Indias Foreign Policy Towards China: An Analysis

Indias Foreign Policy Towards China: An Analysis KAUTILYAS THOUGHTS ON FOREIGN POLICY AND ANALYSE ITS RELEVANCE TO MODERN INDIA PARTICULARLY WITH REGARDS TO CHINA CHAPTER I METHODOLOGY General 1. The making of foreign policy is an exercise to achieve ends and means of a nation state. Conceptually it is based on long term goals and related short term objectives. It is the product of past history, geography, evolving national power and prevalent international environment, which is largely out of countrys control[1]. 2. Indian Foreign Policy towards China was initially based on idealism of Nehru, steered towards realism by Mrs Indira Gandhi, asserted by Rajiv Gandhi and culminated with India going overtly nuclear under Vajpayee in May 1998. From Hindi-Chini bhai bhai to potential enemy number one to great friend, India just does not know how to deal with its neighbourhood dragon that has played its cards so skilfully vis-à  -vis India. 3. Indias dominant geostrategic location, vast natural and technological manpower resources, a vibrant emerging economy backed by strong military and nuclear capability, visible soft power and presence of the Indian Diaspora the world over, make it an ideal candidate to be a major player in the world in general and South Asian region in particular. 4. India and China are the two major powers in Asia with global aspirations and some significant conflicting interests. As a result, some amount of friction in their bilateral relationship is inevitable. The geopolitical reality of Asia makes sure that it will be extremely difficult, if not impossible, for Hindi-Chini to be bhai-bhai (brothers) in the foreseeable future. If India and China continue to rise in the next few years, a security competition between the two regional giants will be all but inevitable. If India is serious about its desire to emerge as a major global power, then it will have to tackle the challenge of Chinas rise. A rising China will not tolerate a rising India as its peer competitor. Even if a rising India does not have any intention of becoming a regional hegemon, China will try its best to constrain India as it has already done to a large extent. And it is that containment that India has to guard against. India should make a serious attempt to manage the fr ictions by expanding the zone of cooperation with allies even as it tries to steadfastly pursue its national interests. 5. Indian foreign policy agenda should be driven by only Indias national security imperatives. India needs to be more pro-active, consistent, and realistic when engaging China. It is time for India to realise that Its great power aspirations cannot be realised without a cold-blooded realistic assessment of its own strategic interests in an anarchic international system where there are no permanent friends or enemies, only permanent interests. 6. It would be prudent to look, into the wisdom of Kautilyas , Arthashastra, a treatise on polity and statecraft to learn the lessons on war and strategy , national power and national security and threat perception and threat assessment. Statement of Problem 7. To study Kautilyas thoughts on strategy and analyse its relevance to the present day Indian Geo-political environment with particular regards to China. Justification of the Study 8. Kautilyas Arthashastra has been recognised the world over as an invaluable treatise on all facets of statecraft and polity. Its eternal wisdom and timelessness can be gauged from the fact that it is still quoted by scholars, academicians, bureaucrats and soldiers alike the world over. The interest generated in this epic illustrates that the thoughts on strategy to sustain and advance a state still provides valuable lessons. The twentieth century which has seen two world wars of long duration and host of other conflicts worldwide has also generated a fairly large number of studies on strategy commensurate with the advances in technology and new methods in warfare. But there is certain universality about classical strategic thoughts which prompts academics and scholars to go back to these works both in terms of comparative analysis and their reinterpretation in the changing world. 9. Strategy over the ages has been defined in different ways reflective of the times in which they were made and the existing interstate relations and economic and social state of a nation. Higher or Grand strategy is hardly understood nor does it seem to have been practised in India. It is therefore important to study the various facets of this vital subject as propounded by Kautilya in his Arthashastra, as it is so critical for the existence and security of a nation. Scope 10. The Arthashastra is a compendium on various aspects of statecraft and lays down measures to be followed by a king to sustain and advance a state. The contents of this treatise are very exhaustive covering a broad spectrum to include the minor details at one end to grand strategy on the other. However this study concentrates on the various facets of stratagem enunciated by Kautilya and analyse their relevance to modern India particularly with regards to China Method of Data Collection 11. All the information for this study has been gathered from various books (refer bibliography) and internet. Content 12. Background. Kautilyas Arthashastra is an excellent treatise on statecraft, economic policy and military strategy. It is said to have been written by Kautilya, also known by the name Chanakya or Vishnugupta, the prime minister of Indias first great emperor, Chandragupta Maurya. This chapter will include the following:- (a) Authenticity and date of Arthashastra. (b) Historical account of life of Kautilya. 