After reading Tanner’s blog, I did some research on Nike’s release of there most expensive shoes yet and the customer’s reaction to it. He asked “Is there a limit to how much people will pay?” and answered NO. However, I would like to contradict this view by highlighting some of the customer’s reactions and my view on Nike’s strategy.

Many customer’s are enraged by the idea of buying a $315 pair of sneakers when unemployment is considerably in effect. The discussion is that if consumers keep supporting such prices there is nothing that will stop Nike from increasing prices for future products as well. Thus the counter measures employed are to exploit the power of social media by spreading the word about such appalling prices and encouraging them to not purchase the product.

Tanner said that consumers would continue buying the product despite the prices since they have positioned themselves as a global leader. However, I feel that Nike in this case is not targeting the mass of consumers but rather a niche such as athletes and professionals. Thus Nike’s reason for releasing a separate pair that does not include the intended technology, making it more affordable to the mass.