Stylistic Differentiation in Cultural Markets: The Benefits of Conspicuous Category Spanning

In this study of nearly 6,000 films, I engage with two influential perspectives in cultural markets research: the theory of optimal product differentiation, and the theory of boundary-spanning risks. These theories have conventionally been viewed in isolation. Here, however, I build upon them and introduce an empirical approach to situating product features in relation to market categories. I propose that boundary-spanning differentiation holds the most appeal to audiences when it conspicuously incorporates elements from the spanned category, as opposed to incorporating elements that do not clearly connote an alternative, non-target category. My analysis of over 60,000 narrative features from the film sample provides robust empirical support for this proposition. I further find that the benefit of such differentiation is contingent on the popularity of the categories being invoked, but is independent of the time-invariant quality of the borrowed elements. This paper, thus, brings a unique lens to understand the intricate dynamics of stylistic differentiation in cultural markets.