What Does it Mean to be Optimally Distinct? How Organizations Configure Product Feature Dimensions

Abstract

The optimal distinctiveness literature argues that products moderately different from category-based expectations conform for legitimacy and differentiate for novelty to out-compete rival products. However, most studies conceptualize optimal distinctiveness as a balance point along a single axis without considering how organizations configure multiple feature dimensions to position products. Distinguishing feature dimensions is important, because there are at least two distinct ways producers can configure feature dimensions for optimal distinctiveness: either by blending moderately differentiated feature dimensions or by combining tightly conforming and sharply differentiated feature dimensions. We study the video game industry to distinguish the game world and the game mechanics as the two key feature dimensions of games. With a dataset of 2,222 video games published on the 7th generation of game consoles, we demonstrate that games portraying a game world tightly conforming to the category schema through which gamers move with a set of game mechanics sharply differentiated from the category schema receive higher critical acclaim than rival games. Products can thus be positioned as optimally distinct not by blending moderately differentiated features, but rather by configuring high conformity and familiarity on some feature dimensions to legitimize sharp differentiation and novelty on other feature dimensions.