BA-Thesis/2010 Marketing and Management Communication Anne Albrekt

Creating Brand Loyalty

An insight into the concept of brand loyalty and how this can be created by means of a virtual community Creating Brand Loyalty

Af Anne Albrekt

Vejleder: Line Skjødt

BaMMC Thesis ASB. Department of Language and Business Communication Handelshøjskolen, Århus Universitet 2010 Number of characters: 52882

2 BA-Thesis/2010 Marketing and Management Communication Anne Albrekt

Abstract For many years marketing has been dominated by the marketing mix, and in many ways still is. However, since the 1980’ies a shift in paradigm from a very product- centric approach to an emphasis on customer needs and creating long-term relationships with customers occurred. In the light of this, the concept of brand loyalty was developed as a means of conducting relationship marketing. Furthermore, the use of virtual communities today is a common approach of many companies. Based on this, the following problem statement was formed: This thesis will discuss the concept of brand loyalty and, based on an analysis of Nike’s virtual community Nikerunning.com, investigate how this can be created by means of a virtual community. Furthermore, the analysis will determine whether Nikerunning.com from a theoretical perspective can be considered successful.

The research approach will be conducted on the basis of Social Contructionism. This scientific method seeks to construct knowledge between other people and thereby create its own interpretation and critiques. This approach is applicable in discussing the aspect of brand loyalty as well as analysing the successfulness of Nikerunning.com since it allows for the author to take a critical stance towards the concept based on knowledge collected on different author’s research.

In the discussion on brand loyalty, different definitions and perspectives as well as the objectives of the concept will be introduced and discussed. Based on this, the reader should be able to gain an insight into the concept as a whole. Furthermore, as a foundation for the analysis Gommans’, Krishnan’s and Sheffold’s (2001) framework on how to create e-loyalty is used. This framework covers all aspects necessary to consider when aiming to establish loyalty online. Thereby the framework is useful in the analysis of the successfulness of Nikerunning.com, as well as for giving advise on improvements. To support the framework, and in order to conduct a more thorough analysis, the concept of Word-of-Mouth will be discussed in relation to investigating the outcome of Nikerunning.com’s forum. Furthermore, the Two-way communication model, developed by Lazarsfeld and Katz (1955), serves useful analysing the effect of Nike’s interference of the discussions at Nikerunning.com. Futhermore it will also be used to determine the effect of using celebrities as messengers of the website and finally to based my advise on how to improve the image of Nikerunning.com.

3 It was found that the concept of brand loyalty was widely discussed and several authors had different opinions on how it must be defined. Some authors argues that loyalty should be divided into different levels and adapt the treatment of the customers accordingly, whereas others argues that the phenomenon is either existing or not. Futhermore, it was argued that when measuring brand loyalty both the aspect of behavioural loyalty being repeat purchasing patterns and attitudinal loyalty i.e. the commitment and preferences of a brand should be combined in order to obtain a unified result. The objectives behind brand loyalty were found to be somewhat similar and agreed upon. With increased brand loyalty among customers follows reduced costs in terms of attracting new customers. However, the costs will also be reduced due to the fact that loyal customers are less price sensitive and therefore allowing for higher prices to be charged. Finally, by creating loyalty among the customers, a company will enhance the competitiveness since the change of repeat purchase becomes higher.

The analysis on Nikerunnning.com revealed that there are various ways of creating brand loyalty by means of a virtual community. Through the interaction within a virtual community a long-term relationship between the customer and a company can be created, which will lead to enhanced brand loyalty. Secondly, a virtual community can fulfil certain customer needs which results in improved customer satisfaction and thereby loyalty. Finally, within a virtual community it is possible to improve the customisation of both products and service which also has proven to have a positive effect on brand loyalty.

Based on the theoretical findings, Nikerunning.com was found to be a successful virtual community due to its professional construction. However, due to customer needs on customisation a recommendation would be to enhance this aspect on the website in order to increase the brand loyalty.

1. Introduction...... 5 1.2 Methodology and structure...... 5 1.3 Scientific method...... 6 1.4 Limitations...... 7 1.5 Problem statement...... 7 2. Discussion of the concept of brand loyalty...... 8 2.1 From mass marketing to relationship marketing...... 8 2.2 Brand loyalty...... 10 3. Discussion of theory...... 13 3.1 A conceptual framework of how to create E-loyalty...... 13 3. 2 Word Of Mouth...... 15 3.3 The Two-step model of communication...... 16 3.4 Virtual communities/brand communities:...... 17 4. Analysis of Nike’s virtual community Nikerunning.com...... 20 4.1 Value Propositions...... 20 4.2 Brand Building...... 22 4.3 Trust and Security...... 25 4.4 Customer Service...... 27 4.5 Website & Technology...... 29 4.6 Conclusion on analysis...... 32 5. Conclusion...... 33

6. Bibliography...... 35

7. Appendix 1...... 38

8. Appendix 2...... 39

9. Appendix 3...... 40

10. Appendix 4...... 41

12. Appendix 5...... 42

12. Appendix 6...... 43

13. Appendix 7...... 44

14. Appendix 8...... 45

15. Appendix 9...... 46

5 1. Introduction The marketing mix has dominated the way marketing has been conducted for several years and still is an accepted and used concept. However, since the late 1980’ies an emphasis on the relationship between companies and customers and in the light of this, the limitations of the 4 P’s model have been highlighted. The main issue with the marketing mix was that it now began to be seen as product-centric and a creature of the heyday of mass marketing. This traditional marketing theory started to get an inherent short-term transactional emphasis which began to cause a concern among several researchers (Payne, 1997). These saw that, especially in industrial and service business-to-business marketing, there were a need for establishing and maintaining long-term relationships with the customers in order to be successful (Payne, 1997). As a result of this it led to a shift from solely focusing on the core product and its physical attributes, to a focus towards the customers and their specific needs (Chaffey, 2009).

1.2 Methodology and structure In the rise of this paradigm and its popularity, several authors have come with their suggestions on how to best create long-term relationships with the customers and the ones most applicable to the discussion in this theory will be introduced. This thesis will both be a discussion on the concept of brand loyalty and an analysis that will demonstrate how it can be created in a virtual community. The analysis will be conduced on the case of Nike’s virtual community Nikerunning.com and besides demonstrating how brand loyalty can be created it will also discuss whether Nikerunning.com can be considered successful from a theoretical perspective.

