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Premium pricing

Marketing & Web PremiumPremiums

Premium pricing e.g. selling music via iTunes.
Penetration pricing e.g. giving away free subscriptions to land grab market share for new start-ups such as Youtube.com and Myspace.com.
Economy pricing e.g.

 


Premium pricing: The price set is high to reflect the exclusiveness of the product. An example of products using this strategy would be Harrods, first class airline services, porsche etc.

Premium Pricing - a planned approach to pricing, appropriate in situations of inelastic demand, in which an organization decides to keep its prices high; reasons for such a strategy might include a growing super-premium segment of the market, ...

Premium Pricing see High-Price Strategy. Premiums a type of sales promotion in which merchandise is given free or at a reduced price to purchasers of products or visitors to a store.

Allows premium pricing
Helps targeting/positioning
Increases power over retailer
The retailer
Benefits from brand marketing support
Attracts customer
Helps differentiate the product from competitors ...

See also: Strategy, Price, Product, Pricing, Consumer