13. Kautilyas Foreign Policy. In Interstate relations power constitutes the ability of a nation to impose its will on another nation despite resistance. This Chapter will include:- (a) Saptanga concept of state. Kautilyas theory of the state describes the seven constituent elements of any state[2] and is an exposition of the theory of the Circle of States (The mandala theory) as the basis for a foreign policy of expansion by conquest. The seven constituents are the basis of the national power and happiness. He then relates as to how national power varies due to expansion or calamities and how pursuance of national interest is directly related to the possession of national power. (b) Postulates of foreign policy. As a political realist, Kautilya assumed that every nation acts to maximize power and self-interest, and therefore moral principles or obligations have little or no force in actions among nations[3]. Kautilyas postulates on foreign policy international relations, national security to include internal and external security, war waging methodology to include Mantrayuddha or War by Counsel, Prakasayuddha or Open War, kutayuddha or Concealed War, Gudayuddha or Clandestine War. 14. Mandala Concept as the Basis of National Strategy. Kautilya, says that the the aggressor (Vijigishu), should conclude, peace when he finds that he is weaker than the enemy[4]; he should wage war when he finds himself to be stronger; he should adopt neutrality when assesses that neither he nor his enemy can settle the score; he should seek refuge when he is weak; and he should adopt the duel policy in a contingency requiring the help from, another ruler. War and foreign policy issues are thus decided in an ad hoc framework of political expediency. When progress is equally attainable by means of peace and war, Kautilya says that the former is to be preferred. This is so, for war involves expenditure in men and money, residence in a foreign land, and suffering.This chapter will include the following:- (a) Mandala Theory. Kautilya believed that countries which shared a common border were natural enemies. However, any state on the other side of that enemy is a natural choice for an ally for they, too, are at risk from the same enemy. In other words, he believed in the principle of â€Å"the enemy of my enemy is my friend.† The idea is best envisioned by a series of concentric circles (not a normal configuration of states, admittedly, but easier to describe), which actually makes them look a bit like a mandala. (b) Potential enemies. â€Å"A neighboring prince possessed of the excellences of an enemy is the foe; one in calamity is vulnerable; one without support or with weak support is fit to be exterminated; in the reverse case, fit to be harassed or weakened. These are the different types of enemies[5].† (c) Alliances. A perfect ally is said to have six qualities,namely, constant, under control, quickly mobilising, hereditary, great and not given to double dealing. (d) The six measures of foreign policy. Kautilya however believes that there are spin-offs of these, thus providing six methods of foreign policy. These are making peace, waging war, staying quiet, preparing for war, seeking support, and the dual policy of making peace with one while waging war against another[6]. Ones circumstances will dictate which methods should be used. 15. Application of Mandala Theory in the Contemporary Indian geo-political Scenario. This Chapter will include the classification of friends, enemies, potential enemies, and likely allies on the basis of Mandala theory. 16. Implication of Chinas Rise in Indian Perspective. This chapter will include the following:- (a) Chinas comprehensive strategy. (b) Chinese Balance of power strategy in Asia. (c) Chinese economic Strategy. (d) Chinas encirclement policy. (e) Relationship with Indias neighbours. (f) Chinas perception of India. (g) Indias perception of China. (h) Implication of Chinas strategy on Indias security. 17. Application of Kautilyan Wisdom in Sino-Indian Relations. This chapter will include the following:- (a) Chinese critical vulnerabilities. (b) Indian options to counter Chinese threat. (c) Suggested Indian Strategy against China. â€Å"Miraculous results can be achieved by practising the methods of subversion†. Kautilya CHAPTER II BACKGROUND General 1. Kautilya, also known as Chanakya [7]or Vishnugupta, was an Indian statesman and philosopher who lived around 350 B.C.E. He is one of the most famous Indian political thinkers who participated in the social and political revolutions of his age. Though he lived a long time ago, certain principles from his theory are still relevant in todays context. His most famous work is Arthashastra, translated differently by various authors, but in its most acceptable meaning, the â€Å"science of political economy[8].† The book, written in Sanskrit, discusses theories and principles of governing a state. Arthashastra remains unique in all of Indian literature because of its unabashed advocacy of realpolitik. Indian scholars continued to study it for its clear-cut arguments and formal prose till the twelfth century. After that period it lost its significance. It has again become the focus of attention of thinkers who want to see a change in the Indian foreign policy[9]. 2. Kautilya was a Brahmin minister under Chandragupta Maurya[10], the first king of the great Mauryan Empire in India. The empire was the largest and most powerful political and military empire of ancient India. It was founded in 321 B.C.E. by Chandragupta Maurya[11], who had overthrown the Nanda Dynasty and begun expanding his power across central and western India. The Empire stretched to the North along the natural boundaries of the Himalayas, and to the east stretching into what is now Assam. To the West, it reached beyond modern Pakistan and included Baluchistan in Persia and significant portions of what is now Afghanistan, including the modern Herat and Kandahar provinces. 3. Many call Kautilya the first political realist in the world.[12] His work differed from existing political theory in that it talked about ways of running the administration which were based more on self interest than on morality. The frank and brutal advice he offers the king in his treatise makes Machiavellis â€Å"The Prince† seem mild.[13] There are four different characteristics of a realist approach to international relations:[14] (a) The assumption that human nature is aggressive. (b) The belief that international relations will always be characterized by conflict. (c) The belief that the foremost goal of the king shall be the protection of the state and its people. (d) The belief that the state must be strong politically, economically, and militarily so as to minimize the possibility of an attack. 