How do enhanced and unique features affect new product preference? the moderating role of product familiarity

Abstract

Companies often introduce products with enhanced or unique features to compete with the dominant brands in the market. This paper examines the moderating role of product familiarity in consumer preferences of products with enhanced or unique features in two experimental studies. Study 1 (208 participants) operationalizes product familiarity at the product category level and Study 2 (168 participants) measures it at the individual level as one's prior experience with the product. The findings of two experiments show that when consumers are unfamiliar with a product category, they prefer a product with enhanced features to one with unique features. In contrast, when consumers are experienced, they perceive a product with unique features more favorably than an enhanced one. Furthermore, this effect is due to consumer perceived differentiation of and performance uncertainty about new products with enhanced or unique features. © 2007 Springer-Verlag.