that is paid by the customer is for the services and
products that are branded in comparison to the unbranded service and products. (Hegner. and

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How Nike Uses Technology in Increasing Brand Loyalty & Awareness
Jevons 2016) debated that customers are dependent on the company created and user
generated social media sites in order attain the information and hence both the kinds of
communication have a direct effect on brand equity. It is even seen that there exists a positive
relationship among brand equity and brand communication. (Danylchuk et al 2018) stressed
on the fact that social media campaigns have stressed on the traits of calling the customers
and generating a brand benefit. Therefore, company generated communication through social
media is considered by the individuals as the publicity to attain brand awareness and
perception. Furthermore, the extent of personal importance of a user created communication
via social media has an effect on the level of association with a specific brand. The
communication generated by the user is linked with the brands in an association of
involvement as the brand associated information is a kind of consumption associated activity.
This explains the fact that brand loyalty has a key role to play and the development of brand
loyalty is greatly impacted with the development and use of technologies especially social
media.
2.6 Brand Awareness and Social Media
Every organisation promoting its products and services by using the online platform
takes advantage of the popular social media in the current era. Before promoting content and
unique selling point of the brand on social media, it is necessary for the organisations to
identify the customer type to be addressed, which requires basic expertise and knowledge in
marketing. Whenever any product is promoted, it is necessary to address the same to a
specific range of customers. In the current era, it is difficult to find high-quality content.
Although the social media networks assist in spreading the content, the quality of content is
the aspect differentiating a brand from another (Barreda et al. 2015). Hence, if the
competitors are involved in posting the same contents repeatedly, it is desirable that the

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How Nike Uses Technology in Increasing Brand Loyalty & Awareness
organisation has to come up with something new and unique, which would aid in
differentiating itself from the rivals.
Moreover, whenever an organisation is involved in distributing a new update on
social pages, it is necessary to include images for all written articles or blogs. However, for
assuring that the images convey the desired message to the readers, they should not be thrown
into the social media randomly. If the content is appealing, it is probable to be shared and
hence, this would assist in increasing reach for the organisation (Godey et al. 2016). In case;
watermarks are used for branding videos, different individuals would stumble on logo and
name of the brand.
Now-a-days, the customers are becoming increasingly aware and discerning regarding
the businesses to be supported. Before undertaking any decision, they conduct quick search
by browsing the websites of the different brands as well as social media. Therefore, with the
help of robust profiles updated frequently via relevant content, the authority of the brand
could be developed by ensuring positive impression on social media (Tiago and Veríssimo
2014).
In addition, it has been observed that organisations do not show interest in brands
publishing corporate-style and dry social media posts. Therefore, the businesses need to
disclose accurate information of their products and services along with the major individuals
behind their social profiles. There has been continual evolvement of social channels, which
are involved in constant release of new features and this quickly changing environment could
be intimidating for few business owners. Therefore, the organisations have to come up with
innovative ways of connecting with their targeted audience. For instance, an organisation
could post a number of Instagram stories in a day for providing customers with detailed

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How Nike Uses Technology in Increasing Brand Loyalty & Awareness
overview of its office. After this, a quick question and answer session could be conducted
with the help of Facebook Live video streaming (Tsimonis and Dimitriadis 2014).
Finally, the organisations could form engaging video content in social media with
easy setups. These mainly include sound lighting, tripod and smart phones. Moreover, a test
run is essential is essential before going live for checking the online connectivity so that
interruptions and delays could be avoided effectively with adequate care.

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How Nike Uses Technology in Increasing Brand Loyalty & Awareness
Chapter 3: Research Methodology
3.1 Introduction
This section of the paper looks focus on the sort of data that will be utilized with the
help of which analysis on the topic can be undertaken and accordingly the outcome can be
ascertained. The methodology will highlight the process that will be used in order to collect
the data and approach and the design that will be used with the help of which effective results
can be ascertained. The researcher will also look into the philosophy and the design that will
be appropriate with the help of which the suitable outcome can be ascertained.
3.2 Method Outline
The outline of the research looks to highlight the objectives that are related to the
methodology. The researcher will look to make use of the most efficient techniques and tools
that will be helpful in attaining the optimum outcome. The philosophy of the paper will be
gathered and accordingly the design and the process that is ideal will be selected with the
help of which the process of data collection can be attained. The sample that will be useful
for collecting the data will be highlighted as well and thereby the time required to collect the
data will be understood. In this manner the methodology will create an understanding with
the help of which the next section of the chapter can be concluded.
3.3 Research Onion
The onion has a significant role to play with the help of which the tool and the
equipment that will be helpful in attaining result can be understood. The onion assists the
researcher in attaining the optimum result. The researcher is able to obtain the results through
researcher onion with the help of six various tasks (Momany and Alshboul 2016). The six
layers of the onion are associated directly to the process of the research. Furthermore, the

