Academic Honors and Extracurricular Achievements Essay

I have always prided myself as being hard working, responsible, and committed to every endeavor I pursue. Over the past four years I have made the honor roll at my high school (by maintaining a GPA of 92 or higher). In my junior year, I was invited to participate in the National Student Leadership Conference, was inducted into the Asterean Chapter of the National Honors Society, and inducted into the Business and Marketing Honors Society of New York State. I have also been given the 3R’s Award, presented to me by my high school, for recognition of â€Å"Outstanding Reason, Respect and Responsibility.† I am an active member of student government, as well as an officer for several clubs and extracurricular activities. Since my freshman year, I have been a cheerleader at my high school. I have participated in both Sports Night and Pep Rally Night Dance teams, of which I was captain. Being a dancer for 11 years, it was gratifying to know that I had been given the opportunity in my school environment to share this passion with my peers. My involvement in the Italian club has had the most meaning for me. I am passionate about this language, which I have been studying for the past two years. I have been an elected officer of the club since my sophomore year. Through my roles as treasurer in grade ten and secretary in grade eleven, I have developed leadership skills and have greatly enhanced my public speaking abilities. I am currently president of the club and meet with my advisor several times a week prior to meetings to discuss future agendas. I have organized cultural parties, compiled a cookbook with recipes for traditional Italian meals, coordinated fundraisers, and helped my advisor plan our school’s exchange program to Italy this past February. Last year I organized the club’s fundraiser for Italian-American firefighters who were injured in 9/11 and I also made arrangements with my advisor to visit a local Senior Center. At the center, we sang songs with the senior citizens and brought our favorite Italian dishes to share with them. I am also very interested in government.

Establishing a Secured Atm Banking System

Establishing a Secured ATM Banking System Contents 1. Abstract 2. Introduction 3. Executive Summary 4. Mission 5. Company Background 6. Statement of the Problem 1. Problem Statement 2. Problem Significant 7. Project Objective 8. Limitation of the Project 9. Methodology 10. Analysis of the Project 11. Scope of the Statement 12. Proposed Improvement 13. Expected Output 14. Recommendation 15. Acknowledgment Abstract The aim of this study is to investigate risk management, security and controls in the Context of Automated teller machines (ATMs).In doing so, it adopts a non-technical Approach by investigating the interrelationship and effect of risk management and controls In setting Automated Teller Machine security goals. The literature explores and discusses The risk management and different controls of ATMs. To reduce the risk of fraudulent Activity, several controls can be integrated into the ATM processing environment. However, the controls should not be considered a cure-all. Keywo rds: ATMs, data security, risk, fraud, electronic banking, and controls.Introduction This paper examines the effects of incompatibility in network industries. In a network industry such as telecommunications, the internet, or automatic teller machines (ATMs) in the banking industry,firms are technologically interconnected. This interconnection can lead to more complicated pricing structures than those observed in traditional industries, since a consumer may receive direct or indirect services both from his chosen firm and its rivals.While interconnection increases the size of the network available to consumers, in industries such as the banking industry, the introduction of price discrimination between affiliated and unaffiliated consumers reintroduces firm-level network economies by reducing compatibility within the shared network. This paper measures the impact of this incompatibility and finds significant effects on competition in the deposit market, welfare, and investment. It a lso briefly considers an alternative institutional structure in which provision of ATM and deposit services is separated.In the banking industry, the customers of one bank can use their ATM cards at ATMs owned byother banks, but the ATM owner may charge a fee called a surcharge. This can be interpreted aspartial incompatibility between components of a system comprised of ATM cards (bank affiliation)and ATMs. Analogous to the strong complementary relationships between CPUs and peripheralsor VCRs and video tapes, ATM cards and ATMs form complementary components of a system thatallows consumers to perform transactions on their bank accounts.Consumers can choose variouscombinations of these complementary goods, but the compatibility is only partial since there is acost associated with use of a foreign ATM, that is, an ATM not owned by the consumer’s bank. There is a sizeable theoretical literature on compatibility in industries with network externalitiesor complementary component s. This literature predicts that incentives for compatibility differacross firms and will be smaller for firms with larger networks, since these firms lose the competitive advantage their network size confers under incompatibility.The effects on consumer surplus should differ depending on the distribution of consumer characteristics and the new price equilibrium that is reached. In turn, the effects of compatibility on price competition depend on a number of factors. In the banking industry, while partial incompatibility achieved through surcharging should theoretically soften price competition in the deposit market by making an increase in deposit. This paper will focus on the types of ATM transactions that can be performed on any ATM within the shared network such as inquiries and cash withdrawals.Executive Summary ATM An automated teller machine (also known as an ATM or Cash Machine), is a computerized device that provides the customers of a financial institution with the ability to perform financial transactions without the need for a human clerk or bank teller. Crime at ATM’s has become a nationwide issue that faces not only customers, but also bank Operators. Security measures at banks can play a critical, contributory role in preventing attacks on customers.These measures are of paramount importance when considering vulnerabilities and causation in civil litigation and banks must meet certain standards in order to ensure a safe and secure banking environment for their customers. The Automated Teller machine is a terminal provided by bank or other financial institutions which enables the customer to withdraw cash to make a balance enquiry, to order a statement, to make a money transfer, or deposit cash. The ATMs are basically self-service banking terminals and are aimed at providing fast and convenient service to customers.Some of the new generations of ATMs are able to cash a check to the penny, dispense Traveller’scheques and postage stam ps, perform stock transfers, print discount coupons, issue phonecards, and even sell concert tickets. Customers are grateful for these ATM features but they are alsovery concerned with ATM crime and safety. Mission Key to Success Company Background 1. Statement of the Problems/Problem Definition/ Automatic Teller Machines (ATM) indicates the development of Information Technology in Banking sector.Two types of ATMs need to be addressed, one of which is the branch ATM, The other being the out of branch ATM. The branches will take care of the ATM located in Their respective branches, while the out of branch ATMs such as those located in department Store will be taken care by cash centers. Each cash center has ATMs under its responsibility. At VIT there are three ATMs out of which two are out of branch ATM() and one is branch ATM(). The major problem faced by these ATMs are the long queue of customers at the peak hours and then at the off peak hours the lack of customer entry.The number of customer are so large that many a times customer waits for more than half an hour to get his turn but at nights the ATMs remain idle that there are no customers to serve . Depending on the current capacity of each ATM, many alternative decisions can be made. Now the work process decision is made by operators. Thus,the problem of ATM facility is significant. In this study, methodology â€Å"Simulating ATMs† is proposed in order to maximize efficiency Of banks to improve their customer’s service and increasing long term relationship with them And also to reduce the congestion at the ATM centre at peak hours.The process will show How much time a customer spends and give suggestion whether a new ATM is required or With the same resources the performance can be improved. This research will support the Banks in terms of decisionmakingfor reducing the waiting time of customers, by solving a Simulation model with the help of queuing theory. The technique of simulation has long been used by the designers and analysis in the physical Sciences and it promises to become an important tool for tackling the complicated problems Of managerial decision making.It is actually imitation of reality and when it is being put into Mathematical form it is called simulation. Generally, the main objective of simulation is to Minimize the managerial problem in terms of decision making and hence helps in reaching Solution with at most accuracy. Also it is comparatively free from mathematical solution, Hence can be easily understood by the operating personal and nontechnical managers. On the other hand queuing model is used to overcome the congestion of the traffic? This traffic Can be of any form.This model mainly used in situation where customers are involved, hence When it is being coupled with simulation it becomes very much conducive to get solution to Solve the problem related to customers. Therefore, these two models are used to understand The situation related to ATM waiting line and to find some alternative to overcome this Problem by suggesting certain alternatives. Automated Teller Machines (ATMs) provide banking services such as withdrawals, deposits, and transfers on a 24 hrs with 7days basis. Due to their convenience they are nowuniversal and are used by a diverse set of users located around the world.Despite this success, however, ATMs still suffer from a variety of problems. Since ATMs are used for banking, security is paramount. Personal banking information is highly sensitive and users are vulnerable while using ATMs. Keypads in particular have been exploited by criminals who have installed small cameras or touch-sensitive overlays, or in some cases have simply observed users as they have keyed in their pins. The physical security of users is also important. ATMs are open late at night but often have limited security.Users may feel anxiety and, in those cases, it is best that they complete their ATM operations as quickly as possibl e. In addition to security concerns, there are a number of known usability issues with current ATMs. For example, users may not know which card they have entered into the machine, and accidental key presses may trigger unintended operations. Similarly, ATM interfaces are often loosely-coupled with underlying functions and allow the users to perform illegal operations, only informing them after the fact of the inability of the system to carry out a given task.A good solution to both the usability and security issues will require further exploration of how ATMs operate. Ultimately, such a solution will include a reformulation of certain key ATM functions and novel technologies such as touch screens and web-based interfaces. 1. 1Problem Statement In most of the ATMs the major problem is waiting of customers in the queue for more Duration. Mainly the objective of ATM for bank is to keep away the customers from coming To bank and make the process easy for them to avoid the basic procedur e they do in bank.But As stated the problem which most ATM face is the long queue in front, but then when the Problem is only for a short while as rest of the time the ATM remains idle means adding to The operating cost. The problem is to determine whether only one machine is required to Fulfill the need or two more machines needed to be installed to give comfort to customer Which is really of short period of time. 1. 2 Problem Significance The cost of the installing an ATM machine accounts for a sizeable part of the total operating Cost of a company.Adding to it is cost of extra security guard who is needed to be placed There. But the customer satisfaction point of it is necessary to incur these expenses as Retaining them is more important, hence these cost are overshadowed by this fact. This Research will provide a robust problem solving technique for the realworld? Make a decision Related to reducing the ATM queuing problem to reduce operating cost. †¢Problem Objective The o verall objective of the research is to develop a model to reduce the waiting time of Customers and the total cost related to ATM installation. Problem Constraints In this research, the researcher has focused on the Problem of waiting of customer in ATMs For long to undergo a simple transaction with the available ATM machine, also to know Whether another machine is required to reduce the traffic at the centers by keeping in mind The cost incurred in installing. Methodology Introduction to simulation and queuing It is the imitation of reality like laboratories in which numbers of experiments are performedon simulated models to determine the behavior of real system in true environments.The example cited above is of simulating the reality in the physical form, and are referred toas analogue simulation. For the complex and intricate problem of managerial decision Making, the analogue simulation may not be practicable, and actual experimentation with thesystem may not be uneconomical. Und er such circumstances, the complex system is Formulated into a mathematical model for which a computer programme is developed, and The problem is solved by using high speed electronic computer, and hence it is named as System simulation. Queuing theory has been applied to a variety of business situations.All situations are relatedto customer involvement. Generally, the customer expects a certain level of service, whereasthe firm provides service facility and tries to keep the costs minimum while proving therequired service. This widely used in manufacturing units. Here it helps in reducing theoverhead charges and the overall cost of manufacturing. Also used to know is the unit arrive, at regular or irregular intervals of time at a given point called the service point. General Analysis of the Project ATMs are used by all modern commercial banks and are found in cities around the world.Modern ATMs already address many human interaction concerns, but still suffer from a number of usabi lity and other issues. The following are seven important aspects to consider when attempting improving ATM interfaces: Security Issue ATMs act as electronic tellers, and security is always an important concern for users. Major security issues are already addressed in the modern ATM design. A password, or PIN number, is used to protect the information. After decades of use, ATMs have proven the effectiveness of this security policy.However, this approach may not be sufficient in the future. Mugging and PIN theft should be addressed in a new ATM system. Mature biometric technology may be a good candidate to provide additional security. Besides password protection, modern ATMs also include ‘card eating’ features to provide customers with more security. However, instead of increasing customer security, this feature can in fact cause problems for authorized users due to misunderstanding or carelessness. This feature should be reviewed as part of a user-centered design proces s. FunctionalityATMs handle as many traditional teller operations as possible. Traditional ATMs implement most basic daily banking functions, such as deposit, withdrawals and balance checking. These functions are designed based on the performance limitations of computing and networking, which have changed rapidly over the course of the last few years. These limited functions may not be satisfactory by modern standards. The next-generation ATM should support the following features if possible: †¢ Money transfer: transfer money from one bank account to another person’s bank account. Bill Payment: automatically pay bills. Although a valid feature is provided in internet banking right now, ideally ATMs would still provide these functions for users without internet access. †¢ Other Electronic Finance Tools: Good examples could be electronic bank notes or electronic bank travel cheques. Usability Unlike some other electronic devices, ATMs should be useful to a wide-range of users and those users should be able to use the system with limited or no assistance. This aspect is critical to the new ATM design.Although these issues are already taken into consideration in the current ATM designs, evaluation may reveal that there is room for improvement in current systems. Theoretically, it is also possible that there is no perfect design once we review the usability requirements. We may have to provide a compromised solution to suit the majority. The following are some typical user stories for review: †¢ ATMs currently allow users to insert different cards but do not display visual cues to identify which card was inserted. A displayed image would provide good feedback to prohibit accidental operations using the wrong card. The current key layouts, especially the function keys, are slightly different between different ATMs. A new standard high-resolution touch-screen would be preferable. †¢ Not all current ATMs can support multiple-languages. Consi dering growing international trade and communication, multiple language support would be a very important feature. †¢ The current deposit and withdrawal functions also need to be improved. For example, the standard process for putting multiple cheques into ATMs is confusing, and the ATM withdrawal function does not support bill selection based on the customer’s request. The new ATM should allow the user to easily access money across the world. Efficiency ATMs must be both easy to use and fast. The more time a user spends at an ATM, the more inconvenienced the user feels. Wait times also increase for other users. Clearly, this is an important issue to consider when designing an ATM system. Accessibility As ATMs are physical machines, their design must take accessibility concerns into account. Some good accessibility features can be found in current ATM design. For example, the ATM keyboard includes Braille support for the blind. Current ATM design does not do a good job o f protecting people from others peeking from behind. †¢ The fixed height of ATMs can be inconvenient for some users. Threat & Affect ATMs should be attractive. Potentially, good looking ATMs could attract new users and make existing users more comfortable. For example, relaxing background music could relieve user anxiety during complex operations. There are three basic types of ATM attacks: †¢ Attempts to steal a customer‘s bank card information; †¢ Computer and Network attacks against ATM‘s to gather bank card information; †¢ Physical attacks against the ATM.THEFT OF CUSTOMER‘S BANK CARD INFORMATION †¢Card Skimming †¢Fake ATM machines †¢Card Trapping/Card Swapping †¢Distraction theft or ‘manual’ skimming †¢Shoulder Surfing †¢Leaving transaction ‘Live’ †¢Cash trapping COMPUTER AND NETWORK ATTACKS †¢Network attacks against ATMs †¢Viruses and malicious software †¢Phishing †¢PIN cash-out attacks †¢Utilizing a Fake PIN pad overlay †¢PIN Interception PHYSICAL ATM ATTACKS †¢Ram Raid Attacks †¢Theft of ATMs †¢Smash and Grab of ATMs †¢Safe cutting/Safe Breaking †¢Explosive Attacks Scope of the Project We should evaluate whether or not the ATM is helping to extend banking services.By mixing the web/mobile preauthorization transaction service with the traditional 24 hours with 7 days ATM service, service time can be improved and wait times reduced. Proposed Improvements Our initial meeting yielded many ideas for new ATM technologies that have the potential to improve user experience. We considered mobile phone interfaces, voice interfaces, refinements of physical button interfaces, high resolution touch screen interfaces, biometric identification techniques (finger print or retinal scan), and a web interface for pre-specifying ATM transactions.After a brief discussion of each of these ideas, we decided to talk in depth about the final three. The use of an advanced high resolution touch screen would not solve any problems in itself. but would allow for a more sophisticated user interface. The potential for increased screen space and detail could help address the need for a more intuitive layout, the issue of restricting input to acceptable dollar amounts, and multi-language support. It might also allow ATMs to perform some actions that are not currently possible such as displaying the customer's preferred name for each account and facilitating transfers to third party accounts.An advanced display could also be designed to restrict the viewing angle so that private information is less visible to malicious onlookers. One final advantage of a high resolution display is that it would allow for much more attention to aesthetics, and as Donald Norman tells us, â€Å"attractive things work better. † The main disadvantage of using a touch screen is that it may confuse users, and providing accessibi lity for the blind is more difficult than in cases where Braille codes can simply be added to keypads.The use of biometrics for identification would yield many benefits. The most obvious benefit of biometric technology is that it would increase the security of bank accounts, as a finger print is much harder to steal than a PIN. If the use of a finger print could eliminate the need for an ATM card entirely, it could drastically reduce time spent at the ATM, and it would eliminate the problem of inserting the wrong card. The idea we spent the most time on is a web interface to allow users to pre-specify ATM transactions.The general idea is that the customer can access the bank's website from a PC or mobile phone to input the operations that will be done at the ATM. For example, a user could specify that she wants to withdraw 360 ETB from her chequing account and 220 ETB from her savings account. She also has three cheques to deposit for 250. 35 ETB, 298. 70 ETB, and 329. 11ETB. She wa nts 100 ETB of the deposit to go into her son’s account and the rest to go to her retirement account.When the user arrives at the ATM and identifies herself with a card and PIN or a fingerprint, the machine will display the options she selected earlier and ask if that is still what she wants to do. After selecting â€Å"yes,† she simply inserts the cheques into the machine and removes her cash. While the benefits of this idea may not be immediately apparent, and may not be significant for simple ATM usage, it has the potential to drastically improve the user experience under some circumstances. In the previous example, the user needed to perform many transactions with somewhat nusual amounts of money. If this were to be done at a standard ATM, it could take a very long time to navigate through the interface for each individual transaction. During this time, any number of distractions could occur, including a line of angry customers amassing behind the user or the user' s child suddenly beginning to cry. Under these circumstances, it would be easy for the user to enter an incorrect amount or even to forget one of the transactions completely. However, with the web site, all of the decisions would be made in the comfortable environment of the user's home or office.Besides helping the user to ensure that all transactions are executed properly, this web interface could cut down greatly on lines at ATMs, increasing customer satisfaction and physical security. Another scenario where this could be useful is for outdoor ATMs in bad weather. If the user drives to the ATM and then realizes that being outside would be unpleasant, she could access the web site through her mobile phone to pre set the transactions and minimize time spent outdoors. Such a radical departure from present ATM interactions is certainly not without drawbacks.One of the main issues is that not everybody has web access, especially through their mobile phones. The ATM would definitely ne ed to have a standard user interface in addition to web capabilities. The web site would also introduce security concerns with password attacks and network communication to the ATMs. Hopefully these problems have already been solved in the current implementation of online banking. Finally, as with any UI, poor design could cause this idea to become frustrating and useless. These preliminary ideas have been developed based on initial meetings and brainstorming.Further research and information gathering will lead to the refinement of our proposed system changes, and an iterative design process will allow us to develop a prototype of a highly improved, secure, accessible, and intuitive ATM system and extended web-based interface. Conclusion (Expected Output from the Project) The main purpose of this study is to develop an efficient procedure for ATM queuing Problem, which can be daily used by banks to reduce the waiting time of customers in the System. The queuing characteristics of cu stomers were observed and the researcher compared The process of customer behavior of different ATM services at VIT.It is concluded that the ATM service should introduce in men’s hostel (around ? thstudents strength stay in hostel) Will facilitate pulling more customers towards ATM service. The researcher suggested that the SBI can install a new ATM machine in men’s hostel in spite of high installation cost and thereby reduce the customer cost and service cost for attaining benefit in the long run. This will be helpful for commercial bank to sustain more potential customers in high competitive situations with other private banks.ATM provides financial services to an increasing segment of the population in many countries. Fingerprint scanning, continues to gain acceptance as a reliable identification and verification processes. This paper identifies a model for the modification of existing ATM systems to economically incorporate fingerprint scanning; and, outlines the a dvantages of using such system. It should be noted that the customers perception cannot be generalized as it was highly affected by the tradition/ culture of the user involves. Recommendation for Further StudySeveral aspects of waiting problem for the ATM that remained unsolved in this study will Form interesting topics for further study. The following recommendations are made for Further studies: It is observed that if a person is not well versed with ATM takes more time which is not Considered. Also many customers stand in the queue and leave which can be put into the consideration. †¢ The time the workers take to feed the ATM with currency is not considered. †¢ Out of stock situation can be considered. †¢ On holidays mostly after exams the utility of ATM to be considered.The main limitation of the research due to time constraint it is observed with minimum sample, if sample size would have increased, the result obtained by both in simulation and queuing will coinci de. This study would not consider waiting cost and service cost due to non availability of original information. For future research, this study can be extended by considering the cost factors to find out the best ATM facility. ACKNOWLEDGMENT I wish to acknowledge ________________University and Wegagen Bank, Addis Ababa Ethiopia for their support in providing the various facilities utilized in the presentation of this paper.