4. He thus talked about balance of power before this term was actually invented.[15] He said that the king should consider all his neighbors as his enemies and that any state on the opposite side of a neighbor is a potential ally. So, if countries were in a line, countries 1, 3, 5, 7 could be friends, as could 2, 4, and 6. But countries 1, 2, and 3 could never be friends. This status would change as soon as country 1 conquered country 2. From that very instant country 3 (a friend) would be the new enemy. This is called his ‘mandala theory.'[16] Arthashastra 5. It is necessary to bear in mind that the Arthashastra, â€Å"the science of wealth and warfare,† was just discovered and translated in the past century in Mysore by R. Shamasastry[17], and that until then, there was no knowledge of any such compilation, despite scant allusions made to an â€Å"Arthashastra,† and its alternative names â€Å"Nitisastra† and â€Å"Dandaniti,† in the Mahabharata[18].Thomas Trautmann dates the text to c.150 A.D. and, through rigorous statistical analysis, he concludes that the Arthashastra had several authors spanning a wide range of dates,[19] which adds to the puzzle of how historically obscure the text has been for over the past two millennia. Nevertheless, its secretive nature adds credence to its function as a handbook on efficient statecraft for kings and high-level ministers. 6. Artha has always been regarded as one of the four purusharthas,[20] yet its teachings have been relegated to animal fables and folklore. No such shastras seem to have been compiled for public knowledge, as was the case of the Dharmashastras and Kamashastras. In stark contrast to the latter, the manuscript discovered in 1902 by Shamasastry was compiled as a guidebook for kings and high-level officials, rather than the average individual. The result is a perspective advocating a top-down style of governance with little or no representation held by the general populace, and the continual maintenance of such a state with energetic leadership and extensive secret service. Though the king and upper echelons of society involuntarily accepted such authority because of religious ideals just as much as the general populace did, the Arthashastra suggests the existence of a small elite with a secular and realist outlook that actively worked to uphold this power scheme and determine the overal l course of the kingdom.[21] 7. It is for this reason that the Arthashastra advocates reordering the priorities of the purusharthas, by valuing materialism over religion and morality.[22] Similarly, R.P. Kangle notes that â€Å"these ideals are meant for individuals† and that the conduct of public life was not to be guided by these rules for individual morality[23]. Management of the state necessitated realism, not idealism. It required the prudence and precise calculation of measures undertaken alongside their short and long-term consequences, which formulated the theoretical beginnings of economics: â€Å"Wealth will slip away from that childish man who constantly consults the stars: the only [guiding] star of wealth is itself; what can the stars of the sky do? Man, without wealth, does not get it even after a hundred attempts. Just as elephants are needed to catch elephants, so does wealth capture more wealth[24].† Public welfare was contingent upon the strength of the state. The latter was achi eved by internal development or territorial expansion, both of which were realized through power[25]. 8. The Arthashastra regards both economics and foreign policy as zero-sum games: the state would need to prosper economically lest it be overtaken by wealthier imperialist neighbors or suffer from internal rebellion by discontented government officials and military leaders. Furthermore, internal development would naturally lead to population growth and would eventually necessitate expansion, which is why L.N. Rangarajan notes that â€Å"the aim of creating a well-run state is to provide the base for expansion. Continuing with this logic, Kautilya deals in Book 7 with all the theoretical possibilities of conducting an expansionist foreign policy.†[26] Hence, the prime motive of the state was the never-ending pursuit of artha. It is only after dedicating its energies to this end can the state or king then move on to fulfilling dharma and kama. 9. This Arthashastra is primarily a book of political realism where State is paramount and King shall carry out duties as advised in his book to preserve his state. For Kautilya, military strategy was an integral part of the science of polity[27] and he made no distinction between military techniques and statecraft. Kautilyas work is so deep rooted in realism that he goes to describe the gory and brutal means a King must adopt to be in power. This could have been one reason why Ashoka, the grandson of Chandragupta Maurya whom Kautilya advised renounced violence and war thus taking the path of Dharma or Morals. 10. I will also be making a few references to the other books of Arthashatra where topics of Management have been dealt with. The areas covered under Management include training, management education, leadership skills, selection of employees, consultation, crisis management, risk management, strategic management, corporate governance, information systems, intelligence network, competition, mergers and acquisitions, etc. among many others. Kautilya 11. There are a large of theories as to who Chanakya, or Kautilya or Vishnugupta , was. Kautilya was an enigmatic whose origin is shrouded in mystery. However, all sources of Indian tradition Brahmin, Buddhist and Jain agree that Kautilya destroyed the Nanda dynasty and installed Chandragupta Maurya on the throne of Magadha. 12. One theory about his origin is that Chanakya was a Kerala Brahmin who somehow reached the court of the Nanda king at Pataliputra[28]. The next theory is that Chanakya was a North Indian Brahmin born and educated in Taxila[29] and that he was physically ugly, had a disgusting complexion and his limbs were deformed. As per Jain tradition, his parents noticed that Chanakya was born with full set of teeth, a mark of future king. They had the teeth removed as either parent did not want him to become a King . He became a King maker instead. 