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Enumerate about the Objective Based Pricing
This method is applicable to introduction of new (innovative) products. If, at introductory stage of the products, organisation wishes to penetrate the market i.e., to capture large parts of the market and discourage prospective competitors to enter into the fray, it fixes a low price. Alternatively, organisation may decide to skim the market i.e., to earn high profit by taking advantage of a group of customers who give more importance to their status or distinction and are willing to pay even a higher price for it. In such a situation they fix quite high price at the introductory stage of their product and market it to only those customers who can afford it.
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Y= P(1+(r/100))^t
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