Child memory

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Title Relations Among Childhood Memory, a History of Abuse,

Dissociation, and Repression.

Subject(s) CHILD abuse; REPRESSION (Psychology); DISSOCIATION

(Psychology)

Order custom research paper on child memory

Source Journal of Interpersonal Violence, Nov, Vol. 14 Issue 11,

p117, 1p, charts

Author(s) Melchert, Timothy P.

Abstract The author of this study investigated several questions

regarding the relationships between a history of child abuse,

recovered abuse memories, childhood memory in general, repression, and

dissociation. Of the total sample (N = 560 undergraduate students),

one quarter reported a history of child abuse, and 18% of these

reported that they had a period when they lacked memories of their

abuse. These participants endorsed a variety of descriptions of their

recovered memories, many of which do not suggest a lack of conscious

access to the memories. General quality of childhood memory was found

to be unrelated to a history of abuse, and most participants,

regardless of their abuse history, reported recovering memories from

their childhood in general. Repressive personality traits were found

to be unrelated to recovering abuse memories, but dissociative traits

were found to be weakly associated with recovering abuse memories.

[ABSTRACT FROM AUTHOR]

AN 7481

ISSN 0886-605

Full Text Word Count 81

Database Academic Search Elite

RELATIONS AMONG CHILDHOOD MEMORY, A HISTORY OF ABUSE, DISSOCIATION,

AND REPRESSION

The author of this study investigated several questions regarding the

relationships between a history of child abuse, recovered abuse

memories, childhood memory in general, repression, and dissociation.

Of the total sample (N = 560 undergraduate students), one quarter

reported a history of child abuse, and 18% of these reported that they

had a period when they lacked memories of their abuse. These

participants endorsed a variety of descriptions of their recovered

memories, many of which do not suggest a lack of conscious access to

the memories. General quality of childhood memory was found to be

unrelated to a history of abuse, and most participants, regardless of

their abuse history, reported recovering memories from their childhood

in general. Repressive personality traits were found to be unrelated

to recovering abuse memories, but dissociative traits were found to be

weakly associated with recovering abuse memories.

Recovered memories of child abuse remain a controversial topic.

Empirical evidence has begun to accumulate regarding some aspects of

these memories, but there are still limited data available for

addressing many of the questions that have been hotly debated

recently. Many of these questions refer to very complex memory

processes which will not be well understood until after much more

research is conducted. Nevertheless, this study initiated an

exploration of some of these questions.

The recovered-memory controversy initially focused almost entirely on

childhood sexual abuse (SA). It was believed that the confusing and

secretive nature of incest resulted in an altered psychological

processing of those experiences, and consequently memories for these

experiences were more frequently repressed (e.g., Courtois, 188;

Fredrickson, 1). The first two empirical studies that investigated

this issue also showed that incest survivors in therapy frequently

reported recovering memories of child SA. Herman and Schatzow (187)

found that 64% of a sample of incest survivor group therapy members

reported that they had recovered at least some memories of their

abuse, and Briere and Conte (1) found that 5% of a sample of SA

therapy clients reported that there had been some period before they

were 18 years old when they could not remember their abuse. The

studies that have been conducted since then have shown lower rates of

recovered SA memories, although all have shown that a minority of

child abuse survivors report recovering at least some memories of

their abuse (Elliott & Briere, 15; Feldman-Summers & Pope, 14;

Loftus, Polonsky, & Fullilove, 14; Melchert, 16; Melchert &

Parker, 17; Polusny & Follette, 16; Williams, 15). It was also

recently found that those reporting histories of physical and

emotional abuse were as likely as those reporting a history of SA to

report recovering memories of their abuse (Melchert; Melchert &

Parker).

Several writers have hypothesized that not only are child abuse

memories commonly repressed or dissociated, but that traumatic child

abuse can also cause childhood amnesia (e.g., Blume, 10; Courtois,

188). The lack of firm evidence to support this hypothesis quickly

led to substantial controversy (Loftus, 1). Recent studies have

shown large amounts of variation in the quality of individuals

childhood memories, with substantial numbers reporting that they have

memories from very early ages while others report that they have no

memories from their early childhood at all (Melchert, 16; Melchert &

Parker, 17). In neither of these studies, however, was general

quality of childhood memory related to a reported history of child

abuse. These two studies also investigated the relationship between a

reported history of abuse and recovering memories from ones childhood

in general. If child abuse can cause amnesia but the lost memories can

subsequently be recovered, those with known child abuse histories

would be more likely to recover greater numbers of childhood memories.

