Brand Matters: A PLS-SEM Analysis of Quality, Reputation, Pricing and Advertising on Generation Z's Purchase Decisions for Nike Footwear in Kathmandu Valley

Abstract

Background: Nike has established itself as a globally recognized athletic and lifestyle brand, and its footwear enjoys strong appeal among Generation Z consumers even in emerging markets such as Nepal, where the brand maintains no official retail presence. In Kathmandu Valley, Nike's market standing is sustained largely through imported product quality, brand reputation, and exposure to global advertising, yet little empirical research has examined how these brand-related factors, together with pricing and brand loyalty, jointly shape Gen Z's purchase decisions in this context.

Purpose: This research paper studies the factors influencing Generation Z's purchase decision of Nike footwear in Kathmandu Valley.

Design/Methodology/Approach: An explanatory research design was employed, using a sample of 425 Generation Z respondents from Kathmandu Valley selected through convenience sampling. The study is grounded in the Theory of Reasoned Action, and both descriptive and inferential statistics were applied, with Structural Equation Modeling conducted using Smart PLS 4.0.

Findings: Gen Z consumers demonstrated strong general awareness of Nike footwear. Purchase decision was significantly and positively predicted by brand quality (β = 0.361, p < 0.001), brand advertisement (β = 0.259, p < 0.001), and brand reputation (β = 0.144, p = 0.003), while brand pricing showed no significant effect (β = 0.016, p = 0.740). Brand loyalty significantly predicted purchase decision directly (β = 0.169, p = 0.003) and significantly mediated its relationship with brand quality (β = 0.046, p = 0.017), brand reputation (β = 0.044, p = 0.014), and brand advertisement (β = 0.049, p = 0.013), but not with brand pricing (β = 0.015, p = 0.085).

Conclusions: Brand quality, reputation, and advertisement significantly affect purchase decision directly and indirectly through brand loyalty, whereas pricing plays no significant role.