The first chapter will be a discussion on the term brand loyalty. Since the discussion as well as analysis is based upon brand loyalty in a virtual community, a framework, conducted by Gommans, Krishnan and Sheffold (2001) on how to create e-loyalty will be introduced. Within this framework other relevant theories will be introduced and discussed in order to expand it with the opinion of other researchers. The first concept that will be discussed is Word-of-Mouth (WOM) as this becomes a part of the interactivity that takes place in a virtual community and which will be discussed, has a huge effect on brand loyalty. Furthermore, Lazarsfeld’s and Katz’ (2006) theory of

6 BA-Thesis/2010 Marketing and Management Communication Anne Albrekt the Two-step model of communication will be introduced since it relates to the concept of WOM. Furthermore, the model will also become beneficial to the analysis of Nikerunning.com by demonstrating how certain individuals are able to communicate a message effectively. Finally, the model will be used to give my personal advise on how to improve certain aspects of the marketing efforts. Finally the concept of virtual community will be introduced and discussed in order to illustrate the connection between a brand loyalty strategy and a virtual community. In combination these aspects will be used to determine the successfulness of Nikerunning.com.

Certain groups will be able to benefit from the founding’s of this thesis. Firstly, organisations will be given an idea on how to create loyalty around their brand, especially in an online context. Futhermore, students at universities will be able to learn from this thesis what the concept of brand loyalty is about, and with the different views and the discussion upon it, create their own interpretation on the term. The analysis illustrates how organisations utilises the concept in real life, which often helps to gain a better understanding of the concept as a whole.

1.3 Scientific method In this thesis the view of Social Contructionism will function as foundation for the choice of methods used to attain the knowledge required for answering the problem statement. A common view within Social Constructionism is that our ways of understanding the world does not come from objective reality but from other people, meaning that knowledge is constructed between people (Buhr, 2001). In the search for answers to the problem statement, this approach will be used by analysing and comparing various theoretical views, and thereby creating my own interpretation and knowledge on the subject. Furthermore, the Social Constructionist view invites us to be critical of the idea that our observations of the world unproblematically yield its nature to us and to challenge the view that conventional knowledge is based upon objective, unbiased observation of the world (Buhr, 2001). This means that it is crucial take a critical stance towards the sources as well as theories used throughout the thesis and therefore both advantages and obstacles of the different material applied will be highlighted.

7 1.4 Limitations Due to the short amount of space the discussion as well as analysis will be conducted on a limited number of theories in order to make it thorough. There are several models that can be applied to illustrate how brand loyalty potentially can be created and managed, however only the most relevant in the discussion of brand loyalty in an online context will be applied. It would have been interesting to use discourse analysis to investigate what message Nike is trying to send their customers, and how the customers respond to this message. This would be beneficial in analysing whether Nike’s attempt to create loyalty is actually working.

1.5 Problem statement

This thesis will discuss the concept of brand loyalty and, based on an analysis of Nike’s virtual community Nikerunning.com, investigate how this can be created by means of a virtual community. Furthermore, the analysis will determine whether Nikerunning.com from a theoretical perspective can be considered successful.

2. Discussion of the concept of brand loyalty In the following chapter the discussion on the concept of brand loyalty will be carried out. The discussion will begin with an introduction of the concept of relationship marketing in order to give an insight into how the term has originated and to create a more complete picture.

2.1 From mass marketing to relationship marketing The change of mass marketing towards the importance of creating long-term relationships with the customers has lead to a new term referred to as Relationship Marketing. This concept has been, and is still, widely discussed and as a result of this, has throughout the years been further build upon. There are many different definitions on the concept, some of which covers many of the same aspects and others that overlap. According to Chaffey (2009), the overall concept is referred to as Customer Relationship Management. Customer Relationship Management covers the overall concept and includes aspects such as Direct Marketing, Relationship Marketing, Database Marketing, and One-to-One Marketing (See appendix 1). Also Payne (1997) argues that the many categories within the field should be placed under one main term that covers all aspects. Additionally, Payne argues that since the relationship marketing paradigm reflects a change from traditional marketing to a customer-focused management, the term relationship marketing embraces an organisation-wide perspective of marketing rather than a narrow functional focus. Thus, a more appropriate term would be Relationship Management. In the following the definition referred to will be relationship marketing since this term is more commonly used.

Relationship marketing covers a broad range of approaches that in corporation are to fulfil a common goal. Grönroos (1996) defines the term of relationship marketing in the following way

Marketing is to establish, maintain, and enhance relationships with customers and other partners, at a profit, so that the objectives of the parties involved are met. This is achieved by a mutual exchange and fulfillment of promises

9 At the same time Berry’s (1995) definition on the subject is somewhat shorter and simply argues that relationship marketing has the objective of:

…attracting, maintaining, and enhancing customer relationships.

Finally Morgan and Hunt (1994) suggests the following:

Relationship marketing refers to all marketing activities directed toward establishing, developing, and maintaining successful relationships

Even though these definitions to some extent are different, they all agree on the fact that the main objective of relationship marketing is to establish, develop, and maintain a relationship with the customers.

Based on the above definition there is little attention towards the product. However, Aaker (1996) claims that the core and extended product should always be consistent with the marketing efforts. The core product being the physical product itself and the extended product being the physiological attributes it brings with it. This means that physical product must communicate the same as its physiological attributes and therefore focus should be on both the identity of the product as well as its physical qualities.

Another issue that should be discussed is whether a relationship marketing strategy is always applicable. According to Kotler and Keller (2009) when dealing with products that allow for little variation the focus is on the core product. An example of this could be a commodity product which rarely involves any psychological attributes to the product itself (Aaker, 1991). A product of this category is often very price- sensitive and therefore a focus on the marketing mix is more appropriate since the customers will purchase the product with respect to features, price and convenience (Aaker 1991).

However when dealing with products that rely on its image and equity, relationship marketing becomes relevant. This is supported by Berry (Payne, 1997) who argues that

Relationship marketing is applicable when there is an ongoing and periodic desire for the service and when the customer controls the selection of a service supplier and has alternatives from which to choose.

In terms of Aakers (1996) findings on brand identity this means that the product dealing with should be of a category where there is a high focus on the extended identity and where the service that follows the product is just as valuable.

As the concept of relationship marketing has now been introduced, the main perspective of the thesis, brand loyalty, will be introduced in the following.

2.2 Brand loyalty Brand loyalty is a sub-category and outcome of relationship marketing. According to Keller (1993) brand loyalty can be defined as

…The repeated purchase behaviour presented over a period of time driven by a favorable attitude towards the subject.

