The Impact of Premiumization on the Economy and Consumers

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Gentrification can be seen as a metaphor for how companies prod consumers towards fancier and pricier versions of their products.
This premiumization caters to higher income consumers and leaves poorer people underserved.
Corporate executives refer to this phenomenon as premiumization.
There are two main drivers behind the premiumization trend.
Premiumization is a popular buzzword in corporate discussions and earnings calls.
Premiumization involves increasing the value of a product to consumers beyond its cost by adding new features and desirable branding.

Inflation happens for a lot of reasons that can be hard for even economists to fully grasp. But — as we learned this spring in an episode we’re rerunning today — there’s also a more straightforward reason prices keep going up: greedy corporations are using inflation as an excuse to jack up prices.

This episode was produced by Miles Bryan, edited by Matt Collette, fact-checked by Laura Bullard, engineered by Paul Robert Mounsey, and hosted by Noel King.

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