The underdog advantage in personal services: enhancing consumer confidence and outcome expectancy through effort-based positioning

Purpose – This research explores the underdog effect – the tendency to favour those perceived as disadvantaged – in the services offered by individual providers, using the lens of equity and self-identity to explain the underlying reasons behind consumer preference. Specifically, this study aims to examine the mediating effects of perceived effort, self-efficacy and outcome expectancy on the relationship between underdog positioning and consumer responses to individual service providers. Design/methodology/approach – Two experimental studies were conducted, manipulating underdog positioning through service provider biographies (underdog vs top dog narratives). Participants were recruited from panel data, and SPSS PROCESS macros were used for data analysis. Findings – The results of Study 1 revealed that the preference for underdog service providers was attributed to their perceived effort. In Study 2, the findings further demonstrated a sequential mediation that underdog positioning increased self-efficacy, which led to positive outcome expectancies, ultimately influencing consumer intention to hire underdog service providers. Originality/value – This research contributes to the underdog effect literature by identifying novel underlying mechanisms that explain why consumers prefer service providers with an underdog narrative. In addition, this study extends the application of underdog positioning to individual service providers, demonstrating that such positioning empowers consumers to pursue their personal goals within the service context.