Moral and Economic Obsolescence of a Product: How to Recognize the Inevitable
Purpose: This study aims to develop a practical system of indicators for distinguishing between moral and economic obsolescence in product life cycle management, addressing the critical gap in diagnostic tools that leads to recurring strategic errors in product policy decisions. Design/Methodology/Approach: The research synthesizes classical marketing theory with contemporary concepts of planned obsolescence, technological acceleration, and regulatory intervention. A multidimensional framework is constructed, integrating objective metrics (market share dynamics, price elasticity of demand, repair frequency) with subjective indicators (design evolution rates, perceived relevance, software support duration) to enable systematic differentiation between obsolescence types. Findings: The analysis reveals that moral obsolescence manifests through technological lag, aesthetic drift, repairability limitations, and software support discontinuation, whereas economic obsolescence is primarily signaled by unfavorable price positioning, heightened demand elasticity, escalating total cost of ownership, and repair cost thresholds exceeding replacement value. A two-dimensional assessment matrix is established, demonstrating that each combination of obsolescence types demands distinct strategic responses—price adjustments for economic obsolescence versus product modernization or replacement for moral obsolescence. Practical Implications: The proposed indicator system equips marketing practitioners and product managers with actionable criteria for diagnosing decline stage causes, preventing the common error of using price reductions to compensate for moral obsolescence or investing in modernization when price competitiveness is the core issue. The framework aligns with emerging regulatory contexts, including EU Right to Repair provisions. Originality/Value: This study advances beyond the generic dichotomy of obsolescence types by operationalizing measurable indicators applicable to contemporary market conditions shaped by accelerated technological cycles, planned obsolescence practices, psychological consumption patterns, and environmental regulations. The integrated assessment matrix offers a novel decision-support tool that bridges theoretical constructs with strategic product policy formulation.