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Price premium
Price premium, or relative price, is the percentage by which a product’s selling price exceeds (or falls short of) a benchmark price. Marketers need to monitor price premiums as early indicators of competitive pricing strategies. Changes in price premiums can also be signs of product shortages, excess inventories, or other changes in the relationships between supply and demand. In a survey of nearly 200 senior marketing managers, 54 percent responded that they found the "price premium" metric very useful.〔Farris, Paul W.; Neil T. Bendle; Phillip E. Pfeifer; David J. Reibstein (2010). ''Marketing Metrics: The Definitive Guide to Measuring Marketing Performance.'' Upper Saddle River, New Jersey: Pearson Education, Inc. ISBN 0137058292. The Marketing Accountability Standards Board (MASB) endorses the definitions, purposes, and constructs of classes of measures that appear in ''Marketing Metrics'' as part of its ongoing (Common Language in Marketing Project ).〕
== Purpose ==
Although there are several useful benchmarks with which a manager can compare a brand’s price, they all attempt to measure the 'average price' in the marketplace. By comparing a brand’s price with a market average, managers can gain valuable insight into its strength, especially if they view these findings in the context of volume and market share changes. Indeed, price premium – also known as relative price – is a commonly used metric among marketers and senior managers.〔 Fully 63% of firms report the relative prices of their products to their boards, according to a recent survey conducted in the US, UK, Germany, Japan, and France.〔Barwise, Patrick, and John U. Farley (2003). ''Which Marketing Metrics Are Used and Where?'' Marketing Science Institute, (03-111), working paper, Series issues two 03-002.〕
抄文引用元・出典: フリー百科事典『 ウィキペディア（Wikipedia）』
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