Matching comes from the feed
Google reads title, description, product type, category, brand and attributes, then decides which queries your product is eligible for. That is the targeting, and you edit it by editing data.
Then the auction runs
Your bid competes, but so does expected click-through rate and landing page experience. A better-matched, better-priced product wins at a lower bid.
Then the buyer chooses
Unlike Search, your price sits next to your competitor’s before anyone clicks. This is why pricing work and feed work are the same conversation in Shopping, and why bidding is the third lever, not the first.