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

Organization Science

39 Pages Posted: 21 Nov 2018 Last revised: 12 Jul 2021

See all articles by Tian Heong Chan

Tian Heong Chan

Emory University - Goizueta Business School

Yonghoon Lee

Hong Kong University of Science & Technology (HKUST)

HeeJung Jung

Imperial College London

Date Written: August 19, 2019

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) when compared to 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.

Keywords: product design, design patents, innovation, optimal distinctiveness, mixed methods

Suggested Citation

Chan, Tian Heong and Lee, Yonghoon and Jung, HeeJung, Anchored Differentiation: The Role of Temporal Distance in the Comparison and Evaluation of New Product Designs (August 19, 2019). Organization Science, Available at SSRN: https://ssrn.com/abstract=3190262 or http://dx.doi.org/10.2139/ssrn.3190262

Tian Heong Chan (Contact Author)

Emory University - Goizueta Business School ( email )

1300 Clifton Road
Atlanta, GA 30322-2722
United States

Yonghoon Lee

Hong Kong University of Science & Technology (HKUST) ( email )

Clearwater Bay
Kowloon, 999999
Hong Kong

HeeJung Jung

Imperial College London ( email )

South Kensington Campus
Exhibition Road
London, Greater London SW7 2AZ
United Kingdom

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