13. At a very early age little Chanakya started studying Vedas. He later also studied politics and economics. As a student and later a professor, the University of Taxila became Chanakyas breeding ground of acquiring knowledge in the practical and theoretical aspects on all walks of life. However, with the Greek armies of Selucus threatening to invade India, and the various kingdoms in the subcontinent on the verge of war and aggression with each other, Chanakya left the university at Taxila, and proceeded in his own words to strengthen the country politically and economically and to save the country from the clutches of foreign invaders. 14. In Magadha, Chanakya was insulted by the King of Patliputra, Dhana Nanda and he vowed to destroy the Nanda dynasty. He came upon Chandragupta and together, Chanakya and Chandragupta set about attacking the Nanda kingdom until finally Chandragupta was installed as the king of Magadha[30]. According to written tradition, Chanakya was a fearless person, not afraid of death, disgrace or defeat. He was compassionate of the poor and evil to schemers. 15. Chanakya then retired from active life and reflected on all that he had learnt during the process of overthrowing Dhana Nanda. Since he found the earlier works on statecraft[31] unsatisfactory in many respects, he composed his own definitive work presenting his ideas concerning the ways in which a ruler should gain power and maintain his authority. For Chanakya, military strategy was an integral part of the science of polity and he made no distinction between military techniques and statecraft. Thus came into being the ‘Arthashastra. There is no doubt that this treatise is the work of a genius, who spoke of matters which have held relevance down the ages to contemporary times with striking infallibility. The military writings of Chanakya precede those of Machiavelli and Clausewitz by centuries but seldom has this fact been acknowledged much less credited outside India. â€Å"The king who understands the interdependence of the six methods of foreign policy, plays, as he pleases, with other rulers bound to him by the chains of his intellect†. Kautilya CHAPTER III KAUTILYAN FOREIGN POLICY Saptanga Concept Of State 16. Kautilyas theory of the state describes the seven constituent elements of any state[32] and is an exposition of the theory of the Circle of States (The mandala theory) as the basis for a foreign policy of expansion by conquest. Of the seven elements, six (the King, the ministers, the people, the fortified city, the Treasury and the army) are internal elements; only the ally is an element outside the borders. The structure and organization of the six internal elements of a well ordered state are fully developed and explained by Kautilya in books I to 5. The aim of creating a well-run state is to provide the base for expansion. Continuing this logic, Kautilya in Book 7 deaIs with all theoretical possibilities of conducting an expansionist foreign policy. Before a King actually sets out on an expedition of conquest he has to take steps to guard himself against the dangers which might weaken any of constituent elements of his own state. Kautilya uses the word calamity (vyasana) in th e precise sense of any event which weakens any constituent element of a state, thereby preventing it from being to its full potential in the conduct of foreign policy or war[33]. 17. This theory in one form or another (in part, as elements of national power), has survived to this very day as a mainstay of reflection and analysis of international politics. Kautilya enumerates the desirable qualities each of these elements should display and points out, too, that his list of elements is arranged in descending order of importance: each succeeding element is less important than the one before it, the king being most important of all. A ruler who possesses the elements of state and who wisely takes care of them will never be defeated, he says, and then devotes the whole of Book VIII[34] to a systematic analysis of the troubles and calamities which might befall each one of these elements (in other words, to their malfunctioning). 18. The king is the focal point of analysis; he strives to maintain and improve his position knowing that the determinants of status in international society are two: power and happiness: The possession of power and happiness in a greater degree makes a king superior to another; in a lesser degree, inferior; and in an equal degree, equal. Hence a king shall always endeavour to augment his power and elevate his happiness. 19. Neither power nor happiness is clearly or exhaustively defined or analysed. We know, however, that power is to be understood as strength and that it has three components[35]:- (a) Mantrashakti; Power of counsel, deliberation or decision-making, including capacity for intrigue. (b) Prabhushakti; The treasury and the army. (c) Utsahashakti; Resolve and determination. 20. Thus power refers essentially to activity and application of the elements of the state, just mentioned. Happiness on the other hand is that which can be attained by the use of power. It is to some degree a measure of success of foreign policy and the implementation of its objectives, but it also indicates those qualities such as righteousness and also internal stability and not power alone that enter into the determination of international status. 