Lopo L Rego

Lopo joined the faculty in 2011. Originally from Lisbon, Portugal, he has been in the US since 1994, when he started his "Grand

Areas of Expertise

Marketing-Finance Interface, Strategic Marketing, Shareholder Value Creation, Strategic Brand Management, Customer Satisfaction, Brand Equity, Empirical Generalizations.

Academic Degrees

• PhD, Marketing, University of Michigan Business School, 2000
• MBA, Marketing and Strategy, Universidade Nova de Lisboa, 1993
• BS, Economics, Universidade Nova de Lisboa, 1991

Professional Experience

• Associate Professor of Marketing, Indiana University, 2011-present
• Associate Professor of Marketing, Tippie College of Business, University of Iowa, 2010-11
• Assistant Professor of Marketing, Tippie College of Business, University of Iowa, 2003-10
• Visiting Assistant Professor of Marketing, Tippie College of Business, University of Iowa, 2001-03
• Adjunct Lecturer, Tippie College of Business, University of Iowa, 2000

Awards, Honors & Certificates

• Gary C. Fethke Research Fellowship, 2008-2011
• University of Iowa - School of Management Marketing Faculty of the Year, 2007-09
• Dean''s Teaching Award, University of Iowa Tippie College of Business, 2008
• Marketing Science Institute Research Award #4-1462a, 2007
• Marketing Science Institute Research Award #4-1462b, 2007
• University of Iowa Instructional Improvement Award, 2007
• Old Gold Fellowship, University of Iowa, 2005
• Old Gold Fellowship, University of Iowa, 2004
• Marketing Science Institute Research Award, #4-1262, 2004
• Doctoral Fellowship, University of Michigan, 1998-99
• European Union PRAXIS XXI - Fellowship and Scholarship, 1994-98
• Gerald & Lillian Dykstra Fellowship for Teaching & Academic Excellence, 1997

Selected Publications

• Feng, Hui, Neil A. Morgan, and Lopo L. Rego (2017), "Firm Capabilities and Growth: The Moderating Role of Market Conditions," Journal of the Academy of Marketing Science, 45(1): 76-92.
  
• Feng, Hui, Neil A. Morgan, and Lopo L. Rego (2015), "Marketing Department Power and Firm Performance," Journal of Marketing, Vol. 79, No. 5, pp. 1-20.

Abstract This study empirically investigates marketing department power in U.S. firms throughout 1993–2008 and assesses its impact on firm performance. Using a new objective measure of marketing department power and a cross-industry sample of 612 public firms in the United States, the results reveal that, in general, marketing department power increased during this time period. Furthermore, the analyses show that a powerful marketing department enhances firms'' longer-term future total shareholder returns beyond its positive effect on firms'' short-term return on assets (ROA). The findings also reveal that a firm''s long-run market-based-asset-building and short-run market-based- asset-leveraging capabilities partially mediate the effect of a firm''s marketing department power on its longer-term shareholder value performance and fully mediate the effect on its short-term ROA performance. This research provides new insights for marketing scholars and managers with regard to both marketing''s influence within the firm and how investments in building a powerful marketing department affect firm performance.

• Billett, Matthew T., Zhan Jiang and Lopo L. Rego (2014), “Glamour Brands and Glamour Stocks,” Journal of Economic Behavior & Organization, Volume 107, Part B (November), Pages 744–759.
• Lopo L. Rego, Neil A. Morgan and Claes Fornell (2013), "Reexamining the Market Share-Customer Satisfaction Relationship," Journal of Marketing, vol. 77, issue 5, pages 1-20.
• Wiles, Michael, Neil A. Morgan, and Lopo L. Rego (2012), “The Effect of Brand Acquisition and Disposal on Stock Returns,” Journal of Marketing, Vol. 76, No. 1, pp. 38-58. 
• Jung, Sanguk, Thomas S. Gruca, and Lopo L. Rego (2010), "Excess Loyalty in CPG Markets: A Comprehensive Examination," Journal of Empirical Generalisations in Marketing Science, Vol. 13, No. 1, pp. 1-13.

Abstract Customer loyalty is a key concern of marketing managers due to its potential impact on brand and firm performance. Share of category requirements (SCR) is one of the most widely used (and available) metrics of behavioural loyalty. We replicate existing research indication that the Dirichlet model is an accurate predictor of a brand''s SCR using a broad set of brands and categories in consumer packaged goods (CPG) markets across multiple retial channels in the United States. However, systematic deviations between the observed SCR and that predicted by the Dirichlet benchmark (i.e. "excess loyalty") remain. Excess loyalty is positively related to market share in most CPG categories (86%), a circumstance labelled by some authors as Triple Jeopardy. A cross-category analysis suggests that excess loyalty is significantly influenced by a brand''s market share and average purchase volume while measures of the brand''s marketing mix provide comparatively little explanatory power. By better understanding the drivers of excess loyalty, managers can more accurately evaluate a brand''s performance with respect to SCR, a key behavioural loyalty metric.

• Rego, Lopo L., Matthew T. Billett and Neil A. Morgan (2009), "Customer-Based Brand Equity and Firm Risk," Journal of Marketing, 73 (6), 47-60.

