Impact of Nike Inc.'s Utilization of Social Issues in Their Marketing Strategy on Brand Equity, Brand Image, and Brand Loyalty

Abstract

The purpose of this study is to analyze the impact of Nike's utilization of social issues in their marketing strategy on their brand equity, brand image, and brand loyalty. In order to do this, the researcher utilized Nike's Colin Kaepemick campaign, centered around the ideas of racial equality and Kaepemick's actions that ultimately led to his unemployment from the National Football League. The variables tested in this study were subjected around brand equity, brand image, and brand loyalty and were consumer purchasing history, initial and current reactions to the Kaepemick campaign, and consumers agreement with social marketing strategies. Lastly, each respondent was given a brand trust score based on their responses to three questions regarding their trust in the Nike brand. An electronic survey was distributed to consumers 18+ years of age, and then the respondents were sorted by age into two groups. Respondents age 35 and younger were classified as millennials, while respondents older than 35 were separated into an alternate group. The purpose of this was to analyze the generational differences in the sample. Of the ·154 respondents, 59% were categorized as millennials and 41% were not. A total of five Ordinary Least Squares (OLS) Regression tests were conducted at the .05 significance level, with the null hypothesis that age would have the best significant in1pact of all the dependent variables, and that the Millennia! generation would positively respond to Nike's social issue marketing strategy while individuals over the age of 35 would have a more negative response. These regressions indicated the following: 1) there are highly statistical significant correlations. between age and all of the dependent variables (purchasing history, initial and current reactions to the campaign, brand trust, and social marketing agreement), 2) there is a statistically significant correlation to ethnicity and social marketing agreement, 3) there is statistically significant correlation to gender and initial and current reactions to the campaign, as well as social marketing agreement, and 4) there is statistically significant correlation between consumer athletic level and purchasing history and brand trust. These results illustrate the impact that Nike's utilization of social issues in their marketing strategy have had on their brand.