Damelin Port Elizabeth Essay Example | Topics and Well Written Essays - 1750 words

Damelin Port Elizabeth - Essay Example Insurance product offering are based on life, home and vehicles needs of a demographic, the home loan includes specially tailored products for certain category segments based on ownership patterns ranging from home owners to tenants and other liability protection as needed in that industry. Wachovia's auto loans segment has introduced ConceirgeClaim 2 service that guarantees auto repairs with 24 x 7 customer support. Health insurance include the standard long term health insurance for all micro segments, and introduces a more specialized Wachovia Health Advantage and Health Saving account 3 that work as retirement saving account and are tax advantaged for those looking for deeper involvement in their health insurance plan. Wachovia sets high standards for customer satisfaction as it designs fiscal category products designed on segments based upon demographic, psychological and behavioural profiles and its multiple needs. Wachovia's investment brokerage accounts provide for self-direc ted accounts and for those who need a constant financial advisor through their investments. The retirement planning products based on 20 - 70+ year demographics have specific programmes relevant to a certain age groups with updating schemes as certain class of consumers evolves through the age groups. Wachovia's planning guides 4 help establish future product offerings to current and potential customers by providing educational resources prompting smart fiscal decision making. The customers make informed purchases based on Wachovia's planning guide and this fosters trust and higher customer satisfaction since Wachovia's products are designed based on those needs. A cyclical loop of recurring business with target markets is established. Wachovia provides wealth management services and acting as an executor for the clients that have achieved a certain financial success and need more customized plans and deeper involvement from Wachovia. Services include financial and estate planning, investment and asset management as well as insurance and trust and philanthropic services. These functions are specialized and customized, hence, those that avail of these services get one of its kind deal based on their needs. The effective utilization of the "Next Logical Product" approach for achieving customer satisfaction and establishing relationship by Wachovia is reflected in its financial products. B) Wachovia segments its household market based on demographics, psychographics and behavioural classification. For personal finance, Wachovia offers a band of products based on psychographic needs ranging from those in campus to retirees in banking, insurance, investments, lending and retirement needs. In insurance Wachovia provides for life with standard across demographics and specialized tax saving health plans, home and auto needs segregate products based on ownership patterns (owners, tenants etc), financial rate preferences (fixed rate, 100% financing) and special needs based on the lifestyle of a target market. In banking, besides providing a free checking account, Wachovia also provides a free student checking account, Access Fifty Checking and Crown Classic Banking for those

1886 Earthquake of Charleston Research Paper Example | Topics and Well Written Essays - 1000 words

1886 Earthquake of Charleston - Research Paper Example Even though the quake lasted less than one minute, its implications on Charleston were significantly damaging to property and life.1 It is estimated that the earthquake resulted in the destruction of more than 2,000 structures and buildings. The value of the damages which the earthquake caused is approximated to be over $145 million. The loss of human life is estimated to be about 108 people. Some of the negative implications of the 1886 Charleston earthquake are observed even up to the present days.2 This paper gives a critical analysis of the Charleston quake of 1886 with illustrations of its consequence for the region at the time and of what it means to the modern political, social and economic systems. The physical damages that the earthquake caused in the Charleston region include the displacement of large portions of tracks and curvy formations in addition to longitudinal land movements. In the region, more than 75 km of rail lines were also destroyed. Geographic malformations such as fissuring and craters were formed extensively in the region.3 These malformations indicate the powerful nature of the earthquake. Therefore, both economic and social implications were felt as a result of the earthquake, as revealed by the deaths of people, displacement and destruction of infrastructure which served to support the economy within this region. The regions surrounding Charleston also felt the impact of the earthquake which was experienced even more than 60 miles away. Other sources reported that structures were damaged as far as in Kentucky, Ohio and Alabama which are located hundreds of miles away for the region of Charleston. Toward the Northern Side, reports showed that the quake was experienced in Boston and New Orleans to the West.4 The extensive nature of the earthquake is illustrated by its reach and the geographical scale that it was measured to have reached. The measurement of the quake was estimated to have reached up to 7.3 as revealed in the Richter scale. The soil liquefaction which characterized this earthquake was recorded along the affected areas. It is said that there are minor quake activities in this region which have been recorded and measured by geologists in order to determine the possibility of a major quake happening again and the implications that would result from it. The minor activities of quakes experienced in the Charleston area have been attributed to the aftershocks of the 1886 quake. This implies that the major Charleston quake is being experienced up to the present days through in a smaller scale. The damaging Charleston earthquake has been explained by geologists as a consequence of the faults and malformations which occurred when the Pangaea was breaking. However, some scientists argue that there were less significant earthquakes which were experienced in the Charleston region and they would be attributed to the severity of the 1886 earthquake and the extensive damage which resulted out of it.5 The impli cations of geological studies and investigations of earthquakes in the present times are related to the fact that the faults of the Pangaea breaking may have future consequences in other parts of America such as the Northern coast. Because of the high magnitude of the Charleston Earthquake of 1886, it is an area of extensive study and investigation. As an example of an intra-plate earthquake, scientists and geologists study the Charleston quake with an aim of predicting the possibility of future experiences of such quakes. As a result of these studies, geographic and political implications of earthquakes have increasingly become significant in America.6 The severity of the Charleston quake was demonstrated by the widespread ejection of sand along the epicentral region. Geologists say