This view is disagreed upon by Jakoby and Chestnut (1778) who argues that the behavioural aspect of loyalty research merely focuses on repeat purchasing which only reflects the outcome of a decision in which the emotional, attitudinal facet of loyalty is disregarded. However, this argument will be elaborated on later. Pickton and Broderick (2005) understand that brand loyalty is not only a question of purchase behaviour but that attitude towards the brand also plays a significant role. They therefore argue that brand loyalty is:

The degree of loyalty a customer has towards a brand in favouring it over other alternatives. It is something that companies endeavour to encourage but given the competitive environment frequently find that customers are not so loyal to a single brand.

In this definition Pickton and Broderick (2005) acknowledges the complex nature of creating loyalty among customers in a world where competition is tough and where

11 the customers are being exposed to numerous of different brands everyday. This view on loyalty is criticised by Jiyoung, Byoungho and Swinney (2009) who claims that a true loyal customer is found to have commitment and attachment towards the brand and is not easily distracted to a slightly more attractive alternative. Thereby arguing that loyalty cannot be seen as either excising or not. Both Aaker (1991) and Chaffey (2009) disagrees on this and instead argues that there are several levels of loyalty that varies between the customers and that these should be treated differently accordingly

According to Ki-Joon Back and Sarah C. Parks (1993) brand loyalty can be divided into behavioural and attitudinal loyalty. Behavioural loyalty is defined as a customer’s overt behaviour toward a specific brand in terms of repeat purchasing patterns. The behavioural approach is often used in predicting the customer’s purchasing behaviour in the future. However, according to Dick and Basu (1994) the behavioural approach neglects the importance of the customer’s decision-making process and therefore does not differentiate itself from merely repeat purchasing behaviour. Because of this brand loyalty must also be categorised into attitudinal brand loyalty. In attitudinal brand loyalty the focus is on trust and is based on operational findings rather than theoretical findings. In other words, attitudinal loyalty is based upon the customer’s commitment and preferences to when considering unique values associated with a brand (Chaudhuri & Holbrook, 2001). However, because of the fact that the attitudinal approach is based upon operational findings, it is also claimed that it lacks construct validity. Several researchers (Bowen & Chen, 2001; Jacoby & Chestnut, 1978; Stern, 1997) argue that the different aspects of behavioural and attitudinal brand loyalty must be combined and thereby develop measures on brand loyalty on both. In other words this means that the measure on brand loyalty must both be based on repeat purchase behaviour as well as the cognitive attitude towards a specific brand.

There has found to be several advantages of creating brand loyalty. Aaker (1991) argues is that for any business it is expensive to gain new customers and relatively inexpensive to keep existing ones, especially when the existing customers are satisfied with, or even like the brand. Moreover, according to Kotler, Bowen & Makens, (1998) brand loyalty customers will reduce the marketing costs that are associated with attracting new customers. Retention is one of the main objectives in relationship marketing and brand loyalty serves to fulfil this goal. Long-time customers are less

12 BA-Thesis/2010 Marketing and Management Communication Anne Albrekt price sensitive and therefore permitting higher prices to be charged (Payne, 1997). As can be seen, brand loyalty brings with it several opportunities but in some instances it might even be considered a necessity. According to Light and Morgan (2005) it is not the brand itself that is the asset but in fact the actual value lies within the loyalty of the brand. If a brand does not succeed in creating loyalty among its customers it is nothing more than a trademark or an identifiable symbol with only little value.

To conclude on the above, loyalty not only serves as a competitive advantage but can also help to reduce costs in more than one area and is thereby in many marketing strategies a remarkable advantage.

As the concept of brand loyalty, as well as the objectives behind it, have now been discussed the most relevant theories in relation to the case of Nikerunning.com will be introduced in the following.

3. Discussion of theory In the following the different concepts and models that will be used as part of the analysis and recommendations will be introduced and discussed.

13 3.1 A conceptual framework of how to create E-loyalty As the case of Nikerunning.com will be analysed it is crucial draw on a model that demonstrates how loyalty can be created in an online context. Gommans, Krishnan and Sheffold (2001) introduced a framework that covers all aspects to consider on a webpage when aiming to create and enhance brand loyalty among customers (See appendix 4).

A downfall to this framework is that none of the authors have any particular background within the publishing of journals concerning brand loyalty. The concern regarding this is the lack of credibility of the journal and how valid the arguments then appear to be. However the journal was published in the Journal of Economic and Social Research at Indiana University of Pennsylvania which is a highly respected university and therefore must be seen as a reliable source. Another issue with the framework is that it appears to be relatively simple and in some areas too superficial. However, with the combination of other theories and concept the framework becomes useful as a foundation of different characteristics to bear in mind in the creation of brand loyalty in an online context.

In the following the framework will be introduced and discussed in its chronological order to provide an overview of how the analysis will be structured.

The model consists of 5 main drivers: Value Propositions, Brand Building, Trust and Security, Website and Technology, and Customer Service.

Value Propositions deals with product customization and interactivity. Research shows that a majority of web shoppers prefer websites that offer customised products and information and the Internet is more capable in fulfilling this need than any other medium. Additionally, a high involvement in the product development creates a stronger relationship with the brand eventually resulting in brand loyalty. Furthermore, Gommans, Krishnan and Scheffold (2001) argue that brand loyalty in an online environment will lead to a certain degree of immunity from price-based competition and brand switching which is relatively difficult to obtain in a place where competition is only a click away.

The next driver is Brand Building. The Internet offers unique possibilities of interactive brand building, for example virtual communities which are obviously not available through traditional media. Also, both domain names and website content play a significant role in enhancing the overall brand image. In relation to the analysis the concept of Word-of Mouth (WOM) will be used to demonstrate the outcome of the customer interaction. Furthermore, Lazarsfeld’s and Katz’ (2006) model of Two- step model of communication will be applied in order to show the effect of the usage of celebrities in the promotion material.

The next dimension deals with Trust and Security which is very important when dealing with online transactions. Due to the fact that customers are not able to physically see the product or the salesperson, the Internet brings with it some obstacles. Therefore, when it comes to online transactions the need to convince the customers that the Internet is a safe marketplace becomes necessary. There are different ways of enhancing the online security such as third party approvals, encryption, authentication, and non-repudiation strategies which all serves to create trust for the customers.

