Question:

What is "Planned Obsolescence" in the context of marketing and product management?

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\textbf{Planned Obsolescence} means designing products so they become outdated or unusable after a certain period. Common examples include:
  • Frequent smartphone upgrades
  • Software updates that stop supporting older devices
  • Fashion trends changing rapidly
Memory trick: \[ \textbf{Planned Obsolescence = Planned Replacement} \]
Updated On: Mar 16, 2026
  • Designing products to last indefinitely without replacement
  • Intentionally designing products with a limited useful life so they need replacement
  • Producing goods only after receiving customer orders
  • Eliminating outdated products from the market immediately
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The Correct Option is B

Solution and Explanation

Concept:
Planned Obsolescence is a marketing and product management strategy in which products are intentionally designed to have a limited useful life. After a certain period, the product becomes outdated, less efficient, or incompatible with newer technologies, encouraging consumers to purchase a replacement. This strategy is commonly used by companies to stimulate continuous demand for their products and maintain consistent sales. By introducing newer versions or models with improved features, companies encourage customers to upgrade their existing products. Planned obsolescence can occur in several forms:
  • Technical Obsolescence – New technology makes older products outdated.
  • Style Obsolescence – Changes in design or fashion make older models less desirable.
  • Functional Obsolescence – Products are designed to wear out or become less efficient after a certain time.
Examples include frequent updates in smartphones, electronics, and automobiles where newer models replace older versions.
Step 1: Understanding the concept.

The question asks for the meaning of planned obsolescence in marketing and product management.
Step 2: Identify the key feature.

Planned obsolescence refers to the deliberate design of products so that they become outdated or unusable after a certain time, encouraging consumers to purchase new products.
Step 3: Analyzing the options.
  • Option (A): Designing products to last indefinitely — This is the opposite of planned obsolescence.
  • Option (B): Intentionally designing products with a limited useful life — Correct; this accurately describes planned obsolescence.
  • Option (C): Producing goods only after receiving customer orders — This refers to demand-based production.
  • Option (D): Eliminating outdated products immediately — This does not describe the strategy itself.

Step 4: Selecting the correct answer.
\[ \boxed{\text{Intentionally designing products with a limited useful life so they need replacement}} \]
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