CPI valuation Essay Example | Topics and Well Written Essays - 500 words

CPI valuation - Essay Example The price-to-earnings ratio represents the difference between CPI’s current share price in the market as compared to its per-share earnings. Currently CPI has earnings exceeding $200,000,000 annually, however, it is only regionally located at this time within the United States. Major competitors of CPI in similar areas, hair care and personal hygiene are globally positioned with revenues in the billions annually. This specifically means that CPI is not able to play at the same level as some of the larger conglomerates. For instance Proctor and Gamble a global competitor listed as PG on the New York Stock Exchange traded on Friday April 21, 2011 for 63.27 a share with a volume of 10,616,245 shares on the market (Proctor and Gamble, 2011). This allows for over 600 million dollars in revenue available through stocks alone, with over 2/3rds more revenue than CPI in stocks alone in addition to a global presence Proctor and Gamble easily outpaces CPI. However, this is one aspect and should not keep the board from advancing the proposal to globalize and expand our market base and operations.

Spiritual Life Essay Example | Topics and Well Written Essays - 1250 words

Spiritual Life - Essay Example This force pushes Luke and any fellow Jedi, or any pursing to be a Jedi, on to be something greater than they originally were, and it usually does so by having them confront and overcome some of their greatest fears and weaknesses. This â€Å"force† in a way mimics the â€Å"grace† that is defined by Scott Peck in the third and final section of his book, A Road Less Traveled. Grace, according to Peck is something that originates outside of human consciences that pushes man to confront their weaknesses and become something greater than they were, and in this way it aids in their spiritual growth. He states that it, â€Å"somehow pushes us to choose the more difficult path whereby we can transcend the mire and muck into which we are so often born† (266). In this way Peck views adversity or the unpleasant circumstances which some find themselves in, not as unfortunate happenstance, but as a way to grow and to become something greater than they could have been otherw ise. Examples of this can be seen all over our world today. People, who have been born into poverty and arise to become millionaires, people who come from abused homes only to become world famous physiologists. One such famous person, who was born into the most unpleasant circumstances and has arisen to become the wealthiest and most powerfully influential women in America, is Oprah. After taking a look at Oprah’s early life, the testing and trials she went through, her transcendence, and the lessons she learned, we can accurately view Peck’s version of grace, or the idea of a ‘force’, in action.... Oprah’s grandmother lived on a primitive farm, but she managed to teach Oprah how to read at the early age of three and took her to church faithfully. Oprah excelled at her grandmothers house, and would even recite scriptures in front of the church, much to the congregations delight. When Oprah was six her mother, who had finally found steady employment as a housemaid, took her to live in Milwaukee. Her mother had to work long hours at her new job so this left Oprah alone, most of the time, in their inner city apartment. It was alone in this apartment that Oprah was reportedly sexually abused by many male relatives and other visitors, until she finally ran away from home at the age of thirteen. Upon running away from home, she was sent to a juvenile detention center but was denied admission because the beds were filled. So by the young age of fourteen Oprah found herself on her own, living on the streets. She was self proclaimed sexually promiscuous during this time, and she g ave birth to a baby boy who died in infancy. Most would stop at this point of reading into Oprah’s early life, if they did not know of her, and guess that she went on to lead a meaningless life of prostitution or worse, got addicted to drugs and died at a young age. Her early life had given her nothing but hardship. According to Peck, however, it is by going down this road less traveled, or the road of hardship that enables a person to transcend. So it would be not what Oprah had gone through that became the defining factor in Oprah’s life but how she handled it that was the true test of what she could become. Now we will uncover how her life began to change for the better,

Human Sexuality Book Review Essay Example | Topics and Well Written Essays - 2500 words

Human Sexuality Book Review - Essay Example s up the interesting possibility that other cultures may consider Western sexuality to be odd or abnormal, in much the same way as earlier writers on sexuality have tended to accept the Western model as normal, while sexual patterns in other cultures are viewed as strange and exotic. This book is very useful to a reader because it offers a more composite human framework of sexuality rather than a model dominated by Western thought patterns. The authors view sexuality as a primitive heritage which has evolved over the course of time, both physically and behaviorally, as a means to cope with the changes taking place in the immediate environment. The focus of this book is this on the elements that all human being share in common as one species rather than in highlighting and focusing upon the differences in sexual behavioral patterns and attitudes across different countries in the world. Such differences, even where they occur, are to be understood and appreciated and used as a means to enhance out understanding of ourselves as different yet related groups within the same species. 2. This book also goes into an indepth discussion of sexual behavior in human beings. It covers many of the important issues such as the anatomy of the male and female bodies, puberty and adolescence and the sexual changes that occur during this period, pregnancy and childbirth and as well as issues related to the nature of sexuality as it changes with ageing. The book also discussed sexual positions and how sexual foreplay and mating patterns have developed in the human race over the course of our evolution from primates. What is fresh and different about this book however is that it examines these issues from an anthropological perspective, where the cultural context is also taken into consideration rather than viewing sexual progression over the life cycle as being an isolated event. In describing the development of sexuality and especially the institution of marriage, the book

Economic growth is one of the macroeconomic objectives of the Essay

Economic growth is one of the macroeconomic objectives of the Australian government . Outline the problems that arise in measuring economic growth - Essay Example It also fails to consider the externalities that may be negative like those caused by pollution as well as depletion of resources. (tradingeconomics.com, 2011) Globally, the process by which the wealth of a nation is determined or poverty is a complex task since there lies a predicament while trying to obtain compatible type of data. Different nations may be having different data types and thus, comparison in performance fails to be objective at the end. GDP as mentioned earlier is the method that is mostly used in the world to measure a country’s growth and Australia has followed this method as utilized by United Nations. This GDP method does not consider the incomes that come from corporations and individuals. This is especially if these incomes come from foreign sources and this approach further shows the weakness of measuring the growth of a nation. The alternative method, (just to mention), that was usually used to measure an economy’s growth and that was applied universally in the world was GNI. The difference arises where GNI considers income from outside the country while GDP does not. (Kendall, 2010

Driving Age Essay Example for Free

Driving Age Essay Driving age Turning the age of fifteen is a huge step in the life of a teen. When becoming this age a new challenge is brought into the persons life, the task of driving a car. But are fifteen year olds ready for this task. Driving a car is a task that should only be taken on by teenagers over the age of eighteen, because they are more responsible and understand the risks involved. In this essay I will explain and give reasons on why I think that the driving age should be raised to be able to get your drivers license at. 102 First Argument Teenagers not needing vehicles In todays society the idea of fifteen, sixteen and seventeen year olds operating cars has become a way of life. But if one stops to think about it, there is no need for these drivers to be on the road. Most of these drivers still live at home and have no Job because theyre still in school. So they have no Job to drive to or from. To go to school they can take the bus or be dropped off by their parents. I know theres so many times when I want to drive somewhere because my parents arent home or I Just want o be by myself outside of the house. Im sure a lot of teenagers that are younger than sixteen cant wait to be able to get on the road. Maybe they arent responsible enough, but then they shouldnt be driving. 144 Second Argument Accidents are caused mostly by teenagers The dramatic increase in teen accidents has lead major portions of the public to favor the driving age to be raised to eighteen. The direct concern is over fifteen, sixteen and seventeen -year-old drivers if they are responsible and experienced nough to drive on the road. Most New Zealand citizens agree that accidents involving teen drivers are their lack of Judgment and irresponsibility as a driver, and as well as their lack of experience and poor attention to details. I believe that the increase in teen accidents may decrease if the driving age is raised to eighteen. 98 Teenagers between the ages of fifteen, sixteen and seventeen years of age are more prone to get in a car accident then an eighteen or nineteen-year-old driver. There is a mall percent of teens on the road that obey the traffic laws, but there are many teen drivers that are reckless and showoffs. They rather gamble their life away drag racing down the freeway or down the street then acting responsible and mature while driving. The consequences of unsafe or irresponsible teen driving a cause 77% of automobile accidents. Parents and other supporters may argue that there is no difference between an eighteen-year-old driver to a sixteen or seventeen year old driver between the amount of experience they have. 123

The Telephone Consumer Protection Act of 1991 (TCPA) Essay Example for Free

The Telephone Consumer Protection Act of 1991 (TCPA) Essay The Telephone Consumer Protection Act of 1991 (TCPA) was established to protect consumers from the increasingly intrusive methods employed by telemarketers. Information technology advances such as auto-dialers, predictive dialers, and automated faxes made it easier to reach large numbers of businesses and households in a relatively short time. These methods were not only highly annoying to consumers, but through the use of these devices, telemarketing companies were also passing some of the cost of marketing onto the consumer. Consumers on the receiving end of numerous calls from various companies throughout the day were spending time that could have been spent in other activities and were rightly frustrated about the loss of their time. In the case of automated faxes, resources such as paper, ink, and even the data connection being used to receive what is essentially junk mail was a cost the consumer had no way to avoid. Fortunately, lawmakers responded to this unethical action of telemarketing companies with the TCPA. Specifically, the law makes it illegal to use auto-dialers and pre-recorded voice messages to make sales calls to emergency phone lines, medical offices, hospital rooms, homes for the elderly, paging services, or cellular phones. It also requires the recipient of pre-recorded telemarketing calls to give prior consent to receive the calls. It also made it illegal to send unsolicited fax messages. The law also gave states their own authority to regulate telemarketing practices. The Federal Communications Commission (FCC) enforces the rules set forth in the TCPA. The FCC was also given authority to issue regulations beyond the TCPA in order to continue to protect consumers from abusive telemarketing practices. This provision shows that Congress recognizes that over time changes in information technology may make the TCPA insufficient to meet the task of consumer protection (EPIC Telemarketing and the Telephone Consumer Protection Act (TCPA)). 1991’s Telephone Consumer Protection Act of 1991 gave the FCC the ability to create a national Do Not Call list. However, it took more than 10 years for lawmakers to create the Do Not Call Implementation Act. This law established fees to support the creation and maintenance of a Do Not Call Registry (Do-Not-Call Implementation Act Law Legal Definition). Database technology existed in 1991 but perhaps developing and maintaining it was cost-prohibitive at the time. As information technologies improved, the cost of creating and managing a large scale database was feasible thus new legislation was created in 2003. References Do-Not-Call Implementation Act Law Legal Definition. (n.d.). In Legal Definitions Legal Terms Dictionary. Retrieved February 12, 2013, from http://definitions.uslegal.com/d/do-not-call-implementation-act/ EPIC Telemarketing and the Telephone Consumer Protection Act (TCPA). (n.d.). EPIC Electronic Privacy Information Center. Retrieved February 12, 2013, from http://epic.org/privacy/telemarketing/#law

what Does it Mean to be a Good Person?

