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Standing by Tiger paid off for Nike, study says December 17, 2010

Posted by rmshepard in Uncategorized.
Tags: , , , ,

At the height of the Tiger Woods sex scandal in December 2009, the golfer’s sponsors were cutting ties with him as quickly as they could. Nike stood alone as the sponsor that was willing to back Tiger unconditionally, and many suspected that it might have been a bad decision by the company.  One year later, researchers from Carnegie Mellon University’s Tepper School of Business are reporting that Nike’s decision paid off, and that it would have lost more had it joined other companies ditching the one-time king of golf.

You may remember, though, that this post-scandal strategy started with the following bizarre ad endorsing Tiger:

Discussion Questions:

1. How would one be able to measure whether Nike’s decision actually paid off in the long run?

2.  Are there reasons to be skeptical of the Carnegie Mellon study based on how it was conducted?



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