The fourth element involves Website and Technology. The first impression given when visiting a website is crucial for further visits. Navigation, fast page loads, server reliability, quick shopping and checkout processes as well as a personalised interface are all aspects that enhances the loyalty towards the website. Futhermore, a website should be designed in relation to the target group meaning that the content has to fulfil the needs of the customers. This includes aspects such as language and changing the content to suit local conditions Another important issue is that the organisation has to know the motives of the visits, for example whether is it to gather information or if the visitor enters the webpage with the intent to buy. The elements of the webpage should then be placed in relation to this.

Finally, there is the last aspect of Customer Service. Firstly, Customer Service revolves around the area of logistics. The logistics system should be able to guarantee a fast delivery as this will contribute to loyal behaviour. It is also important that the system allows for different ways of delivering the products. The customers will have different preferences in relation to delivery and these needs should, as far as possible,

15 be fulfilled. Another aspect in this category is information regarding the website and its products. By establishing a customer service system such as for example a link to Frequently Asked Questions as well as links to online representatives serves useful in order to assist the customers in the selection of the buying process. According to Chaffey (2009) to even further the service and thereby enhancing the loyalty, customer touchpoints serve useful. A touchpoint could include a toll free phone number for customers or e-mail which gives the customers a feeling of security since they will be able to communicate directly with a salesperson.

3. 2 Word Of Mouth

According to Pickton and Broderick (2005) Word Of Mouth (WOM) is:

Communication not originated by the sender that is passed on to others after the original marketing communication messages have been transmitted.

When WOM takes place in an online context, as in this instance, the concept is referred to as Word of Mouse (Pickton & Broderick, 2005) however for the sake of simplicity the original term Word-of-Mouth will be used. According to several researchers WOM is one of the most effective kinds of promotion (Buttle 1998). The reason why WOM is seen as having such a powerful effect is, according to Mangold (Buttle 1998) that it creates an emphatic influence on the purchase decision because of the fact that personal sources are viewed as more trustworthy. Furthermore, according to Buttle (1998) WOM has shown to influence several areas such as awareness, expectations, perceptions, attitudes, behavioural intentions and behaviour which also proves how powerful it can be. Positive WOM is created when the customers become loyal to the brand and therefore creates an interest of expressing themselves via the brand.

A downfall of WOM is that, due to the massive power it has on other customer’s behaviour, it can also serve to be extremely destructive. In fact according to Arndt (Buttle, 1998) negative WOM has a more powerful impact than positive WOM and dissatisfied customers are likely to tell twice as many people as satisfied customers.

This means that companies should to consider the risks of establishing a medium that generates WOM because it do not have any influence or control on what the consumers are going to communicate to others.

3.3 The Two-step model of communication In their book Personal Influence from 1955 Lazarsfeld and Katz introduced the theory of the two-step model of communication which today still remains one the most useful models within planned communication (see appendix 3). In the Two-step model of communication Lazarsfeld and Katz (Windahl & Signitzer, 2006) argues that certain opinion leaders perform the functions of receiving, processing, and disseminating information. These opinion leaders are often chosen because of their expertise and image within a certain area, thereby appearing as trustworthy sources to the opinion followers who are the people within the target group.

The model recognises that individuals receive information from each other within a communication environment as well as from mass media, and structures the process by which messages move through mass media and interpersonal channels from source to receiver. The opinion leaders that communicate the messages to the so-called opinion followers appear more influential than do the media. According to research done by Brand New World (Chaffey, 2009) personal recommendations was ranked with 67% of importance when researching or considering a product or service and reviews/opinions on the Internet written by experts with 50%. This research supports Lazerzfelds and Katz’ theory as well as the concept of WOM as it shows how much influence and power other people’s saying have on behaviour and attitude. A critique on this model is that in the online context that this thesis is dealing with, the model might not be perfectly applicable due to the fact that the Two-step model of communication functions as a one-to-many medium whereas potentially, digital media provide a one-to-one communication. This relates to the concept of mass- customisation where the Internet has proven to be an effective medium to create this as it allows companies to easily communicate personally with the customers. But as will be exemplified later, Nike is only to some extent utilising the concept of mass customisation. Furthermore according to Chaffey (2009) the potential of it has not yet been fully developed since many companies are still using the Internet to provide

17 standardised information to a general audience. Therefore, the model is still valid in the analysis of how Nike uses opinion leaders to communicate its messages.

The theory of the theory the Two-step model of communication will be used in relation to the case of Nikerunning.com where it functions as a tool to analyse how celebrities are being used as opinion leaders in the promotion of Nikerunning.com and what the effect of this. It will furthermore be used to give advise on how to effectively use opinion leaders in order to create positive WOM.

3.4 Virtual communities/brand communities: The term ‘virtual community,' was developed by Internet pioneer Howard Rheingold (1993), who defined it as:

social aggregations that emerge from the net when enough people carry on... public discussions long enough, with sufficient human feeling, to form webs of personal relationships in cyberspace.

Moreover, according to Chaffey (2009) a virtual community is

An Internet-based forum for special interest groups to communicate.

This approach may be seen fairly simple and others argue that the definition is more complex. Komito (1998) argues that

The term virtual communities usefully refers to online groups of people who either share norms of behaviour or certain defining practices, who actively enforce certain moral standards, who intentionally attempt to found a community, or who simply coexist in close proximity to one another.

Even though the above definitions are clearly different, what is agreed upon is the fact that a virtual community consists of a group of people who share a common interest and behaviour, and because of this interact with each other via the Internet with aim of sharing a sense of community.

According to Markus (2002) virtual communities are categorized based on their social, professional and commercial orientation. In social communities, personal relationships of a non-professional nature are created. Often, these communities evolve around leisure activities, hobbies or other non-professional interests. In professional communities, member relations are formed around shared professional interests. These communities include expert-based knowledge networks and student- based learning communities. However, the concept of the organisation-sponsored community extends beyond Markus’s notion of commercial communities by recognizing that communities could also be sponsored by non-profit organizations and government agencies.

There are several advantages in virtual communities and by allowing the consumers to interact in a virtual community these serve as being two-fold. For the consumers it is obvious that they have the opportunity to engage with other people who share their interest and in that way create a community. According to Porter (2004) Tönnies argued in 1967 that being a part of some sort of community can both function as intrinsic and extrinsic motivation. Depending on the purpose, it can function as a society for social needs or as a mean to further individual goals. This brings with it the opportunity for organisations to attract consumers to their website because they are able to provide them with both of these motivations.

