Nike has become so well known for quality products that most people will pay top dollar for these products. This is why Nike uses cost-based pricing. It is interesting to know that many other companies that compete with Nike have noticeably lower prices. This does not deter people from purchasing the Nike product for a few reasons. Not only does Nike have better quality products, wearing Nike says something about who you are. It is almost like a status symbol telling everyone who sees you wearing the product that you are financially capable of wearing expensive clothing. This is an ego boost for the consumer which in turn makes them want to continue buying the product. However, these high prices couldn’t be possible if Nike did not have such high brand equity.