Price premium

Price premium,

Definition of Price premium:

  1. The marketing practice of selling an elite product at a cost level above that of its competition in order to make it appeal to more exclusive and wealthy consumers. A business producing a high end good or service might add a price premium to its advertised cost in order to attract more affluent customers that can afford to pay more for what they think will be a higher quality item.

Meaning of Price premium & Price premium Definition