This study examines the ongoing debate in category research regarding whether typical or atypical products are more appealing to audiences. While prior literature has addressed audience heterogeneity in terms of value implications, it has largely overlooked how the same set of audiences apply distinct evaluative criteria across different dimensions of a product—a phenomenon captured by the “best-selling but not applauded” paradox. Drawing on a reference group selection framework, we argue that audiences shift between social and historical reference points when evaluating a product’s market performance versus its social reputation. Specifically, product typicality enhances market performance but detracts from social reputation. The underlying mechanism is further confirmed by examining the moderating effects of historical category density and contemporary market competition on this dynamic evaluative process. Empirical support for these hypotheses is drawn from a unique dataset covering audience-generated information from the Chinese film industry, revealing the complex interplay between product typicality and performance evaluation.
