People perceive products as more attractive when they are portrayed as developed in collaboration with universities, new research from Vienna University of Economics and Business (WU Vienna) reveals.
A series of experimental studies conducted by Lukas Maier (assistant professor of marketing at WU Vienna), Martin Schreier (Professor of Marketing at WU Vienna) and their fellow researchers revealed a positive university effect: consumers perceive a given product as more attractive when it is portrayed as developed in collaboration with a university. Critically, the researchers posit that this effect derives from the image of universities in general rather than the specific image of a given university (for example, MIT). The findings of the groundbreaking set of studies were published in The Journal of Marketing.
For example, an Instagram AB test highlighted the impact of mentioning university collaborations in advertisements, and the results were profound: adverts referencing university partnerships achieved higher click-through rates and engagement levels. Another field study confirmed these findings, showing that university-co-developed products remained more attractive to consumers even after they had tried the products. Remarkably, consumers even demonstrated a willingness to pay up to 65% more for products described as developed in collaboration with a university.
The researchers theorise that collaborating with a university infuses the underlying firm with a stronger sense of scientific legitimacy. A firm with scientific legitimacy is viewed as being able to understand and effectively work “with the latest scientific ideas in the field,” and thus capable of developing cutting-edge technological innovations. The researchers also found that this effect is especially pronounced when it is in relation to high-tech products, new companies, and products presented to consumers with a strong belief in science.
Moreover, the researchers found that the positive university effect was more pronounced among liberal consumers (a proxy for people with more belief in science), suggesting that political orientation could be a useful proxy for targeting the right audience such marketing efforts.
While previous research has highlighted the innovation potential of so-called university-industry-collaborations, the current study underscores the so-far-neglected marketing potential of said collaborations. The findings highlight the significant commercial benefits of university-industry collaborations and their potential to drive consumer preference and increase revenue.
Firms can leverage their university collaborations not just for innovation but also as a powerful marketing tool. Firms engaging in university collaborations are missing out on significant added economic value if they fail to communicate these partnerships to consumers. Labels such as “co-developed with a university” or “university knowledge inside” can boost a product’s market performance. By doing so, they can improve their market position and command higher prices, thereby unlocking additional economic value from their university partnerships.
This research underscores the significant advantages of university-industry collaborations. By strategically communicating partnerships, firms can enhance their scientific legitimacy, appeal to consumers, and achieve superior market performance. As open innovation practices become increasingly prevalent, the integration of academic collaboration into marketing strategies will likely become a key differentiator in the competitive marketplace.
