Nike has announced its most expensive shoe ever -- the LeBron X basketball shoes

Question

Nike has announced its most expensive shoe ever -- the LeBron X basketball shoes, expected to sell for $315 -- pushing the upper limit of consumer dedication to the brand. (see ESPN news video below.) The sneaker feature built-in electronics that measure athletic performance. The president of the National Urban League urged Nike to abandon the pricy shoe saying, "It's the consumer's choice, but it's insensitive to market a $300 shoe to kids going back to school and struggling to buy school supplies." The price on most of its other shoes are also rising 5-10% due to material cost increases. Nike's gross margins are lower than most of its competitors. a) Is this pricing strategy smart? b) The shoes are unique, and the price will raise Nike's margins, but is it insensitive to the mass market that can't really afford them? Is there a way to be sensitive to cash-strapped buyers while, at the same time, introduce an expensive new model? c) How would you handle the public relations backlash to these pricey sneakers?

Explanation / Answer

this question is already answered by one of our experts

please check following link

http://www.chegg.com/homework-help/questions-and-answers/nike-announced-expensive-shoe-ever-lebron-x-basketball-shoes-expected-sell-315-pushing-upp-q10307553?adobe_reloaded=true

Related Questions

Navigate

• Browse (All)
• Browse N
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.