This hypothesis also was not supported in these studies, however.

Therefore, other than for cases involving organic disorders, to date

the substantial individual variation in reported quality of childhood

memory and the recovery of childhood memories is not well understood.

The mechanisms underlying the memories of child abuse that individuals

report recovering have been another focus of controversy. It has often

been assumed that those who report recovering abuse memories had

repressed or dissociated the memories for some period of time.

Repression involving the unconscious blocking of threatening memories

initially received most of the attention in the recovered memory

literature (e.g., Herman & Schatzow, 187), while dissociation has

since received most of the attention (e.g., Yates & Nasby, 1). The

defensive purposes of dissociation are similar to those of repression,

but dissociation involves an alteration in consciousness or cognition

which results in traumatic memories not being integrated into ones

consciousness or self-schema (Reviere, 16). There is much more

empirical data supporting models of dissociation than there is

regarding repression (Pope & Brown, 16; Reviere), and there is also

some consensus regarding the existence of memory impairments for

traumatic events as represented by the inclusion of the dissociative

disorders in the Diagnostic and Statistical Manual of Mental Disorders

(American Psychiatric Association, 14).

Repression and dissociation have been controversial hypotheses ever

since they were first proposed. There have been numerous

conceptualizations of each of these concepts, and their validity

remains unclear (Erdelyi, 10; Holmes, 10; Pope & Brown, 16;

Reviere, 16). A variety of cognitive and neurophysiological evidence

suggests that attentional and memory mechanisms are affected by

extreme emotional arousal in ways similar to those posited by models

of dissociation (Christianson, 1; Nilsson & Archer, 1; van der

Kolk, 14). van der Kolk and Fisler (15) also found that

dissociative traits were related to a longer duration of abuse,

physical abuse and neglect, greater reliving of the abuse memories,

and self-destructive behaviors such as bingeing and purging, substance

use, and self-mutilation. If child abuse results in a reliance on

repressive or dissociative personality tendencies for coping and in

impairments in childhood memory, then adults repressive and

dissociative traits should be associated with having poorer childhood

memory in general and possibly with recovering greater numbers of

childhood memories. These possibilities have not yet been explored.

Ordinary forgetting and cued recall have also been offered as

alternative explanations for recovered child abuse memories (Lindsay &

Read, 14; Loftus, Garry, & Feldman, 14). Their role in the

recovery of child abuse memories has received little empirical

attention, although cues have been found to be powerful aids for the

recall of autobiographical information in general (Bower, 10).

Melchert (16) and Melchert and Parker (17) also found that

individuals who reported recovering abuse memories described those

memories in a variety of ways, some of which do not suggest repression

or dissociation (e.g., several participants in the Melchert study

indicated that I could always remember what happened, but I did not

think of it as abuse until I was older). These findings suggest that

there are varied explanations for recovered abuse memories, though the

nature of the recovered memories reported in these two studies remains

unclear. For example, when asked why they thought they lacked memory

of their abuse for some period, 1% of the participants in the

Melchert and Parker study indicated I dont know why. In addition,

nearly half of those in the Melchert study who indicated that they had

repressed their abuse memories also indicated that they were primarily

intentionally avoiding the memories.

The present study addressed each of the questions discussed above.

