The price of a product or service is set by a company that follows a strategic plan based on the type and quality of its offerings . Such a procedure takes into consideration several factors that need to be taken into account, such as manufacturing cost, labor cost, distribution cost and marketing cost. Apart from meeting the company's expenses, the marketing plan also plays an important role in pricing decisions. The price of a product can have an attractive or repulsive nature towards the customer (Monroe 1979). This idea is underlined by behavioral research which specifies that the consumer perceives the price as additional information on the quality of a product. However, other studies contradict these views by ignoring the power of price (Gabor and Granger 1966). Therefore, several researchers have looked into this topic and come up with different and interesting theories. Most of the results are related to psychological effects on customers' purchasing behavior and quality perception. Marketers use psychology to develop multiple ways to attract customers. Associating the price index with perceived quality is an essential element, because in many cases it allows a direct and unconscious target through consumers. This power of attraction can be applied, or can also be contradicted. Several researchers have studied these two cases and concluded significant theories. Initially, studies mainly focus on the conditions under which price is perceived as an index of quality. Toh and Bérard, strongly underlined this point by introducing three main hypotheses:- “There is a substantial positive relationship between the price and the perceived quality of consumer goods. » - "The...... middle of paper..... Women were found to be more dependent on price than men in making judgments about product quality" (Toh and Berard, 1984) . In addition to gender, age also played an important role in this analysis. It was concluded that older consumers are more affected by the perceived price/quality ratio than younger consumers. (Shapiro 1973). As for income effects, it has been proven that they do not strongly impact the quality of a product. “Both generations have been reported to be both positive (French et al. 1972; Toh and Berard 1984) and insignificant (e.g. Shapiro 1973). “Based on these three analyses, it can be concluded that the influence of demographic characteristics such as gender, age and income have a varied result depending on the type of consumer. Therefore, marketplaces have categorized their products based on demographic profile for better and more advanced targeting..