Okuzeka
Marketing vocabulary · Pricing

Premium pricing

Meaning in marketing, with examples

nounCommon term

In marketing, premium pricing means: Setting prices higher than competitors on purpose to signal quality, exclusivity or status, so that the high price becomes part of the brand's appeal.

In Turkish: premium fiyatlandırma, prestij fiyatlandırması, yüksek fiyat stratejisi

How it is used

Used for luxury goods, premium cosmetics, technology and speciality food. It depends on customers believing the product is worth more. It is also called prestige pricing.

Example sentences

  1. Premium pricing only makes sense if the packaging and service feel premium too.

  2. The brand uses premium pricing, so it never joins the big seasonal sales.

Common collocations

  • premium pricing strategy
  • justify premium pricing
  • premium price
  • charge a premium
  • pricing strategyThe method a company uses to set and change its prices, based on its costs, its competitors, the value customers see and its business goals.
  • brand equityThe extra value a brand name adds to a product, such as the higher price or stronger loyalty a well-known brand gets compared with an unknown one.
  • price pointA particular price at which a product is offered, often chosen to match what a certain group of customers expects or can afford.
  • differentiationMaking a product or brand clearly different from competitors in ways that customers value, such as quality, design, service or experience.

More terms: Pricing

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