It's not reflective of either. If a company has a good reputation, you're not just buying the product, but the assurance that it's good. For example, a $50 Logitech mouse versus a $10 brandless mouse. They work basically the same way, and let's say they're the same shape. YOu'd think a company as good as Logitech would make a mouse that lasts at least 2 years, but a brandless mouse could spoil after a few weeks. Then there's warranty. Some products break more or less immediately after warranty expires, but good companies like Microsoft (my Xbox outlasted its warranty by 300%) don't pull that shit.
When I made this post, I had Apple in mind. Most people don't buy Apple for the quality of the product, but rather the brand name recognition.
Price is reflective of what enough people are willing to pay for it so that the company makes highest profit.