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Collaborating with a university on a new product? Let your customers know!

Collaborating with a university infuses the underlying firm with a stronger sense of scientific legitimacy, thereby making the resulting product more attractive to consumers.

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Researchers from WU Vienna University of Economics and Business, University of Bonn, and FAU Erlangen-Nürnberg published a new Journal of Marketing article that examines how consumers respond to new products co-developed with universities and the unique marketing opportunities for these products.

Firms often collaborate with universities to access novel scientific knowledge and technological expertise with an aim to develop superior new products. For example, Italian start-up Angles90 co-developed the first dynamic training grips with the faculty of Strength Training Ergonomics at the Technical University of Munich and sold its patented innovation in more than 30 countries. In the U.S., autonomous driving technology firm Argo AI recently announced its investment of $15 million to create the Carnegie Mellon University Argo AI Center for Autonomous Vehicle Research, which will focus on advancing the field of self-driving technology. Well-established firms such as Adidas also engage in university–industry collaborations.

This research investigates whether consumers react differently to the same product upon learning it has been co-developed with a university as well as what these perceptions depend on and how strong are the effects. The study, forthcoming in the Journal of Marketing, is titled “University Knowledge Inside: How and When University-Industry Collaborations Make New Products More Attractive to Consumers” and is authored by Lukas Maier, Martin Schreier, Christian V. Baccarella, and Kai-Ingo Voigt.

The Value of Scientific Legitimacy

The research yields three major findings:

  1. Consumers perceive a given product as more attractive when it is portrayed as developed in collaboration with a university.
  2. Collaborating with a university infuses the underlying firm with a stronger sense of scientific legitimacy, thereby making the resulting product more attractive to consumers. “These firms are viewed as being able to understand and effectively work ‘with the latest scientific ideas in the field’ and capable of developing cutting-edge technological innovations,” the research team claims.
  3. The positive university effect is more pronounced when the scientific legitimacy conferred is more important to the: (a) product in focus (high-tech vs. low-tech), (b) underlying company (startups vs. established firms), (c) project in focus (technology vs. aesthetic design), and (d) target customer (high vs. low belief in science).

However, companies rarely advertise their products as co-developed with a university. In one study, the researchers asked 22 managers in an Executive MBA program to develop a short product advertisement based on background information about a company and its latest product, including the notion that the product was co-developed with a university. Only 4 out of 22 managers used the university co-development information when marketing the focal product. Another study involved 42 Master of Science in Marketing students. Again, only a small number of participants (14.6%) decided to include the fact that the focal product was developed in collaboration with a university in their advertisement copy.

Lessons for Chief Marketing Officers

“Once a firm has decided to co-develop a new product with a university, we highlight how and when actively marketing university-co-developed products as such may yield incremental benefits,” the researchers say. The study offers the following lessons for Chief Marketing Officers:

  • Firms that engage in open innovation practices with universities might not maximize the economic value of the products if they fail to broadly communicate the collaboration to their prospective customers. Using labels such as “co-developed with a university” or “university knowledge inside” can incrementally increase the product’s market performance. One of the studies shows that participants were willing to pay, on average, 65% more for the same product when it was portrayed as co-developed with a university.
  • The boundary conditions identified help managers anticipate when actively marketing university-industry collaborations will be more (or less) effective. Marketing products as co-developed with a university can be particularly promising for new firms, when the underlying product is high-tech, or when the target customer scores high on belief in science.
  • Since belief in science is markedly related with one’s political orientation, the positive university effect emerges strongly for liberals, but not for conservatives. Thus, marketing university co-developed products might be particularly promising when targeting the product to liberals. For example, Meta allows advertisers to target consumers according to their political orientation, categorizing them as “liberal,” “moderate,” or “conservative.”

Apart from political orientation, future research could look at other consumer characteristics with an aim to effectively target university-co-developed products. For example, scholars can test whether religiosity and nationality are moderators of the positive university effect. In the Netherlands, for instance, people tend to trust science and its institutions more than media, government, and courts of law. In contrast, there are other countries such as Guatemala with a very low belief in science and it will be interesting to see how consumers there respond to products co-developed with universities.

Strategies

Tips that businesses should consider during the holiday shopping season

Highlight your strengths—whether it’s one-of-a-kind products, exceptional offerings, or a strong local connection. Design your holiday strategy around what sets you apart and amplify these messages through social media and your marketing materials.

