Under the Umbrella: Goal-Derived Category Construction and Product Category Nesting

Abstract

Categories are organized vertically, with product categories nested under larger umbrella categories. Meaning flows from umbrella categories to the categories beneath them, such that the construction of a new umbrella category can significantly reshape the categorical landscape. This paper explores the construction of a new umbrella category and the nesting beneath it of a product category. Specifically, we study the construction of the Quebec terroir products umbrella category and the nesting of the Quebec artisanal cheese product category under this umbrella. Our analysis shows that the construction of umbrella categories can unfold entirely separately from that of product categories and can follow a distinct categorization process. Whereas the construction of product categories may be led by entrepreneurs who make salient distinctive product attributes, the construction of umbrella categories may be led by “macro actors” removed from the market. We found that these macro actors followed a goal-derived categorization process: they first defined abstract goals and ideals for the umbrella category and only subsequently sought to populate it with product categories. Among the macro actors involved, the state played a central role in defining the meaning of the Quebec terroir category and mobilizing other macro actors into the collective project, a finding that suggests an expanded role of the state in category construction. We also found that market intermediaries are important in the nesting of product categories beneath new umbrella categories, notably by projecting identities onto producers consistent with the goals of the umbrella category. We draw on these findings to develop a process model of umbrella category construction and product category nesting.

The short history and long future of research on market categories

“…However, we have not as yet witnessed this within the empirical literature. Second, despite Durand and Paolella’s (2013) elucidation of the difference between prototypical and goal-derived categories and their exhortation to study the latter, we have seen little empirical attention to goal-derived categories (for exceptions, see Boghossian and David, 2021; Glaser et al, 2020). We suggest here one way of integrating what we know about institutional logics to advance our understanding of market categories, in particular those that are goal-derived.…”

“…Research questions take the form of ‘How does a new market category come into use?’ (e.g. Boghossian and David, 2021) or ‘How does an existing category change in status?’ (e.g. Delmestri and Greenwood, 2016).…”

“…For example, grass-fed beef can be viewed as a product category (all grass-fed beef shares certain prototypical features). Notably, a goal-derived market category can include multiple product categories – the market category ‘terroir foods’ includes many different product categories in a given place, from wine to cheese to jams, all sharing the same meaning of representing the unique elements of that place (Boghossian and David, 2021). Finally, we suggest that the term ‘organizational category’ be used when the organization (rather than the product or the market exchange) is the unit of analysis.…”

“…The role of the government in the category construction process is also demonstrated in a growing group of studies that explore both category construction and change. For example, Boghossian and David (2021) explored the construction of the Quebec terroir market category and found that the state served not only as an 'audience' that bestowed resources to the nascent category but was also active in the construction of the category's meaning. This study also suggested that goal-derived categories (here, terroir foods) follow a different process of construction than prototypical categories (here, artisan cheese).…”

“…Producers, through their discourse, construct coherent collective identities, while the media enables key audiences to cognitively place the new category within their existing classification by grouping members of the new category (Kennedy, 2008; Khaire and Wadhwani, 2010; Navis and Glynn, 2010). In some studies, non-producers have agency that goes beyond evaluating producers – their actions help the new category achieve legitimacy (Boghossian and David, 2021; Georgallis et al, 2019).…”