🎓 University-created products are more appealing

People were more trusting of and willing to pay up to 65% more for the same product when it was co-developed with a university.                                                                                                                                                                                                                                                                                                                                                                                                                 February 13, 2024 | [Read Online]( University-created products are more appealing People were more trusting of and willing to pay up to 65% more for the same product when it was co-developed with a university. [Thomas McKinlay]( [fb]( [tw]( [in]( [email](mailto:?subject=Post%20from%20Ariyh&body=University-created%20products%20are%20more%20appealing%3A%20People%20were%20more%20trusting%20of%20and%20willing%20to%20pay%20up%20to%2065%25%20more%20for%20the%20same%20product%20when%20it%20was%20co-developed%20with%20a%20university.%20%0A%0Ahttps%3A%2F%2Ftips.ariyh.com%2Fp%2Fwe-trust-university-created-products) New to [Ariyh](? This is a 3min practical summary of a scientific study 🎓 Join 25,923 marketers who use science, not flawed opinions 📈 [Subscribe here]( Today’s insight is brought to you by… [AE Studio]( Hire a world class AI team for 80% less [AE Studio](, trusted by top startups and Fortune 500s, delivers expert AI solutions with teams from Harvard, Princeton, and Stanford. They specialize in creating custom, cost-effective AI software, focusing on practical results. Their approach: efficient collaboration, clear goals, and delivering value. [Book an intro call now]( Want to sponsor Ariyh? Only 3 spots like these left in Q1. [Book yours here](. 📝 Intro You’re buying a fitness tracker to help you measure your workout. You narrow down your options to two models by a popular brand. They both have advanced AI chips: - One was developed in partnership with a university - The other was developed entirely in-house, by their professional team. Which tracker would you choose? Most people would go for the university partnership one. Here’s why. P.S.: Ariyh is inspired by how the Rotterdam School Management, Erasmus University teaches marketing. I had the idea for Ariyh while I was a graduate student there. An official collaboration with a leading university is something I think about often. Would it make Ariyh even more trustworthy in your eyes? (Just hit reply and I’ll read your answer, would love to hear what you think!) P.P.S.: Something BIG is coming on Thursday, keep your eyes peeled for it! Previous insight: [How to use emojis effectively]([Â]((more insights [here]() Products developed in collaboration with universities seem more legitimate and are more appealing Channels: Product | Brand and Strategy For: B2C and B2B Research date: June 2023 📈 Recommendation When developing new products, or marketing existing ones, try to collaborate with universities. Seek such partnerships, especially in high-tech industries (e.g. electronics, computers), and when targeting customers who hold strong beliefs in science (e.g. educated target groups, teachers, doctors). People will be more interested and willing to pay more for your product. 🎓 Findings - People perceive products developed in collaboration with universities as more attractive and innovative. - Throughout 7 experiments researchers found that when presented with a university collaboration (vs non-university collaboration product), people were: - Willing to pay 65% more for a university-co-developed smart fingerprint padlock - 16% more likely to click on ads - 2.46x more likely to judge products more favorably, and have a higher intention to recommend them - The effect was the strongest - For high-tech products, startups, and projects focusing on tech (vs looks) - Within politically liberal (vs conservative) groups in the US 🧠Why it works - We generally believe that universities hold scientific legitimacy. - When a firm co-develops products with universities, they seem more sophisticated, technologically advanced, and innovative. - Collaborations with strong, distinct university brands (e.g. Harvard, Stanford) [can seem even more effective]( but are not a requirement. - We believe that collaborative [firms can understand and effectively work with the latest scientific discoveries](. Their products appear more technologically cutting-edge. - So we like these products more and are willing to pay more for them. 📊 Do you have your marketing basics right? When people ask me “Is Ariyh for me?” I usually answer: Yes, BUT you need to make sure you’ve got your basics right first: your brand positioning, your strategy, even your analytics. Without them, optimizing with the latest science is just not as effective. Section’s [8-week Marketing Mini-MBA]( (May 6 - June 28) is the perfect opportunity to brush up on those basics. Sign up today and get 20% off with early bird pricing. Spots will go fast. [Enroll now]( Want your ad here? Only 1 slot like this left in Q1. To book it now [click here](. ✋ Limitations - Some experiments named the universities (e.g. University of Munich) while others did not (and used a generic “university”). It’s likely that using famous university names adds to the effect, but this was not tested. - The research did not analyze if collaborations actually led to more innovative and successful products, or if the effect was simply that of perceptions. 🏢 Companies using this - High-tech company and university collaborations are relatively common: - Italian startup Angles90 co-developed the first dynamic training grips with the Technical University of Munich. - US firm Argo AI announced its $15 million investment to create the Carnegie Mellon University Argo AI Center. It will focus on Autonomous Vehicle Research. - However, it is rare to see university collaborations for fast-moving consumer goods where technological qualities can still be important (e.g. sports shoes, vitamins). Amazon Kindle readers’ E Ink technology was developed at MIT, but this is not often communicated - which might be a missed opportunity. ⚡ Steps to implement - When developing innovative or technical products, consider collaborating with a University. - When marketing a product that has been developed in such a partnership, use labels like “co-developed with a university” or “backed by _____ university” to boost the product's favorable valuation.  - However, [do not use scientific branding and technical language for hedonic products]( (e.g. items meant for fun and pleasure like chocolates or perfume). Focus on communicating their benefits instead. 🔍 Study type Online experiments, a field experiment (336 people in Nuremberg tried fitness grips), and market observation (183,580 Instagram users in Germany and Austria saw an A/B ad test). 📖 Research [University Knowledge Inside: How and When University–Industry Collaborations Make New Products More Attractive to Consumers](. Journal of Marketing (2023). 🏫 Researchers - [Lukas Maier](. WU Vienna University of Economics and Business - [Martin Schreier](. WU Vienna University of Economics and Business - [Christian V. Baccarella](. University of Bonn - [Kai-Ingo Voigt](. Friedrich-Alexander-Universität Erlangen-Nürnberg Remember: This is a new scientific discovery. In the future it will probably be better understood and could even be proven wrong (that’s [how science works](). It may also not be generalizable to your situation. If it’s a risky change, always test it on a small scale before rolling it out widely. Rate today’s insight to help me make Ariyh's next insights 🎓 even more useful 📈 How was today’s insight? 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