Pricing

pricing is basing on 4 fundamentals, including value, competition, costs,and legal& ethical issue.
as a marketer need to choose the pricing strategy considering these four factors.
on the other hand, as a customer, some time when I facing an unknown brand's product. the first fact i will consider is its price. if it's cheap, i will think it contain lower value than the higher price one.
there are lots of friends I know all think ' cheap means low value, expensive means good'.

When me and my mam just got here(AU) and passing by the bank advertising which says 6.0% p.a., I was interested in this ad, but my mam only said ' don't even think about it, it can't be safe'.

as we came from a place all the banks offering around 2.5% p.a. for a short term deposit, and my one year fixed term deposit only give me 2.7%p.a return. it was normal reaction from my mam.

Thus, the price of a product also reflects the value of the product. factors like competition, cost and legal$ ethical issue some time you can't tell just by the price without compete with others.