21. A kings position is not, however, unchanging; his status relative to another king is variable and needs continuous attention. A king prevents deterioration in his position and secures an improvement (a desire for which is a built-in feature of the system) in two ways: by attention to the elements of his power, and by external action. Kautilya enjoins the ruler to pursue power investment: a wise king adopts policies that add to the resources of his country and enable him to build forts, to construct buildings and commercial roads, to open new plantations and villages, to exploit mines and timber and elephant forests, and at the same time to harass similar works of the enemy[36]. Status is also obviously affected by successes in military and other fields, but the king is cautioned to rely on strengthening his own power before embarking upon foreign adventures. According to Kautilya, and here is one of the more interesting portions of his analysis, the kings status read national pow er determines his foreign policy. That policy differs according to whether it is directed toward kings who are superior, inferior or equal to him. The bulk of the international portions of the Arthashastra are a discussion of the policies that may be appropriately pursued by superior or inferior kings[37]. Postulates Of Foreign Policy 22. As a political realist, Kautilya assumed that every nation acts to maximize power and self-interest, and therefore moral principles or obligations have little or no force in actions among nations[38]. While it is good to have an ally, the alliance will last only as long as it is in that allys as well as ones own self-interest, because an ally looks to the securing of his own interests in the event of simultaneity of calamities and in the event of the growth of the enemys power[39]. Whether one goes to war or remains at peace depends entirely upon the self-interest of, or advantage to, ones kingdom: War and peace are considered solely from the point of view of profit. One keeps an ally not because of good will or moral obligation, but because one is strong and can advance ones own self-interest as well as the self-interest of the ally, for when one has an army, ones ally remains friendly, or (even) the enemy becomes friendly.[40] Because nations always act in their political, econ omic, and military self-interest, even times of peace have the potential to turn abruptly into times of war, allies into enemies, and even enemies into allies. Kautilya probably assumed that peaceful empires cannot last forever, and that conflict among smaller states is more common in history. 23. For Kautilya, this principle of foreign policy that nations act in their political, economic, and military self-interest was a timeless truth of his science of politics, or arthasastra. He did not believe that nations never act in an altruistic manner indeed, Kautilya advocated humanitarian acts that also coincided with ones self-interest but he did believe that one must assume, if entrusted with political or military power that ones neighbours will eventually act in their own interests. Put another way, one would be betraying ones own people if one did not assume a worst-case scenario. A nation forced to rely on the kindness of neighbouring states is weak and, unless it can change rapidly, doomed to destruction. 24. Arthashastra is concerned with the security and foreign policy needs of a small state, in an environment with numerous other small states. The scope for enlargement of this small state was limited to the Indian subcontinent. The area extending from the Himalayas in the north to the sea in the south and a thousand yojanas[41] wide from East to West is the area of operation of the King-Emperor'[42]. Territories beyond the subcontinent are not included, probably for the reason that the conqueror is expected to establish in the conquered territories a social order based on the Aryas dharma, varna and ashrama system. Kautilya perhaps considered the establishment of such a social order outside the limits of India impractical or even undesirable[43]. 25. The guiding principles which govern the Kautilyan theory of foreign policy are[44]:- (a) A king shall develop his state, i.e., augment its resources and power in order to enable him to embark on a campaign of conquest; (b) The enemy shall be eliminated; (c) Those who help are friends; (d) A prudent course shall always be adopted; (e) Peace is to be preferred to war; and (f) A kings behaviour, in victory and in defeat, must be just. 26. The first verse of {6.2}, ‘Sama vyayamau yogakshemayoryonih ‘The welfare of a state [ensuring the security of the state within its existing boundaries and acquiring new territory to enlarge it] depends on adopting a policy of non-intervention or overt action establish the basis for all foreign policy. 27. This non-intervention, a method designed to build up confidence between kings, is to be understood in a specialized sense. It is not a policy of doing nothing but the deliberate choice of a policy of keeping away from foreign entanglements, in order to enjoy the fruits of past acquisitions by consolidating them. 28. Vyayama, (industry or activity) implies an active foreign policy, Yoga, the objective of enlargement of ones power and influence, and, through these, ones territory. These are the two stages of policy. Both depend on the state making progress, either materially in terms of its treasury and army or diplomatically in terms of its relations with other states. 29. The problem of defence of a state is intimately bound up with the question of its foreign relations. It is from hostile states that the state needs to be defended. Foreign relations are mainly discussed from the stand point of the â€Å"Vijigisu†[45]. In other words, it seeks to show how a state, desirous of extending its influence and expanding its territory, should conduct its relations with foreign states. A states position is determined by its relative progress or relative decline vis-a-vis other states in the neighbourhood. 30. The most important of a kings neighbours is the ‘enemy. Among the states surrounding a kingdom, there is always one who is the natural enemy. Presumably, this is the one neighbour who has designs on the king and, in the absence of any action, will be out to attack the king. The other neighbours may be hostile (aribhavi), friendly (mitrabhavi) or vassal (bhrityabhavi). There may also be a small buffer state between the king and the enemy (antardih). However, the main target of the conqueror is always the designated natural enemy; ‘one cannot make peace with an enemy'[46]. The reason for many aspects of the analysis of foreign policy being couched in terms of the conqueror out manoeuvring the enemy, is that the enemy is also the target of the diplomacy of the conqueror. When the conditions are ripe, a military campaign will be undertaken against him. 31. Allies are important; in fact, allies are described as a ‘constituent element of a state, the only external constituent. An alliance is based on giving help. â€Å"A friend is ever a well-wisher†[47]. Kautilya gives us a comprehensive analysis of the type of kings with whom an alliance is desirable and the types of allies based on their character and motivation. 