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Price is the marketing 4Ps and it is important to set the correct prices of products and services in every form of business because consumers are interested in this variable. In order to set prices and market their shoes Nike uses a customer value approach for price determination. In this scenario, the company analyzes the price that consumers want to pay for the shoes while designing the best strategies for quality goods. Nike continues to raise its price, as it is better than its rivals Adidas and Reebok, as they have a stronger brand. Therefore, amid higher costs, the company has a high degree of customer loyalty. The consumer value-based pricing strategy is effective in selling the sneakers and any increase in the prices increases the perception of the majority of the consumers regarding Nike. Besides, Nike has a stronger brand that is very attractive, and consumers are always willing to pay for its products. Nike also finds the new pricing model effective due to the firm's innovative and technological nature ' The company has a history of providing high-quality products. Therefore, the double-edged sword scenario works well for Nike and consumers are likely to continue spending more on the sneakers.
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Increasing of the sales would require a more convenient pricing strategy than the existing effective consumer value equation strategy. A few changes including giving priority to consumer behavior, adhering to fashion trends, and targeting the young athletes would significantly increase the sales. For instance, lowering the price of sneakers and staying updated on the fashion trends will attract more consumers and help the firm compete favorably in the market respectively. Further, offering the trendy products at low prices will help the company in expanding its target market to young athletes and thus more sales.
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