3. Develop a graphical model explaining consumers’ selection of a brand of athletic shoes.

Nike is the largest seller of athletic footwear, athletic apparel, and other athletic gear in the world, with about 30-percent market share worldwide. Nike markets its products under its own brand, as well as Nike Golf, Nike Pro, Air Jordan, Team Starter, and subsidiaries, including Bauer, Cole Haan, Hurley International, and Converse. As of 2011, the company sells its products through a mix of independent distributors, licensees, and subsidiaries in approximately 120 countries worldwide.
Nike has grown from an $8,000 company in 1963 to a company with revenues of $19 billion for the year ended May 31, 2010.
In 2010, Nike spent an enormous amount of money, more than a billion dollars, on advertising, endorsements, social media, and sales promotion. In order to make sure that this money is being spent properly, Nike relies on marketing research. It has shown a history of innovation and inspiration in its marketing and is quick to adapt to the changing consumer and the world of sports. Nike has used marketing research in understanding where the future growth lies. A recent example is Nike’s shift from marketing in the more traditional sports (basketball and running)
to other sports (golf and soccer), where it has not been as strong. Marketing research surveys revealed that the awareness of Nike among soccer and golf players was low, and Nike decided to work on increasing these numbers. Nike has decided that the money needed for licenses in its strong areas can be better spent in other areas where Nike does not have the brand awareness.