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As the holiday shopping season approaches, small businesses are gearing up for one of the busiest times of the year, from Black Friday to Small Business Saturday and beyond. 

SCORE, America’s largest network of volunteer, expert business mentors, offers entrepreneurs practical advice to make the most of the season.

Plan for the Holiday Rush

Reflect on last year’s performance. Did you meet your sales goals? Use your previous data to forecast sales, set promotional strategies and manage staffing needs to provide for outstanding customer care.

“It’s about more than just sales; it’s a powerful opportunity to connect with your community, attract new customers and reinforce relationships with loyal ones,” explains SCORE mentor Lizz Smoak.

If you plan on extending store hours during the holidays, communicate these updates with your team early so you are prepared to handle increased sales traffic. Ensure that employees are aware of the holiday schedule and have submitted any time-off requests to avoid last-minute scheduling conflicts. 

Create an Experience for Customers

“Engagement is key when customer traffic spikes during the holiday season,” notes SCORE mentor Christy Jones. “Consider offering curated gift guides or exclusive bundles to simplify decision-making for your customers, especially as you compete against large retailers like Amazon.” Plan a special event or connect with other local businesses to promote shopping small.

Stand Out from the Crowd

Consider how you can make your store or service the preferred choice. “Small business owners should contact their existing customers and highlight their unique level of service,” advises SCORE mentor John Doyle.

Highlight your strengths—whether it’s one-of-a-kind products, exceptional offerings, or a strong local connection. Design your holiday strategy around what sets you apart and amplify these messages through social media and your marketing materials.

Be E-Commerce Friendly

As you roll out holiday promotions, make sure that your digital doorstep is ready, too. Confirm your hours, location and contact info are updated on your website, Google Business Profile and other local listings. Many customers will be shopping on their phones so be sure your website is optimized for mobile use and that your most popular products are easy to find. A smooth checkout process is vital for keeping customers happy and encouraging repeat purchases.

“Small Business Saturday offers a prime opportunity for small businesses to step into the spotlight,” said SCORE CEO Bridget Weston. “With a strategic approach, small businesses can leverage this season and see big returns.”

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BizNews

Women more likely to choose wine with feminine labels

The more strongly the participants identified with other women, a phenomenon called “in-group identification,” the greater this effect was. A feminine label also influenced their expectation that they would like the wine better.

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To appeal to the majority of consumers, winemakers may want to pay as much attention to what’s on the bottle as what’s in it.

A three-part experimental study led by Washington State University researchers found that women were more inclined to purchase wine that had labels with feminine gender cues. The more strongly the participants identified with other women, a phenomenon called “in-group identification,” the greater this effect was. A feminine label also influenced their expectation that they would like the wine better.

With women representing 59% of U.S. wine consumers, the male-dominated field of winemaking might want to pay attention to the perceptions of this understudied group, said Ruiying Cai, lead author of the paper in the International Journal of Hospitality Management.  

“When you look at the market segments, women are actually purchasing a lot of wine. They are a large group,” said Cai, an assistant professor with WSU’s Carson College of Business. “We found that feminine cues speak to women consumers. They have more favorable attitudes toward the label and the wine itself. They were also expecting their overall sensory experience to be better, and they were more likely to purchase the wine.”

Gender cues often rely on stereotypes, and in initial tests for this research, a group of 90 women rated wine labels as more masculine when they featured rugged animals like wolves and stags as well as portraits of men. They designated labels as feminine that had cute animals, flowers and female portraits. Labels with castles and bunches of grapes were seen as neutral.

In two online experiments, a total of 324 women were shown fictitious wines with labels designed with these gendered cues. The participants showed higher intention to buy wines with a feminine label, such as a woman holding flowers, as opposed to a wine with a masculine label, such as a bulldog in a spiked collar. When asked about the expected sensory experience, they rated their liking of every sensory aspect higher, including the color, taste, aroma and aftertaste.

The participant’s level of wine expertise moderated their taste expectations but surprisingly, not their purchase intentions.

“Whether they were knowledgeable or less knowledgeable about wine, when they saw those feminine cues, they had a higher intention to buy the wine. The gender cue influence was so strong, it trumped the effect of that knowledge,” said co-author Christina Chi, a professor at WSU’s Carson College of Business.

