Which term describes a product wearing out and becoming obsolete over time?

• A. Innovation
• B. Functional obsolescence
• C. Disruptive innovation
• D. Diffusion (Markets)

Answer: (B)

When a product becomes less useful over time because newer designs or standards outpace it, the issue is called functional obsolescence. It focuses on usefulness and relevance, not just whether the item is physically worn out. Even if the product still works, newer technology or changing user needs can make it feel outdated or inadequate, leading to obsolescence in practice.

This differs from terms about creating or spreading new ideas. Innovation and disruptive innovation describe bringing new products to market and shifts in competition, while diffusion describes how innovations move through markets. So the aging product that loses its usefulness to current needs is best described by functional obsolescence.