Looking beyond psychological advantages, the consumers as well as organisations will also have the opportunity to explore the attributes of the actual product by the experience of other consumers and information given by the organisation and thereby to a higher extend benefit from the product. In relation to the advantages there are to companies, Armstrong & Hagel (1995) argues that a virtual community can lead to a more effective market segmentation because it allows for the organisation to more easily figure out whom its core customers are and collect useful information on these. The information provided on for example a web-blog also proves extremely useful for the company because this can reveal the specific needs and wants from certain customers. This is where the aspect of mass customisation becomes relevant because the organisation will be able to discover customer needs as well as direct its marketing approaches specifically to

19 certain customers. However, a more comprehensive discussion of this will be given later.

Interactivity, hence the Internet enabling a dialogue between a company and the customer, functions as a mean of developing long-term relationships with customers. Furthermore, Chaffey (2009) introduces the term trialogue which is the interaction between a company, the customer, and other customers facilitated through an online community, social networks, reviews, and comments. Chaffey (2009) argues that this trialouge will influence every aspect of marketing, from product design through to product recommendatio. The benefits of this aspect serves twofold because a company will be able to utilise the information given by customers and by allowing the customers to have a say they will feel appreciated and as a result increase their loyalty.

4. Analysis of Nike’s virtual community Nikerunning.com This section will be an analysis of Nike’s virtual community Nikerunning.com. Nike’s virtual community functions as a separate website but with a clear connection to the main website both in terms of visual attributes and a direct link. Nikerunning.com functions both as a community of information sharing among customers and employees from Nike as well as an online shop. The direct link and

20 BA-Thesis/2010 Marketing and Management Communication Anne Albrekt visual connection from Nike’s main webpage and to Nikerunning.com (as well as other Nike webpages such as Nikebiz.com) clearly reveals Nike’s multichannel marketing strategy where different channels are integrated and support each other in their proposition development and communication (Chaffey, 2009). The website’s main objective to function as a community with the interest of running. The reason why this webpage has been chosen is that Nike is an interesting company when it comes to both virtual communities and relationship marketing. Nike’s virtual community have been massively exposed in the media and a big part of its marketing initiatives. Besides having a strong emphasis on Nikerunning.com, Nikerunning.com is an interesting case to analyse because it is highly affected by other aspects of the company such as its unique image and the way it chooses to market itself. In the following the framework of how to create e-loyalty will be used as a foundation for the analysis.

4.1 Value Propositions The Value Propositions is the first step to analyse. Nike being a MNC makes it more difficult to offer customised products than for a smaller company, and its image may easily be perceived as commercial. Therefore, in its marketing efforts Nike is very concerned with communicating that customised products are being offered. Product- wise Nike does offer certain products that are clearly mass customised in that customers are able to choose from limited number of choices. However within the forums it becomes obvious that Nike has employees answering questions from customers. Thereby Nike is offering customised information regarding the products which brings credibility towards the products because it functions as an extra service, and at the same time making the customers able relate to the company. This because the customers will be personally able to communicate and form some kind of relationship with Nike. Another advantage that the personal guidance brings is a more complete experience of the customised product making it become more personalised. By offering the customers specialised information, which can be seen as a service, via their virtual community, the customers will be left with a feeling of a special treatment, eventually leading to loyalty towards the brand and company. This argument is supported by Sivadas and Baker-Prewitt (2000). Additionally they

21 developed a model which illustrates several of the arguments within this thesis of what enhanced service towards the customers can lead to (see appendix 6).

Another important issue, according to this framework, is that an online company should offer a large set of product choices and guarantees as well as a high product quality. The product choices are relatively large, however, having a specialised area within running, one could argue that this is expected from the customers. When it comes to quality Nike has the advantage of being a bricks-to-clicks company. This means that Nike has gone from being a company with physical presence to expanding to online presence. Thereby Nike functions as an already established brand with customers that have already had experience with the products. This view is supported by Chaffey (2009) who argues that online shoppers prefer shopping at websites operated by established high-street retailers as these understand what a brand means in terms of value and the physical part of the operation gives an increased sense of security. However, as already mentioned, online shopping often brings with it some insecurity and therefore, regardless of reputation, there is always a need to guarantee that the return policy is manageable. Nike’s return policy can be viewed after placing the products in the shopping cart and entering the checkout and payment site. It reveals that it is similar to that of the physical stores with the end premises. As the guarantees are similar to those of the physical stores, a good idea might be to highlight this at an earlier stage as this will show that Nike is an honest company and thereby making the online shopping experience seem trustworthy.

An obstacle with having a virtual community and an online shop within one website is that it might in the eye of the consumer seem to be market oriented. Additionally, to become a part of Nikerunning.com the customers will need to at least buy a certain chip, and possibly other products from Nike in order to trace the runs. It is possible to participate in the forum without having to buy the chip, however most of the subjects deal with the challenges and how to utilise these products. This might cause discontent for the critical consumer since it is first revealed after signing up for Nikerunning.com and not through the TV commercials. Thereby Nike may appear to dishonest and thereby loose certain customers.

To conclude on the value propositions, the findings were that the forum at Nikerunning.com is helpful in improving the customisation that Nike puts great emphasis on. The customisation on the product itself is limited, however combined with the guidance of the employees at Nike, the customers will be left with a feeling of special treatment and knowledge of how to best possible utilise the products which will lead to brand loyalty.

A possible concern within Nikerunning.com is that it is not communicated clearly before signing up as a member that certain products are obligatory which can result in dissatisfaction. Based on this there are certain aspects that Nike should consider changing in order to appear more credible.

4.2 Brand Building The next driver in the framework, Brand Building, functions as a very important aspect of this analysis as it will be supported by the two-step model of communication as well as the concept of Word-of-Mouth (WOM). Moreover Nike has a very strong focus on brand identity which is also visible at Nikerunning.com.

