premium
PREE-mee-um
/ˈpriːmiəm/
nounadjectiveB2TOEFLIELTS
generalbusiness
Noun: An amount to be paid for an insurance policy; an amount added to an ordinary price or charge. Adjective: Denoting a high quality and therefore usually expensive product or service.
As an adjective, it implies superior quality, often justifying a higher price. As a noun, it refers to an extra cost or bonus.
The story behind the word. The word 'premium' comes from the Latin 'praemium,' meaning 'reward, prize, profit.' In ancient Rome, a 'praemium' was a reward given for exceptional service or achievement. This sense of something extra or valuable carried over into English, first referring to a reward or bonus, then specifically to the amount paid for insurance, and finally, to something of superior quality that commands a higher price.
Word relationships
- superior: Higher in rank, status, or quality.
- upscale: Relatively expensive and designed for people with high incomes.
- high-end: Relatively expensive and of high quality.
- basic: Forming an essential foundation or starting point; fundamental.
- economy: Designed to save money; inexpensive.
- inferior: Lower in rank, status, or quality.
Commonly confused with
- expensive: 'Expensive' simply means high in price, while 'premium' implies high quality that justifies the high price.
Collocations
- pay a premium
- premium quality
- premium brand
- premium price
- premium service
Example sentences
- "Consumers are often willing to pay a premium for products that offer exceptional craftsmanship and durability." Discussing luxury goods.
- "We use only premium coffee beans, ethically sourced from around the world, to ensure a superior taste." In a coffee shop advertisement.
Memory hook
Think of a 'prize' or 'reward' – a 'premium' product is a prize because of its high quality, often with a higher price. Prize Quality
When not to use
Don't use it for something of average or low quality. It specifically implies excellence or an added value/cost.
Fun facts
- In finance, a 'premium bond' is a bond that trades above its face value.
- The concept of 'premiumization' in marketing refers to the trend of consumers opting for higher-quality, more expensive versions of products.
Related words
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