Wanting What Almost Wasn’t: Counterfactual Reflection Heightens Valuation of Branded Products

Apple and Google were started in garages. Fedex took off with $27,000 in winnings at a Vegas blackjack table. Southwest was conceived on a cocktail napkin. The story behind a brand has always been important to its consumers; indeed when the above companies come up for discussion, references to their interesting starting points are often not far behind. These examples also suggest that some origin stories contain a particular twist, a fork in the road or a close-call with disaster, that make the current stature of the brand seem more valuable. If not for the improbable blackjack win that saved the company from bankruptcy, there would be no Fedex today, and this story may make the company seem, as a result, more valuable. The present research explores the impact of these “what might have been” reflections on brand perceptions and consumption experiences. We further explore whether a particular mechanism – the elevation of product’s sense of meaningfulness to the individual – underlies the counterfactual reflection effect on brand experience.