what Does it Mean to be a Good Person? Everyday across the world we are being told to be a good person, but what does that really mean? Is a good person in America the same as a good person in communist North Korea? I say yes; a good person is unlike the good citizen whose virtue is relevant to the regime in which they live; the good person is a good person no matter the regime while the good citizen is only representative of that which the state deems best. The good man can be good anywhere because he follows virtue, and finds happiness in that virtue. To illustrate this point I will first define the good man then the bad regime, and finally how a good man fits into the bad regime. The Good Man Socrates, while under trial, explained his definition of a good person in refutation of the charge that he was ashamed of pursuing a dangerous occupation that had the possibility of death. He responded You are wrong, sir, if you think that a man who is any good at all should take into account the risk of life or death; he should look to this only in his actions, whether what he does is right or wrong, whether he is acting like a good or a bad man  [1]  Here we have a very cut and dry explanation of the good man, he who does not concern himself with petty personal wants but only whether his actions are good and just. Aristotle sets out a clear boundary between what he considers a good man and a good citizen. For Aristotle the good man is the man that acts and lives virtuously and derives happiness from that virtue. And the good citizen acts to the best virtue of the state and each of these things are quite separate, The good citizen need not of necessity possess the virtue which makes a good man  [2]  The separation is clearly evident, the fact that what makes a good citizen does not qualify someone to be a good person. So being a good person does not mean you have to by association be a good citizen they are two distinctly different states, it is only in the best of regimes that the good person is also the good citizen. The nature of political rule is that rule of those similar in stock and free  [3]  As Aristotle argues if the virtue of a citizen is the capacity to rule and be ruled in turn, then the virtue of the good man is also to have this capacity in the best of regimes. The good in any animal or plant is the same as it is for humans: that to be and act in harmony with the virtue of that species. In a way this is a human participating in that which is most human, to act in harmony with rationality and virtue. The good in acting with the virtue of a human is the perfection of that which can only be described rationally such things as love and justice. To act unto these things is to act with virtue but there also stands limits to everything. To act with too great or too little emphasis in any act is to disrupt balance and pulls the good man from his path of virtue, too much love is obsession, too little disdain either extreme is undesirable to the good man. The good man lives by the Golden Mean that which is not too in excess in either direction. To bring together the definition of a good man, Socrates says he is a man who always considers his actions and acts in a good and just manner. Aristotle says a good man acts unto virtue and derives his happiness and pleasure from that virtue. So we have a man who is prudent, virtuous, and just. This man must now fit into a corrupt regime, a regime that does not follow all those things which make him a good man. The Bad Regime There were six different categories in which all regimes were placed as defined by both Socrates and Aristotle, those of tyranny, monarchy, oligarchy, aristocracy, democracy and polity. Of these regimes tyranny, oligarchy and democracy were all negative and corrupt regimes because the governing body whether it be a single person, small group or the many respectively only were ruling in their own interests and not to the benefit of all. In the good regimes it is those same forms of governing bodies yet they govern in the interest of the state as a whole. Of the bad regimes Aristotle had declared that tyranny was the most undesirable state as the citizens were reduced to nothing more than slaves. In a tyrannical government the governed are not looked after but only used to further the goals of the leader. The next two are defined in a similar manner men ruling by reason of their wealth, whether they be few or many,  [4]  for an oligarchy and defining a democracy as where the poor rule.  [5]  To Aristotle an oligarchy was a twisted degradation of the good regime aristocracy, in the oligarchy it is not that few men govern it is that it is the wealthy class that rules creating a state in which all power resides in the upper class. .

Market Segmentation :: Business Management Studies

Market Segmentation What is Segmentation? Market segmentation is the practice of dividing a market into identifiable groups of customers with common characteristics and motivations. This is so that each group can be treated independantly, tailoring the marketing mix to meet the needs of each segment. Furthermore, opportunities for new products and any niche markets are highlighted. Segmentation also portrays which segemets are doing well, which are likey profitable to be profitable/worth pursuing, which segments need additional marketing support and which should be ignored. Psychographic This affects the psychological motivation of the purchaser. It’s based on the benefits that the products/services offer to the purchaser. Factors that affect the buying decisions are increasingly emotive rather than practical. Psychological factors are: - Life style Segmentation is based on actual lifestyle differences as well as perception. Different lifestlyes fall into different catogories, for example modern and trend-setting or traditional with few changes. Another example would be expensive and willing to pay money or unwilling to spend more than that is necessary. - Interests These would include sports, leisure activities and hobbies. - Attitudes Markets can be analysed and segmentated by attitude to politics, lifestyle, certain products. For example an example concerning chocolate and food be that some people would be willing to eat non-organic foods others don't. - Opinions Identifies group with similar opinions on political and social issues. Opinion polls are used to find the moods and feeligs of the target group and the products can be tailored to appeal to the target audience e.g Iceland appeals to consumers due to its no GM product policy. - Values Values are influenced by family and social conditioning and the product can be adapted to reflect values of the product. For example fair-trade chocolate bars may appeal to ethica customers. - Taste Products can be catogrised to be in good or bad taste. Bad taste may be seen as bad or offensive to some people but good to others because its entertaining to others. For example a film with 'gross out' images and storylines offends older people but amuses the youth. This portrays how different people have different tastes. How segmentation has affected the development of DeLights has been incorporated when explaining the marketing mix each of the 4 P's. Demographic Demographic segmentation is where a market is analysed and divided into groups based on demographic factors such as age and sex. These factors relate to the social and economic features of the market being segmented. Demographic variables can be closely related to customer needs and purchasing behaviour, this helps producers target their product more effectively. Age  · Consumer needs and wants change with age although they may wish to sell the same product to different types of people for example Market Segmentation :: Business Management Studies Market Segmentation What is Segmentation? Market segmentation is the practice of dividing a market into identifiable groups of customers with common characteristics and motivations. This is so that each group can be treated independantly, tailoring the marketing mix to meet the needs of each segment. Furthermore, opportunities for new products and any niche markets are highlighted. Segmentation also portrays which segemets are doing well, which are likey profitable to be profitable/worth pursuing, which segments need additional marketing support and which should be ignored. Psychographic This affects the psychological motivation of the purchaser. It’s based on the benefits that the products/services offer to the purchaser. Factors that affect the buying decisions are increasingly emotive rather than practical. Psychological factors are: - Life style Segmentation is based on actual lifestyle differences as well as perception. Different lifestlyes fall into different catogories, for example modern and trend-setting or traditional with few changes. Another example would be expensive and willing to pay money or unwilling to spend more than that is necessary. - Interests These would include sports, leisure activities and hobbies. - Attitudes Markets can be analysed and segmentated by attitude to politics, lifestyle, certain products. For example an example concerning chocolate and food be that some people would be willing to eat non-organic foods others don't. - Opinions Identifies group with similar opinions on political and social issues. Opinion polls are used to find the moods and feeligs of the target group and the products can be tailored to appeal to the target audience e.g Iceland appeals to consumers due to its no GM product policy. - Values Values are influenced by family and social conditioning and the product can be adapted to reflect values of the product. For example fair-trade chocolate bars may appeal to ethica customers. - Taste Products can be catogrised to be in good or bad taste. Bad taste may be seen as bad or offensive to some people but good to others because its entertaining to others. For example a film with 'gross out' images and storylines offends older people but amuses the youth. This portrays how different people have different tastes. How segmentation has affected the development of DeLights has been incorporated when explaining the marketing mix each of the 4 P's. Demographic Demographic segmentation is where a market is analysed and divided into groups based on demographic factors such as age and sex. These factors relate to the social and economic features of the market being segmented. Demographic variables can be closely related to customer needs and purchasing behaviour, this helps producers target their product more effectively. Age  · Consumer needs and wants change with age although they may wish to sell the same product to different types of people for example

The essence of a memoir is to look back at ones experience, and see Es

The essence of a memoir is to look back at one's experience, and see how they have developed and matured. The essence of a memoir is to look back at one's experience, and see how they have developed and matured. This is no different in Dave Eggers fictitious memoir, A Heartbreaking Story of Staggering Genius. To explore what has changed a person it is important to look at what most of the person's time was spent doing. In Dave's situation, there is no shadow of a doubt, at the age of 22, his life revolved around the security and well being of his little brother Christopher (Toph). To completely comprehend Eggers growth and maturity, it is essential to analyze his relationship with his little brother Toph. Father, mother, brother, all wrapped in one, Dave becoming Toph's guardian constructed the adult that Eggers would become. Dave did not become Toph's guardian because he wanted to, but because he was the one left over. Bill was out getting a job and Beth was finishing graduate school. Dave immediately tried to overcome the grief of dealing with two dead parents, and taking care of Toph by making Toph's and his own lives fun. He spent all of the social security and inheritance on a nice house; they went out all the time; singing to song, making of people in the car, playing lots of frisbee at the beach. He seemed to drown out the sadness of the situation with their complimentary money. At this point, Dave's feelings still cannot escape him. "It's Friday night and I should be out, across the bay, I should be out every night with the rest of the young people, fixing my hair, spilling my beer, trying to get someone to touch my penis.. So yet, I could be out, enjoying this freedom specifically and that... ... did very little lecturing (something everyone's parents love to do) and just let Toph explore life as it came. This is shown when Dave picks up Toph from the girls house. Toph had played his first game of spin the bottle. Dave has all these expectations for Toph and was disappointed to hear that Toph thought nothing special of the girls, but instead of going into his regrets he had, he just let it be, because Toph will figure it out. This seems to be the parenting model in which Dave and Toph's relationship is about. Dave spent less time sheltering and trying to mold Toph to his expectations and more time just having fun with him. This created Toph to become an independent and responsible child. Because Toph was not a conventional parent, some may argue that Dave has little responsibility in Toph's maturing, but don't tell Dave, "parent almighty", so.

Beowulf and Gilgamesh are Epic Heroes But the Seafarer isn’t and Here’s Why

In the stories â€Å"Beowulf† and â€Å"The Head of Humbaba,† the main characters reflect the descriptions of an â€Å"epic hero†. However in the story, â€Å"The Seafarer,† the main character does not reflect any descriptions of an â€Å"epic hero. † Beowulf and Gilgamesh fit the description because they both go on a quest and have the similar motivations of an epic hero. The Seafarer, in contrast, had a different motivation and an entirely different quest. Beowulf and Gilgamesh have journeys that fit the traditional epic hero. In Beowulf’s story, his journey consisted of killing monsters. He killed Grendel who terrorized Herot. â€Å"Beowulf, a prince of the Geats, had killed Grendel†¦from the rafters where Beowulf had hung it, was the monster’s arm, claw and shoulder and all. † (â€Å"Beowulf† Lines 510-517). Gilgamesh’s story also included murdering monstrous fiends. He killed Humbaba, the guardian of the forest. †Ã¢â‚¬ ¦he raised his ax up higher and swung it in a perfect arc into Humbaba’s neck. (â€Å"The Head of Humbaba† Lines 46-48) Gilgamesh and Beowulf also had similar motivations that fit an â€Å"epic hero. † Beowulf killed Grendel to pay off the debt to Herot because of his father. Gilgamesh provoked and killed Humbaba so he’d also be will known. Both reasons fit the descriptions for an epic hero. In contrast, the Seafarer doesn’t fit an â€Å"epic hero† because his journey and motivation doesn’t corr espond. The Seafarer’s journey was to simply travel the sea. His motivation was to make peace with God. Neither of those actions makes the Seafarer and â€Å"epic hero. † Beowulf and Gilgamesh are epic heroes because their journey and motivations fit what an epic hero stands for. They both fought monsters and both their motivation fit an epic hero. The seafarer isn’t an epic hero because his journey and motivation doesn’t correspond to one. He didn’t accomplish much and his motivation didn’t fit an epic hero.

