Nike and Adidas are two leading sportswear and athleisure companies in the world. While keeping excellence in products over years, both companies have expanded their markets through diverse advertising tactics such as adding new color schemes to Nike’s Dunk Low and offering exclusive lines like Jordans, Air Max, NMD, or Yeezy. Both companies take current market conditions into account when setting its product price points and ranges, but they also utilize the value-based pricing strategy which incorporates the consumers’ willingness to pay (Entreprene, 2021). While many factors have impacts on the consumers’ willingness to pay, we can observe the willingness to pay through the price tag of each product as well as the marketing strategy on the websites. Using the premise that each company has decided the price and display of each product to target consumer’s needs and willingness to purchase, we investigate the relationship between prices and displays of footwear products. Our analysis focuses on finding features that are predictive of product prices using natural language processing (NLP) analysis. The results show that Adidas’ product pricing is driven by the types of footwear, technology, high-end collaboration lines, and the materials. However, due to limited information on the products, we do not observe that Nike’s textual displays exhibit predictive power on prices.
Entreprene. (2021, December 19). Pricing strategies of nike. The Strategy Watch. Retrieved November 27, 2022, from https://www.thestrategywatch.com/pricing-strategies-of-nike/
@misc{footwear-display-price,
author = {Chongkyung Kim and Lyla Kiratiwudhikul and Mina Lee and Tom Zhang},
title = {The Effects of Footwear Product Displays on Prices},
year = {2022},
publisher = {GitHub},
journal = {GitHub repository},
howpublished = {\url{https://github.com/lylakirati/footwear-display-prices}}
}