First, it replicated previous studies regarding the relationship of a

reported child abuse history to poor childhood memory and recovering

childhood memories in general. It also attempted to clarify the nature

of individuals recovered abuse memories and explore the role that

cues play in these memories. The relationship of repressive and

dissociative personality traits to poor childhood memory, recovering

childhood memories in general, and recovering child abuse memories

specifically were also investigated. One specific hypothesis was also

tested. It was hypothesized that participants recovered childhood

memories would include a disproportionate number of negative memories

that had originally been repressed or dissociated. Repressed or

dissociated memories are by definition psychologically threatening and

presumably negative in valence. Therefore, to the extent that

repressed or dissociated childhood memories are recovered, the valence

of those memories should be disproportionately negative. The control

group to which these memories were compared included participants

first memories of their childhood. Of course, individuals first

memories could be generally distorted in terms of their valence, but

currently there is no theoretical reason or empirical data to suggest

that they are. Consequently, the valence of participants first

childhood memories was expected to be more representative of their

childhood experiences than the valence of their recovered childhood

memories.

An undergraduate student sample was used to help avoid the possible

effects of suggestive therapy techniques and demand characteristics

which may exist in clinical samples. Both abused and nonabused groups

were included so that the effects of abuse history on childhood memory

could also be examined. It must be emphasized, however, that this

study relied on retrospective self-report data of unknown reliability.

Examining this type of data is useful for an initial exploration of

the research questions, though it will be necessary to employ other

research methodologies to eventually provide converging evidence

regarding these questions.

METHOD

Participants

The participant sample included 560 undergraduate students from a

large research university in the southwestern United States. The mean

age of the sample was 1.14 years (SD = .70) and 6% were female

(which is representative of the population in the subject pool). The

majority of the participants described their ethnic heritage as

European American (80%), and 1% indicated Latin American, %

indicated African American, % indicated Asian American, and %

indicated other ethnic heritages.

Twenty-five percent (n = 140) of the participants reported that they

had experienced one or more forms of child abuse. Eleven percent (n =

5) indicated a history of physical abuse (PA), 1% (n = 108)

indicated a history of emotional abuse (EA), and 8% (n = 45) indicated

a history of SA. Of the total study sample, 15% (n = 8) indicated

that they experienced one of the three forms of abuse, 8% (n = 4)

indicated experiencing two forms of abuse, and % (n = 15) indicated

experiencing all three forms of abuse. The mean age when the SA was

reported as beginning was 10.18 years (SD = 4.), and the mean age

when the abuse ended was reported to be 1.47 years (SD = 4.8).

Instruments

The participants were administered a survey questionnaire which was

followed by the two psychological tests described below. The survey

inquired about several aspects of their childhood memories, and all of

the survey items are found in the text and tables following.

Participants identified themselves as having an abuse history by

responding to the item, If you ever experienced physical abuse [or

emotional abuse or sexual abuse (unwanted sexual activity)] as a

child, please answer the following questions. Participants who

indicated a history of PA and EA were also asked to rate the severity

of the abuse on a scale ranging from 1 (mild) to 5 (severe), and

participants who indicated a SA history were asked to indicate the

number of sexual contacts they had prior to age 18 with their mothers,

fathers, other relatives, others who physically forced sexual contact

on them, or others with whom they had other unwanted sexual contact.

They were also asked at what age the SA occurred.

Dissociative personality traits were assessed with the Dissociative

Experiences Scale (DES) (Bernstein & Putnam, 186). This instrument

includes 8 items for assessing derealization, depersonalization, deja

vu experiences, absorption, and disturbances of identify, memory,

awareness, and cognition. It uses a visual analogue response scale

(from 0% to 100%) for indicating the amount of time the experiences

referred to in each of the items is experienced by the respondent.

Split-half internal consistency was found to be .8, and test-retest

stability was found to be .84 over a 4- to 8-week interval (Carlson &

Putnam, 1; in the present study, Cronbachs alpha was .). DES

scores have been found to discriminate between subjects with and

without dissociative disorder diagnoses. The median score of a normal

adult control group was found to be 4.8, for a normal college student

sample it was 14.11, for a clinical sample diagnosed with

post-traumatic stress disorder it was 1.5, and for a clinical sample

diagnosed with multiple personality disorder it was 57.06 (Bernstein &

Putnam).

