In this paper, an attempt is made to prove the role of perceived value in the vertical expansion of a product brand. The relationship between vertical expansion to higher and lower vertical expansion is investigated. Perceived value influences the acceptance of new products, i.e. brand extension. Extension can be horizontal and vertical Vertical extension refers to the extension of a brand within the same product category, but the product is positioned at a different level of price and quality compared to the base brand Given the differences in price and quality, vertical brand extension can take place on more and down. Perceived value is a subjective category, therefore its measurement and generalization in practice is a problem. As modern business requires continuous adaptation of the offer to the needs and wishes of consumers, which change over time, it is necessary to respond to market pressure in terms of adapting the offer to the needs and wishes of consumers. The subject of research is understanding and analyzing the role of perceived value in the vertical expansion of a premium product brand. In addition to the theoretical part, the paper also contains a practical part in which a survey questionnaire is used to investigate the subject, and to confirm the hypotheses that the author set in the paper.