5. want creation

Question 1

1. neoclassical thought:
2. institutional theory

Answer 1

1. suggests that firms make products as cheap as possible in order to minimise costs and maximise their profits
2. argues that the firms need to control consumers’ demand and make them purchase more products in a timely fashion in order to ensure the continuation of production

Question 2

what is planned obsolescence? (2)

Answer 2

• where the firm installs in the product a limited useful life
• consumer is under pressure to buy again

Question 3

types of obsolescence (6)

Answer 3

1. style obsolescence
2. psychological obsolescence
3. functional obsolescence
4. systematic obsolescence
5. economic obsolescence
6. ecological obsolescence

Question 4

advantages of planned obsolescence (4)

Answer 4

1. profits
2. job creation / sustain
3. technical progress
4. economic growth

Question 5

disadvantages of planned obsolescence

Answer 5

1. Swindling the consumer
2. Deliberately dishonest
3. Bad ethics
4. Resource depletion / more waste
5. Greater energy use / global warming
6. Reduction in repair / recycle / reuse mentality

Question 6

style obsolescence

Answer 6

• mainly aesthetics, reflecting cycles of fashion so they become ‘out of date’
• encourage customers to purchase unusual design schemes (fed by expectations, values, norms)

Question 7

psychological obsolescence

Answer 7

• installing in the buyer the desire to own something that is a little newer, a little better, or a newer version sooner than is necessary
• emphasise to the customer that they need to avoid appearing out of date

Question 8

functional obsolescence

Answer 8

• owners made updates since the item was made/purchased
• can be in good condition but no longer satisfying
• some aspects have ‘technological obsolescence’
• item is too slow to adapt to changing/new needs

Question 9

systematic obsolescence

Answer 9

• no forward compatibility
• new standards

Question 10

economic obsolescence

Answer 10

• when objectives/functions can be achieved in a more cost efficient way
• something outlives its economic life, and is beyond economic repair
• often upgraded

Question 11

ecological obsolescence

Answer 11

often things can be replaced with something that is more energy efficient, which saves money in the long run

Question 12

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Answer 12

• states that demand and supply are assumed to be separate issues that come together in the market
• firms offer customers their output
• consumers inform producers what to produce through their purchasing behaviour
• hence demand stimulates supply

Question 14

what does planned obsolescence result in:

Answer 14

• an increase in the amount of waste produced by society
• contributes to the destruction of the environment through a premature depletion of resources
• pollution of ecosystem

Question 15

ecological implications of the institution come in 3 main types:

Answer 15

1. social costs
2. social control state
3. predator