Secondary Titles (2)
- Director of the Marketing Doctoral Program
- Weimer Faculty Fellowship
Industry Expertise (1)
Areas of Expertise (7)
Shareholder Value Creation
Strategic Brand Management
Gary C. Fethke Research Fellowship
Gary C. Fethke Research Fellowship, 2008-2011
University of Iowa - School of Management Marketing Faculty of the Year
University of Iowa - School of Management Marketing Faculty of the Year, 2007-09
Dean's Teaching Award
Dean's Teaching Award, University of Iowa Tippie College of Business, 2008
Marketing Science Institute Research Award
Marketing Science Institute Research Award #4-1462a & #4-1462a, 2007
University of Iowa Instructional Improvement Award
University of Iowa Instructional Improvement Award, 2007
University of Michigan Business School: Ph.D., Marketing 2000
Universidade Nova de Lisboa: M.B.A., Marketing and Strategy 1993
Universidade Nova de Lisboa: B.S., Economics 1991
Media Appearances (2)
Preparing for the Silent Workplace Catastrophe
Occupational Health and Safety online
Killing more than 300,000 people in the United States each year, sudden cardiac arrest (SCA) is a remarkably underappreciated public health issue. Because it can strike anyone at any time, preparation to address this exposure in the work environment is prudent from a traditional safety perspective. Importantly, cardiac emergency response planning also makes sound business sense.
The Key to Brand Acquisitions: Marketing Capabilities
Most large business-to-consumer firms market multiple brands and adjust their portfolio by buying or selling them. For example, since 2000, ConAgra Foods Inc. has been building a portfolio of 48 major brands, of which only three were developed in-house. And Unilever PLC announced a strategy in 2000 to slim its portfolio and increase its operating margins, eventually selling off Golden Griddle syrup, Elizabeth Arden perfumes, and several hundred other brands.
Hui Feng, Neil A Morgan, Lopo L Rego
2016 Using a contingency theory lens, this study explores the impact of multiple firm-level capabilities and their interactions on firm growth under different market conditions, using panel data from 612 U.S. public firms across 16 years in 60 industries. Specifically, this study empirically examines how three key firm capabilities (marketing, R&D, operations) interact to impact firms’ revenue growth and profit growth over time, and how external boundary conditions (market munificence and competitive dynamism) influence the interactive growth effects of these capabilities. The results indicate that firms’ R&D (operations) capabilities positively (negatively) influence the effects of marketing capabilities on firm growth and that such effects vary across different market conditions. This study provides insights to researchers and managers regarding how to manage and deploy resources across multiple capabilities simultaneously under different market conditions to drive firm growth.
Hui Feng, Neil A. Morgan, & Lopo L. Rego
2015 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.
Matthew T Billett, Zhan Jiang, Lopo Rego
2014 We explore the influence of customer perceptions from the product market on firms’ return characteristics in the stock market. Using customers’ opinions on over 1200 brands, we find that stocks of companies with prestigious brands have high market-to-book ratios and large negative loadings on the Fama-French HML factor. This relation is not explained by distress risk, asset irreversibility/growth, or information asymmetry. The HML loadings are most pronounced when retail investor ownership is high (when institutional ownership is low), when the brand is less familiar, and when market-wide investor sentiment is high. We conclude glamour in the product market is an important component of glamour in the stock market.
Lopo L. Rego, Neil A. Morgan, & Claes Fornell
2013 Market share and customer satisfaction are often used to assess marketing performance. Despite the widespread assumption of a positive relationship between these two variables, the limited extant empirical literature on the subject indicates either a negative or a nonsignificant relationship. The authors reexamine this relationship over a longer time period than has previously been possible in a representative sample of U.S. consumer markets and find a consistently significant negative market share–customer satisfaction relationship. This is because customer satisfaction is generally not predictive of firms' future market share, but market share is a strong negative predictor of firms' future customer satisfaction. In follow-up analyses, the authors find that a firm's customer satisfaction can predict its future market share when it is benchmarked against that of its nearest rival and customer switching costs are low. In examining why the market share–future customer satisfaction relationship is generally negative, they find strong support for preference heterogeneity as a key mediator in this relationship. They also show that marketing more brands moderates the negative effect of preference heterogeneity on future customer satisfaction. Thus, larger brand portfolios offer a strategy solution for the general market share–satisfaction trade-off.
Michael A Wiles, Neil A Morgan, Lopo L Rego
2012 Brand acquisitions and disposals are key strategic marketing decisions and often the largest single marketing investments that firms make. Yet little is known about the performance effects of such decisions. This study examines stock market reactions to brand acquisition and disposal announcements in 31 consumer industries. The results reveal that returns to such announcements depend crucially on three complementary firm assets—marketing capabilities, channel relationships, and brand portfolios—but that these effects may not be symmetric across brand acquisitions and disposals. Acquirer abnormal returns are greater for firms with strong marketing capabilities and those that buy brands with higher price/quality positioning than their existing portfolio. Investors also reward buyers that identify cost synergies in integrating new brand(s) into their portfolios but punish those that identify revenue synergies. Conversely, greater abnormal returns arise for sellers with inferior channel relationships and for those selling multiple brands, brands with relatively lower price/quality positioning than the seller's remaining portfolio, and brands unrelated to the rest of the seller's portfolio. The results from a paired subsample provide new knowledge about the positive net shareholder wealth created from brand acquisition–disposal transactions and indicate a strong role of marketing capabilities in creating this wealth.