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How Nike Uses Technology in Increasing Brand Loyalty & Awareness
onion even assists in the efficient use of the time horizon, philosophy and the strategies of the
research.
3.4 Research Philosophy
The researcher gets assisted with the help of philosophy as this identifies the essence
of the study with the assistance of the paradigm of the research. There are four sorts of
philosophies that can be considered by the researchers and they constitute of pragmatism,
positivism, realism and interpretivism. (Zhang and Benyoucef 2016) addressed that the
philosophy has its own traits, that is known to be the axiology, epistemology and ontology.
The selection of the philosophy is entirely dependent on the topic of the research and
therefore the researchers take due diligence in selecting the philosophy. In accordance to this
paper, that looks to identify how the use of technologies assists Nike in creating brand loyalty
the researcher has chosen positivism philosophy. This philosophy has been chosen simply
due to the fact that positivism philosophy helps the researcher in assessing the collected data
with the use of both qualitative and quantitative processes. In the current topic, the researcher
will make use of the theories and the models that have been explained in the literature review
as well as take the responses and opinions of the selected respondents and accordingly proper
results can be ascertained. The researcher has not selected any other philosophy simply due to
the fact that the those philosophies will not comply with the current topic.
3.5 Research Approach
This is found to be one of the most of the significant steps with the help of which the
research study can be undertaken and desirable can be ascertained. (Hammedi et al 2015)
explained that the approach helps the researcher to recognize every step for performing the
actions that are desired from the research. The approach constitutes of two types and they are
known to be deductive and inductive approach. (Danylchuk et al. 2018) explained that
inductive approach is known to be the process with the help of which the researcher frames

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How Nike Uses Technology in Increasing Brand Loyalty & Awareness
new theories and models with the help of which the outcome of the research can be
ascertained. On the other hand, (Mills. and Plangger 2015) explained that deductive approach
is the process where the existing models and theories used in previous researches are used
with the help of which effective results can be gathered. In accordance to this paper,
deductive approach has been collected by the researcher simply due to the fact that the
researcher will make use of the theories and the models that have been used earlier and in this
manner effective results can be ascertained.
3.6 Research Design
The design assists the researcher to gain the opportunity of directing the research
towards a goal that is specific, which is generated in the objectives of the paper. (Zhang and
Benyoucef 2016) cited that the design assists the researcher to give out a reference by
restricting the focused outcomes and thereby the rest of the section of the whole research is
performed on the basis of the explained goal. There are three sorts of designs that are
available for use and they are known to be exploratory design, descriptive design and
explanatory research design.
In accordance to this topic, the researcher has chosen explanatory research design
simply due to the fact that the researcher in this paper will assess the cause and effect
relationship by estimating the probable future results of the process that is ongoing. Hence,
this design will be the most effective design in order to attain the result that is desired.
3.7 Process of Data Collection
The process of data collection determines the method and the guide that is used in
order to select the data and accordingly collect the data. It is known that there are two kinds
of data and they are known to be primary and secondary data. Primary data is collected
directly from the responses of the humans and this data is used in order to analyze and attain

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How Nike Uses Technology in Increasing Brand Loyalty & Awareness
the results. On the secondary data constitutes of the data that is collected from various
secondary sources. The secondary sources constitutes of the books, journal, articles and
online website sources. With respect to the current topic that looks to recognise how new
technologies used by Nike create brand loyalty, primary data will be taken into consideration.
Primary data can be segregated into qualitative and quantitative data (Momany and Alshboul
2016). However, quantitative data has been used by the researcher wants to know the human
inclination and perception with respect to this topic. It is due to this fact that the researcher
has framed a questionnaire that is related to the topic and this questionnaire will be forwarded
to the selected respondents in order to collect their views and opinion. A close ended
questionnaire has been framed as this will consume less time and the respondents can fill in
their opinion very easily.
3.8 Sampling and Sample Size
The process of sampling refers to the foundation from which the data will be
collected. It is seen that due to this factor the researcher had initially chosen 50 respondents
out of the entire population of the customers using Nike as a brand and thereafter selecting a
sample of 25 respondents out of them. The selection is undertaken with the help of simple
random sampling and thereby effective outcome can be attained.
3.9 Data Analysis Process
This is the main aspect of the research where the collected data has to be analysed
with the help of which effective results can be ascertained. It is seen that there are several
tools that can be used with the help of which the outcome of the paper can be attained. The
use of the tool is dependent on the researcher as well as the topic. The collected data for this
research is therefore used in SPSS software with the help of which the data is analysed and
the effective outcome that is desired can be attained. With the help of this tool, the
transparency and interpretation of the data is possible.

