The U.S. athletic footwear market is likely to grow slowly during 2008-2012. characterized by good volume sales and falling prices. according to a recently published report from Mintel International It projects annual growth of less than 3 percent. before inflation. This is due to factors such as overly complex manufacturer/retailer relationships that sap brand loyalty and foster excessive bargain hunting. a slow growth economy. and competition from brown shoe manufacturers as the previously distinct line between athletic and brown shoes becomes blurred. Alongside this, weak retail pricing is likely to lead to of a two-tier market -an upscale shoe market for those most dedicated to athletic shoes (young) and those with higher levels of discretionary income. and a mass market for the rest of the nation. One bright spot revealed by Minte!’s consumer research is that respondents overwhelmingly agree that they are willing to “spend money on good sneakers
Jim Davis. CEO of New Balance Athletic Shoe. Inc.. is trying to appeal to those consumers Minter’s research is talking about. New Balance rose quickly starting in the mid-1990s to be the third-largest seller of athletic shoes. Its strategy mirrored Nikes in launching the largest possible number of shoe styles and selling primarily through specialty athletic shoe stores and sporting goods stores. A big difference. however. was that New Balance created an upscale brand image that aimed to attract a greater number of 35- to 64- year-olds, Times are changing. however. and New Balance is learning that it must also change to keep improving its market growth and profits.
The Marketing Research Decision
1. New Balance would like to determine consumer preferences for its brand as compared to Nike , Reebok. and Adidas. Which scaling technique should be used’
2. Discuss the role of the type of scaling technique you recommend in enabling Jim Davis to determine consumer preferences for New Balance as compared to Nike. Reebok, and Adidas and increase the market share of New Balance
The Marketing Management Decision
1. In order to increase the market share of New Balance. what should Jim Davis do’
2. Discuss how the marketing management decision action that you recommend to Jim Davis is influenced by the scaling technique that you suggested earlier and by the finding’ of thnt research
Using SPSS Data Entry. the researcher can design any of the primary type of scales: nominal. ordinal. interval. or ratio. Either the question library can be used or customized scales can be designed. Moreover. paired comparison. rank order, and constant sum scales can be easily implemented. We show the use of SPSS Data Entry to design ordinal scales to measure education and income (Figure 8.6). This software is not included but may be purchased separately
from SPSS .