Must the underdog win? The moderation effect of product type in the underdog effect of brand stories

Abstract

From politics to sports to business, people are quick to categorize those at a competitive disadvantage as “underdogs.” Moreover, there is ample anecdotal support that most people do not hesitate to align themselves with underdogs, a phenomenon called “the underdog effect.” This study examines the moderation effect of product type (hedonic product vs. functional product) between brand stories and consumer brand identification using a mobile phone as the manipulated product. The moderation effect is tested with data collected from 287 participants in Wuhan, China. Results show that product type plays a significant moderating role. Specifically, consumers have higher brand identification if a functional product uses “top‐dog” brand stories or if a hedonic product uses underdog brand stories. The implications, limitations, and future studies are discussed.