Brand premium represents the additional value customers are willing to pay for a product or service because of its reputation, brand image, or prestige. This premium is manifested as a higher price compared to similar items from lesser-known or generic brands. It reflects the perception of quality, trust, or status that the brand conveys. For example, consumers may be willing to invest more in an Apple iPhone than in a technically comparable smartphone from a less well-known brand. Brand premium serves as an indicator of brand strength and customer loyalty.