If we observe that the current market is not solving this automatically, the question whether a more abstract version of the current market will solve it is kind of moot. Either that, or we currently do not have a free market in the household appliance sector.
The reason it is not being solved by the free market, is that a free market is never the best option for all actors inside this market. There is always a group of actors who gains by having the market less free. So they will actively try to make the market less free by using their freedom in this free market.
In this case, household appliance manufacturers formed an alliance in that they all dropped on quality, and used obfuscation methods to make sure they cannot be punished by the consumer (who does not know who actually manufacturers which product), combined with a reduction in the number of manufacturers through series of acquisitions. Such oligopoly formation can be done without problem through mediation by independent consultancy companies, who go give the same presentations to all manufacturers.
well, Philips still is a billion dollar company today :)
I guess it depends on the market, if 'longest lasting bulbs' are a selling point, you lose the race. However, if all other manifactures like your business model they will follow.
Marketing is also important. Companies with best advertising often sell more than companies with the best products.