Abstract Investors and managers evaluate potential investments in terms of risk and return. Research has focused on linking marketing activities and resource deployments with returns but has largely neglected marketing''s role in determining risk. Yet the theoretical literature asserts that investments in market-based assets, such as brands, should lead to reductions in firm risk. Adopting risk measures that are well established in the finance literature, the authors use credit ratings to capture debt-holder risk and the standard deviation of stock returns to measure equity-holder risk, which they then decompose into systematic and unsystematic equity risk. The authors examine the impact of consumer-based brand equity (CBBE) on firm risk using data covering 252 firms from EquiTrend, COMPUSTAT, and the Center for Research in Security Prices over the 2000-2006 period. They find that a firm''s CBBE is associated with firm risk and explains variance in the risk measures beyond that explained by existing finance models (i.e., it has "risk relevance"). They also find that CBBE has a stronger role in predicting firm-specific unsystematic risk than systematic risk. The results have clear economic significance and suggest that managers should make brand management part of the firm''s risk management strategy and protect or even increase CBBE investments during periods of economic uncertainty.

• Morgan, Neil A., and Lopo L. Rego (2009), "Brand Portfolio Strategy and Firm Performance," Journal of Marketing, 73 (1), 59-74.

Abstract Most large firms operating in consumer markets own and market more than one brand (i.e. they have a brand portfolio). Although firms make corporate-level strategic decisions regarding their brand portfolio, little is known about whether or how a firm''s brand portfolio strategy is linked to its business performance. Using data from the American Customer Satisfaction Index and other secondary sources, the authors examine the impact of the scope, competition, and positioning characteristics of brand portfolios on the marketing and financial performance of 72 large publicly traded firms operating in consumer markets over ten years (from 1994 to 2003). Controlling for several industry and firm characteristics, the authors analyze the relationship between five specific brand portfolio characteristics (number of brands owned, number of segments in which they are marketed, degree to which the brands in the firm''s portfolio compete with one another, and consumer perceptions of the quality and price of the brands in the firm''s portfolio) and firms'' marketing effectiveness (consumer loyalty and market share), marketing efficiency (ratio of advertising spending to sales and ratio of selling, general and administrative expense to sales), and financial performance (Tobin''s q, cash flow, and cash flow variability). They find that each of these five brand portfolio characteristics explains significant variance in five or more of the seven aspects of firms'' marketing and financial performance examined.

• Morgan, Neil A. and Lopo L. Rego (2008), “Can Behavioral WOM Measures Provide Insight Into the Net Promoter© Concept of Customer Loyalty?,” Marketing Science, Vol. 27, No. 3, pp. 533-534.

Abstract We examine the ability of the "Net Promoter" of Morgan and Rego (2006) measure constructed using behavioral word-of-mouth (WOM) data to provide insights into the Net Promoter© customer loyalty concept popularized by Reichheld (2003), which is indicated by a score constructed using attitudinal "intention-to-recommend" data. We show that despite differences in data and operationalization, the two measures are very closely correlated and behave remarkably similarly when examined relative to a third related variable, customer satisfaction.

• Pingitore, Gina, Neil A. Morgan, Lopo L. Rego, Adriana Giglotti, and Jay Meyers (2007), "The Single Question Trap: The Net Promoter Score Has Limitations in Predicting Financial Performance," Marketing Research, 19 (2), 9-13.

Abstract This article examines the strengths and limitations of the net promoter score (NPS) concept from a practitioner''s perspective. The data show that the scaling of the intention-to-recommend question is not critical and that the NPS is not the only net customer feedback metric that correlates with financial performance and loyalty scales from which they are computed.

• Morgan, Neil A. and Lopo L. Rego (2006), “The Value of Different Customer Satisfaction and Loyalty Metrics in Predicting Business Performance,” Marketing Science, Vol. 25, No. 5, pp. 426-439.
• Gruca, Thomas S. and Lopo L. Rego (2005), "Customer Satisfaction, Cash Flow, and Shareholder Value," Journal of Marketing, 69 (3), 115-130.

Abstract In this article, the authors strengthen the chain of effects that link customer satisfaction to shareholder value by establishing the link between satisfaction and two characteristics of future cash flows that determine the value of the firm to shareholders: growth and stability. Using longitudinal American Customer Satisfaction Index and COMPUSTAT data and hierarchical Bayesian estimation, the authors find that satisfaction creates shareholder value by increasing future cash flow growth and reducing its variability. They test the stability of findings across several firm and industry characteristics, and they assess the robustness of the results using multimeasure and multimethod estimation.

• Dholakai, Utpal M. and Lopo L. Rego (1998), "What Makes Commercial Web Pages Popular? An Empirical Investigation of Web Page Effectiveness," European Journal of Marketing, 32 (7/8), 724-736.

Abstract There are two main objectives of the paper.  First, in a systematic and statistically rigorous manner, we attempt to descriptively document the types and nature of marketing information on commercial home-pages, with a view to identifying the major objectives of a contemporary commercial Web sites that pre-dominate the Web. Using Resnik and Stern''s "information content" paradigm, we evaluate the informativeness of commercial home pages. Second, we attempt to empirically examine various important factors of commercial home-pages that lead to increased visits, or hit-rates. The identification of hit-rate determinants is likely to be of great value, both to Web page designers and to the many small and large firms seeking to establish their presence on the Web.