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