• Research by Vienna University of Economics and Business (WU) reveals that university partnerships provide enhanced ‘scientific legitimacy’ to products.
• Consumers are willing to pay up to 65% more for products created with universities.
• This effect is especially notable when it comes to high-tech products.

Products are much more attractive when developed in collaboration with universities, according to recent research from Vienna University of Economics and Business (WU).

The research, conducted by Lukas Maier (assistant professor of marketing), Martin Schreier (Professor of Marketing), shines a profound light on what can happen when academia and business meet and collude.

In a marketplace teeming with innovation, the sheen and added colour of a university collaboration lends a great allure to products. This confluence of credibility and innovation is not just a marketing tactic but an example of progress and trust in research and science. It is a place where the sanctity of knowledge meets the desires of the marketplace.

Consumers willing to pay 65 percent more

The positive perception of products co-developed with universities comes from the association of academic institutions with credibility, expertise, and innovation, which enhances the perceived value and trustworthiness of the products.

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).

This finding underscores the potential marketing advantage for companies that can authentically partner with universities in their product development processes.

As a part of the research, the researchers analysed the impact of university collaboration in advertisements. They found that adverts referencing university partnerships achieved higher click-through rates and engagement levels.

Remarkably, another field study confirmed these findings, showing that university-co-developed products remained more attractive to consumers even after they had tried the products.

On top of this, consumers even demonstrated a willingness to pay up to 65 percent 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, and a firm with scientific legitimacy is viewed by the buying public 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 concerns high-tech products, new companies, and products presented to consumers with a strong belief in science.

Moreover, the researchers found that this 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 for such marketing efforts.

Increased marketing potential

In parallel, research from business schools in the UK and the USA echoes these findings. Research from the London Business School found that products co-branded with university logos experienced a significant uptick in consumer interest and perceived value.

Andrew Jack in the Financial Times also underscores the marketing potential of university-industry collaborations. He noted that consumers tend to associate universities with high standards of research and development, making products linked to these institutions appear more reliable and advanced, highlighting that firms could substantially benefit from marketing their university partnerships, not just in terms of innovation but also in enhancing their brand image and consumer trust.

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 these collaborations. The findings highlight the significant commercial benefits of university-industry collaborations and their potential to drive consumer preference and increase revenue.

Firms engaging in university collaborations are missing out on significant added economic value if they fail to communicate these partnerships to consumers in their marketing. 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.

Competitive edge in a crowded marketplace

Leveraging university collaborations in marketing strategies can provide a competitive edge in the increasingly crowded marketplace.

As highlighted in both the Financial Times and The Economist, open innovation practices, which include university collaborations, are becoming more common and essential for maintaining a competitive advantage. Companies that fail to communicate their academic partnerships may lose out on potential market share to those that do.

Moreover, the strategic use of university partnerships in marketing can help companies tap into new customer segments, particularly those with a high regard for scientific research and innovation. This approach not only bolsters the company’s reputation but also aligns it with the values of its target audience, creating a deeper emotional connection and brand loyalty.

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.

Written by Thomas Willis

Image by Mikael Kristenson on Unsplash

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