Explanation:

 High quality and premium pricing  is where a company aims to provide the best quality product in the market, and therefore charges more than its competitors. These companies are usually market leaders. Pricing objectives for particular products or services can also vary according to the stage in the product life cycle.

For example, in the decline stage a company may choose a harvesting strategy that gradually reduces expenditures on advertising and maybe even product quality, whilst maximising profits by maintaining prices. Alternatively, in the decline stage the company might adopt a divesting strategy which looks for another organisation to buy that part of the business.

Pricing objectives are never simple. They result from the company trying to balance a number of different business aims both short and long-term, such as market share, sales, profit, and technical or quality leadership. These have to be considered so that the company is both able to survive and to achieve sound long-term profits.