Farrah explains why Superior Stereo Systems might not want to set prices for the Superior V at a ...

Farrah will likely explain that a firm may value establishing market share over making immediate profits. Companies may set an initially lower price to get buyers to try the product and gain market share. In such a case, the firm would defer profits to a later time. Pricing for market share also addresses practical concerns. Retailers are unlikely to stock an item with a very low share of the market. In addition, companies are also influenced by the need to compete in the marketplace, by social and ethical concerns, and by corporate image.