iSeeit!: Tactical Strategies for Determining Price Once marketers have completed their analysis of demand, costs, and the competitive environment, they can use a number of different tactics to choose a final price. This activity is important because in order to choose the right pricing tactic for a product or service, marketers must understand how customers perceive the value of the product or service, whether customers are able to pay for it, and how they intend to use it. The goal of this exercise is to illustrate the advantages and disadvantages of different pricing tactics, as well as to demonstrate how a firm will evaluate each tactic to ensure its fit in the firm's overall business model. See this in action at Assist You 2 in the video that follows. Karen and Anika are trying to settle on a final price for their different personal and workplace services. Anika suggests applying an additional 15 percent to the cost of each individual service within each category of service. This pricing tactic is known as Multiple Choice profit margining cost plus markup) pricing price bunding odd-even pricing prestige pricing