Question

Leto understood the significance of product replacement in the early days of the mobile phone industry. How has the industry increased the frequency of purchase for durable goods, particularly when replacing phones?

A) By offering free years of replacement
B) By reducing the replacement time
C) By introducing new products
D) By implementing discounts on replacements

Answer 1

It's not just about offering free years of replacement or discounts on replacements, pushing the consumer towards the purchase of new products.

Step-by-step explanation:

The mobile phone industry has increased the frequency of phone purchases and replacement by introducing new products, reducing replacement time, and offering discounts on replacements.

The mobile phone industry has increased the frequency of purchase for durable goods, particularly when replacing phones, through a combination of factors:

• Introducing new products: Companies continuously release new phone models with enhanced features and improved technology to attract consumers to upgrade their current phones.
• Reducing the replacement time: The average lifetime of a cell phone is now shorter, typically around three years. This shorter lifespan encourages consumers to replace their phones more frequently.
• Implementing discounts on replacements: Phone companies often provide discounted rates or special offers for trading in old phones when purchasing new ones, making it more affordable for consumers to upgrade.

These strategies contribute to an increased frequency of phone purchases and make it more enticing for consumers to replace their phones instead of repairing them.