In addition to its premium pricing strategy

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Nike employs a skimming pricing strategy, where prices are higher than those of competitors. This strategy allows Nike to capture a substantial portion of the market's willingness to pay a premium for its products, thereby increasing sales and profitability.

Nike's pricing strategy is also influenced by the perception of exclusivity and desirability that accompanies its products. By charging relatively high prices, Nike creates the impression that its products are of superior quality and reserved for a select group of consumers.

This strategy helps promote the idea that owning Nike products is a symbol of status and achievement. Nike's focus on celebrity endorsements and sponsorships further contributes to the premium brand image and justifies the pricing.

Nike also uses a value-based pricing approach, which takes into account the benefits new zealand mobile phone number list of its products and the perceived value from the customer's perspective. The company invests heavily in research and development to continually innovate and develop advanced technologies such as Nike Air, Flyknit and Dri-FIT. The incorporation of these technologies increases the performance, comfort and durability of Nike products, justifying their higher prices.

Nike also uses price discrimination strategies, offering different products at different price points to appeal to multiple market segments.

For example, the company offers premium products under its flagship brand Nike, which targets athletes and sports enthusiasts looking for high-quality gear. At the same time, it has sub-brands such as Jordan and Converse, which target specific segments such as basketball and lifestyle, respectively, but at a relatively lower price point.

Nike also employs various pricing and promotional strategies to drive sales and gain a competitive edge. The company often offers limited-edition collections, collaborations, and product launches, creating a sense of urgency and exclusivity among consumers. These tactics help Nike generate buzz and excitement, encourage impulse purchases, and drive sales at premium prices.

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