Planned obsolescence
In economics and industrial design, planned obsolescence (also called built-in obsolescence or premature obsolescence) is the concept of policies planning or designing a product with an artificially limited useful life or a purposely frail design, so that it becomes obsolete after a certain predetermined period of time upon which it decrementally functions or suddenly ceases to function, or might be perceived as unfashionable.[1] The rationale behind this strategy is to generate long-term sales volume by reducing the time between repeat purchases (referred to as "shortening the replacement cycle").[2] It is the deliberate shortening of the lifespan of a product to force people to purchase functional replacements.[3]
For other uses, see Planned obsolescence (disambiguation).Planned obsolescence tends to work best when a producer has at least an oligopoly.[4] Before introducing a planned obsolescence, the producer has to know that the customer is at least somewhat likely to buy a replacement from them in the form of brand loyalty. In these cases of planned obsolescence, there is an information asymmetry between the producer, who knows how long the product was designed to last, and the customer, who does not. When a market becomes more competitive, product lifespans tend to increase.[5][6] For example, when Japanese vehicles with longer lifespans entered the American market in the 1960s and 1970s, American carmakers were forced to respond by building more durable products.[7]
Critics and supporters[edit]
Shortening the replacement cycle has critics and supporters. Philip Kotler argues that: "Much so-called planned obsolescence is the working of the competitive and technological forces in a free society—forces that lead to ever-improving goods and services."[53]
Critics such as Vance Packard argues the process is wasteful and exploits customers. With psychological obsolescence, resources are used up making changes, often cosmetic changes, that are not of great value to the customer. Miles Park advocates new and collaborative approaches between the designer and the purchaser to challenge obsolescence in fast-moving sectors such as personal-use electronics.[54] Some people, such as Ronny Balcaen, have proposed to create a new label to counter the diminishing quality of products due to the planned obsolescence technique.[35]
The Environmental Law Institute writes that planned obsolescence "contributes to a culture of wastefulness by perpetuating a 'buy new and buy often' mentality and limiting consumer autonomy to keep products longer by hard-wiring a 'self-destruct' button in products".[55] Bisschop et al. (2022) have said that the practice limits the "usable life of products to bolster private profit at the expense of consumer interests and environmental sustainability", stating it should be considered a corporate crime against the environment.[56]