As can be seen from the website title Nikerunning.com the company name is a part of the address. The fact that an established name is incorporated within the website title makes it more credible to new customers as these are able to relate to the name as well as knowing what quality to expect from the website. The fact that Nike offers the customer to involve and interact both with employees and other customers gives rise to the analysis of the WOM that is taking place within the forums on Nikerunning.com. The forum is a mixture of customers and employees of Nike interacting, thereby functioning as an organisation-sponsored community that creates relationships both between customers and Nike. By mixing interactivity both with customers and employees the community functions as an expert-based knowledge network as well as a student-based learning community as exemplified earlier. The objective behind this kind of mixture might be that Nike is able, to some extent, control what is being posted in the forums and also keep the negative WOM down by providing help to the customers. The discussions are initiated by the customers, most of them are related to problems or help to some kind of issue. The fact that Nike

23 allows for customers to reply to each other creates a shared community for these. Due to this, an outcome of Nikerunning.com is that it functions as a society that can fulfil social needs among customers. By allowing employees to participate in the discussions and functioning as professionals that offer guidance creates some kind of credibility as their postings are seen as expert knowledge. However it also has the affect that Nikerunning.com appears to be marked oriented. To the critical customer, this can easily become a problem since he/she might question the Nike’s intentions, hence whether Nikerunning.com is merely another attempt to gain revenue. Therefore, Nike should be careful in not becoming too dominating within the forum and only be present when their expertise is required from the customers.

Nikerunning.com has expanded its concept of social networking to Facebook and Twitter and on the front page invites the customers to join these networks. The result of this is more exposure because the members will also be met with news and updates when visiting these networks. Futhermore another outcome of using these is that they will catch the attention of the customers and awake their interest in visiting Nikerunning.com. Another benefit for Nike is that by entering these social network sites the friends of Nike customers will also be exposed to Nikerunning.com and possibly visit the site. In that way Nike is again utilising the concept of WOM.

As mentioned above, when looking at the postings within the forum, most of these include problems with the products or the technology on the website which could possibly lead to negative WOM. The fact that the replies are supported by an employee, who provides information and guidance, might help to avoid negative WOM. The fact that Nike is able to control what is being replied is a visible proof that the organisation is not comfortable with entrusting the interaction completely to the customers. Even though this could be viewed negatively by the customers it can also serve beneficial to them because Nike will provide them with the information necessary to utilise the products. Thereby making the advantages two-fold since both Nike and the customers can benefit from it as Nike, via their interaction, can control the negative WOM.

In relation to the fact that Nike’s employees interact in the forum and besides this uses celebrity front figures in the marketing efforts the Two-step model of communication

24 BA-Thesis/2010 Marketing and Management Communication Anne Albrekt will now be used to analyse what message Nike is trying to send to its customers about Nikerunning.com. Furthermore the model will be used as foundation to advise on how to best utilise the power of the opinion leaders.

As part of a serious of TV commercials for Nikerunning.com the (see appendix 9), Nike used Eva Longoria and her partner Tony Parker, who is a professional basketball player, as participants of the challenge as well as other famous athletics. According to Lazarsfeld’s and Katz’ model these function as opinion leaders that pass on the message of entering Nikerunning.com to the target group who then functions as opinion followers. As mentioned earlier, the credibility and trustworthiness of opinion leaders is high, thereby making their communication efforts very powerful. These opinion leaders become powerful because of their professions as athletes and because their image corresponds with that of Nike. The fact that Nike chooses to place these athletes in another context than their own makes them more relatable because they in the sport of running are ordinary people. This has a two-fold effect; firstly the customer’s attention will be drawn to Nikerunning.com due to the power of the opinion leaders. Secondly, Nikerunning.com becomes relatable because the opinion leaders are displaying themselves in a situation where they are no longer superior to the customers.

A critique of using these people as opinion leaders is that these may not be relatable to the entire target group. Running is a sport that attracts a very broad area of people which means that many, within the target group, might not be interested in sport in the television. Therefore the opinion leaders may not be able to pass on Nike’s message to the entire target group and some loyal customers will not be able to relate to Nikerunning.com from the advertising material. This also corresponds with a critique of the two-step model of communication where it becomes apparent that mass communication is not just a matter of communication between media and the audience but that the mass communicator’s message may travel in unforeseen ways. Therefore, the implication for the communication planner is to look outside routine mass communication boundaries for communication solutions. Based on this critique an advice would be to use a group of opinion leaders that have a broader set of professions, but at the same time maintaining the connection between these and the image of Nike. Politicians from different parties would be a solution since these will

25 definitely attract a broader set of customers, and would also suit the challenges of competing against each other.

To conclude on the findings on Brand Building it was found that the forum is highly affected by WOM both positively and negatively. The fact that Nike uses its own employees as part of the interaction has both implications as well as advantages. Nike will, to a certain degree, be able to control the negative postings by replying to the critique and providing helpful answers, thereby also create credibility. However, the potential threat of this is that customers might question the intention of Nikerunning.com since they are not able to communicate freely without intervention from Nike. Thereby Nike can appear somehow market oriented.

Additionally using certain opinion leaders also has advantages and disadvantages. By placing the opinion leaders outside their normal context makes Nikerunning.com more relatable since opinion leaders and followers are then on the same level. However the issue is that perhaps not all customers are able to relate to the opinion leaders used and therefore an advice would be to use a broader spectrum of opinion leaders and thereby attract a broader group.

4.3 Trust and Security According to Jiyoung, Byoungho, & Swinney (2009), Gabarino and Johnson conceptualises trust as:

Customer confidence in the quality and reliability of the service offered.

They furthermore argue that trust plays a significant role in creating loyalty. His studies reveals that e-satisfaction and e-trust influence e-loyalty either individually or in a sequential order (see Appendix 7). Therefore, even though the aspects that are to develop trust and security might not be as obvious as for example those of brand building, they serve to be just as important.

With Nike being a well-established Multinational company (MNC), it could be argued that it brings with it some credibility which can be turned into a certain level of trust

26 BA-Thesis/2010 Marketing and Management Communication Anne Albrekt towards the webpage. However, another aspect is trust towards the general usability of the website and the risk of others invading and misusing it. According to Chaffey (2009) trust needs to be increased and perceived risk must be decreased for customers to develop positive beliefs in the company’s online reputation. As Nikerunning.com functions both as a virtual community and as a website for online transactions there are some safety aspects that Nike is obligated to consider. As already mentioned, there are different ways of making sure that the online market place is safe and thereby enhancing the trust from customers. Nikerunning.com is secured by Entrust DIGITAL Security, which is shown by an icon that is placed on the payment site (appendix 8). By clearly showing this icon, Nike is trying to create credibility by using a trustworthy third-party approval which is is a trust that develops between two parties who might not know each other from before but are willing to trust each other thanks to the contribution of a reliable third party (Chaffey, 2009) and will hopefully result in loyalty towards the organisation. This claim is supported by Bowen and Shoemaker (1998) who’s findings indicate that benefits and trust are the most important antecedents to customer’s commitment. Furthermore, commitment is further discussed and claimed to be a necessary condition for loyalty to occur which shows that there is a connection between trust and loyalty.

