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

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.