What Makes a Product Premium?
A slightly higher price than mainstream products or brands, superior quality, guaranteed origin, visually appealing packaging, originality, and limited availability are just some of the features that can characterize a premium product. When we say “premium,” individuals might focus on only one attribute, ignoring the rest. While opinions about the specific characteristics of such products may vary, they all share a common feature: added value.
Perceptions in Croatia
What do Croatian consumers perceive as premium product features, how often do they buy them, and what is their relationship with such products? These questions were explored through an online survey conducted by Valicon among Croatian internet users aged 18 to 75 from September 18–19, 2024.
Characteristics of Premium Products
The study first examined how consumers perceive premium products and which attributes they associate most with them. Among all analyzed characteristics (Figure 1), superior product quality emerged as the most important. A remarkable 80% of respondents believe premium products are defined by superior quality, with 53% ranking it as the top characteristic.
In second place, though far behind quality, is product originality—its uniqueness in the market—recognized by nearly half of respondents. Thirdly, long-standing tradition is valued by one-third of consumers, especially older respondents aged 60–75. While high prices are associated with premium products by just under a third of respondents, one-fifth also consider handcrafted production, the use of advanced technology, and limited-edition series as defining features.
Men tend to emphasize special, limited editions more than women, while younger consumers aged 18–29 prioritize modern packaging and design.
Frequency of Premium Product Purchases
The survey also analyzed how frequently people purchase premium products (Figure 2). A striking 82% of respondents reported buying premium products, with food products leading the category. Among premium product buyers, 6 out of 10 purchase premium food products at least monthly, while premium beverages and cosmetics follow with one-third of consumers buying them at similar intervals.
Electronic premium products, as expected, are purchased less frequently. However, this category shows notable gender differences, with men buying premium electronics more often than women.
When asked to spontaneously name a Croatian product they consider a prime example of premium quality, respondents often mentioned food items and brands, especially Podravka’s Vegeta and Kraš Bajadera. Traditional specialties like Drniš prosciutto, Baranja kulen, and Pag cheese were also frequently highlighted as premium.
Motivations for Purchasing Premium Products
According to the study (Figure 3), the main motivator for purchasing premium products aligns with their most notable feature: superior quality. This reason was cited by 55% of respondents, particularly men. Positive prior experience with the product and recommendations from family, friends, and acquaintances were other significant motivators.
Women are more influenced by recommendations and online reviews, while younger consumers (18–29) are more swayed by influencer endorsements, though this group remains small.
Emotional Appeal
Emotions play a vital role in the purchasing process, shaping how consumers perceive products, brands, and their manufacturers. Regarding premium products (Figure 4), 62% of consumers said such purchases give them at least some sense of status or prestige, though this feeling is pronounced for only 10%, mainly younger buyers and men.
Additionally, 91% of consumers enjoy owning premium products, with only 9% showing indifference or reluctance to accept them as gifts.
Price vs. Added Value
Premium products often have higher prices due to superior materials, limited production, or brand prestige. However, consumer opinions are divided on whether these prices are justified. Slightly over half (53%) of respondents believe premium products are often overpriced without added value. In contrast, 29% consider the higher price justified due to enhanced quality and durability, a view more common among men and residents of Northern Croatia.
Conclusion
Premium products attract a significant customer base primarily due to their superior quality and positive user experiences. However, skepticism remains regarding whether their high prices are justified. To retain customers and enhance satisfaction, premium product manufacturers should focus on maintaining quality, emphasizing originality, and connecting with elements of tradition.
