Purpose: The underdog effect refers to a positive attitude towards the underdog who lacks resources and opportunities but has passion and determination. Extensive research has been investigated how the underdog effect affects distributing consumer preference and purchase intention. The purpose of this study is to identify the theoretical basis on which the underdog effect is grounded by analysing the prior research in the underdog literature. Research design, data and methodology: This study organizes the literature on the underdog effect by analyzing a total of 33 journals published in the past 16 years. Constructs and variables were extracted from the selected articles through the content analysis on a systematic literature review. Results: This literature review reveals that identity theories served as an overarching theoretical lens when examining the underdog effect. Additionally, the underdog effect was rooted in theories of justice and equity to explain the relationship between underdog brand positioning and consumer preference. Conclusions: This paper paves the way for future research based on prior research and trend analysis of underdog brand positioning. This article also provides an insightful interpretation and synthesis of the theoretical underpinnings of the impact of underdog effects on consumers' overall brand evaluations.
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