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How Nike Uses Technology in Increasing Brand Loyalty & Awareness
3.10 Ethical Consideration
Ethics play a fundamental role in the collection of the data. It is due to this fact that
the researcher has collected all authentic data from valid sources so that the outcome
ascertained are true (Zhang, Benyoucef and Zhao 2016). It is estimated that the responses
provided by the respondents are true and they have not provided any sort of false data. The
maintenance of ethics even clarifies the fact that the result obtained is true and is free of any
false data.

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How Nike Uses Technology in Increasing Brand Loyalty & Awareness
Chapter 4: Result and Discussion
Descriptive statistics
Figure 1: Proportion of males and females in total samples
As shown from the above figure, among the 25 sample surveyed, 60 percent are male
and 40 percent are female. This is because males are better informed about Nike’s product
compared to their female counterpart.

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How Nike Uses Technology in Increasing Brand Loyalty & Awareness
Figure 2: Proportion of different age group in total sample
Most of the responses are collect from people belonging to the age group of 20 – 30
years followed by 30 – 40 years, 40 – 50 years and 50 – 60 years.
Figure 3: Hours spend on social media

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How Nike Uses Technology in Increasing Brand Loyalty & Awareness
As shown from the above figure, people mostly spend less than 1 hour or 1-2 hour on
different social media sites.
Figure 4: Popularity of different social media
Among various social media, the most popular sites are Facebook and Instagram
followed by LinkedIn, You tube, Google+ and Twitter.

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How Nike Uses Technology in Increasing Brand Loyalty & Awareness
Figure 5: Proportion of followers of ‘Nike’ social media page
Most of the people follow social media page of Nike with percentage share of
responses following Nike page being 92 percent.
Figure 6: Followers in social media influenced by friend
The obtained responses suggest that most people tend to follow a brand as their friend
like or follow it.

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How Nike Uses Technology in Increasing Brand Loyalty & Awareness
Figure 7: Trust on Nike due to social media marketing
Social media plays an important role in developing trust of customers on Nike. 64
percent people of the collected sample supports this claim.
Figure 8: Reliability on Nike due to social media communication

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How Nike Uses Technology in Increasing Brand Loyalty & Awareness
Most people agree on the fact that social media helps to increase reliability of the
brand.
Figure 9: Credibility on Nike due to social media communication
Most people agree on the fact that social media helps to increase Credibility of the brand.

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How Nike Uses Technology in Increasing Brand Loyalty & Awareness
Figure 10: Attractiveness of Nike due to social media communication
Most people agree on the fact that social media helps to increase attractiveness of the brand.
Figure 11: Desirability of Nike due to social media communication

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How Nike Uses Technology in Increasing Brand Loyalty & Awareness
Most people agree on the fact that social media helps to increase desirability of the brand.
Figure 12: Social media communication and brand image of Nike
Among the responses collected most people believe that social media has a positive
influence on brand image.

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How Nike Uses Technology in Increasing Brand Loyalty & Awareness
Figure 13: Effect of social media advertising on product selection
Figure 14: Importance of social media communication on purchasing decision

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How Nike Uses Technology in Increasing Brand Loyalty & Awareness
Figure 15: Usefulness of social media comments and posts in purchasing decision of
Nike’s product
Figure 16: Like, follow or share Nike’s social media page