Product Samsung

The current issue and full text archive of this journal is available at www. emeraldinsight. com/0309-0566. htm EJM 44,7/8 Consumer responses to brand extensions: a comprehensive model ? ? Eva Mart? nez and Jose M. Pina ? Facultad de Ciencias Economicas y Empresariales, The University of Zaragoza, Zaragoza, Spain Abstract Purpose – This paper aims to understand the reciprocal spill-over effects of brand extensions by testing a comprehensive model that gathers both the brand extension evaluation process and the later in? uence on brand image. Design/methodology/approach – Data were obtained from 699 face-to-face interviews conducted in Spain.Structural equation modelling was used to test the proposed hypotheses. Findings – The results indicate that brand extensions have feedback effects on brand image depending on the attitude toward the new product and perceived image ? t. Consumer attitude depends, in turn, on initial brand associations, perceived category ? t, perceived image ? t and consumer innovativeness. Brand familiarity also shows indirect effects. Research limitations/implications – The model should be tested with extensions of the same (line extensions) or different categories.It is also necessary to analyse non-? ctitious products, and to take different moderating effects into account. Practical implications – The results suggest how to protect the brand image from unsuitable extension strategies. The paper shows what kind of perceived ? t is more important for consumers as well as the direct and indirect role of several variables. Originality/value – The paper extends previous research by proposing a complete framework that considers the factors that in? uence either the attitude to the extension or the attitude to the extended brand.Samsung Distribution ChannelKeywords Brand extensions, Brand image, Brand equity, Consumer behaviour, Spain Paper type Research paper 1182 Received January 2008 Revised October 2008 January 2009 Accepted February 2009 Introduction Brand extension is a strategy that many companies follow with the aim of bene? ting from the brand knowledge achieved in the current markets (Aaker and Keller, 1990; Milberg et al. , 1997). When a new product is marketed under a well-known brand name, failure rates and marketing costs are reduced (Milewicz and Herbig, 1994; Keller, 2003). Keller (2003) states that more than 80 per cent of ? ms resort to brand extensions as a way of marketing goods and services. The support that the brand gives to the new product often leads to a change in the brand image associations. Both the affection and the speci? c knowledge associated with the brand and the new product are interchanged in the consumers’ mind (Czellar, 2003). European Journal of Marketing Vol. 44 No. 7/8, 2010 pp. 1182-1205 q Emerald Group Publishing Limited 0309-0566 DOI 10. 1108/03090561011047580 The authors would like to thank the following sources for their ? nanc ial help: CICYT (Ref: ?SEJ2005-02315) and Government of Aragon (â€Å"GENERES†, Ref. S-09; â€Å"PM0262/2006†). They also gratefully acknowledge the constructive comments of the three anonymous EJM reviewers. This feedback process can increase the memory and strength of brand associations (Morrin, 1999; Aaker, 2002) and, thus, improve the positioning of the brand (Park et al. , 1986). Nevertheless, several authors indicate that the dilution of current beliefs is more likely (Tauber, 1988; Ries and Trout, 1993; John et al. , 1998). This dilution effect can take place even though the extension is not related to negative information (Morrin, 1999; ?Ahluwalia and Gurhan-Canli, 2000; Mart? nez and Pina, 2003). Virgin, for instance, is a company that has grown through extensions into the audiovisual sector, retailing, alcoholic drinks, passenger transport (by railway and air) and space tourism, among others. However, market research studies suggest that customers’ per ceptions of the Virgin brand mainly depend on the performance of the airline, which implies a constant threat of image dilution (Hughes, 2007). The in? uence of brand extension on brand image is explained by several theories, most of them coming from Psychology.According to the â€Å"associative network theory†, brand image may be understood as a mental scheme formed by a network of concepts (nodes) interconnected by linkages or associations (Anderson, 1983; Morrin, 1999). Park et al. (1993) explain that extensions which are coherent with the brand schema will not lead to image dilution (assimilation process). On the other hand, the brand schema will be modi? ed to accommodate examples that are far from current brand attitudes and beliefs (accommodation process). Following Weber and Crocker’s (1983) ? ork, Gurhan-Canli and Maheswaran (1998) suggest that the image modi? cation could be re? ected in the formation of a mental subcategory inside the brand scheme (sub-typin g model) or in a complete modi? cation of brand associations (conversion model). The sub-typing or conversion processes may occur when perceived ? t or typicality between the extension category and the brand is low. However, it is just possible that brand attitudes and beliefs would always change because of the new information, which is called the bookkeeping model (Weber and Crocker, 1983; Loken and John, ? 993; Gurhan-Canli and Maheswaran, 1998). Consumers could react according to the bookkeeping model when the information on the new product is highly accessible. Regardless of perceived ? t, higher accessibility gives rise to an image enhancement, whereas lower accessibility has a negative effect on brand evaluations (Ahluwalia and ? Gurhan-Canli, 2000). The brand extension literature shows that brand extensions can affect both the ? general brand associations (Mart? nez and de Chernatony, 2004) and the beliefs in speci? attributes (Keller and Aaker, 1992; Loken and John, 1993). T he beliefs related to the most representative product of the brand, or ? agship product, are more resistant to dilution ( John et al. , 1998; Chang, 2002), as well as the perceptions linked to the brand personality (Diamantopoulos et al. , 2005). Most previous research on brand extensions develops experimental designs, focusing on a reduced number of variables (e. g. Loken and John, 1993; John et al. , 1998; Alexander and Colgate, 2005). Some authors have tested models through structural ? equation modelling (e. g.Bhat and Reddy, 2001; Volckner and Sattler, 2006) although they concentrate on consumer attitude toward brand extensions and not on reciprocal spillover effects. According to literature, brand extensions may give rise to both a â€Å"forward† effect from the parent brand to the new product and a â€Å"feedback† or â€Å"backward† effect from the new product to the parent brand (Milberg et al. , 1997; Responses to brand extensions 1183 EJM 44,7/8 1184 B alachander and Ghose, 2003). Neglecting this potential backward effect affords a limited view of consumer behaviour and may lead to inappropriate marketing actions.With the goal of better understanding the way that extensions in? uence brand image, our work proposes and validates a theoretical model that, according to the previous literature, integrates the most relevant variables. With the exception of the ? contribution of Volckner and Sattler (2006), previous models only focus on a few variables, which makes it dif? cult to determine how the consumers’ responses to brand extensions are generated. Furthermore, the proposed model considers both the brand image before the extension and the image variation, which is a step forward in literature.As well as brand image, we will analyse the effects of brand familiarity, attitude to the extension, extension-brand ? t (category and image ? t), perceived dif? culty in manufacturing the extension product and consumer innovativeness. Hence, the study expands previous research by testing a comprehensive model that gathers both the brand extension evaluation process and the later in? uence on brand image. This model can help brand managers to protect their brands from unsuitable brand extensions by showing the main determinants of spillover effects and the direct and indirect effects of the speci? variables. Relationships that have been individually supported in previous works could be rejected when considering complex models with several dependent and independent variables. The study is structured in four sections. The next section contains a brief review of the literature to justify the theoretical model and the relations established in the hypotheses. The third section describes the methodology used to validate the model, and the results are reported in the fourth section. Finally, we address the conclusions and managerial recommendations.Proposed model and hypotheses The proposed model helps us to understand t he in? uence of brand extensions on brand image. For this reason, the model includes the variables with the greatest impact on extension attitude (Aaker and Keller, 1990; Hem et al. , 2003). This attitude will determine the development of the brand image (Lane and Jacobson, 1997), affecting the current associations. The model stems from the initial brand image and attempts to identify the main relations and interactions that follow the launching of the brand extension and its potential effects on the established associations.Generally, consumer attitudes toward brand extensions can depend on factors related to brand associations, extended category, perceived ? t, and consumer characteristics (Czellar, 2003; Reast, 2005; ? Volckner and Sattler, 2006). Hence, two brand knowledge factors, brand familiarity and initial brand image, are considered. In relation to the new product and its ? t with the parent brand, we consider perceived dif? culty in manufacturing, perceived category ? t a nd perceived brand image ? t. Extension attitude and consumer innovativeness are also taken into consideration. Whereas brand associations and ? have been examined in nearly every study on brand extensions, perceived dif? culty and consumer innovativeness have received lesser attention. Since Aaker and Keller’s (1990) fundamental study and all subsequent replications (Barrett et al. , 1999) analysed perceived dif? culty with inconclusive results, it seems necessary to study this variable more in depth. On the other hand, the whole literature on brand extensions relies on the assumption that a known brand reduces the risk associated with buying new products (Smith and Park, 1992), and consumer innovativeness re? ects the consumer’s risk aversion.The proposed effects of these variables and the remaining ones are depicted in Figure 1. The ? rst variable included in our model is brand familiarity. This variable is closely related to the dimension of brand equity labelled a s awareness by Aaker (1996), since familiar brand names usually present high awareness. Moreover, it is also akin to the brand image construct, which refers to the different â€Å"perceptions about a brand re? ected as associations existing in the memory of the consumer† (Keller, 1993). Direct effects on extension attitude are expected for brand familiarity as well as indirect ones through brand image.First, individuals will have a better initial image of the brands they are familiar with (Low and Lamb, 2000; Lemmink et al. , 2003). By means of a â€Å"halo effect†, the impressions of familiar attributes are used to form precise opinions on brands (Reynolds, 1965) and develop more complete knowledge structures (Alba and Hutchinson, 1987; Grime et al. , 2002). Furthermore, familiarity indirectly re? ects the experience with a brand (Alba and Hutchinson, 1987), presenting a clear relationship between experience and brand image (Hoek et al. , 2000).Familiarity can also ha ve a direct effect on brand extension evaluations. Consumers are more inclined to buy products of brands they have previously consumed (Swaminathan, 2003) and know better, unless the experience has been unsatisfactory (Swaminathan et al. , 2001). Although some works have failed to prove that familiarity affects consumer attitude to an extension (Glynn and Brodie, 1998) and to the extended brand (Diamantopoulus et al. , 2005), we hypothesise: H1. The greater the familiarity of the core brand, the more positive the initial brand image. H2.The greater the familiarity of the core brand, the more favourable the attitude to the extension. Brand image is an essential factor for understanding consumer attitude toward brand extensions, since the credibility of the new product increases when brand perceptions become more favourable (de Ruyter and Wetzels, 2000). If the brand image consists of Responses to brand extensions 1185 Figure 1. Proposed model to analyse the effect of brand extension strategy on brand image EJM 44,7/8 1186 associations such as a high-perceived quality, the extension attitude will be better (van ? Riel et al. 2001; Volckner and Sattler, 2006). In the same vein, the extension attitude is positively related to the perceptions of reputation (Hem et al. , 2003), prestige (Park et al. , 1991) and the consumers’ affection for the brand (Sheinin and Schmitt, 1994). In the case of corporate and service brands, a positive image also clearly generates favourable perceptions of the new products (Brown and Dacin, 1997; de Ruyter and Wetzels, 2000). Given that the extension leverages the current brand associations, the better the initial brand image the more positive will be the consumers’ response.Therefore: H3. The more positive the initial brand image, the more favourable the attitude to the extension. If consumers perceive a high ? t between the brand and the new product, the brand leveraging increases and the potential negative effects are less likely (Czellar, 2003). Some authors state that consumers can consider a category ? t or an image ? t (Bhat and Reddy, 2001; Grime et al. , 2002; Czellar, 2003). Thus, individuals can believe that the new product is physically similar to the other products of the brand (category ? t) or coherent with the general brand associations (image ? ) (Grime et al. , 2002; Czellar, 2003). Whatever the case, the consistency between cognitive elements and the similarity among various stimuli ease and improve consumers’ evaluations (Aaker and Keller, 1990; Eagly and Chaiken, 1993). Brand image-perceived ? t interaction effects are revealed in the literature (Boush et al. , 1987; Aaker and Keller, 1990) as well as ? direct effects (Volckner and Sattler, 2006). The next hypotheses deal with the direct effects of perceived ? t dimensions on extension