Premium is a marketing strategy. A base Toyota Camry is 22k and that’s the price point you’re buying dependability / utility. The marketing changes as you move up the price point even before you hit the ultra premium price points. An easy way to look at this is Advertising as a percentage of total sales. If you spend 10% on advertising you could instead lower the price by ~10%. Dawn dish soap does not spend millions on advertising because it feels good, they are well past the point of people being aware of their product.

https://en.m.wikipedia.org/wiki/Premium_pricing

Ex: ‘It does not just raise the bar, it is the bar’.