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How Nike Uses Technology in Increasing Brand Loyalty & Awareness
Analysis of correlation
Analysis of correlation provides estimates for association between two or more
variables. A higher value of correlation coefficient implies stronger association between the
variables (Chatterjee and Hadi 2015). A smaller value of estimated correlation coefficient
suggests weaker association among the variables. The following two tables present
correlation between brand awareness, brand loyalty and social media communication.
Table 1: Correlation between brand image and social media communication
Correlations
Do
communications
on social media
has created a
positive brand
image of Nike to
you?
How many
hours per
day you
spend on
social
media?
Do you
follow
Nike's
pages on
social
media?
Are you
more likely
to trust
Nike as a
brand due
to its
marketing
through
social
media?
When you
like, follow
or share
Nike's
social
media
page?
Do communications
on social media has
created a positive
brand image of Nike
to you?
Pearson
Correlation 1 .018 .077 .130 .439*
Sig. (2-tailed) .933 .716 .534 .028
N 25 25 25 25 25
How many hours per
day you spend on
social media?
Pearson
Correlation .018 1 -.109 .129 .584**
Sig. (2-tailed) .933 .604 .539 .002
N 25 25 25 25 25
Do you follow Nike's
pages on social
media?
Pearson
Correlation .077 -.109 1 -.157 .263
Sig. (2-tailed) .716 .604 .453 .204
N 25 25 25 25 25
Are you more likely
to trust Nike as a
brand due to its
marketing through
social media?
Pearson
Correlation .130 .129 -.157 1 .088
Sig. (2-tailed) .534 .539 .453 .676
N 25 25 25 25 25

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How Nike Uses Technology in Increasing Brand Loyalty & Awareness
When you like, follow
or share Nike's
social media page?
Pearson
Correlation .439* .584** .263 .088 1
Sig. (2-tailed) .028 .002 .204 .676
N 25 25 25 25 25
*. Correlation is significant at the 0.05 level (2-tailed).
**. Correlation is significant at the 0.01 level (2-tailed).
The estimated correlation efficient between positive brand image and number of hours
spent on social media is 0.018. The positive correlation coefficient indicates a positive
association between hours spent and brand image of Nike. That is as more and more hours
are spent on social media there is an improvement in brand image of the company. For brand
image and decision of whether to follow ‘Nike’ page or not, the estimated correlation
coefficient is 0.077. The positive correlation suggests brand image likely to be improved as
more and more people follow Nike’s page. Correlation between brand image and trust of
consumers built due to social media communication is positive with the value of correlation
coefficient being 0.130. That means from social media communication, trusts are built on
Nike’s product, which in turn helps to improve brand image. Finally like, follow or share of
Nike’s page has a positive association with brand image of Nike as suggested from the
positive correlation coefficient between the two. The estimated correlation coefficient in this
case is 0.439.

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Table 2: Correlation between purchasing decision of consumer and social media
communication
Correlations
How important is
Nike's social
media
communication
for your
purchasing
decision?
How useful to
yourself do you
experience
advertising in
social media
channels in
selecting various
products of
Nike?
How useful do
you find
comments and
post by other
social media
users in
purchasing
Nike's product?
How important is Nike's
social media communication
for your purchasing
decision?
Pearson Correlation 1 .430* .573**
Sig. (2-tailed) .032 .003
N 25 25 25
How useful to yourself do
you experience advertising
in social media channels in
selecting various products of
Nike?
Pearson Correlation .430* 1 .722**
Sig. (2-tailed) .032 .000
N 25 25 25
How useful do you find
comments and post by other
social media users in
purchasing Nike's product?
Pearson Correlation .573** .722** 1
Sig. (2-tailed) .003 .000
N 25 25 25
*. Correlation is significant at the 0.05 level (2-tailed).
**. Correlation is significant at the 0.01 level (2-tailed).
The above table shows how purchasing related to Nike’s product are associated with
social media communication. The correlation between purchasing decision and social media
advertising is 0.430. Advertising in different social media channels thus is positively
associated with purchasing decision of Nike’s product. Comments and posts on different
social media pages has positive association with purchasing decision of Nike’s product. The
estimated value of correlation coefficient is 0.573. The positive and significant correlation

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How Nike Uses Technology in Increasing Brand Loyalty & Awareness
coefficient implies purchasing decisions are positively influenced by like, comments or posts
made by other users of the brand.
Analysis of Regression
Regression analysis helps to estimate a valid statistical relation between two or more
variables. Based on the correlation analysis, regression analysis has been conducted to
examine the associations between the targeted variables (Fox 2015). Two separate regression
has been carried to examine the influence of technology on brand awareness and brand
loyalty of Nike.
Table 3: Regression of brand image on social media communication
Model Summary
Model R R Square Adjusted R
Square
Std. Error of the
Estimate
1 .557a .310 .173 .830
a. Predictors: (Constant), When you like, follow or share Nike's social
media page? , Are you more likely to trust Nike as a brand due to its
marketing through social media? , Do you follow Nike's pages on social
media? , How many hours per day you spend on social media?
ANOVAa
Model Sum of Squares df Mean Square F Sig.
1
Regression 6.208 4 1.552 2.251 .100b
Residual 13.792 20 .690
Total 20.000 24
a. Dependent Variable: Do communications on social media has created a positive brand image
of Nike to you?
b. Predictors: (Constant), When you like, follow or share Nike's social media page? , Are you
more likely to trust Nike as a brand due to its marketing through social media? , Do you follow
Nike's pages on social media? , How many hours per day you spend on social media?
Coefficientsa

