premium

(noun)

Something offered at a reduced price as an inducement to buy something else.

Related Terms

  • freemium
  • word of mouth
  • software
  • time limit
  • business model

Examples of premium in the following topics:

  • Demanding a Premium

    • Firms can engage in premium pricing by keeping the price of their good artificially higher than the benchmark price.
    • Brands like Pepsi or Coke can price their goods at a premium, charging more than a generic soda brand due to its brand name.
    • Premium pricing is the practice of keeping the price of a product or service artificially high in order to encourage favorable perceptions among buyers, based solely on the price.
    • A premium pricing strategy involves setting the price of a product higher than similar products .
    • Luxury has a psychological association with price premium pricing.
  • The Savings Association Insurance Fund (SAIF)

    • In the 1990s, SAIF premiums were, at one point, five times higher than BIF premiums; several banks attempted to qualify for the BIF, with some merging with institutions qualified for the BIF to avoid the higher premiums of the SAIF.
    • This drove up the BIF premiums as well, resulting in a situation where both funds were charging higher premiums than necessary.
    • In the 1990s, SAIF premiums were, at one point, five times higher than BIF premiums.
    • The FDIC maintains the DIF by assessing depository institutions an insurance premium.
  • The Freemium Model

    • Freemium, a combination of the words "free" and "premium," is a business model where the company gives away a free service or software to all customers.
    • Feature Limited - set number of features with basic- to get better cooler features move to premium
    • This service/software is usually a basic, scaled down version of what the company offers as a premium paid service.
    • In fact, the concept of a smaller giveaway to attract a premium customer is not new.
    • Feature Limited - set number of features with basic- to get better cooler features move to premium
  • New Product

    • Price is set relatively high to generate a high profit margin, and sales are limited to those buyers willing to pay a premium to get the new product.
    • A premium product generally supports a skimming strategy.
    • In this case, "premium" doesn't just denote high cost of production and materials, it also suggests that the product may be rare or that the demand is unusually high.
  • The Promotion Mix

    • Examples of sales promotion include: Coupons, sweepstakes, contests, product samples, rebates, tie-ins, self-liquidating premiums, trade shows, trade-ins, and exhibitions.
    • Examples: Coupons, sweepstakes, contests, product samples, rebates, tie-ins, self-liquidating premiums, trade shows, trade-ins, and exhibitions.
  • The Promotion Mix

    • Examples: Coupons, sweepstakes, contests, product samples, rebates, tie-ins, self-liquidating premiums, trade shows, trade-ins, and exhibitions.
  • US commercial centers, trade intermediaries, and alliances

    • Heineken, the premium Dutch beer, is consumed by more people in more countries than any other beer.
  • Standard Benefits

    • Some benefits would still be subject to the Federal Insurance Contributions Act tax (FICA), such as 401(k) and 403(b) contributions; however, health premiums, some life premiums, and contributions to flexible spending accounts are exempt from FICA.
  • Developing Services

    • This is why in some instances, salons and other services are able to charge a premium.
  • Differential

    • For example, so-called "premium products" (including relatively simple products, such as cappuccino compared to regular coffee with cream) have a price differential that is not explained by the cost of production.
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