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.

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WHAT IS PREMIUM TO THE CONSUMER

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 …
is premium
to the
Holiday Inn …
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4. IN A MARKETERS WORLD
TANGIBLE
INTANGIBLE
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5. WHAT DEFINES A PREMIUM SENSE OF WORTH
5. Sensual 4. Enticing
1. Discerning
3. Genuine 2. Confident
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6. INTERPRETATIONS OF PREMIUM
Are
subjective;
are culturally
dependent
(including
sub-culture)
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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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8. 1. SYMBOLS
Semiotics
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9. 2. PACKAGING
Breaking the
mould to create
value, leadership,
difference
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10. 3. SCARCITY
Perceptions of limited supply can create the
sense of premium and potentially drive
uber-demand
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11. 4. ASSIGNED MEANING
Meaning can come from
marketing provenance
or process
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12. 5. RITUALS AND FORM
Creation of
rituals
or new forms
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13. 6. ESSENCE
Premiumness through ‘essence’,
science or less processing
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14. 7. ENDORSEMENT
Perceived specialness can be created
through product endorsement
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HOW YOUR PRODUCT REPRESENTS
WORTH
SO WHAT?
5. Sensual
4. Enticing
3. Genuine
2. Confident
1. Discerning 1. Symbols
2. Packaging
3. Scarcity
4. Assigned meaning
5. Rituals and Form
6. Essence
LEVERS TO PROMOTE PREMIUMNESS IN MARKET
7. Endorsement

16. Thank
You
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