The Impact of Underdog Positioning on Consumer Preference in Korea: Focusing on Local Service Providers

Abstract

Purpose - Small independent brands from local companies often use underdog positioning to compete with established global brands. However, whether the effectiveness of underdog positioning of local businesses in the service sector remains insufficient. The purpose of this paper is to investigate the underdog effect on the preference of Korean consumers for individual service providers positioned as underdogs. Design/methodology - The author examines the research question of this study using a one-way ANOVA in three different positioning (underdog vs. top dog vs. control) between-subjects design, with a group of Korean participants. Findings - The experimental study shows that support for independent local (vs. global) service providers positioned as underdogs is straightforward. Using the lens of consumer identification with underdog biographies, this study found that consumers prefer small local service providers with passion and determination regardless of their disadvantages. Originality/value - To the best of the author’s knowledge, this is the first study to examine the effectiveness of underdog positioning in the context of individual service providers. As it competes with global service companies for domestic consumer preference in Korea, the findings have great implications for ensuring the sustainability of small local service providers.