Repressive personality traits were assessed with the Weinberger

Repressive Restraint Scale (WRRS) (Weinberger, 10). This instrument

is based on research that has found that highly defensive repressors

report low levels of subjective distress but also show high levels of

physiological reactivity to stress. The 1-item scale uses a

true-false response scale, and higher scores indicate higher levels of

repression. Cronbach alpha coefficients were found to be greater than

.85 across a variety of samples, and 7-month test-retest reliability

was found to be greater than .70. Scores were also found to be

correlated in predicted directions with a variety of measures of

personality and psychopathology (Weinberger & Schwartz, 10).

Luborsky, CritsChristoph, and Alexander (10) concluded that the WRRS

is a reliable measure of a specific type of repression, namely, a

denial of negative and especially aggressive thoughts or behavior and

a denial of not measuring up to extremely high standards of conduct.

In the present study, however, the WRRS had low internal consistency

(Cronbachs alpha = .6), which is at the lower boundary of usefulness

for the initial stages of construct validation research (Nunnally &

Bernstein, 14). Consequently, the findings based on this measure

must be interpreted very cautiously.

Procedure

Participants were randomly selected from a psychology department

subject pool where they could obtain credit in an introductory

psychology course by participating in the subject pool or by

completing alternative activities. Signed informed consent was

required for participation, but the consent forms were collected

separately from the study questionnaires so that participants

anonymity could be maintained. No one refused participation. The

questionnaires were administered in groups of to participants,

and participants were not allowed to sit next to each other so that

they had some privacy when completing the questionnaires.

RESULTS

General Childhood Memory

Responses to the items inquiring about the quality of participants

childhood memory at various ages, their memory for their first and

third grade teachers, and their age in their earliest childhood memory

are found in Table 1. There was a significant increase in the reported

amount of childhood memory from ages to 5, 5 to 7, and 7 to 10,

ts(55, 554, 550) = 15.7, 1.0, and 8.77, respectively, all ps

.001. (In order to reduce the probability of a Type I error but also

to avoid a Type II error, particularly given the exploratory nature of

this study, the alpha level used to indicate statistical significance

was set at .01.) Participants also reported remembering their third

grade teachers faces and names more often than they did for their

first grade teachers, t(54) = 5., p .001. As a group, the

participants reported that they were quite young in their earliest

memories (M = .8 years, SD = 1.5).

The first seven childhood memory items were combined to create a

single measure of general quality of childhood memory. The responses

to these items were first converted to z-scores (because one item used

a different metric than the others). The responses to the first six

items were then summed (higher scores indicate better memory) and the

inverse of the seventh item was added to that subtotal (younger ages

in ones first memory indicate better childhood memory). Scores on the

resulting measure were internally consistent (Cronbachs alpha = .77),

suggesting that individuals reliably report that they experience

differences in the general quality of their childhood memories. There

was also substantial individual variation in scores on this measure (M

= .0, SD = 4.50, range = -14.84-15.).

A x x analysis of variance (ANOVA) was used to determine if

those who reported experiencing the three different forms of child

abuse (the independent variables) had poorer childhood memory than

those who reported no abuse history. No significant effect on general

quality of childhood memory scores was found for a history of PA, EA,

of SA, Fs(1,50) = .7, p = .78; .01, p = .1; and ., p = .5,

respectively, and none of the interactions was significant.

To more fully examine the effects of traumatic child abuse on

childhood memory, a single measure of abuse severity was computed

which took into account having no abuse history as well as suffering

multiple forms of abuse. Participants PA and EA severity ratings were

used to compute this measure. The mean PA severity rating (on a scale

of 1 [mild] to 5 [severe]) was .0 (SD = 1.1), and the mean EA

severity rating was .41 (SD = 1.). To obtain an estimate of SA

severity, participants reported frequency of sexual contact by

mothers, fathers, other relatives, others using physical force, and

others with whom one had unwanted sexual contact were summed (M= 7.18,

SD = 10.8, range = 1-51). To include those with no history of a

particular type of abuse, a zero was assigned to the abuse severity

rating for that abuse type. The abuse severity ratings for PA, EA, and

SA were then converted to z-scores (because one rating used a

different metric than the other two), and the three z-scores were then

summed. There was substantial variation in the resulting combined

abuse severity scores (M = -.01, SD = .17, range = -. 88-18.77).

