The document discusses the concept of premium and how marketers can create a sense of premium worth for products and services. It defines premium as meaning superior quality or value. Marketers can use several techniques from consumer psychology to imbue their offerings with a premium perception, including using symbols, distinctive packaging, creating a sense of scarcity, assigning deeper meaning, establishing rituals around products, emphasizing essence or purity, and obtaining endorsements. Ultimately, interpretations of what constitutes a premium product or experience are subjective and culturally dependent.
2. WHAT IS PREMIUM?
pre·mi·um adj.
1. Of superior quality or value
pre·mi·um n
1. A prize or award
2. Something offered free or at a reduced price as an inducement to buy
something else
3. A sum of money or bonus paid in addition to a regular price, salary, or other
amount
4. The amount paid, often in addition to the interest, to obtain a loan
5. The amount paid or payable, often in installments, for an insurance policy
6. The amount at which something is valued above its par or nominal value, as
money or securities
7. The amount at which a securities option is bought or sold
8. Payment for training in a trade or profession
9. An unusual or high value: Employers put a premium on honesty and hard work
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3. SUPERIOR TO ⊠?
The Ritz is
premium to
the Hyatt âŠ
is premium
to the
Holiday Inn âŠ
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7. CREATING A SENSE OF WORTH THROUGH CONSUMER
PSYCHOLOGY
4. Assigned meaning
1. Symbols
2. Packaging
5. Rituals and Form
6. Essence
3. Scarcity 7. Endorsement
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