evaluation. As commented above, perceived category and image ? will directly affect the consumer attitude to the extension. Generally, the assessment of an extension will be more positive as perceived closeness with the brand grows (Aaker and Keller, 1990; ? Volckner and Sattler, 2006), even in the case of non-prestige brands (Park et al. ,1991). However, consumers believe that extensions to non-related categories are not very reliable and offer low quality, which causes a negative assessment (Kirmani et al. , 1999). According to the literature, a high-perceived category or image ? t makes success more likely (Boush et al. 1987; Boush and Loken, 1991; Park et al. , 1991). The important thing is to get the consumers to relate the new product to the brand, independently of the kind of closeness. This discussion leads to the following hypotheses: H4. The greater the perceived category ? t between the extension and the core brand, the more favourable the attitude to the extension. H5. The greater the perceived image ? t between the extension and the core brand, the more favourable the attitude to the extension. Another va riable included in our model is perceived dif? ulty in manufacturing or offering a new good or service. This variable has been analysed in numerous works, although it is not clear whether it in? uences consumer behaviour or not (Barrett et al. , 1999; van Riel et al. , 2001). Moreover, present research does not clarify whether this in? uence is positive (Aaker and Keller, 1990; van Riel and Ouwersloot, 2005) or negative (Semeijn et al. , 2004). This diversity of results re? ects that the in? uence of dif? culty in manufacturing might depend on the study settings and the variables interacting with such dif? culty.Generally, consumers who think that the new product category requires little manufacturing effort may question its advisability (Aaker and Keller, 1990). They could even think that high-quality brands are trying to make fast money by overpricing trivial products (Aaker and Keller, 1990; van Riel et al. , 2001). In a sense, easy-to-make extensions could resemble downscale ext ensions, where the brand stretches down by offering lower price-quality products (Kirmani et al. , 1999). Consequently, we posit: H6. The greater the perceived dif? culty in manufacturing the new product, the more favourable the attitude to the extension.The last variable of our model to explain attitude to the extension is consumer innovativeness, a concept that represents the consumers’ propensity to buy new products and consider new ideas (Roehrich, 2004). Since innovative people are more risk-prone (Klink and Smith, 2001; Hem et al. , 2003), they show a better attitude toward brand extensions, whatever their perceived ? t (Klink and Smith, 2001). In this sense, some authors have found that higher consumer innovativeness increases perceived quality and purchase intention of new services (Hem et al. , 2003; Siu et al. , 2004) and ? tangible products (Volckner and Sattler, 2006).Rogers (1983) claims that one of the most salient traits of consumer innovators is the comfort th ey gain from taking risk. Unlike later adopters, highly-innovative individuals ? nd far extensions appealing (Xie, 2008) and, consequently, do not mind trying products that get away from the company’s core business. As a matter of fact, they should be more prone to try new products regardless of the degree of brand knowledge or perceived ? t. Consequently, we posit: H7. The greater consumer innovativeness, the more favourable the attitude to the extension. The following hypotheses relate to the feedback effect on brand image.Because of the new information, the brand schema could vary its structure of nodes and links (Morrin, 1999). There is no doubt that most brand associations will remain stable after stretching to new categories, being the ? nal perceptions mainly determined by the ? initial ones (Lee and Ulgado, 1993; Mart? nez and Pina, 2003). However, product introductions in the marketplace involve providing consumers with information, which not always ? ts with the ini tial beliefs and feelings about the brand. As elucidated by previous research, the attitude to the extension is a major driver of spillover effects from the extension to the parent brand.Low quality or negatively ? assessed extensions will entail a detriment of brand image (Chang, 2002; Mart? nez and ? Pina, 2003), diluting both general and speci? c beliefs (Mart? nez and de Chernatony, 2004). Diamantopoulos et al. (2005) found that brand personality is more dilution-resistant, although any brand association is exposed to the risk of dilution. A way of reducing this risk is to strengthen the attitude to the extension, given that consumers who are satis? ed with the extension are usually satis? ed with the brand (Alexander and Colgate, 2005). The following hypothesis is based on these arguments. H8.The better the attitude to the extension, the more favourable the feedback effect on the extended brand. Responses to brand extensions 1187 EJM 44,7/8 1188 The literature reveals that the attitude to an extended brand directly depends on the degree of ? t with the extension (Grime et al. , 2002). The introduction of extensions far from the core business will involve losing brand differentiation and credibility, whereas extensions to related markets will avoid potential damage (Aaker, 2002). Some authors like Milberg et al. (1997) have proved that low-? t extensions generate negative feedback in terms of attributes or image.Similarly, Lee and Ulgado (1993) ? veri? ed that ? t has a positive effect on the image of service ? rms, whereas Mart? nez and de Chernatony (2004) veri? ed the same for tangible product extensions. Other works equally suggest that the impact of brand extensions on the parent brand is ? directly related to similarity (Mart? nez and Pina, 2003) or image ? t (Loken and John, 1993; John et al. , 1998). All in all, we expect a more positive feedback effect provided the brand stretches coherently with either its image or current products. H9. The great er the perceived category ? between the extension and the core brand, the more favourable the feedback effect on the extended brand. H10. The greater the perceived image ? t between the extension and the core brand, the more favourable the feedback effect on the extended brand. Methodology An empirical study was conducted to contrast the hypotheses and validate the model displayed in Figure 1. Following the usual procedures, we utilised real brands and realistic hypothetical extensions (Aaker and Keller, 1990; van Riel et al. , 2001; van Riel and Ouwersloot, 2005) that were previously selected through three pre-tests.Below, we explain these and other aspects related to the methodology applied. Pre-tests In line with previous research, a sample of undergraduates was employed in the pre-tests (Sheinin and Schmitt, 1994; Kim, 2003). The speci? c brands and extensions were selected by means of Wilcoxon tests, which were necessary due to the lack of normality in the data. The aim of the ? rst pre-test, conducted with 91 students, was to choose brands in three sectors (fast moving consumer goods, durable consumer goods and services) that were familiar (F) to individuals and had a different image perception (I).Familiarity is an essential requisite to guarantee that consumers have a clear image to evaluate (Low and Lamb, 2000). Two questions were thus formulated to assess those concepts in seven-point Likert scales (1 ? Totally unfamiliar/7 ? Very familiar; 1 ? Bad image/7 ? Excellent image) for a total of 11 brands. According to the results, Colgate ? and Signal (FC ? 6. 38; FS ? 5. 50), Nike and Puma (FN ? 6. 56; FP ? 5. 64), Telefonica Movistar and Amena (FT ? 6. 64; FA ? 6. 27) were chosen as familiar brands. The image is signi? cantly different in toothpaste brands (IC ? 5. 74; IS ? 4. 96; Z ? 2 4. 618; p , 0. 0001), sports brands (IN ? 6. 21; IP ? 5. 10; Z ? 2 5. 449; p , 0. 00001) and mobile phones (IT ? 5. 67; IA ? 4. 88; Z ? 2 4. 001; p , 0. 00001). The seco nd and third pre-tests, where 98 and 81 students, respectively, participated, were aimed at ? nding two extensions –one for each sector– with differences in perceived ? t. Both perceived category ? t (CF) and brand image ? t (IF) were considered (Bhat and Reddy, 2001) in two Likert scales (1 ? Not at all similar/7 ? Very similar; 1 ? Non-coherent/7 ? Very coherent). For the toothpaste brands, â€Å"sugar-free whitening tooth decay-preventing sweets† and â€Å"sunglasses† were selected.The ? rst showed a higher perceived ? t than the second for Colgate (CF1 ? 5. 36; CF2 ? 1. 31; Z ? 2 5. 341; p , 0. 00001) (IF1 ? 5. 69; IF2 ? 1. 54; Z ? 2 5. 339; p , 0. 00001) and Signal (CF1 ? 4. 86; CF2 ? 1. 19; Z ? 2 5. 120; p , 0. 00001) (IF1 ? 5. 19; IF2 ? 1. 25; Z ? 2 5. 019; p , 0. 00001). On the other hand, for the sports brands, we chose â€Å"skis† as a close extension and â€Å"DVD players† as a far extension, both from the perspective of product c ategory of Nike (CF1 ? 3. 33; CF2 ? 1. 28; Z ? 2 5. 120; p , 0. 00001) and Puma (CF1 ? 3. 32; CF2 ? 1. 14; Z ? 2 4. 910; p , 0. 00001).Similarly, there were statistical differences between the image ? t of the extensions for Nike (IF1 ? 4. 23; IF2 ? 1. 36; Z ? 2 5. 561; p , 0. 00001) and Puma (IF1 ? 3. 89; IF2 ? 1. 14; Z ? 2 5. 113; p , 0. 00001). Finally, â€Å"telecommunication on-line courses† and â€Å"insurance† were the service extensions selected. Speci? cally, the perceived category ? and image ? t were statistically different for Telefonica Movistar (CF1 ? 4. 67; CF2 ? 1. 84; Z ? 2 5. 475; p , 0. 00001) (IF1 ? 4. 72; IF2 ? 1. 72; Z ? 2 5. 543; p , 0. 00001) and Amena (CF1 ? 3. 73; CF2 ? 1. 76; Z ? 2 4. 283; p , 0. 00001) (IF1 ? 4. 27; IF2 ? 1. 84; Z ? 2 4. 61; p , 0. 00001). Sample and procedure Subsequent to the pre-tests, we elaborated 12 questionnaires with a different brand-extension combination. On the ? rst page, individuals had to indicate their consume r innovativeness and answer some questions about the corresponding brand (familiarity and image) and product category (perceived dif? culty). Then, on the second page of the questionnaire, respondents were required to imagine that the speci? c brand launched the extension. Questions then assessed the ? t, the respondents’ attitudes towards the extension and the brand image, supposing the existence of the new product category.No additional information about the products’ attributes was provided in order to avoid bias that could defeat the objective of the study (Bhat and Reddy, 2001). The surveys were answered by a total sample of 720 individuals (699 valid cases) in a Spanish city, which is sometimes considered as a test market for products aimed at Spain. The respondents were approached by a team of interviewers in different parts of the city, on different days and at different times during May 2005. By following a quota sampling procedure, the sample was required to match the population structure by sex (50. 9 per cent women and 49. per cent men) and age (46. 5 per cent 26-45 years, 33. 3 per cent 16-25 years, 20. 2 per cent 46-64 years). These demographical variables may be strong predictors of changes in attitudes and behavior (Hansman and Schutjens, 1993) and, therefore, should be controlled to get adequate variance in the data. Table I shows the type of questionnaires used in our research and the speci? c number of individuals who satisfactorily responded to each. No individual answered more than one questionnaire. Measures Variables were measured through seven-point Likert scales by requesting individuals either to state their level of agreement with the speci? statement (1 ? Totally disagree, 7 ? Totally agree) or directly assess the variable (e. g. 1 ? Not at all familiar, 7 ? Very familiar). In all cases, items were extracted or based on the literature. In order to avoid potential order effects (Klink and Smith, 2001), perceived Respons es to brand extensions 1189 EJM 44,7/8 N8 Brand 49 Colgate Extension (high ? t) Sugar-free whitening tooth decaypreventing sweets Sugar-free whitening tooth decay†¦ Skis Skis Telecommunication online courses Telecommunication online courses N8 Brand 50 Colgate 48 49 49 80 Signal Nike Puma ? Telefonica Movistar 75 AmenaExtension (low ? t) Sunglasses Sunglasses DVD players DVD players Insurance Insurance 1190 Table I. Type and number of questionnaires Signal Nike Puma ? Telefonica Movistar 79 Amena 49 48 49 74 dif? culty was assessed prior to brand characteristics and ? t. For the same reason, ? nal image was measured once the individuals had formed an opinion about the brand extension. Table II shows the scales used for each factor. First, consumer innovativeness was measured with the items proposed by Roehrich (1994), who considers a dual perspective, â€Å"hedonistic† and â€Å"social†. Perceived dif? ulty was assessed through an item used by Aaker and Keller (19 90) and two additional items coherent with the concept. For brand familiarity, we used Dawar’s scale (Dawar, 1996), whereas the scale validated by Martinez et al. (2004) was employed to assess initial and ? nal brand image. This scale utilises items from several works (Martin and Brown, 1990; Weiss et al. , 1999) which attempt to assess tangible (functional image) and intangible (affective image) attributes and bene? ts, as well as the global attitude to the brand (reputation). The distinction made by several authors between category ? t or similarity and image ? or consistency with brand image (Park et al. , 1991; Bhat and Reddy, 2001; Grime et al. , 2002) was used to measure perceived ? t. Thus, a series of items that assess ? t from both perspectives (Aaker and Keller, 1990; Taylor and Bearden, 2002) were chosen. Finally, extension attitude items were suggested by authors like Aaker and Keller (1990) or Pryor and Brodie (1998) considering both the general assessment of the new product and purchase intentions. Results The collected data were analysed by means of structural equations methodology, assessing both the measurement and the structural model (Kline, 2005).The structural model allows us to know whether there is evidence to reject the proposed hypotheses, although previously the measurement model has to evaluate the psychometric properties of the scales in terms of unidimensionality, reliability and validity. Furthermore, some ? t indicators show whether the measurement and structural models explain the collected data with relative precision (Hair et al. , 1998). Scale validation Prior to analysing all the variables as a whole, we studied whether initial