Why pay more
Getting the lowest price for a product can be a compelling reason to buy. However there is an alternative logic for premium brands. This article provides eight powerful reasons why customers might be willing to pay more. These range from product superiority, through risk education to price signalling. Competitive pricing need not mean parallel pricing. In addition the article highlights a danger for premium brands at the final stage of the transaction. Practical advice is provided for all who face competition from lower priced rivals.
Cram, T. (2006) Why pay more?, Business Strategy Review, Vol. 17, No. 3, pp. 30 - 33, Autumn issue