32. Since prudence should always govern choice of policy, Kautilya is against both spineless submission and foolhardy valour[48]. Therefore, peace should always be preferred to war: ‘When the degree of progress is the same in pursu UK Construction Industry: Health and Safety Analysis UK Construction Industry: Health and Safety Analysis To formulate a Comparative Analysis of the Health and Safety Practices and Procedures to the UK Construction Industry and their application to a Large Commercial Construction Organisation Rebecca Barraclough Table of Contents (Jump to) Rationale Introduction Aims, Objectives Hypothesis Aims Objectives Hypothesis Null Hypothesis Initial Literature Review Methodology 1. Rationale The increased emphasis on health and safety in the construction industry in more recent years is the key influence of this study. In particular the company I am employed by has upped its game in terms of safety measures and places a substantial emphasis on the importance of health and safety. I feel a comparative analysis of the companys performance in comparison to how the rest of the industry is performing would provide them with beneficial information and help to identify strengths and weaknesses within the company. 2. Introduction Health and safety within the workplace has come a long way particularly since the introduction of the Health and Safety at Work Act (HSWA) 1974. Historically people often accepted that accidents and ill-health were all part of having a job and greater risks were taken without much regard to safety measures. Over time health and safety within the work place has become increasingly dominant with a greater emphasis on safety measures. However, although statistics produced by the Health and safety Executive shows there has been a decline in the number of work place accidents, in the period of 2015/2016 alone 1.3 million working people suffered from a work-related illness. (HSE.gov) It is clear that this still remains a dominant issue and there is room for improvement. Employees, members of public and visitors equally have a right to protection of their health and safety when in and around a work place. Legislation and regulations are firmly in place to regulate this; often issues are identified and improvement notices are issued nevertheless more serious injuries and fatalities are covered by Criminal Law and could lead to major fines and even imprisonment. As reported by the Health and Safety Executive the construction industry is a major employer equating to around 6% of the workforce in the UK. This study will look into the background of health and safety in construction, analysing accident statistics and safety measures. It will include a comparative analysis of the performance of a large commercial construction company compared with other leading contractors within the industry. 3. Aims, Objectives Hypothesis 3.1 Aims To analyse health, safety and welfare performance within the construction industry Compare the performance of a large commercial construction organisation to the wider industry and evaluate behavioural safety within the organisation 3.2 Objectives Background to construction health safety and welfare performance over the last 10 years To identify the 5 highest risk activities in the construction industry and the safety measures implemented to reduce the risk. Compare the performance of a large commercial construction organisation in comparison of how the rest of the industry is performing and evaluate their behavioural safety culture To capture and appraise any emerging trends to consider areas of good performance and possible areas of improvement 3.3 Hypothesis Statistics will show that there has been a decrease in the number of accidents reported to the Health and Safety Executive within the construction industry over the past 10 years 3.4 Null hypothesis Statistics will show that there has been an increase in the number of accidents reported to the Health and Safety Executive within the construction industry over the past 10 years 4. Initial Literature Review 4.1 Health and Safety Defined Health and Safety in general terms can be defined as Regulations and procedures intended to prevent accident or injury in workplaces or public environments (oxforddictionaries.com) 4.2 Health and Safety at Work Everyday masses of people leave the safety of their homes to go to work and earn a living; it is their right to return home at the end of the day free from injury and ill-health. Not only do employers have responsibilities to keep their employees safe but individuals also have a duty to protect their own wellbeing. 4.3 Health and Safety at Work Ack 1974 (HSWA) The Health and Safety at Work Act was introduced in 1974 in attempts to improve health, safety and welfare within the work place. In England, Scotland and Wales this is the primary legislation of health and safety and sets out stringent guidelines and regulations, it also imposes legal duties on both employees and employers. Considerable amount of the legislation within the Act incorporates the recommendations made by Lord Roben in his health and safety at work report, published in 1972. The report aimed to identify any improvements necessary to the health and safety of persons at work by reviewing current provisions. Some of the legal duties imposed on both employers and employees are set out below: Employers Responsibilities; Protect the health, safety and welfare at work of all employees Provide and maintain plant and systems of work that are safe and without risk to health Have arrangements for ensuring safety and absence of risk to health in connection with use, handling, storage and transport of articles and substances Provide such