I.

Introduction:
Until now, perhaps many people still cannot understand why Nike was able to create
an empire with a solid ground-level culture through its profound influence on consumers.
Because Nike never really sells its products, it brings a solid emotional connection to its
customers. For anyone doing business, especially related to branding, Nike always makes us
admire. A legend in the business world with lifelong slogans like Just Do It, There Is No
Finish Line, and Bo Knows, which are not only clichés but also encourage us to keep moving
forward. Going beyond the framework of a media advertisement, it has truly become a
representative of a new lifestyle. As the retail landscape increasingly pivots towards digital
platforms, companies are not merely selling products but are navigating the intricate web of
consumer expectations, preferences, and interactions. In this context, this article delves into a
comprehensive customer behavior analysis of Nike Inc., specifically focusing on its
Instagram presence. With Instagram serving as a prominent stage for brand visibility and
engagement, dissecting quantitative data through Instagram Insights can unveil invaluable
insights into Nike's customer base, preferences, and the efficacy of its marketing strategies.
By undertaking this analysis, this study aims to uncover trends, patterns, and opportunities
that can inform strategic decision-making and enhance Nike's relationship with its diverse
and global audience. Through a journey into the world of Nike, Instagram Insights can
unravel the complex tapestry of customer behavior and engagement in the digital age.

II. Analysis:
1. The concept of consumer behavior:
According to P. Kotler (2009), consumer behavior is the study of how individuals,
groups, and organizations select, purchase, use, and dispose of goods, services, ideas, and
experiences to satisfy needs. and their wishes. However, Loudon & Della Bitta (1993) have a
different point of view, consumer behavior is defined as the decision-making process and
actual actions of individuals when evaluating, purchasing, using, or disposing of products.
goods and services. Similarly, according to the views of Schiffman & Kanuk (1997),
consumer behavior is the entire set of actions that consumers exhibit during the product
exchange process, including investigation, shopping, using, evaluating, and disposing of
products and services to satisfy their needs.
To summarize, the term consumer behavior is a consumer behavior that can be
defined as the behaviors of individuals (consumers) directly related to searching, evaluating,
choosing, using, and disposing of goods and services. In other words, consumer behavior is
the decision-making process and actions of people involved in purchasing and using
products.
2. Audience segment:
Users of Nike vary widely in age, from around 15 to 45 years old. Nike builds
relationships with younger audiences and reaches middle-aged consumers with discretionary
cash by transcending generations in an effort to secure future growth and create brand
evangelists for life. The brand caters to both male and female customers, but it still heavily
invests in its women's collection, which focuses on "athleisure," sports bras, and leggings.
Nike, which is known as the preferred footwear and clothing company for teenagers in the
US in 2019 because the company realizes that this age group is most likely to be involved in
sports, fitness and also has a propensity to follow fashion trends. Accordingly, Nike develops
sports apparel and equipment suitable for different age groups, ensuring they capture as many
potential customers within this category as possible, and also heavily targets the adolescent
market.
On the official Nike website, Matthew Friend, the Executive Vice President and Chief
Financial Officer - declared that FY23 shows the portfolio's ability to sustain robust growth
year after year. With a robust market and mid-teens currency-neutral revenue growth at the
end of the year, we laid the groundwork for long-term, profitable growth in FY24 and
beyond. And it can be seen that Nike focuses on developing its products with teenagers
through media promotion images on Instagram. The main characters appearing next to the
products are famous and influential people, such as singers, models, actors, and KOLs. Below
are some example images:

@kyliejenner has Dior x Nike “In this collection, I wanted to respect

shoes in hand, making netizens jealous. the originals while making
them my own.” - @billieeilish
Source: Nike’s Instagram
Because young people spend most of their time on social networks, reaching them
through Instagram is extremely close, and from there, choosing representative faces to
promote products for the brand is invaluable. Rightly so, this has attracted a large number of
people. Take the following example:

Source: Nike’s Instagram

The two images on the left-hand side of the screen are standard content images with
relatively average interactions. But the two photos on the right, with the appearance of female
singer Billie Eilish and male rapper Drake, have caused interactions to increase significantly.
On the other hand, with older customers, for example, from 27-35, Nike will post
images of athletes with a variety of sports, from golf, basketball, volleyball, soccer, and
tennis. This aims to encourage movement and sports activities for people. Nike's mission is to
help people become active and healthy, not merely sell items. This is why the company has
had such success reaching consumers who may not otherwise consider purchasing a fitness
product.

