Thursday, August 16, 2012
Ecommerce and planned obsolescence
Have you ever heard of 'planned obsolescence' the term? Before 1920 products have been made, which often stood the test of time. They were sturdy, often handmade and were ultimately in the best long-term value.
The problem was the lack of return customers. You see, you could have satisfied customers all around the world, but if you could not get them back as customers the longevity of your company is still in doubt.
In 1920 and 1930 the companies began to adopt the process of planned obsolescence. What this means, ultimately, to consumers who had purchased products would not last longer because the parties were intentionally designed to wear.
In essence a company to determine how long you want to advertise the product life (for example a washing machine for ten years) and then purchase the products as cheaply as possible to reach or slightly higher than the 'life expectancy' of the product.
By reducing the time between replacement of the products of companies have actually started to see an increase in long-term repeat sales. America became used to the need for replacement. Indeed, taken to its extreme modern we would almost be disappointed if we could replace the common elements periodically.
In the world of electronic commerce capabilities planned obsolescence could be an important component in determining what kind of products that will bring. For example, if you develop a business around a product that has a highly desired life expectancy is extended to many customers would need a longer term than when you choose a product which is strongly desired and is often replaced by existing customers.
For example, electronic devices may have the ability to last longer than are typically used, but the majority of consumers will replace them when the next generation of the device is revealed. In this case, planned obsolescence is made possible thanks to consumer demand for greater functionality.
A business built around candles is an example of the need for a greater volume of customers. Unless a customer lights a candle each night the need for additional candle is diminished, no matter how beautiful or well-scented candles could be. In this case the emphasis on candles as gifts may allow existing customers to become repeat customers.
This article is not designed to encourage you to pursue a type of product rather than another, but to draw your attention to the dynamics involved in the buying patterns of some elements. It also aims to demonstrate that the longevity of utility element has a bearing on how they should ultimately commercialization of the product .......
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