Fooling consumers?

Question

Consumer durable companies keep introducing new models. Are they not foooling consumers? If their earlier model was bad, why did they introduce it?

Answer 1

It's called progress, my friend! I feel the same way about computers; Every time I buy a new one, usually about a year or 2 after, it seems like there's more technology that we've created that I'd love to have; but they kind of keep the pricesof computers relatively low so instead of simple updates that may cost a few hundred, it's cheaper in the long run to just buy a new one! Hate it! But love the advances at the same time...

Answer 2

I think the one bad assumption you are making is that a new model is fixing something that is broken. Often, a new model or product is offering new or different features that the manufacturer thinks the consumer wants. As a result, they are (if done well) offering a better product rather than fixing a bad one.

The auto industry is a great example. First, there is virtually non-stop innovation going on- which means the 2007 will likely have new things not found on the 2006 models. Second, features which are very expensive when initially rolled out (satelite navigation, anti-lock brakes, airbags, etc) and so only on luxury cars, eventually get cheaper and work their way down to more economical cars- and so more new models come out.

In consumer products, the changes are often much smaller (to your point, how much cleaner can new Tide get your clothes if old Tide was already so good, supposedly?). But even there, they research new features and technologies that might make the product better (new bleach that is gentler on clothing) or saves you steps (fabric softener in the detergent).

So while I appreciate what you are saying, I think you are generalizing a bit too much. In most cases, innovation is being driven by: 1) consumers who always want something new and different; 2) new technology or processes that allow manufacturers to offer more; 3) a company need to keep relevant to consumers in the face of innovation in other parts of their markets.

Answer 3

Look at the price too.
Durable used to mean that a product would last a long time, if not indefinitely. However, people are pursuaded into thinking "omg I had my ___ for 6 months a I need a new one."
Companies get into a market for the long haul, which means they'll have to sell to a significant share of the market AND increase their market share while reducing their costs, dividends, and probably their quality.
Ever talk to an engineer who's job it is to put a cap on a product's durable life? I'd like to hear from one. I'm sure there are plenty out there.
Even if your durable product doesn't wear out, the kids at school will still make fun of you if your cell phone is too big or you have hub caps instead of rims. What do you do? You go buy a replacement for your perfectly good durable. Congrats - you're now an American. Also - you'll probably be wondering why you can't afford medication when you're too old to work. You'll just have to ask yourself - "Was it the new cell phone every six months?" or "Was it the spinners?"

Answer 4

One of the problems with production of durable goods is market saturation. What happens when everyone who wants your product has one. The solution so far has been the introduction of planned obsolescence. When the new model comes out people what one (with a little help from your ad agency) It is also a big help to make sure that the product does not last as long as it could. The real solution the the problem of market saturation lies in more flexible manufacturing and the building of a wealthy global network of consumers. Poor people in other countries are not only an ethical problem they are a business problem also. If they could afford nice goods then everyone would be better off. In a market that was ever expanding there would be no constraints on production.

Answer 5

If it says new and improved, we want it. It's the "keeping up with the Jones' " mentality. We always have to have the best, most up to date, on the edge of technology... it's not that the earlier model was bad, it's just not new any more.

Answer 6

They have to release to public, get feedback on what people like or don't like, then they can revise the product to make it "new and improved"

Answer 7

there is always room for improvement