Executive Interview

How did Nike’s “Blowout” affect Brand Loyalty?

It’s one thing to experience a product failure. Its entirely another thing when its your signature product and that happens in front of millions of people.

A few weeks ago star basketball player and Nike-sponsored athlete, Zion Williamson’s shoe came apart 33 seconds after the beginning of the game. And when we say “came apart” what we really mean is that it almost exploded. Not the kind of thing you want to happen in any setting, much less a public one like this. Did we mention that millions of people were watching?

You could predict a handful of effects from the incident:

  1. Social media would have a field day with the video.
  2. Competitors would have a field day with the news.
  3. The stock price would probably take a hit.

In fact, all three of those things actually happened.

But what’s less obvious and much more important is what effect that incident had on Nike’s brand – how did it affect brand sentiment and brand loyalty?

For that, we turned to Robert Passikoff, founder and CEO of Brand Keys. Robert’s team produces the annual loyalty index and has been tracking Nike’s brand metrics for some time.

Before you watch this short discussion – what do you think happened to Nike’s brand loyalty metrics? Formulate your own opinion and then watch this clip to find out what really happened.

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