Practical Sales Training™ > How To Convert > The Underdog Effect
What is it?
The Underdog Effect is the psychological tendency for people to root for and support the smaller, less powerful, or underestimated competitor. When a business positions itself as the underdog, buyers often feel more emotionally connected and are more likely to show support by becoming customers.
Examples of the Underdog Effect in action:
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A small coffee shop winning loyal customers by positioning itself against big chains
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Independent brands highlighting their personal story to compete with global corporations
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Tech startups framing themselves as the challenger to industry giants
How does it work?
The Underdog Effect works because people like to feel they are part of a story where the little guy wins. Supporting an underdog makes customers feel they are making a difference and contributing to something meaningful.
It is effective because:
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It builds emotional connection: Customers feel empathy for the effort and struggle of the underdog
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It creates identity alignment: Buyers enjoy seeing themselves as the kind of person who supports fairness and individuality
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It encourages loyalty: Supporting the underdog feels personal, which increases long-term commitment
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It turns competition into contrast: By positioning against bigger rivals, the underdog becomes more distinctive and memorable
When framed well, being the underdog does not mean being weaker. It means being scrappy, resilient, and determined — qualities people admire.
How can you use it?
You can use the Underdog Effect in your sales and marketing to win attention and loyalty.
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Tell your story: Share the struggles you faced to build your business and what you stand for
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Highlight the contrast: Show how you are different from bigger competitors without attacking them directly
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Frame customer impact: Position every purchase as a way for customers to help the underdog succeed
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Use authenticity: Make sure your underdog story is real, not manufactured, or it will backfire
The principle is simple. People do not just buy products. They buy into stories. And the underdog story is one of the most powerful ways to win their hearts and their business.
Example
AVIS have famously been the number 2 car rental company and really leaned into that to grab buyer attention.
See also
