Customer (2)
Even though many believe customer is the greatest and customer should have the absolute power, in this case, Nike has absolute power over customer, where customer has low bargaining power. This can be proved by study many cases where Nike make their customer angry and claim that they will refuse to buy Nike product. An example will be mention here. Two years ago Nike claim that they have successfully invite Michael Jordan, the king of Basketball to Taiwan. Nike said they will arrange a meeting for their customers to see Michael Jordan at a close distance by held an event for the fans. But the condition is ticked is required for the entrance of the event, and this ticket will be draw by Nike, and only customer who buy Nike product till certain amount have the right to participate in this draw. This announcement simply make all Taiwanese crazy and start buying a lot of Nike product just to exchange for a chance to won the ticket at the draw. Yet greater expectation comes with greater disappointment. When Michael Jordan comes to Taiwan and attend this event, he only stays for few minutes then leave, leaving many lucky fans who get the ticket by the draw shock and angry. The customer starts to question Nike about this extremely short events and these angry customer gather together to sign up for boycotting Nike.
However, after Nike come out to apologize, and give a promise of ¡§claim for these 700 lucky customers have the right to be first invited when Nike arrange NBA star to Taiwan next time; customer who purchase the Jordan product for this event can return the product and get refund unconditionally; promise to take care and maintain 30 basketball court in the society¡¨, nothing seem to happen anymore.
Even though the first two weeks after the events Nike¡¦s sales seem to be greatly affected, after Nike settle everything, Nike¡¦s product still is the best seller, the relationship between Nike and customer seem unchanged. People still wear Nike to play basketball and do the running. At the mean time, Nike obtains the way of its aggressive advertisement and pricing strategy.