Source: Nike’s instagram

Nike knows how to use its products, customers, and reputation to communicate with its
audience without appearing pushy or sales. They also know how to appeal to younger
generations while remaining relevant to older millennials — a difficult balance but one that
Nike has managed well.
After surveying Nike's Instagram posts and a few other social networking sites, it can
be easily assessed that most posts, when directed towards young customers, tend to be
youthful and trendy. Their products are also very fashionable even though they have a simple
design. The price must be reasonable, and the quality and fast shipping are priorities. On the
contrary, elderly customers prefer to go to the store and try them on themselves. They also do
not have too high demands on the youthfulness or trendiness of the product but prioritize
quality and can be combined with most outfits.
3. Compare Quantitative and Qualitative Data
a. Quantitative:
In this section, the article will learn about data from various sources such as
registration data, social media insights, and product usage reports. Analyze follower count,
engagement rate, purchase frequency, and average order value. Since Nike items are priced
more and have a premium brand image, its target market is typically from upper
socioeconomic groups. The typical Nike consumer is an athlete who values living an active
and healthy lifestyle. In addition to their athletic demeanor, Nike fans are image-conscious
and technologically astute, always striving to stay ahead of the curve and current with the
newest developments in athletic apparel and footwear.

Source: Statista
Nike frequently concentrates on emerging psychographic markets as part of an effort
to expand its target demographic. These include 20-something women who want to wear the
newest sports fashion trends before, during, and after exercises, and "weekend runners," who
like staying in shape on the weekends and even preparing for a half marathon. Those who are
driven to maintain their physical fitness and fashion sense include all Nike consumer
groupings, including "aspirers" and "succeeders."
Despite uploading 58 articles on their account, Nike has garnered an astounding
8,832,062 interactions in the last three months. A summary of their most popular posts,
content types, and growth in followers over the previous year is shown below. Take note of
how they test out various layouts but ultimately stick with carousels as their go-to method for
increasing engagement.

Source: Keyhole
 On the opposite side, according to the Keyhole blog ̣(2024), Nike hasn't utilized
Facebook in a few months despite having 36,089,093 followers on the social media network.
This has played a part in their declining involvement. Their second-most recent post is from
2018, and they don't utilize this platform much. As for Twitter, with 38,095 tweets and
9,602,018 followers, Nike's account is rather active. The Keyhole dashboard above shows
that Nike has been steadily gaining followers daily. Observe that regularly engaging with
their audience is a big component of their Twitter marketing approach. Twitter accounts for
10% of their activity, with text-based tweets accounting for the majority of those (57%).
However, these positive figures from Twitter still cannot be compared to Nike's massive
interactions on Instagram. This shows that Nike's customers are mainly active on the social
platform Instagram, and this will be where the brand attracts the most audience.
b. Qualitative:
In this section, the article will focus on combining quantitative data with qualitative
insights from customer reviews. Identify recurring themes, common concerns, and positive
feedback.

Source: Statista
Above is Statista's data table on awareness, popularity, and customer loyalty to Nike
products (Statista, 2023). These are the numbers to show how valuable Nike is to consumer
behavior. In fact, Nike covers most advertising platforms, and that is proven by its relatively
high percentage of awareness. However, the level of loyalty to Nike products is not much.
Because consumer psychology only particularly likes things that are available and affordable.

