Sizing Up Without Selling Out: The Role of Authenticity in Maintaining Long-Run Consumer Support for Successful Underdog Brands

Abstract

Research and market evidence indicate that positioning a brand as an underdog can be an effective marketing strategy. Interestingly, if successful, this strategy could result in brands outgrowing their underdog status. In such situations, the current research finds it is critical for underdogs to be perceived as authentic to maintain long-term consumer support. The importance of authenticity is revealed by depth interviews with underdog supporters and three experiments. The experiments reveal that a successful underdog brand is perceived as more authentic and maintains stronger consumer support if the founders do not sell out to a larger company (Experiments 1, 2, and 3). This effect is robust across “vote-for” and “vote-against” underdogs, and continued founder involvement with the company after selling out has limited effectiveness for maintaining perceptions of authenticity and consumer support (Experiment 2). When an underdog does sell out to a larger company, a communion-focused motivation can mitigate negative effects on consumer support (Experiment 3). Consumer perceptions of the brand’s authenticity mediate the relationship between the decision to sell out and consumer support. Our findings have implications for managing brands that have been positioned as underdogs but outgrow their disadvantaged standing.