Product life extension models
How long is a product designed to last? This might depend on what it is and its selling price. Most consumers would expect a new car to last in good reliable condition for a great deal longer than a simple torch or pocket lamp for example. Consumers want products to last for as long as possible – even if they might sell them at some stage of their useful lives.
If businesses made consumer durable products that lasted for many years there would be fewer ‘repeat sales’ as the item will not need replacing as quickly, and revenue and profit could fall in the long term. So there is a conflict around the question of how long a product should last.
Some business analysts argue that manufacturers often operate on the basis of planned obsolescence, that is, deliberately designing products to fail after a certain period of time. However, reputation and business image will be damaged if the products stop working sooner than most customers expect.
The rapid pace of technological development has led to many consumers replacing products before their useful and serviceable life has ended. Modern consumer society encourages us to buy the ‘latest gadget’ and the ‘new improved models’ despite having a perfectly functioning older model. This practice leads to vast amounts of products being thrown into landfill or other disposal sites. In addition, some of the world’s scarce resources are used to manufacture the newer products.
The product life extension model focuses on lengthening the time period that a product can be used before it needs to be disposed
of. The objective is to maximise the lifespan of the product and reduce waste levels and exploitation of new sources of raw materials.
Benefits of product life extension models:
• They may reduce the costs of production as new resources become scarcer and more expensive; it will cost less in the long term to produce higher-quality and more durable products.
• The brand image of quality will improve as many environmentally aware consumers will place a higher value on more durable products and the businesses that make them.
• They improve the corporate social responsibility image of the business and attract eco-minded consumers towards its products.
• They reduce the risk of not meeting increasingly restrictive consumer protection laws in many countries that are insisting on products that perform effectively for longer.
• Businesses may sell more spare parts and maintenance materials to allow older products to be serviceable for longer.
Limitations of product life extension models:
• In some markets this approach will not succeed unless enough consumers prefer ‘longevity’ over image of the ‘latest model’.
• The initial manufacturing cost is likely to increase as higher- quality and more durable materials and components will be required.
• Consumer expectations of the life span of a product will increase, so if a business has a problem with the quality and
performance of one batch of products, negative publicity could damage image and sales.