Source: Comparably
The following figure is the summary of Nike's rankings according to each category
of Comparably (2024). It can be seen that these are respectable numbers and are considered
quite cool by buyers. Especially ranked first in the Fashion and Beauty category. It is
undeniable that users love Nike's product designs. This shows they are on the right track,
Nike has created an incentive for its customers to return to their website daily and
interact—both with Nike and with their friends. Everybody benefits from the additional
value: Nike receives valuable data about how its goods are being used by consumers, and
customers receive something that aids in their exercise regimen and social interactions.
4. Recommendation:
Applying the analysis to a campaign involves using the insights gained from the
customer behavior analysis to make strategic recommendations and improvements to an
existing marketing campaign. In the case of Nike Inc. on Instagram, they can focus on
refining their campaign strategies based on the identified trends and patterns.
First, they can identify critical insights: Summarize the key insights gained from the
customer behavior analysis. For example, if customers respond positively to sustainability
initiatives or specific product features, highlight these as crucial insights.
 Second, summarize the key insights gained from the customer behavior analysis. For
example, if customers respond positively to sustainability initiatives or specific product
features, highlight these as key insights.
After the campaign concludes, evaluate the results against the defined metrics.
Document successes, challenges, and lessons learned to inform future campaigns and
maintain a continuous improvement cycle.
5. Influence of Artificial Intelligence:
Artificial intelligence (AI) has become a powerful force that is changing several sectors
all over the world. The field of consumer behavior analysis is one where its effects are most
felt. AI provides organizations with unmatched insights and helps them make strategic
decisions as they work to unravel the complex patterns of customer preferences. AI helps in
processing large datasets, predicting customer preferences, and automating personalized
recommendations. It can also assist in sentiment analysis of customer reviews, providing
valuable insights into customer emotions and opinions. Moreover, predictive analytics is a
fantastic addition of artificial intelligence to consumer behavior analysis. AI is able to predict
future trends and client behavior by evaluating past data. For companies looking to remain
ahead of the curve, this capacity is revolutionary since it enables proactive decision-making
and the prediction of changing customer requirements. Next, today's consumers demand
experiences that are personalized to their needs and interests. Businesses can provide
individualized information, recommendations, and offers at scale thanks to artificial
intelligence (AI), which can assess individual behaviors and interests. This builds a stronger
bond between businesses and their audience in addition to improving consumer happiness.
Last but not least, customer engagement has changed dramatically with the introduction of
chatbots and virtual assistants driven by AI. These intelligent beings are capable of giving
clients immediate answers to their questions, helping them make judgments about what to
buy, and even making tailored suggestions. This improves client happiness while
streamlining the user experience.
6. Customer Behavior Analytics Platforms:
Below are a few technology platforms introduced to help companies analyze customer
consumption behavior:
● Google Analytics:
- Description: Google Analytics is a powerful web analytics service that provides detailed
statistics and analytics of website traffic.- Benefits: Helps track user behavior, measure
advertising ROI, and provides insights into customer demographics and interests. For a more
comprehensive picture, it is even possible to link systems that measure CRM, points of sale,
and other first-party data sources.
● Kissmetrics:
- Description: Kissmetrics is a customer engagement automation platform that helps
businesses understand, segment, and engage their audience.
- Benefits: Offers behavioral analytics, customer journey mapping, and A/B testing to
optimize marketing campaigns. Offers comprehensive data and analytics on customer
behavior and interaction to help organizations better understand and interact with their
consumers.
● Qualtrics CustomerXM:
- Description: Qualtrics CustomerXM is an experience management platform that includes
tools for customer feedback, employee engagement, and market research.
- Benefits: Enables businesses to collect and analyze customer feedback, identify pain points,
and improve overall customer satisfaction.

III. Conclusion:
In a landscape where consumer behavior is the compass guiding brand trajectories, this
analysis serves as a compass recalibrated, pointing toward a future where every interaction,
every campaign, and every innovation aligns seamlessly with the heartbeat of Nike's diverse
and dynamic digital community. The journey continues, and with each stride, we inch closer
to a horizon where consumer understanding is not just a strategy but a commitment to
excellence. Nike has encountered sudden declines in sales, and they realized that in order to
continue to exist in the market, the company was forced to shift the focus and core values of
the brand from design and production products, something Nike has always excelled at, to
consumer needs, desires and the brand's role in society. It can be said that Nike understands
customer needs and behavior better than any other brand in the same industry.

IV. REFERENCE:

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year in a row — here’s why Gen Z can’t get enough. Business Insider.

https://www.businessinsider.com/nike-top-teen-brand-for-ninth-year-in-row-2019-10

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https://www.start.io/blog/nike-target-market-analysis/

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Kotler, P., & Keller, K. L. (2009). Marketing management. Prentice Hall.

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https://www.forbes.com/sites/gregpetro/2016/07/08/nike-just-does-it-keeping-an-eye-

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Schiffman, L.G. and Kanuk, L.L. (1997) Consumer behavior. 5th edn. Hoboken, New Jersey:
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https://www.statista.com/statistics/888658/revenue-share-of-nike-worldwide-by-regio

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https://www.comparably.com/brands/nike