Based on the above claims on the importance of trust, the question of whether it is enough for Nike just to fulfil the basic requirements of trust and security can be posed. It could also be argued that Nike does offer as much security as possible but that besides the aspects of third-party approval and use of passwords, it is not communicated clearly how safe the online shop is. Nike already allows the customers to make reviews on the products but not on the service and experience with online transactions. This would be of great advantage to Nike, if the level of security is high however, as positive WOM would increase the level of trust significantly.

On the other hand it could also be argued that it is not necessary for Nike to place more emphasis on the security level than already provided since it also functions as a well-established company with a reputation of a high level of trust and security.

27 To conclude, the area of trust and security in an online environment is crucial in order to create a successful online store. By examining the online store at Nikerunning.com it is evident that Nike is secured in both in terms of payment and passwords which, eventually, will result in loyalty. The question of whether Nike should place more emphasis on communicating their level of trust to the customers can be discussed, however since Nike’s brand image is so powerful, this might not be necessary as the level of trust shown by the customers is already high.

4.4 Customer Service Grönroos (1996) defines service as:

… an activity or series of activities of more or less intangible nature that normally, but not necessarily, take place in interactions between the customer and service employees and/or physical resources or goods and/or systems of the service provider, which are provided as solutions to customer problems.

It could be argued that Nikerunning.com in itself functions as a service, however since the community contains an online store, the need for improved service in this area becomes evident. The fact that Nikerunning.com functions as a virtual community as well as an online shop is an advantage to Nike since it will be able to draw from the needs and demands expressed within the forum and thereby adjust the service to this. By respecting customer needs and giving them a chance to participate in the offerings on Nikerunning.com, the loyalty among customers will be improved.

Within the online store Nike offers different aspects of service such as multiple delivery choices, a support line including phone numbers to a large number of countries, and free shipping on return goods etc.. However, as Chaffey (2009) also argues that this area needs to be of high quality because if customer expectations are not met, customer satisfaction will be poor and repeat site visits will not occur thereby making it difficult to create online relationships. For an organisation like Nike this is especially important since it is expected, due to its already established image, that the customer service is well functioning and perhaps even exceeds the basic expectations for an online store. As Nike is very concerned with keeping a clear consistency

28 BA-Thesis/2010 Marketing and Management Communication Anne Albrekt between their image and its other initiatives the consistency should also be reflected its service. As previously mentioned Nike is very concerned with communicating that it offers the customers the opportunity to customise their own products. This aspect should also be consistent within the service, for example through offering a higher level of personal service. This view is supported by a survey conducted by IBM (http://pcworld.com/businesscenter/article/186698/ibm_consumers_demand_more_int eractivity.html) which shows an overwhelming interest among customers in more online customisation services. As the service in online transaction often is highly impersonal due to the lack of personal contact some customers may be driven away from it, however there are certain aspects that can be helpful in making the online shopping experience more personal. Nike has already established a call centre that can help guide the customers in the buying process. Although, as Nikerunning.com is a virtual community they could easily take advantage of the possibilities that this presents and establish a live chat where the customers will be able to seek guidance immediately. This suggestion is also supported by a survey by (http://www.marketingcharts.com/direct/most-online-shoppers-want-live-customer- service-10712/) which revealed that 67% of US customers say they would value the option of having both a live text chat and a live voice conversation to get the help they need when making online purchases. Besides enhancing the service, thereby resulting in improved customer satisfaction, a live chat could also be an advantage to Nike since it might help fasten the buying decision process.

Another way of customising the service according to Score.org (http://www.score.org/s_cs_10.html) is by giving the sales transactions a personal touch. This can be done by sending an email after the transaction that contains product guidelines as well as other products that would be suitable for the customer. A way of making the customisation possible is by gathering personal information about the customers when they sign up as members of the community as well as returning to previous transactions. Thereby Nike would be able to create a somewhat personal email that shows how the company is taking the specific customer into consideration, and hopefully improving the relationship between the two parts.

A final advice on how to customise the service at Nikerunning.com could be by offering products which can only be bought via the community. In that way Nike

29 would create an incentive of visiting the site since it offers certain kinds of unique products. Another advantage is that this would strengthen the feeling within the community since the customers share something exceptional that cannot be found elsewhere.

To conclude on the aspect of service it was found that Nikerunning.com offers a service that completely corresponds with the requirements within the e-loyalty framework. However as recent studies (http://www.pcworld.com/businesscenter/article/186698/ibm_consumers_demand_mo re_interactivity.html) reveal a demand for more customised services Nike should utilise the advantages of Nikerunning.com and the image they hold. The above recommendations are relatively easy for Nike to oblige and could potentially have a positive effect on the customer satisfaction thereby leading to increased brand loyalty.

4.5 Website & Technology According to Gommans, Krishnan and Sheffold (2001) website design factors such as information content, navigation, and graphic style have an effect on service quality perception, which in turn influences the satisfaction of the customers. As satisfaction has a clear effect on loyalty (See appendix 7) these visual aspects are vital to consider as part of an e-loyalty strategy. Furthermore, based on guidelines on how to improve the usability done by Nielsen and Tahir (2001) these aspects need to correspond with the context and purpose of the website.

As Nikerunning.com has more than one purpose, the navigation to the online store is visually different from the community. The online store is placed at the top along with links to other Nike websites and the community is placed underneath, resulting in the online store being what captures the eyes at first glance. However, the fact that the two different areas are differentiated makes the website more transparent, and thereby easy to navigate. This is also an aspect that Nielsen and Tahir (2001) highlights as they argue for the importance of separating elements with different purposes, in order not to create confusion among the customers. Another aspect in relation to this is that by separating the online store from the virtual community might result in a positive effect on the critical consumer, who saw Nikerunning.com as market oriented,

30 BA-Thesis/2010 Marketing and Management Communication Anne Albrekt because he or she will not be exposed to the online store when visiting Nikerunning.com but will instead have the choice of entering that part of the site.

