Pricing depends on many elements: the unit cost, the competitors' prices of the same product, the business strategy adopted by the organization, and the desired profit margin. For the consumer, he/she had to plan for the purchase especially if he is going to buy a (shopping product) that is relatively expensive, by studying the alternatives/brands/stores available, checking the features, benefits, and reliability, quality, and price of each alternative. And then select the most appropriate alternative for him that matches his capabilities.

Pricing is quite complex. Pricing strategy depends on various criteria. If a product' price "do not reflect its real value" it is not cheating rather wrong pricing. If it is famous brand up to 90% of the price is just about this brand. If it is a low-cost product, the price is too low just to attract consumers.

Thank you olga. Yes there is a point of the last part of your answer. The thing is that due to the assymetric information problem, low-cost product but price is high.

Consumer will never worry that they pay the low price for low cost product, but they really worry if they paid high price for the low-cost /low quality product.

Relations "price - quality" are the simplest way to set a price. If quality is too low and price is too high then consumers will switch to another product with a rather low price or better quality. In the information era it is quite difficult for producers to hide low quality and even harder to set a high price for a low quality product. Consumers will punish that producer by negative WoM and by "feet"

Thank you olga. Nice answer..