A third experiment with another set of 138 women involved a taste test—also with a surprising finding. Researchers gave bottles of the same red wine with one of the gendered labels. More women who tasted the feminine-labeled wine ranked it higher in fruit flavors such as red current and blueberry than those who tasted the same wine with a masculine-cued label—and despite the fact those flavors were not dominant components in that particular wine. Women connected more mineral flavors with the masculine-labelled wine.

However, the participants who tasted the feminine-labelled wine reported liking it less than the women who tasted the masculine-labelled wines. The authors said this could be a result of the incongruence between the expected flavor influenced by the feminine label and the actual taste of the wine sample, which had a medium body, tannin and alcohol level.

Few studies have focused on the perceptions of women wine consumers in a field where 82% of the winemakers are men. That lack of perspective is very apparent on wine aisles, said Chi, noting that many vintners seem to favor masculine imagery like stallions, bulls and roosters–and one brand even features a prisoner in a jail cell.

“When designing the labels, winemakers should involve more women in the process, and it’s highly advisable to pilot test the labels among consumers for gender cues,” she said.

In addition to Cai and Chi, co-authors on this study include recent WSU graduate Demi Deng now at Auburn University and Robert Harrington of WSU.

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BizNews

License to chill? Bond shows ‘regressive nostalgia’ can freeze a brand’s future

“In order to minimize the negative impact of regressive nostalgia, it is important that the brand does not pander to the nostalgia displayed by a minority of super-consumers. Brand stewards must not be swayed by these loud voices and become exclusionary.”  

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Super-spy James Bond is a prime example of ‘regressive nostalgia’ highlighting how certain consumer groups cling to idealised past versions of brands and resist attempts to move with the times, a new study reveals. 

Researchers examined the James Bond movie franchise – a cultural icon for over 70 years – and discovered that some ‘super-consumers’ react negatively to modern portrayals of the fictional British secret agent that reflect contemporary societal values.  

Whilst loyal to the brand, these consumers prefer traditional, more exclusionary, versions of Bond which most closely follow author Ian Fleming’s original 1950s and 1960s vision – characterised as an arrogant, misogynistic, and racist Imperial British male. 

Publishing their findings in International Journal of Research in Marketing, consumer behavior experts from the University of Birmingham and ESCP Business School, London note that regressive nostalgia is characterized by a preference for racial and cultural purity and heroic masculinity. The phenomenon harbors exclusionary and aggressive tendencies that pose significant threats to brands. 

The researchers have, therefore, produced a toolkit to help marketeers shield their brand’s contemporary positioning from the negative connotations associated with this form of nostalgia – allowing brands to evolve without alienating their core consumer base. 

Finola Kerrigan, Professor of Marketing at the University of Birmingham, commented: “The James Bond franchise is a perfect example of how ‘regressive nostalgia’ manifests. Whilst the brand has successfully adapted to changing times, a small but disproportionally vocal part of its fanbase is anchored in the past, highlighting the need for careful brand management. 

“These ‘super-consumers’ cling to Ian Fleming’s characterisation of Bond and the period during which the novels were written to justify their nostalgia. They actively resist attempts to modernise the franchise, dismissing as ‘woke nonsense’ recent movies such as ‘No Time to Die.” 

Chloe Preece, Professor of Marketing, ESCP Business School, London notes that these Super-consumers view Bond as a heroic, white, male icon providing a ‘safe space’ for those feeling threatened by contemporary discussion about creating a more inclusive society. The character’s ‘man-of-action’ persona allows this group of mostly male consumers to identify with the spy’s ‘heroic masculinity’ based on his ability to sleep with the ‘Bond girls’. 

While the study focuses on the Bond franchise, the researchers identify parallels with other groups’ appropriation of brand resources and associating them with anti-social causes. 

“Brands use nostalgia to connect with consumers – delighting and enchanting their customer base whilst connecting them to others – but this makes nostalgia potentially dangerous in drawing consumers to the past, when it creates a sense of loss combining a cherished past and a despised present,” said independent scholar Dr Daragh O’Reilly. 

“In order to minimize the negative impact of regressive nostalgia, it is important that the brand does not pander to the nostalgia displayed by a minority of super-consumers. Brand stewards must not be swayed by these loud voices and become exclusionary.”  

The researchers note that marketeers should be alert to the risk posed by regressive nostalgia and have devised toolkit comprising of a series of questions to help brand managers assess the level of threat.

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