Anchored Differentiation: The Role of Temporal Distance in the Comparison and Evaluation of New Product Designs

Abstract

A new design can be compared with its contemporaries or older designs. In this study, we argue that the temporal distance between the new design and its comparison play an important role in understanding how a new design’s similarity with other designs contributes to its valuation. Construing the value of designs as a combination of their informational value and their expressive value, we propose the “anchored differentiation” hypothesis. Specifically, we argue that expressive value (which is enhanced by how much the new design appears different from others) is emphasized more than informational value (which is enhanced by how much the new design appears similar to others) compared with contemporary designs. Informational value, however, is emphasized more than expressive value when compared against designs from the past. Therefore, both difference from other contemporary designs (contemporary differentiation) and similarity to other past designs (past anchoring) help increase the value of a new design. We find consistent evidence for our theory across both a field study and an experimental study. Furthermore, we show that this is because temporal distance changes the relative emphasis on expressive and informational values. We discuss our contribution to the growing literature on optimal distinctiveness and design innovation by offering a dynamic perspective that helps resolve the tension between similarities and differences in evaluating new designs.

Multilevel optimal distinctiveness: Examining the impact of within‐ and between‐organization distinctiveness of product design on market performance

“…), product design is subject to the contrasting pressures of conformity and differentiation. Research has shown that the success of a product design depends not only on its typicality with other product designs to increase consumer familiarity but also on its differentiation from other designs to enhance its novelty and uniqueness (Askin & Mauskapf, 2017; Chan et al, 2021; Liu et al, 2017; Zhao et al, 2018). Moreover, product design differs from other firm‐level strategic dimensions because it faces a unique twofold challenge: first, it needs to manage the conformity–differentiation tension vis‐à‐vis other organizations' product design, and second, for organizations with multiple products, managing the same tension among these multiple products within the same organization is also necessary.…”

“…We propose that the extent to which distinctiveness benefits or hinders performance depends on the level at which distinctiveness is conceptualized. In particular, we focus on the distinctiveness of product design, or the visual form of a product, which is increasingly recognized as one of the most important drivers of a product's market performance (Bloch, 1995; Chan, Lee, & Jung, 2021; Chan, Mihm, & Sosa, 2018; Radford & Bloch, 2011).…”

Towards an evolutionary view of innovation diffusion in open innovation ecosystems

“…• Evolutionary capability (e.g. Bradley et al, 2012;Chan et al, 2021;Suarez and Lanzolla, 2005) • Interdependent association (e.g. Bogers et al, 2017; Table 2.…”

“…Additionally, when it comes to the evolution of digital goods, individuals often find it difficult to assess when a product may evolve into something superior to its rivals (Bradley et al, 2012;Chan et al, 2021;Suarez and Lanzolla, 2005). Do there exist any factors that affect the evolvability of digital goods applied to innovation diffusion initiatives?…”

“…Additionally, when it comes to the evolution of digital goods, individuals often find it difficult to assess when a product may evolve into something superior to its rivals (Bradley et al. , 2012; Chan et al. , 2021; Suarez and Lanzolla, 2005).…”