List and Briefly Explain the Five Sources of Price Premiums

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The Answer is 1.Innovative products can command a premium if a company has products that have a patent or are difficult to copy.
2.Quality means a real or perceived difference between one product or service and competitors,for which consumers are willing to pay a higher price.
3.Branding is similar to quality,and the premiums would be highly correlated.After a product has been established,brand may count more than quality in the ability to charge a price premium.
4.Customer lock-in refers to making it costly for customers to replace the product a company sells with the product of another company.
5.Rational price discipline can allow for premiums if the sellers can discipline themselves to not compete prices down.Usually there has to be a barrier to entry to the industry to allow this.

List and Briefly Explain the Five Sources of Price Premiums

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