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How Nike Uses Technology in Increasing Brand Loyalty & Awareness
Model Unstandardized Coefficients Standardized
Coefficients
t Sig.
B Std. Error Beta
1
(Constant) 1.042 .827 1.259 .222
How many hours per day
you spend on social media? -.383 .216 -.431 -1.775 .091
Do you follow Nike's pages
on social media? -.276 .397 -.144 -.694 .496
Are you more likely to trust
Nike as a brand due to its
marketing through social
media?
.187 .354 .100 .528 .603
When you like, follow or
share Nike's social media
page?
.771 .269 .720 2.868 .010
a. Dependent Variable: Do communications on social media has created a positive brand image of Nike to you?
In the above regression model, brand image of Nike is take as the dependent variable.
The factors that are supposed to influence the brand image include hours spent on social
media, trust on Nike due to social media marketing, whether people follows Nike pages or
not and like, follow or share of Nike’s social media page.
For hours spent on social media, the regression coefficient is -0.383. The negative
coefficient implies that as people spend more hours on different social media brand image of
Nike is likely to be adversely affected. This may be because the negative reviews or
comments on social media related to a particular product is not good for brand image of a
company. The more people spend their time on social media, the more they come to know
about negative reviews adversely affecting the brand image (Sasmita and Mohd Suki 2015). P
value for the regression coefficient is 0.091. The p value is greater than 5% significance level
implying acceptance of null hypothesis of no significant relation between brand image and
hours spend on social media. The decision regarding whether to follow Nike’s page or not

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How Nike Uses Technology in Increasing Brand Loyalty & Awareness
has an adverse effect on brand image of Nike. The variable is not statistically significant as
indicated by the p value exceeding the significance level.
The regression coefficient for built trust on Nike’s product through social media
communication is 0.187.The positive coefficient indicates trusts on Nike’s product has a
positive influence on brand image of Nike. That means social media plays an important role
in building trust or customer loyalty positively influencing brand image of Nike. The p value
for the coefficient is 0.603. The p value exceeds the value of 5% significance level indicating
the variable is not statistically significant at the chosen level of significance. The variable
like, follow or sharing Nike page has a positive influence on brand image (Barreda et al.
2015). Associated coefficient of like, follow or share is 0.771. That means when people like,
follow or share Nike’s page brand image of the company improves. P value for the
coefficient is 0.010. The p value is lower than the significance value of 0.05 meaning that the
variable is statistically significant and thus contributes positively on developing brand image.
Table 4: Regression of purchasing decision on social media communication
Model Summary
Model R R Square Adjusted R
Square
Std. Error of the
Estimate
1 .573a .329 .267 .746
a. Predictors: (Constant), How useful do you find comments and post
by other social media users in purchasing Nike's product? , How useful
to yourself do you experience advertising in social media channels in
selecting various products of Nike?
ANOVAa
Model Sum of Squares df Mean Square F Sig.
1
Regression 5.992 2 2.996 5.382 .013b
Residual 12.248 22 .557
Total 18.240 24

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a. Dependent Variable: How important is Nike's social media communication for your purchasing
decision?
b. Predictors: (Constant), How useful do you find comments and post by other social media users
in purchasing Nike's product? , How useful to yourself do you experience advertising in social
media channels in selecting various products of Nike?
Coefficientsa
Model Unstandardized Coefficients Standardized
Coefficients
t Sig.
B Std. Error Beta
1
(Constant) 2.356 .694 3.396 .003
How useful to yourself do
you experience advertising
in social media channels in
selecting various products of
Nike?
.029 .205 .035 .141 .889
How useful do you find
comments and post by other
social media users in
purchasing Nike's product?
.471 .217 .547 2.168 .041
a. Dependent Variable: How important is Nike's social media communication for your purchasing decision?
In above regression mode estimates the relation between purchasing decision of
Nike’s product and social media marketing. The regression coefficient of advertising
experience on social media is 0.029. Positive coefficient implies that social media advertising
has a positive influence on purchasing decision. People come to know more about various
products of Nike and make their decision to purchase products of the brand. The variable is
not statistically significant as can be concluded from the p value of 0.889. Advertising on
social media though have a positive influence on purchasing decision the variable however is
not statistically significant. The second factor expected to influence purchasing decision of
customer is comments or posts made by other users. Regression coefficient for the variable is
0.47 showing a positive relation between purchasing decision and comments or posts of
others. As people make more and more positive comments and posts about the product, more

