First, what is the brand premium?
Brand premium is the added value of the brand, except 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.
Second, what is the role of brand premium?
1, accelerating consumer decision-making.
When consumers face a large number of similar products, reducing the cost of consumer choice is an important factor affecting consumer decision-making, and brand choice can minimize the cost of consumer decision-making.
2. Consumer identification
The products of top brands have money to buy this brand, which has a certain social function, as well as recognition and potential psychology. Many consumers have such recognition when buying luxury goods.
If we don't explain the characteristics of brands, as long as we say that these brands will pop up to buy the brand image of these consumers, this is after the brand premium is formed.
3. Bring value to the enterprise.
Brand premium is not only reflected in product price, but also a good brand has a positive effect on enterprise recruitment, finding partners and cooperation between upstream and downstream suppliers.
Compared with unknown enterprises, many job seekers will think that working in well-known enterprises will lead to better career development.
When a good brand cooperates with other enterprises, there will be more choices in partners and forms of cooperation.
The premium of a good brand is not only reflected in the product price, but also in all aspects of enterprise management and development.