What is planned obsolescence?

Planned obsolescence refers to the practice of designing products with an intentionally limited lifespan, which prompts consumers to replace or upgrade their items sooner than they might otherwise choose to do. This strategy ensures that businesses create an ongoing demand for new products, as users find themselves needing to purchase replacements or newer versions after a predetermined period.

By implementing planned obsolescence, companies can encourage frequent purchasing cycles, helping maintain their revenue stream. This approach happens not only in physical products like electronics and appliances, where advancements lead to shorter usability periods, but also in fashion where styles change rapidly. The goal is to stimulate consistent consumer spending and ensure market competitiveness.

The other options reflect different approaches to product management and marketing but do not capture the essence of planned obsolescence specifically. Continuous product updates or improvements suggest an ongoing enhancement of product quality, while a strategy to create perpetual demand involves broader tactics beyond just limiting a product's lifespan.