information, instruction, training and supervision as is necessary to ensure health and safety at work of employees Maintain any place of work under their control in a condition that is safe and without risk to health, and with access to and egress from it, that are safe and without such risks Provide and maintain an environment that is safe, without risks to health and adequate as regards with the welfare of employees (citb 2015, pg 5) Employees Responsibilities: Take responsible care for the health and safety of themselves or others who may be affected by their acts or omissions Co-operate with their employer in all matters relating to health and safety Not intestinally or recklessly interfere with or misuse anything provided in the interests of health, safety or welfare Use anything provided by the employer in accordance with instructions Report anything that is thought to be dangerous (citb 2015, pg 6) 4.4 The Health and Safety Commission The Royal Assent of the HSWA was followed by the formation of the The Health and Safety Commission (HSC). The primary responsibility of the HSCs was to ensure the security of peoples health, safety and welfare at work, to protect the public from potential harm caused by work situations and to provide guidance about the provisions enforced with in the Act to local authorities and the Health and Safety Executives. 4.5 The Health and Safety Executive 1975 saw the introduction of The Health and Safety Executive (HSE). The remit of the HSE was to enforce health and safety legislation within the workplace, they consist of health and safety inspectors who visit a workplace without notice and carry out inspections. They have the authority to issue improvement notices or prohibition notices when company/individuals are in breach of health and safety law or in some cases prosecute. 4.6 Health and Safety in Construction The construction industry is diverse and could be seen as one of the higher risk industries due to the nature of works and specialist activities that take place on a construction site. The HSE collate data and statistics on accident rates within the industry, research suggests that 5% of the UK industry is made up from construction. Although this appears to be minimal, figures show that 10% of minor injuries and 22% of fatalities reported occur within this sector. In the period of 2015-2016 they reported that 43 fatalities occurred in the construction industry alone. They estimate that around 4% of employees in construction are affected by a work related illness each year and 3% sustain an injury through work. This would equate to 2.2 million working days lost. With all of this in mind it is clear that the emphasis of health and safety needs to remain a dominant influence. 4.7 Build UK Build UK focuses on key industry issues that can deliver change and enable the construction supply chain to improve the efficiency and delivery of construction projects for the benefit of the UK economy. (builduk.org) Health and safety is one of the issues focused on by Build UK, they aim to identify common standards that would improve health and safety performance and continually strive to improve the management of safety. Currently 27 large contractors are members of Build UK and their accident statistics are recorded annually. Such figures would from a basis for a comparative analysis between some of the leading contractors in the UK in terms of safety performance. 4.8 Statistics At first glance it appears that there has been a decline in the in number of accidents occurring in the construction industry each year. The table below was taken from the labour force survey and shows the trend of self-reported none-fatal injuries per 100,000 workers between the years 2000 to 2016; Source: Labour Force Survey (LFS) 4.9 Behavioural Safety Often many accidents in the workplace could be easily avoided, a significant amount of accidents are caused by unreasonable behaviour or ignorance. Using behavioural safety models within a work place encourages manager and workforce participation and can often influence peoples attitudes and behaviours towards safety. It promotes communication and reinforces safe behaviour. Below is the model used in the behavioural safety programme; Source HSE.GOV 5. Methodology Research can be described as a method of finding out new facts and drawing up conclusions, it is also a way of expanding existing knowledge. Triangulation Triangulation in research can be defined as; using two or more sources using two or more methods more than one researcher exploring the same object A triangulation method is to be used in this study to gather a varied amount of data to reflect the industry and increase validity. Both primary and secondary research will be incorporated; the source of the secondary research will be textbooks, official publications and official statistics. The primary research will include a mixed method approach of questionnaires and interviews. Methodological Model Data Collection Both the primary and secondary research will incorporate a combination of qualitative and quantitative methods in attempts to increase the validity of the information collected. There are advantages of both methods; Quantitative; Data can be collected and analysed within a reasonable amount of time Results taken from a sample can be generalized if the response rate is reasonably high and if the sample is representable It is often reliable and repeatable research It can be anonymous and ethical Qualitative; Topics can be explored in depth and with greater detail Uses subjective information Offers flexibility as fewer participants are needed Semi-structured questionnaires including both open and closed ended question will be sent out to participants, a representable sample will be used from the hierarchy of construction to increase the validity of the data; In attempts to increase the response rate a percentage of the questionnaires will be handed out following on from a site induction, I predict that 100% of these will be completed. The remaining will be emailed or handed out in person, in total I estimate that 70% of all questionnaires will returned. Interviews will be carried out as the second part of the primary research; the interviewees will be within a large commercial construction organisation and will include a health and safety manager, a site manager and an operative. There will also be an interview carried on an employee of the HSE; this will be to gain an outside non bias perspective. Data Analysis https://en.oxforddictionaries.com/definition/health_and_safety http://www.hse.gov.uk/statistics/history/index.htm http://www.chsg.co.uk/news/health-and-safety-in-the-uk-construction-industry/ http://www.hse.gov.uk/statistics/ http://www.hse.gov.uk/STATISTICS/industry/construction/construction.pdf http://www.kier.co.uk/~/media/Files/K/Kier/Annual%20Reports/annual-reports-2016/download/Kier%20CR%20reporting%20guidelines%20rev%201.pdf

