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. Once regarded as a conspiracy theory, 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"). It is the deliberate shortening of the lifespan of a product to force people to purchase functional replacements. Planned obsolescence tends to work best when a producer has at least an oligopoly. 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. 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.
History
In 1924, the American automobile market began reaching saturation point. To maintain unit sales, General Motors executive Alfred P. Sloan Jr. suggested annual model-year design changes to convince car owners to buy new replacements each year, with refreshed appearances headed by Harley Earl and the Art and Color Section. Although his concept was borrowed from the bicycle industry, its origin was often misattributed to Sloan. Sloan often used the term dynamic obsolescence, but critics coined the name of his strategy planned obsolescence. This strategy had far-reaching effects on the automobile industry, product design field and eventually the whole American economy. The smaller players could not maintain the pace and expense of yearly re-styling. Henry Ford did not like the constant stream of model-year changes because he clung to an engineer's notions of simplicity, economies of scale, and design integrity. GM surpassed Ford's sales in 1931 and became the dominant company in the industry thereafter. The frequent design changes also made it necessary to use a body-on-frame structure rather than the lighter, but less easy to modify, unibody design used by most European automakers. The origin of the phrase planned obsolescence goes back at least as far as 1932 with Bernard London's pamphlet Ending the Depression Through Planned Obsolescence. The essence of London's plan would have the government impose a legal obsolescence on personal-use items, to stimulate and perpetuate purchasing. However, the phrase was first popularized in 1954 by Brooks Stevens, an American industrial designer. Stevens was due to give a talk at an advertising conference in Minneapolis in 1954. Without giving it much thought, he used the term as the title of his talk. From that point on, "planned obsolescence" became Stevens' catchphrase. By his definition, planned obsolescence was "Instilling in the buyer the desire to own something a little newer, a little better, a little sooner than is necessary." The phrase was quickly taken up by others, but Stevens' definition was challenged. By the late 1950s, planned obsolescence had become a commonly used term for products designed to break easily or to quickly go out of style. In fact, the concept was so widely recognized that in 1959 Volkswagen mocked it in an advertising campaign. While acknowledging the widespread use of planned obsolescence among automobile manufacturers, Volkswagen pitched itself as an alternative. "We do not believe in planned obsolescence", the ads suggested. "We don't change a car for the sake of change." In the famous Volkswagen advertising campaign by Doyle Dane Bernbach, one advert showed an almost blank page with the strapline "No point in showing the 1962 Volkswagen, it still looks the same". In 1960, the critic Vance Packard published The Waste Makers, described as an exposé of "the systematic attempt of business to make us wasteful, debt-ridden, permanently discontented individuals". Packard divided planned obsolescence into two sub categories: obsolescence of desirability and obsolescence of function. "Obsolescence of desirability", also known as "psychological obsolescence", referred to marketers' attempts to wear out a product in the owner's mind. Packard quoted industrial designer George Nelson, who wrote:
Design ... is an attempt to make a contribution through change. When no contribution is made or can be made, the only process available for giving the illusion of change is "styling"!
Variants There are several variants of planned obsolescence. They are listed in the order of increasing severity:
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