What does brand premium mean?
Brand premium is something other than the price of the product itself. Brand premium is the higher pricing power of the brand itself compared with the competitive brands. The premium ability of a brand doesn't depend on its popularity at all. In other words, the higher the popularity, the higher the premium ability.
A brand can sell at a higher price than a competitive brand, which is the so-called premium ability of the brand. Brand premium ability is a powerful weapon for enterprises to obtain higher selling price, higher profit rate and better profit, so brand premium ability should be included in brand assets. Indicators such as popularity, quality awareness and brand association in brand assets will ultimately make the brand profitable by enhancing loyalty and premium ability.
Brand premium factor
1. Not all consumers are willing to pay the brand premium. Quality-sensitive consumers are more willing to pay a premium than insensitive consumers. Therefore, the consumer's concern for quality affects whether he is willing to pay the brand premium.
2. Brand management must be based on good product and service quality. Only by improving the quality can the brand play its role as a carrier of reputation and enhance its ability to deliver excellent information to consumers.
3. Purchase frequency is also a factor that affects brand premium. First of all, from the relationship between quality and purchase frequency, for products with low purchase frequency, sellers can only enjoy the premium after a long time, so that only when the premium is large enough can the tendency of quality fraud be suppressed.
Only when a brand is well-known, can it better convey information to consumers. The public's recognition of a brand is actually confidence in the brand. In order to avoid the risk of buying other brands, some consumers prefer to buy well-known brands, so the more well-known brands may get a higher premium.