Dreams in Arthur Millers Death of a Salesman Essay -- Literary Analysi

Do you ever have a dream? What is your dream? Having a dream is crucial for people to work hard to make the dream come true. In Death of a Salesman, Willy Loman, the main character, had a dream— to be a well-liked salesman—and had strived for this dream throughout his whole life. But he committed suicide to end his life. He was not happy in the process of achieving his dream. Arthur Miller, the author, reveals a negative attitude towards Willy’s behavior and beliefs. Willy is a man with flaws that leads to his downfall. I share the same attitude with Miller. Yet, I pity the tragedy of Willy. Miller reveals a negative attitude towards Willy’s behavior by displaying Willy’s poor parenting skills. Being a father of Biff and Happy, Willy should teach Biff and Happy with correct moral values. When Biff steals football from the locker room, Willy first told Biff â€Å"to return that.†(30) This is the right thing to say to Biff as stealing is illegal. However, Willy then contradicts himself by saying, â€Å"Sure, he’s gotta practice with a regulation size ball, doesn’t he? †¦ Coach’ll probably congratulate you on your initiative!†(30) In this incident, Willy teaches Biff wrong moral ethics that stealing is acceptable. Besides stealing, Willy encourages Biff to play football instead studying. When Bernard, Biff’s friend, asks Biff to study, Willy argues that ‘’with scholarships to three universities they’re gonna flunk him?’’(33) As Biff is good at playing football, Willy is confident that Biff is able to get a scholarship and get accepted by the universities easily. Aside from having poor parenting skills, Willy also fails to act as a role model for his sons. When Biff discovers his father’s affair with â€Å"the woman,† Willy l... ...ly has wasted his years in pursuit of a goal that is unattainable and wants to remind us that we should not set our goal too high. Otherwise, we will waste our life and have nothing in the end. People usually enjoy the happiness during their chasing of dream. However, Willy can’t find the happiness in the progress of chasing his dream. He should have realized that he was chasing a wrong dream and had other dreams instead. Though I agree that Willy deserves his tragedy, meanwhile, I pity Willy’s tragedy. Willy has no parents to learn from so he learns the things all by himself and nobody teaches him what to do. It is not his fault for having a wrong dream. At least, I think that he is better than people who have no dream. He did strive for his dream and tried to make it comes true. However, he was too stubborn to accept others’ opinions and this leads to his tragedy.

Early Learning Essay -- essays papers

Early Learning The purpose of this research paper is to investigate the issue of Preschool to determine if children who participate in structured preschool programs are more successful in kindergarten or first grade. There are a few types of preschool programs. First there are structured preschool programs that focus on emphasizing an actual school setting and classroom activities in order to prepare the child for kindergarten or first grade. There are also day care centers, which are not as structured as preschool centers. Daycare’s focus mainly on child’s development through social interaction with children and caregivers. Then there are head start programs that are geared to give children a foot in the right direction in order to be ready for preschool or kindergarten. The right kind of childcare can be a wonderful opportunity to promote the profound learning children experience from birth through age five (Selecting child care, 2002). When selecting childcare for your child the foundation of early learning has offered some tips that they believe will be helpful in the process. The foundation says that parents have always known that good early experience was important for their child. Now scientist and researchers are confirming how critical these first years of life are to your child’s healthy development (Selecting child care, 2002). Because the brain matures in the world rather than in the womb, the brain growth and development of infants and young children is deeply affected by their earliest experiences. In a childcare environment the relationship your child has with the caregiver will also affect how that child feels about himself and the world around him and as he grows up (Selecting child care, 2002). I ... ...s longitudinal studies. Bibliography Black, Jeffrey. (1991). School Readiness [Electronic version]. Retrieved April 27, 2003, from http://www.schoolhealth.org/ready.htm Codding, Karen. (n.d.). Test of Kindergarten and First Grade Readiness Skills. [Electronic version]. Retrieved April 20, 2003, from http://www.steoltingco.com/tests/catolog/TKFGRS.htm Anderson, Jeanne. (2002). Selecting Child Care. [Electronic version]. Retrieved April 21, 2003, from http://earlylearning.org/KC/Parents.htm#care Zill, Nicholas. (1995). School Readiness and Children’s Development Status.Eric Digest. [Electronic version]. Retrieved April 21, 2003, from http://www.ericfacility.net/databases/ERIC McKey, Al. (1985). School Readiness and Children’s Development Status.Eric Digest. [Electronic version]. Retrieved April 21, 2003, from http://www.ericfacility.net/databases/ERIC

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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