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How Nike Uses Technology in Increasing Brand Loyalty & Awareness
and more people attracted to towards the product positively influencing purchasing decision
(Schivinski and Dabrowski 2016). Associated p value of the coefficient is 0.041. The p value
is smaller than significance level meaning rejection of null hypothesis of no significant
association between purchasing decision and comments and posts of others. Comments and
posts shared by others thus have a positive significant influence on purchasing decision.

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How Nike Uses Technology in Increasing Brand Loyalty & Awareness
Chapter 5: Conclusion, Recommendation and Future Work
5.1 Conclusion
This is the final chapter of the research where the results attained in the previous
chapter are explained and the final result is justified. The initiation of the paper has taken
place from the first chapter where the background of the study has been addressed as well as
the company background has been mentioned. The significance of brand loyalty has been
explained as well with the help of which an idea has been attained as to how the research
would move forward. The aims and the objectives of the paper has addressed what the
research is looking to discover and has provided a path on the basis of which the results can
be ascertained. The rationale of the paper has even been addressed with the help of which the
outlook of the research can be discovered.
The next section of the paper has thereafter has looked to discover the theories and the
outlook that other researchers have over this topic with the help of which a relation and
understanding can be ascertained. The literature review has explained the various theories
and variables that have been discussed by the other researchers with the help of which this
paper can be completed.
The methodology highlighted the process of data collection and the sort of data that is
suitable for this research. It is seen that deductive approach has been selected and explanatory
research design has been used for the collection of the data. Primary data has been selected
and questionnaire has been used in the collection of the data from the respondents. It is seen
that the results collected will be compared with the research objectives and thereby it can be
understood whether use of technologies by Nike leads to the creation of brand loyalty.

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How Nike Uses Technology in Increasing Brand Loyalty & Awareness
5.2 Linking with the objectives
The first objective of the paper has been to understand how technology is increasing
brand loyalty and awareness. It is seen that with the help of the results that have been
attained, it is clear that technology is having a positive impact on brand awareness and
loyalty. The results of each question justify the fact that technology is increasing brand
loyalty and hence this objective has been attained.
The next objective of the research has been to understand how significant customer
considers technology. The results indicate that the customer value technology of great
importance simply due to the fact that the in the current time period the customers are taking
technology of prime importance in order to look for a product and even for purchasing a
product. The customers review the products with the help of the online apps and thereby take
the initiative of rejecting or purchasing a product.
The final objective of the paper looks to identify how technology can impact brand
loyalty. The results indicate that the technology has a positive impact on brand loyalty as with
the development of technology and the use of these technologies by Nike, the brand loyalty
of the company has increased as well. It can therefore be said that technology has positive
and direct impact on the increase in brand loyalty for Nike. The results attained with the help
of coefficient analysis even explain the fact that the results are positive and therefore brand
loyalty and technology has a positive relationship.
5.3 Recommendation
The outcome of the result leads to the development of recommendation with the help
of which better productivity and sales can be achieved. It is seen that the company should
maintain their own research and development unit with the help of which the company can

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How Nike Uses Technology in Increasing Brand Loyalty & Awareness
improve their technologies and bring in new and improved products and gadgets with the
help of which the customers can increase their brand loyalty.
It is even recommended that the company should review their existing technologies
with the help of which the company can maintain sustainable business. The company needs
to take suggestions from their customers as well in order to find out what improvements they
desire with the help of which better service can be provided from their end.
It is even recommended that the company should even assess the technologies that are
used by their competitors and compare with their own technologies and thereby take
initiations in maintaining competitive edge. The utilization of these suggestions will be useful
in improving brand loyalty and profit for Nike.
5.4 Future Work
There are scope of further future work on this topic simply due to the fact that with
the advent of time the taste and the preferences of the customers will change and new and
improved technologies will be incorporated. Hence, undertaking research on this topic in the
future will create an understanding of how the relationship of brand loyalty and technology
has changed and whether the changes have been positive or negative.

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Appendix

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