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    Strategic Management: Premium Price

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    A premium price is associated with above-average returns. What can a company do to merit a premium price above the competition? What attributes are needed to obtain and sustain a premium? Provide an example of a product (Starbucks) with these attributes.

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    Solution Preview

    A company can merit a premium price for its product by being first to market, having superior design or technological abilities, having an established premium brand name, or unique characteristics. Consider Apple's iPad: this item sells for a higher price than other tablets because it was first to market, has great clean design, with intuitive technological details. In addition, customers are willing to pay more for an Apple ...

    Solution Summary

    This detailed solution discusses how a company can charge premium prices above competition based on product attributes. It gives examples and describes attributes. Includes APA formatted references.