We develop a spreading activation model, which we call the category activation model, to predict where within a category structure consumers are likely to position a subcategory that they have created to accommodate a new hybrid product. Based on this model, we hypothesize that the probability...

The research presented in this article provides evidence that add-on features sold to enhance a product can be more than just discretionary benefits. We argue that consumers draw inferences from the mere availability of add-ons, which in turn lead to significant changes in the perceived utility...