Question

In one paragraph describe the general advantages and drawbacks of the premium pricing strategy.For exapmle, explain where it falls on the intersection of quality and price.
Please dont copy paste from the internet, will be flagged.

Answer 1

Answer:

The main advantage resulting from a premium pricing strategy is the higher profits. Another advantage is that customers that purchase premium products seek higher quality and tend to show higher brand loyalty associated with the status of using premium products. The disadvantages of premium pricing are that it cannot be applied to all products, the marketing efforts tend to be more specific, and therefore, represent a higher percentage of sales, and finally, not everyone is willing to pay premium prices.