Studies at HEC Montréal and Concordia University indicate it’s wise for you to also assess the degree of risk your target audience perceives in the purchase decision. The researchers saw how underdog positioning works best overall with shopper perceptions of low-risk transactions. With higher-risk categories—such as pharmaceuticals, financial investing, and life insurance—shoppers prefer top-dog brands. Top dogs are assumed to have greater competence and stability than underdogs.
In the studies, positioning as a top dog or underdog was accomplished with a brand biography the study participants read. Top-dog biographies included phrases like “market leading,” “well-equipped,” and “significant budget.” Underdog biographies used phrases like “relatively small and new,” “determination,” and “persevered.”
There was an important exception to the overall conclusion that perceptions of high risk draw consumers away from underdog brands and toward top dogs: When a shopper is able to cognitively and emotionally transport themselves into the brand biography—a process called “narrative transportation” by consumer psychologists—before thinking about high riskiness of a purchase decision, underdogs can maintain their attractiveness. This argues for underdogs presenting their case as early as possible with target audiences.
All this also argues for the underdog marketer reducing the perceptions of high risk for the shopper. One way to reduce perceptions of risk is to present more alternatives. Shoppers are more willing to take a risk in making a purchase when having a few options to select from Strangely, another way to reduce perceived risk is to add risk notices. Tell more risks than you need to. When you notify the shopper of more risks, this can reduce the shopper’s opinion of the total possibility of harm.
University of Miami and Boston University researchers saw this using as an example the dangers of a new drug to treat hypertension. A group of study participants was told the drug could increase the likelihood of seizures. Another group was told the drug might increase the likelihood of seizures, congestion, and fatigue. Then, when participants were asked to state how threatening they judged the drug to be, those told there were three side effects gave lower threat ratings. Adding minor risks diluted the total estimate.
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Overachieve as the Underdog
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