The clear connection, both in terms of links and the visual aspects to other Nike websites makes the online experience more consistent and trustworthy as Nike’s strong brand image shines through. The connection between Nike attributes, which are apparent in all of Nike’s websites, such as colours, fonts, and navigation bars and its strong image shows that every little aspect is thought trough (see appendix 5). The fact that everything resembles Nike’s image makes the experience of visiting Nikerunning.com complete. It resembles the feeling the customers get when they enter Niketown which is Nike’s physical stores. Niketown offers an entire experience from the second customer enter the stores because brings clear associations to Nike’s image and facilitates different events for the customers, thereby showing them Nike’s extended brand identity on first hand. The same experience is given at Nikerunning.com when creating connections to the events at Niketown.

Generally, for a website that contains this many aspects, it is relatively well-arranged which makes the first impression positive. Moreover, these aspects are important according to Chaffey (2009) who claim that website design, ease of navigation, good levels of service and good value products have been found to increase consumer loyalty and also found to enhance the customer experience.

In relation to the argument that a website should be designed in accordance to its context, it is obvious that Nikerunning.com is focused on the area of running as this is clearly communicated visually. However another way of customising a website is geographically. Nikerunning.com is to some extent customised geographically by adapting the currency in the online store, which makes it easier to shop and also more trustworthy for the customers because foreign currencies might cause some insecurity.

However when it comes to the content neither the online shop nor the community is adapted to every customer’s nationality, it is all in English, which makes it less personal. As mentioned, one of the aims around a virtual community is to create a feeling of social belonging by making the members able to relate to others. The fact that the members communicate across boarders and cultures may be exciting to some,

31 however at the same time it would be beneficial to make it possible for the members to interact with people from their own nationality, since not everyone are able to communicate in English. Futhermore, this would also make the members able to relate even more to each other’s activities since they are able to experience the same things. Chaffey (2009) discusses the aspect of usability, where he argues that all users should be able to interact regardless of disabilities. By not offering forums within each country some customers will automatically be lost due to their lack of ability to communicate in English, even though they should be considered loyal. Additionally, as a further element of customer-centricity for website design Chaffey (2009) refers to this as localisation. Localisation covers the aspect of specific content for particular countries which, besides language, also deals with different product needs and cultural differences. Regarding the product range, it seems that it is the same products that are offered everywhere since the shipping originates from the US. In theory it is an advantage that all products are accessible to everyone but it might prove useful to highlight specific products that are useful in certain countries, for example in terms of weather- and running conditions. This would function as an extra help in the customer’s shopping experience and additionally ease the process, which may result in more satisfied customers. These suggestions are supported by Chaffey (2009) who argues that social presence or the feeling that a communication exchange is sociable, warm, personal and active may be lower if a standard web page is delivered, but can be enhanced, perhaps by personalisation.

The navigation on Nikerunning.com clearly differentiates the online shop from the forum, which makes it more trustworthy since the customers will not be directly exposed to the products when entering the forum. In relation to the physical aspects it was found that there is a clear connection between the different Nike websites as well as with the physical stores. The fact that the image shines through gives the customer a feeling of their strong image which could possibly strengthen the loyalty. The website content is only partly customised but in order for all customers to be a part of Nikerunning.com it would be beneficial to take into consideration that not everyone is able to communicate in English and thereby adapt the language. By allowing people from the same nationality to interact more easily would also make the Nikerunning.com more relatable.

4.6 Conclusion on analysis Gomman’s, Krishnan’s, and Scheffold’s framework on e-loyalty provided a guideline of how to analyse whether Nikerunning.com was a successful virtual community from a theoretical perspective. Supported by various theories it can be established that Nike’s virtual community is very professional and consistent will all the other Nike initiatives. In terms of customisation there are certain aspects that could be improved in order to enhance the customer satisfaction and thereby the loyalty. However generally Nikerunning.com, from a theoretical point of view is doing a successful job that most likely will result in enhanced brand loyalty among its customers.

5. Conclusion

This study sought to discuss the concept of brand loyalty and how this can be created within a virtual community. Secondly the objective was to determine whether Nike’s

33 virtual community Nikerunning.com, from a theoretical perspective, can be considered successful.

The discussion on the concept of brand loyalty revealed that there are many different opinions on how it should be defined. Some researchers argued that loyalty can be measured in different degrees whereas others claimed that loyalty is either existing or not. Furthermore, it was found that brand loyalty can be divided into two categories; behavioural loyalty and attitudinal loyalty. Behavioural loyalty is measured in terms of repeat purchasing patterns whereas attitudinal loyalty is measured in accordance to operational findings, meaning that it is based upon a customer’s commitment and preferences of a brand. Some authors argue that both of these categories should be considered when measuring brand loyalty, and therefore the most accurate result will be found by combining the two.

Even though there are different views on how to define brand loyalty, the objectives behind it are somewhat the same. Brand loyalty equals retention which, in a world of fierce competition, is crucial in order not to loose customers. With increased brand loyalty among customers follows reduced costs in terms of attracting new customers but also due to the fact that loyal customers are less price sensitive and therefore allowing for higher prices to be charged.

The concept of brand loyalty was examined in the context of a virtual community. Through the analysis on Nikerunning.com, it became apparent that loyalty can be created in multiple ways through a virtual community. Firstly, an online forum can serve to create a long-term relationship with the customer and thereby increased brand loyalty through the interaction that is taking place between the company and the customer. Secondly, establishing a virtual community that are to fulfil certain customer needs, for example guidance on how to best utilise the products, creates goodwill as it can be seen as an extra service, thereby also leading to increased brand loyalty. Finally a very important feature of a virtual community is that is allows for customisation that is difficult to establish elsewhere. The customisation was created for the customers by participating in the discussions, where they will be able to get inspiration and guidance specially adjusted to their needs. This was found to lead to increased satisfaction thereby leading to brand loyalty.

The second objective within this thesis was to conduct an analysis that was to determine, on a theoretical perspective, whether Nike’s virtual community Nikerunning.com can be considered successful. Based on a framework on how to create e-loyalty it was found that the community is very professional created due to its visual aspects that are clearly connected to Nike’s other websites as well as the navigation which is simple and user-friendly. The critique that were to place upon Nikerunning.com is that the use of customisation is somewhat lacking and could be improved due to the fact that this is a effective way of creating brand loyalty. Generally Nikerunning.com, on a theoretical perspective, can be considered successful due to its many professional aspects and its way of creating interaction with the customers.

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7. Appendix 1

8. Appendix 2

9. Appendix 3

10. Appendix 4

41 12. Appendix 5

From Nikerunning.com

From Nike.com

12. Appendix 6

43 13. Appendix 7

14. Appendix 8

45 15. Appendix 9