brand image, ? nal brand image, consumer innovativeness and perceived ? should be considered as multidimensional or unidimensional factors, since the distinction between the Scale Consumer innovativeness. Roehrich (1994) Measured concept Hedonist innovativeness (HINN) HINN1: I am more intereste d in buying new than known products HINN2: I like to buy new and different products HINN3: New products excite me Social innovativeness (SINN) SINN1: I am usually among the ? rst to try new products SINN2: I try new products before my friends and neighbours SINN3: I know more than others about the latest new products DIFF1: Dif? ulty in designing and making the product DIFF2: Complex techniques or knowledge are needed DIFF3: Specialised resources are needed (personnel, facilities. . . ) FAMI1: Familiarity with the brand’s products FAMI2: Purchase frequency of the brand’s products FAMI3: Knowledge of the brand’s products Functional image (FUIM) (initial/? nal) FUIM1i/FUIM1f: The products have a high quality FUIM2i/FUIM2f: The products have better characteristics than competitors’ FUIM3i/FUIM3f: The products of the competitors are usually cheaper Affective image (AFIM) (initial/? al) AFIM1i/AFIM1f: The brand is nice AFIM2i/AFIM2f: The brand has a personalit y that distinguishes it from competitors AFIM3i/AFIM3f: It is a brand that does not disappoint its customers Reputation (REIM) (initial/? nal) REIM1i/REIM1f: It is one of the best brands in the sector REIM2i/REIM2f: The brand is very consolidated in the market Category ? t (CAFI) CAFI1: The extension is similar to the brand’s products CAFI2: The ? rm’s resources are helpful to make the product extension Image ? t (IMFI) IMFI1: The product extension ? s with the brand image IMFI2: Launching the extension is logical for the company IMFI3: Launching the extension is appropriate for the company EXAT1: Favourable attitude towards the extension EXAT2: Perceived quality of the extension EXAT3: Likelihood of trying the extension Responses to brand extensions 1191 Perceived dif? culty (DIFF). Aaker and Keller (1990) Brand familiarity (FAMI). Dawar (1996) ? Brand image. Mart? nez et al. (2004). Based on: Martin and Brown (1990) Aaker (1996); Weiss et al. (1999); Villarejo (2002) Perceived ? t. Aaker and Keller (1990); Taylor and Bearden (2002) Extension attitude (EXAT).Aaker and Keller (1990); Pryor and Brodie (1998) Table II. Scales used in the questionnaires EJM 44,7/8 1192 proposed dimensions (e. g. hedonistic and social innovativeness) could be statistically non-advisable. Through a previous analysis with SPSS 13. 0, we detected a weak item-total correlation of FUIM3i (corr. ? 0. 281) and FUIM3f (corr. ? 0. 296) with the respective dimensions of functional image. After eliminating them, we conducted an explanatory factor analysis for the unidimensional and multidimensional models using the EQS 5. b and ERLS (elliptical re-weighted least squares) estimation method.The initial image, ? ?nal image and perceived ? t scales proved to be reliable in both models (Joreskog and ? Sorbom, 1993), although it was advisable to eliminate HINN1 related to consumer innovativeness. Although the factor loadings exceeded the cut point lU ? 0:540; lM ? 0:673? ; the R 2 co ef? cients ? R 2 ? 0:292; R 2 ? 0:453? were below those recommended in the literature (Hair et al. , 1998). Once the scales had been properly re? ned, we proceeded to compare the unidimensional and multidimensional models through several indicators (Hair et al. , 1998; Kline, 2005). Tables III and IV display the coef? ients obtained, which clearly favour the consideration of independent dimensions for all the factors analysed. The only indexes in which the unidimensional model surpasses the multidimensional one are PNFI and PGFI for the factors of initial brand image (PNFI ? 0. 511 , 0. 638; Comparative indicators Initial image Unidimen. Multidimen. 126. 181 0. 047 0. 221 112. 181 0. 160 0. 638a 0. 466a 154. 181 72. 177a 0. 034a 0. 152a 61. 177a 0. 088a 0. 511 0. 377 106. 177a Final image Unidimen. Multidimen. 211. 559 0. 053 0. 343 197. 559 0. 283 0. 628a 0. 449a 239. 559 51. 082a 0. 027a 0. 122a 40. 082a 0. 057a 0. 516 0. 382 85. 082a x2RMSR (Root mean square residual) ECVI (Expec ted cross-validation index) NCP (Noncentrality parameter) SNCP (Scaled noncentrality parameter) PNFI (Parsimonious normed ? t index) PGFI (Parsimonious goodness of ? t index) AIC (Akaike information criterion) Table III. Indicators of the alternative models of brand image (initial and ? nal) Note: aCoef? cients that are favourable to the speci? ed model Comparative indicators Consumer innov. Unidimen. Multidimen. 195. 411 0. 079 0. 309 190. 411 0. 272 0. 453a 0. 292a 215. 411 31. 088a 0. 022a 0. 076a 27. 088a 0. 039a 0. 394 0. 261 53. 088a Perceived ? t Unidimen. Multidimen. 77. 634 0. 34 0. 140 72. 634 0. 104 0. 483a 0. 314a 97. 634 50. 164a 0. 025a 0. 103a 46. 164a 0. 066a 0. 391 0. 256 72. 164a x2 RMSR (Root mean square residual) ECVI (Expected cross-validation index) NCP (Noncentrality parameter) SNCP (Scaled noncentrality parameter) PNFI (Parsimonious normed ? t index) PGFI (Parsimonious goodness of ? t index) AIC (Akaike information criterion) Table IV. Indicators of the alter native models of consumer innovativeness and ? t Note: aCoef? cients that are favourable to the speci? ed model PGFI ? 0. 377 , 0. 466), ? nal image (PNFI ? 0. 516 , 0. 628; PGFI ? 0. 382 , 0. 449), consumer innovativeness (PNFI ? . 394 , 0. 453; PGFI ? 0. 261 , 0. 292) and perceived ? t (PNFI ? 0. 391 , 0. 483; PGFI ? 0. 256 , 0. 314). Nevertheless, the parsimony indicator, AIC, which allows us to choose between models with a different number of latent variables, as in our case, presents better values in the multidimensional structure: initial image (AIC ? 106. 177 , 154. 181), ? nal image (AIC ? 85. 082 , 239. 559), consumer innovativeness (AIC ? 53. 088 , 215. 411) and perceived ? t (AIC ? 72. 164 , 97. 634). After verifying the multidimensional character of initial brand image, ? nal brand image, consumer innovativeness and perceived ? , our next step was to conduct a factor analysis of all the scales. Again, we used EQS and ERLS, obtaining the results shown in Table V. We can i nfer from these results that the scales present good statistical properties. As can be seen in Table V, all the proposed items unidimensionally ? t the respective 13 factors or latent variables. The values obtained in composite reliability coef? cients and extracted variance analysis (EVA) are above 0. 6 and 0. 5, respectively, which guarantees the internal consistency of the scales. Moreover, the validity criterion was satis? ed from both convergent and discriminant viewpoints.Thus, all lambda coef? cients for the observed variables are signi? cant (t . 1. 96) and they load on the corresponding factors with standard loadings above 0. 5. The con? dence intervals of between-factor correlations were calculated to analyse discriminant validity. No intervals included value 1, which indicates the differentiated character of the factors. The main goodness-of-? t indicators for the measurement model are shown at the bottom of Table V, distinguishing between global and incremental ? t index es. On the whole, the indicators are positive and above the minimum established by researchers (Hair et al. 1998; Kline, 2005). With regard to global ? t, GFI is above 0. 8 (GFI ? 0. 884), whereas RMSEA and SRMR error statistics were below the maximum values of 0. 06 (RMSEA ? 0. 053) and 0. 08 (SRMR ? 0. 040) recommended by Hu and Bentler (1999). The only unsuitable indicator is the Chi-square test (x 2(417) ? 1224. 142; p , 0. 001), which often occurs in samples of over 400 observations. On the other hand, all the incremental ? t measures were above the required 0. 8 (AGFI ? 0. 844) and 0. 9 (CFI ? 0. 973; IFI ? 0. 973; NFI ? 0. 960; NNFI ? 0. 966) levels, which proves the statistical convenience of the proposed model.The validation process concluded with the estimation of three second-order models for the dimensions of brand image (initial and ? nal) and consumer innovativeness. These models presented favourable ? t indicators for initial image (GFI ? 0. 958; SRMR ? 0. 035; NFI ? 0. 975; IFI ? 0. 979), ? nal image (GFI ? 0. 972; SRMR ? 0. 028; NFI ? 0. 985; IFI ? 0. 989) and consumer innovativeness (GFI ? 0. 978; SRMR ? 0. 022; NFI ? 0. 985; IFI ? 0. 987). Model and hypotheses contrasting After analysing the psychometric properties of the scales, we proceeded to the estimation of the structural model, which corresponds to the structure shown in Figure 1.Previously, the global effect of extensions on brand image was analysed, comparing the values of initial and ? nal image in each scenario. Responses to brand extensions 1193 EJM 44,7/8 Factor HINN SINN Items HINN2 HINN3 SINN1 SINN2 SINN3 FUIM1i FUIM2i FUim1f FUIM2f AFIM1i AFIM2i AFIM3i AFIM1f AFIM2f AFIM3f REIM1i REIM2i REIM1f REIM2f FAMI1 FAMI2 FAMI3 DIFF1 DIFF2 DIFF3 EXAT1 EXAT2 EXAT3 CAFI1 CAFI2 IMFI1 IMFI2 IMFI3 Reliability t (. 1. 96) l(. 0. 5) 22. 230 20. 993 26. 547 25. 862 19. 829 22. 534 20. 543 24. 779 24. 208 21. 076 19. 473 17. 864 21. 545 21. 680 17. 880 23. 342 18. 125 25. 834 19. 868 22. 112 19 . 930 20. 822 18. 05 24. 402 18. 291 22. 956 18. 606 21. 579 22. 312 18. 837 26. 733 26. 683 24. 607 0. 861 0. 820 0. 915 0. 899 0. 744 0. 835 0. 776 0. 873 0. 859 0. 787 0. 741 0. 693 0. 798 0. 802 0. 694 0. 871 0. 706 0. 919 0. 751 0. 838 0. 771 0. 799 0. 729 0. 926 0. 725 0. 831 0. 712 0. 795 0. 839 0. 730 0. 906 0. 905 0. 859 Convergent validity * CRC (. 0. 6) EVA (. 0. 5) 0. 828 0. 891 0. 787 0. 857 0. 785 0. 810 0. 770 0. 825 0. 845 0. 839 0. 824 0. 763 0. 920 0. 707 0. 733 0. 650 0. 750 0. 550 0. 587 0. 629 0. 704 0. 645 0. 638 0. 610 0. 618 0. 793 1194 FUIM (i) FUIM (f) AFIM (i) AFIM (f) REIM (i) REIM (f) FAMI DIFF EXAT CAFI IMFITable V. Reliability, convergent validity and ? t of the measurement model Notes: Fit indices: Global ? t: x 2 ? 1224. 142 (417) p , 0. 001; GFI ? 0. 884; RMSEA ? 0. 053; SRMR ? 0. 040. Incremental ? t: AGFI ? 0. 844; CFI ? 0. 973; IFI ? 0. 973; NFI ? 0. 960; NNFI ? 0. 966; CRC: Composite reliability coef? cient; EVA: Extracted variance analysis, GFI : Goodness of ? t index; RMSEA: Root mean square error of approximation; SRMR: Standardised root mean square residual; AGFI: Adjusted goodness of ? t index; CFI: Comparative ? t index; IFI: Incremental ? t index; NFI: Normed ? t index; NNFI: Non-normed ? t indexGiven that the Cronbach alphas exceeded 0. 7, a single measure of initial and ? nal image, obtained as the mean of all the underlying items, was considered. Figures 2-4 gather the results according to the sector. For a better understanding of the effect on image, a single initial image (IMAG * (i)), calculated as the mean of initial brand images for close and far extensions, was taken into consideration. A new ? nal brand image (IMAG * (f)), resulting from adding IMAG * (i) to the difference obtained between the ? nal and the initial image in each scenario, was also considered. In general, these Responses to brand extensions 195 Figure 2. Brand image variation (toothpaste brands) Figure 3. Brand image variation (sport brands) Figure 4. Brand image variation (mobile phones brands) graphics suggest that ? rms should avoid entering markets far from their sector, since such extensions clearly entail brand image dilution. Once the global effect of extensions was analysed, the model hypotheses were tested. To test hypotheses related to feedback effects we created new variables based on unstandardised residuals. These residuals represent the brand image variation in such a way that higher values indicate more favourable feedback effects.They were obtained by regressing the post-test scores against the corresponding post-test scores, and the psychometrical properties of the resulting construct were similar to those of brand image factors (Cronbach’s alpha ? 0. 795). EJM 44,7/8 1196 Table VI contains the results of the model estimation and goodness of ? t measurements, which are acceptable and above the thresholds established in literature. Again, reasonable values were obtained for the error statistics ( RMSEA ? 0. 044; SRMR ? 0. 077) and the global ? t GFI (0. 892). The incremental ? t indexes also met the statistical requirements (AGFI ? 0. 74; CFI ? 0. 972; IFI ? 0. 972; NFI ? 0. 952; NNFI ? 0. 969). Next, the speci? c results concerning the hypotheses are commented. First, familiarity has a direct and signi? cant in? uence on initial brand image (best ? 0. 485; t-value ? 10. 419), as proposed in H1. However, contrary to H2, familiarity seems to have no signi? cant effect on extension attitude (best ? 2 0. 052; t-value ? 2 1. 443). Consequently, the most familiar brands will lead to more favourable brand associations, although not necessarily to a better assessment of the extension. The effect of initial brand image on extension attitude is signi? ant and positive (best ? 0. 232; t-value ? 6. 351), as proposed in H3. Therefore, consumers will prefer the brand extensions of companies that have managed to build and communicate positive brand associations. Since brand image depends on brand familiarity, consumer attitude toward brand extensions seems to be the result of a cognitive-affective sequence (Fishbein and Ajzen, 1975). Supporting H4, category ? t seems to be a clear determinant of extension attitude (best ? 0. 299; t-value ? 2. 439). In the same way, extension attitude is signi? cantly dependant on image ? t (best ? 0. 587; t-value ? 4. 76), which con? rms H5. Consequently, consumers will prefer those extensions marketed in a category that ? ts the brand portfolio, especially in terms of general brand associations. The effect of perceived dif? culty on extension attitude is positive (best ? 0. 035), as expected. Nevertheless, the coef? cient relating both factors fails to reach statistical signi? cance (t-value ? 1. 186), which implies rejecting H6. This lack of statistical signi? cance reveals that consumers do not consider dif? culty of manufacturing as a heuristic of the perceived quality of the new product. Hypotheses H1: FAMI !IMAG (i) H2: FAMI ! EXAT H3: IMAG (i) ! EXAT H4: CAFI ! EXAT H5: IMFI ! EXAT H6: DIFF ! EXAT H7: INNV ! EXAT H8: EXAT ! IMAG variation H9: CAFI ! IMAG variation H10: IMFI ! IMAG variation Standardised b (t) 0. 485 * 2 0. 052 0. 232 * 0. 299 * 0. 587 * 0. 035 0. 093 * 0. 631 * 2 0. 050 0. 159 (10. 419) (2 1. 443) (6. 351) (2. 439) (4. 876) (1. 186) (2. 924) (5. 846) (2 0. 313) (1. 004) Hypotheses validation Yes No Yes Yes Yes No Yes Yes No No Table VI. Results of the structural model Notes: *Signi? cant at p # 0. 