Premium meaning in business studies
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In business studies, the term "premium" refers to the additional amount or price paid for a product or service that is perceived to possess higher quality or value compared to other similar products or services in the market. A premium can be justified by factors such as superior features, better performance, exclusive branding, or unique differentiation. Companies may use premium pricing strategies to establish a perception of luxury, exclusivity, or exceptional value, which can lead to higher profit margins.