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* 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.The practice is intended to exploit the (not necessarily justifiable) tendency for buyers to assume that expensive items enjoy an exceptional reputation or represent exceptional quality and distinction.

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Does insurance premium mean monthly?

No. The premium is the price you pay for the coverage. Depending on your insurance company, the premium may be paid all at once or in payments.


What is Capital Asset Pricing Model CAPM?

The Capital Asset Pricing Model (CAPM) is a financial model that establishes a relationship between the expected return of an asset and its systematic risk, measured by beta. It suggests that the expected return on an investment is equal to the risk-free rate plus a risk premium, which is proportional to the asset's beta and the market risk premium. CAPM is widely used in finance for asset pricing and portfolio management, helping investors assess the potential return of an investment relative to its risk.


What are factors should to consider when choosing a pricing method?

When choosing a pricing method, consider factors such as market demand and competition, which can influence how much customers are willing to pay. Additionally, evaluate your cost structure to ensure profitability, and consider your business objectives, such as market penetration or premium positioning. Finally, take into account customer perceptions and value proposition, as these will impact how your pricing is received in the market.


What does flexible premium multi-funded life mean?

A flexible premium multi-funded life means that it is a term life insurance. Aside from that, it has a side fund that grows and which is tax deferred.


How to calculate premium for financial risk?

To calculate the premium for financial risk, you typically assess the potential loss associated with a particular investment or financial decision, taking into account factors such as market volatility, credit risk, and liquidity risk. This involves estimating the expected loss and incorporating the risk-free rate of return and a risk premium, which compensates for taking on additional risk. The premium can be calculated using models like the Capital Asset Pricing Model (CAPM) or through empirical data on historical returns relative to risk. Ultimately, the premium reflects the additional return required by investors to compensate for the inherent risks involved.

Related Questions

What are the advantages and disadvantages of premium pricing strategy?

what is premium pricing strategy


What are the advantages and disadvantages of pricing strategy?

what is premium pricing strategy


What pricing strategies do you think Ben Sherman applies in its marketing mix?

Premium pricing!


What is Heineken pricing strategy?

Globally, Heineken utilizes the premium pricing policy. This is effective as the Heineken brand is unique to that of competitors.


What does ceded insurance premium mean?

What does ceded premium mean


What is the meaning of pricing policy?

Pricing policy is the method by which a store manager say decides on a sale price for a good examples; 1. cost plus pricing : taking the cost price of the good and adding the desired profit margin 2. premium pricing : if a good is in high demand, ie something with a well known brand name, then a premium price can be set as people will want to purchase the item anyway.


What do you mean by pricing?

transfer pricing is in the case of transferred with in the organisation the pricing of contribution for assets ,


What is the pricing strategy for Sony?

Sony utilizes a premium pricing strategy for its products. This means that its products are priced higher than competitors' offerings, reflecting the high quality, technology, and brand value associated with Sony. Sony's pricing strategy focuses on capturing value from customers who are willing to pay a premium for the perceived benefits of its products.


What do you mean by transfer pricing?

transfer pricing is in the case of transferred with in the organisation the pricing of contribution for assets ,


What does insurance premium mean?

The premium is the cost that you must pay to have the insurance.


What do you mean by transfer?

transfer pricing is in the case of transferred with in the organisation the pricing of contribution for assets ,


Does premium mean vanilla?

yes