Dispel major myths about pricing strategy.

The article dispels major myths about pricing strategy in the U.S. The major myths are categorized into three. First, pricing products to cover full costs will be profitable. Second, pricing products to grow market share is profitable. Third, pricing products to meet customer demands is profitable. As for the first myth, marketers often do not recognize the value they actually provide. They think in terms of product features and treat the service elements in a product offering as sales incentives rather than value-enhancing augmentations. For the second myth, marketers should consider what shares of the market can they profitably serve. The third pricing myth encourages customers to demand price concessions and trains salespeople to offer them.