05; Fit indices: Global ? t: x 2 ? 1131. 700 (481); p , 0. 001; GFI ? 0. 892; RMSEA ? . 044; SRMR ? 0. 077. Incremental ? t: AGFI ? 0. 874; CFI ? 0. 972; IFI ? 0. 972; NFI ? 0. 952; NNFI ? 0. 969; CRC: Composite reliability coef? cient; EVA: Extracted variance analysis, GFI: Goodness of ? t index; RMSEA: Root mean square error of approximation; SRMR: Standardised root mean square residual; AGFI: Adjusted goodness of ? t index; CFI: Comparative ? t index; IFI: Incremental ? t index; NFI: Normed ? t index; NNFI: Non-normed ? t index Regarding H7, consumer innovativeness appears to have a clear, though reduced, effect on extension attitude (best ? 0. 093; t-value ? 2. 924).All in all, attitude towards extensions will be fundamentally explained by the initial brand image (H3), perceived ? t (H4 and H5) and, to a lesser extent, by other factors such as consumer innovativeness (H7). H8 to H10 indicate the factors that explain the potential feedback effects of brand extensions on brand image. With respect to H8, extension attitude has a positive and signi? cant effect on brand image variation (best ? 0. 631; t ? 5. 846). Hence, the more favourable the attitude to the extension is, the more favourable the attitude toward the extended brand will be. Because of the high coef? ient obtained, companies launching brand extensions will have to avoid damaging their brands with low quality products. Contrary to our expectations, perceived category ? t has no direct effect on brand image variation, which rejects H9 (best ? 2 0. 050; t ? 2 0. 313). Despite showing a relatively high and positive coef? cient, the effect of image ? t proposed in H10 is not signi? cant either (best ? 0. 159; t ? 1. 004). The lack of signi? cance in both coef? cients suggests that the in? uence of ? t on brand image variation is only indirect through extension attitude (H4 and H5).To sum up, then, while perceived image and category ? t are essential factors for the success of a brand extension, it is signi? cant that extension attitude synthesises their effects. The centralising role of extension attitude was also corroborated by checking through the estimation of competitive models that neither brand familiarity nor consumer innovativeness nor perceived dif? culty have direct effects on brand image variation. Given the importance that literature attaches to perceived ? t to explain feedback effect (e. g. Loken and John, 1993; John et al. , 1998) and the lack of signi? ant effects in our model, we took a new step in the analysis. According to Czellar (2003), perceived ? t may moderate the in? uence of the attitude to the extension on the attitude to the extended brand. In the same way that high-perceived ? t increases the transference of brand associations to the new product (Aaker and Keller, 1990; Czellar, 2003), we think that the opposite effect could take place. This possibility was explored by means of two multi-sample analyses for each of the ? t dimensions, category ? t and image ? t. Speci? cally, the sample was split into high ? t (mean . 4) and low ? (mean , 4) and the structural model were replicated without considering direct effects of ? t. The Lagrange Multiplier (LM) Test and the maximum likelihood estimation method determined whether the model coef? cients are signi? cantly different (Iglesias and ? Vazquez, 2001). The comparison between the considered sub-samples yields interesting results. Although the effect of extension attitude on image variati on was similar for category ? t (x2dif ? 0. 182; p . 0. 1), the results lend support to the existence of moderating effects for image ? t at 90 per cent (x2dif ? 2. 868; p ? 0. 090). In the expected direction, the in? ence of extension attitude was higher in the high ? t condition (best ? 0. 810; t ? 12. 740) than in the low ? t one (best ? 0. 666; t ? 11. 203). In consequence, spillover effects between the brand and the extension (forward and backward) will depend on image ? t perceptions rather than on category ? t. Responses to brand extensions 1197 EJM 44,7/8 1198 Discussion A brand is one of the most important assets for ? rms and, therefore, marketing managers must be on the alert for inadequate strategies that erode brand assets. One of this potentially risky strategies involves the launching of unsuitable brand extensions ? hat erode extended brand bene? ts and associations (Mart? nez and de Chernatony, 2004; Diamantopoulos et al. , 2005). However, so far there is no clear u nderstanding of the main variables leading to spillover effects between brand extensions and parent brands and their relative in? uence. The present work proposes a model to ? nd out how extension strategies affect brand image, one of the major dimensions of brand equity. Unlike most previous research, this paper focuses on extension evaluation and feedback effects on the core brand as interrelated rather than independent phenomena.Moreover, it incorporates a few key variables into an operative model instead of considering most of the potential variables that might divert the attention of researchers and practitioners alike. The estimation of this model showed positive goodness-of-? t indexes and, without considering non-validated relationships, it sheds some light on the main factors and processes explaining consumer attitude. According to the literature, core parent brand experience positively in? uences probability of extension trial (Swaminathan et al. , 2001; Swaminathan, 2003) .However, our results reveal an indirect effect of brand experience or brand familiarity on consumer attitude to brand extensions. This variable has a distinctive in? uence on brand image, which, in turn, affects the assessment of the new category. These results are coherent with the behaviour models de? ned by some authors who maintain that the individual’s beliefs determine attitude and this, in turn, determines purchase behaviour (Fishbein and Ajzen, 1975). From this perspective, brand image, rather than brand familiarity, would explain consumer attitude to the extension. Our ? dings validate previous results in the literature concerning the positive effects of perceived ? t, either category or image ? t, on consumer attitude. In the same way, it was con? rmed that consumer innovativeness increases likelihood of consumer ? acceptance, although to a lesser extent than perceived ? t (Volckner and Sattler, 2006). Nevertheless, we could not verify the proposed relationship bet ween the attitude to the extension and dif? culty in manufacturing the new category. Due to the clear inconsistency of results along studies, the relevance of this variable proposed by Aaker and Keller (1990) should be questioned.In relation to feedback effects, our results suggest that perceived ? t (category and image) has no direct effect on the extended brand image, though an indirect effect occurs through attitude to the extension. Previous works focusing on the in? uence of perceived ? t on parent brand associations have mostly resorted to experimental settings (e. g. Loken and John, 1993; Milberg et al. , 1997; John et al. , 1998) rather than SEM models. Therefore, this relationship cannot be taken for granted in complex models where several constructs are interrelated. The estimation of the model also revealed that image ? moderates the effect of extension attitude on image variation. In the light of the results, consumers that perceive the extension as coherent with the bra nd image will modify their brand associations mainly on the basis of their resulting attitude. A high ? t perception usually entails a categorisation process where the extension is associated to the brand category and leverages the current beliefs and attitudes (Monga and Houston, 2002). According to our results, this process occurs in the opposite direction in such a way that a high ? t will involve the leveraging of the attitude to the extension.The results obtained are thus in line with those works that indicate that consumer attitude toward brand extensions mainly depends on perceived ? t (Aaker and ? Keller, 1990; van Riel et al. , 2001; Volckner and Sattler, 2006). Moreover, it contributes to the body of knowledge by showing that the effect of perceived category and image ? t on the extended brand image is not direct. On the contrary, it occurs an indirect effect through extension attitude and, in the case of image ? t, a further moderating effect on the relationship between e xtension attitude and image variation. To sum up, the coef? ients obtained indicate that extension attitude is especially determined by perceived category ? t, image ? t and initial brand image, which, in turn depends on familiarity. Consumer innovativeness is also a factor that explains consumer response to brand extensions. Furthermore, the results reveal that the existence of positive feedback effects will be an immediate consequence of the attitude to the extension. These results clearly support the basic argument of our model: the consumer will assess the product according to a series of variables and, as a result, the consumers will modify the initial brand schema.Implications Considering all the results obtained as a whole, we can make some recommendations for ? rms launching brand extensions. There is no doubt that the most important aspect for the success of an extension is coherence with the image of the extended brand. Though positive, it is not essential that the new pro duct or service belongs to a new category, but the ? rm has to be able to communicate the brand essence to the different markets (Kim, 2003). Once the new product is ? rmly associated to the current brand image, consumers will perceive a high quality of the new product and the risk associated to purchasing it will be lowered.Although innovative consumers are expected to prefer low-? t products (Xie, 2008), consumer innovativeness is a factor with a weak effect on the attitude to the extension. In comparison to introducing a new brand name, brand extensions will increase consumer trust and reduce the weight of consumer innovativeness as a risk reliever. Since consumer behaviour will be relatively similar regardless of consumer predisposition to new products, this factor should not be used for potential market segmentation. In consequence, companies must identify other consumer characteristics able to alter perceptions of quality and purchase ntentions of speci? c product categories. A favourable initial image will also be positive for consumer acceptance increasing the appeal of the new product. This image is hard to obtain in the short term, although our model suggests that increasing familiarity through communication or brand trials is an effective way of building brand associations. Since brand familiarity does not directly in? uence extension attitude, companies do not have to worry when their brands are not familiar enough or the current market share is scarce.Whenever they are capable of transmitting a positive brand image and ? t is high, success should be easy to obtain. Moreover, launching products perceived as trivial or very easy to make will not prevent consumers from trying the new product, a concern highlighted by Aaker and Keller (1990). Responses to brand extensions 1199 EJM 44,7/8 1200 Once consumers have developed a favourable attitude toward the new product, the brand associations might not be diluted but even strengthened. Provided perceived ? between the extension and the core brand is high, especially on the basis of image ? t, the attitude to the extension will be the main driver of feedback effects. Consequently, increasing the success of brand extensions and protecting the leveraged image are not con? icting but complementary goals. Companies should thus address their efforts towards the success of the extension by building a bundle of coherent and strong brand associations. This is the best way to avoid the risk of image dilution. Future research Our ? ndings raise several issues for future research. The ? st issue refers to the lack of time between the extension stimulus and the subsequent measurement of brand image, which is the common procedure in most studies. The fact of the matter is that higher experience reduces the likelihood of negative feedback effects (Sheinin, 2000; Swaminathan, 2003), since the mere exposure to the new product affords consumers to establish links with the brand that, otherwise, woul d not exist (Klink and Smith, 2001). However, experiments requiring the cooperation of respondents over time are likely to suffer from a â€Å"history problem† caused by the in? ence of external events (Campbell ? and Stanley, 1963). By analysing FMCG through a longitudinal study, Volckner and Sattler (2008) show that feedback effects diminish over time, although they also admit the possibility of confounding effects. Taking into account the advantages and disadvantages of the different procedures, the present study opted to exclude extraneous variables by minimising the time between pre and post-test scores. Since we aimed to test the interrelationships between factors, the setting of the study was designed to reinforce internal validity as much as possible.Consequently, it must be observed that the paper generates a picture of feedback effects in the short-term and these effects should be checked through a long period of time. It would be also advisable to verify whether th e validated relationships are consistent when consumers are exposed to all the market signals (competitors action, distribution support, etc. ) by using real extensions. Another issue to consider is whether the model can be applied to extensions of the same category or line extensions. Since line extensions are products with a higher perceived degree of ? t (Grime et al. 2002), there is a possibility that the relationships are sustained. It might be even more interesting to study whether service companies can successfully extend to the goods markets and vice versa. Indeed, it would be worthwhile to examine the brand and extension conditions that lead to higher effects of perceived ? t dimensions on the extension attitude toward the brand. Given that the in? uence of consumer innovativeness on extension attitude was less than expected, further research could also explore whether consumer innovativeness has moderating effects rather than mediating ones.Klink and Smith (2001) proved th at the in? uence of perceived ? t on extension attitude is lower among innovative consumers, who are more receptive to new products. 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