A premium pricing strategy involves setting the price of a product higher than similar products. This strategy is sometimes also called skim pricing because it is an attempt to “skim the cream” off the top of the market. premium pricing strategy involves setting the price of a product higher than similar products.
Mentioned in these terms. 1  insurance premium. 2  unearned premium. 3  deposit or provisional premium. 4  warrant premium. 5  bond risk premium. 6  default premium. 7  vanishing premium policy. 8  premium income. 9  adjusted premium. 10  level premium insurance.  Premium pricing a strategy used to market products has a high value. tawels image by .shock from Fotolia.com. Pricing is a major element of marketing any product, and it is vitally important to set the right price. A price that is too high or too low for the target market can seriously affect sales. A premium pricing strategy involves setting the price of a product higher than similar products. This strategy is sometimes also called skim pricing because it is an attempt to “skim the cream” off the top of the market. premium adjective. C2 used to refer to something that is of ​higher than ​usual ​quality: premium ​ice ​cream The ​building is on a premium ​site. (Definition of premium from the Cambridge Advanced Learner’s Dictionary & Thesaurus © Cambridge University Press).  premium-having or reflecting superior quality or value; premium gasoline at a premium price. superior-of high or superior quality or performance; superior wisdom derived from experience; superior math students. put or place a (high) premium on something hold in high regard, value, appreciate, set great store by, put a high value on I place a high premium on what someone is like as a person. noun. DEFINITION of 'Premium'. 1. The total cost of an option. 2. The difference between the higher price paid for a fixed-income security and the security's face amount at issue. 3. BREAKING DOWN 'Premium'. 1. The premium of an option is basically the sum of the option's intrinsic and time value. It is important to note that volatility also affects the premium. 2. noun (plural premiums). 1 An amount to be paid for a contract of insurance. Example sentences. Synonyms. 1  Correctly computed, the income of a wage earner entitled to a pension consists of his wages plus the amount of the premium he would have to pay to an insurance company for the acquisition of an equivalent claim. 2 A sum added to an ordinary price or charge: customers are reluctant to pay a premium for organic fruit. More example sentences. Synonyms. 1  An indemnity bond is a premium charged by the lender and paid by the customer to insure the lender against a default in mortgage repayments by the borrower. premium. 1. The price at which an option trades. The size of the premium is affected by various factors including the time to expiration, interest rates, strike price, and the price and price volatility of the underlying asset. Also called option premium. 2. Statistical Factors Affecting Your Car Insurance Premium. The cost of car insurance premiums is also based on statistics that the individual driver cannot control. Individual history is a small factor, but statistics are the overriding factor for the cost of a car insurance premium.  Premium pricing. A premium pricing strategy involves setting the price of a product higher than similar products. This strategy is sometimes also called skim pricing because it is an attempt to “skim the cream” off the top of the market.
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what is a premium?