Planned obsolescence

Definition

Planned obsolescence is a business strategy where products are deliberately designed to have a limited lifespan or become outdated, encouraging consumers to purchase replacements. This approach creates a cycle of consumption, as companies aim to increase sales and profits by ensuring that goods need to be replaced or upgraded regularly. It can lead to increased waste and environmental concerns, as well as influencing consumer behavior and market dynamics.

5 Must Know Facts For Your Next Test

1. Planned obsolescence can manifest in various forms, such as making products less durable or introducing new models with minor improvements.
2. This strategy is often criticized for promoting wastefulness and contributing to environmental degradation due to increased landfill waste.
3. Many technology companies utilize planned obsolescence by frequently releasing new versions of products, creating a perception that older models are outdated.
4. Planned obsolescence can also affect pricing strategies, as companies may set lower initial prices for products while compensating for short product lifespans through repeat purchases.
5. Regulatory bodies in some countries have started addressing planned obsolescence through laws that promote product longevity and consumer rights.

Review Questions

• How does planned obsolescence influence consumer behavior and purchasing decisions?
  • Planned obsolescence influences consumer behavior by creating a sense of urgency to buy new products due to the perception that existing ones are outdated or will soon fail. This leads consumers to frequently replace items rather than using them for their full potential lifespan. As a result, consumers may develop habits centered around constantly seeking the latest products, contributing to a cycle of consumption that benefits manufacturers financially.
• Discuss the environmental implications of planned obsolescence and how it contrasts with sustainability efforts.
  • The environmental implications of planned obsolescence are significant, as it contributes to increased waste and pollution through the rapid turnover of products. Items that could have been used longer often end up in landfills shortly after purchase. This approach stands in stark contrast to sustainability efforts, which advocate for designing durable products and reducing waste. Advocates for sustainability argue that businesses should focus on creating products that last longer, thereby minimizing their ecological footprint.
• Evaluate the ethical considerations surrounding planned obsolescence in relation to consumer rights and corporate responsibility.
  • The ethical considerations surrounding planned obsolescence raise important questions about consumer rights and corporate responsibility. On one hand, consumers should have the right to expect products that are durable and functional for a reasonable amount of time. On the other hand, companies may argue that introducing new features and designs is necessary for innovation. However, when businesses prioritize profit over product longevity, they risk undermining trust with consumers and contributing to social inequalities by forcing constant spending on replacements. Evaluating these considerations reveals the need for a balance between business practices and consumer protection.

Related terms

Consumerism: A social and economic order that encourages the acquisition of goods and services in ever-increasing amounts.

Sustainability:

The practice of meeting current needs without compromising the ability of future generations to meet their own needs, often in contrast to planned obsolescence.

Durability: The ability of a product to withstand wear, pressure, or damage, often seen as a desirable quality in contrast to planned obsolescence.