The effects of brand positioning (underdog vs top dog) and comparative advertising

Abstract

PurposeThe purpose of this study is to understand the effect of different brand positions (underdog vs top dog) and comparative advertising on consumers’ brand attitudes. Additionally, this study also aims to demonstrate the effects of inspiration, self-relevance and empathy on the relationship between brand positioning and comparative advertising.Design/methodology/approachA two-by-three factorial design was employed with brand positions (underdog vs top dog) and three types of comparative advertising (noncomparative, indirect comparative and direct comparative) as the independent variables. Inspiration serves as the mediator, while self-relevance and empathy act as moderators and brand attitude is the dependent variable.FindingsThe results show that different brand positions significantly affect brand attitudes, with respondents having a better brand attitude toward the underdog brand. Brand attitude is partially mediated by inspiration. Self-relevance moderates the relationship between brand positioning and brand attitude. However, brand positioning, comparative advertising and empathy do not have interaction effects.Research limitations/implicationsThis study contributes to a better understanding of the effect of psychological variables on brand positioning and comparative advertising.Practical implicationsThe results suggest that the underdog setting requires a real and honest story because consumers will spot a fake underdog story, which will damage consumer trust in the brand and harm the brand image.Originality/valueThere is a lack of research using psychological variables to demonstrate the effect of being the underdog brand. This study contributes to the literature by employing psychological variables to illustrate the effect of underdog positioning. These findings can help brands develop branding positioning strategies.