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Feature-based vs Goal-based Categories: The Effects of Spanning in Both Systems Simultaneously

Previous research suggested that category spanning causes products to receive lower evaluations by audiences. We question this notion and propose that the effects of category spanning depend on the category system in which spanning occurs: in a system where memberships are determined by shared features, spanning can engender ambiguity and decrease products’ appeal; however, in a system where memberships are based on audiences’ goals, spanning can imply versatility and lead to better evaluations. Furthermore, we argue that these effects are different if products concurrently span categories in both systems. Our analysis of audiences’ evaluations of products in the commercial music industry supports these hypotheses: spanning categories in a goal-based system has a U-shaped effect, and whereas products with focused features benefit from having more goal-based memberships, products with heterogeneous features benefit from having fewer. The implications of these findings for the organizational literature are ...