Wednesday, April 24, 2024
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Nike bet that politics would sell. Looks like it was wrong.

Shortly after Nike's announcement, the consumer-research firm Morning Consult released a survey showing that Nike had indeed, as President Trump predicted, taken a reputation hit from its overtly political campaign. Interviews with 8,000 Americans showed a nearly 50 percent decline in Nike's favorability after announcing the Kaepernick ad campaign. Consumer interest in buying Nike products dropped by 10 percentage points. A polarizing political endorsement is going to cost a company with customers on the other side of the issue, though it may still pay off in terms of greater loyalty from people who agree. Yes, the percentage of Republicans saying they were likely to buy Nike shoes fell from 51 percent to 28 percent, but support also dropped among Democrats, albeit only by five percentage points. Nonetheless, if the Morning Consult findings hold up, the new ad campaign appears to be a lose-lose proposition for Nike. Maybe companies would think twice before injecting politics even into people's shopping decisions. Companies have historically avoided entering the political fray for fear of just what this survey shows: You often alienate far more customers than you gain. That's not healthy for America, which needs more points that people have in common, not more ways to divide into separate teams. Maybe Americans aren't divided on this one.