Nevertheless, the correlation between the general quality of childhood

memory scores and the combined abuse severity scores was

nonsignificant, r(517) =-.01,p = .8.

Recovered Memories of Childhood in General

Nearly two thirds (6%) of the participants reported recovering at

least one memory from their childhoods in general (see Item , Table

1). A x x ANOVA was used to determine if those who reported

experiencing the three forms of child abuse (i.e., the independent

variables) recovered greater numbers of childhood memories than those

who did not. No significant effect was found for a history of PA, EA,

or SA, Fs(1,545) =. 18, p = .67; .00, p = .; and 1.87, p =. 17,

respectively, and none of the interactions was significant. The

correlation between number of recovered memories reported and the

combined abuse severity scores was also nonsignificant, r(55) = .07,

p =. 1, as was the correlation between number of recovered memories

and the valence of those memories, r(77) =-.05, p = .. The large

majority of those who reported recovering memories indicated that

there had been a variety of cues that triggered their recall, and only

18% indicated that there seemed not to be any cues for their memory

recovery.

The valence of participants recovered memories was compared to the

valence of their first memories to test the hypothesis that recovered

childhood memories include a disproportionate number of negative

memories which had been repressed or dissociated before they were

recovered. As seen in Table 1, very similar proportions of the

participants (10%) rated both their first and their recovered memories

as bad or really awful. When the responses of the 76 participants

who answered both items are compared, the proportion who rated their

recovered memories negatively was very similar to those who rated

their first memories negatively (6.1% and .4% rated their first

memories as bad and really awful whereas 6.6% and .% rated their

recovered memories as bad and really awful). When the proportions

of those who rated their first and recovered memories negatively as

opposed to neutral or positive are compared, the difference was not

significant at p .01, Chi[sup ](1, N - 76) = 5.71, p = .0.

Recovered Memories of Child Abuse

A minority of the abuse survivors answered yes to the question, Was

there ever a time when you had no memories of your physical [or

emotional or sexual] abuse, and then later the memories came back

to you? (1%, 8%, and % for PA, EA, and SA, respectively). Four

individuals reported recovering memories of two or three types of

abuse, resulting in 18% of the total abuse sample (n = 5) who

reported this type of memory experience. For those who reported

experiencing just one type of abuse, there was no significant

difference between the proportions of those who recovered PA, EA, or

SA memories, Chi[sup ](, N = 8) = 4.86, p = .0. There was a

significant relationship, however, between reporting recovered SA

memories and reporting larger numbers of SA incidents, r(140) = .0, p

.001. Reporting the recovery of abuse memories was also

significantly correlated with higher combined abuse severity scores,

r(140) = .4, p .001. The reported age when the SA occurred was not

significantly correlated with recovering abuse memories, however

(either age when the abuse began, r(45)--.7, p = .08, or when it

ended, r(45) =. 10, p = .5). Reporting recovered abuse memories also

was not related to the general quality of childhood memory scores,

r(1) =. 1, p-. 15.

The number of participants who reported that they lacked memories of

their abuse for some period contrasts with the number who answered the

questions inquiring whether they had ever recovered memories of any

form of child abuse which immediately followed (see Table ). There

were 8 participants (7% of the total abuse sample) who responded to

these items, compared with 5 individuals (18%) who answered the

previous ones. The most likely explanation for this discrepancy may be

that the 1 individuals who endorsed the latter but not the former

items could always remember particular abuse memories but also

recovered additional memories of their abuse over time, either

additional details regarding their continuously recalled abuse or

memories of additional abuse incidents. Follow-up interviews which

could clarify this possibility, however, were not conducted. Sixty-one

percent of the 8 participants who reported recovered abuse memories

indicated a history of PA, 7% reported a history of EA, and 55%

reported a history of SA (66% had reported a history of or types

of abuse). For those who reported a history of one type of abuse,

there was no significant difference between the proportions who

recovered PA, EA, or SA memories, Chi[sup ](, N = 8) = .15, p =

.1. Higher combined abuse severity scores were associated with

reporting that one had recovered abuse memories, r(140) = .8, p

.001. Age when the abuse occurred, however, was not correlated with

recovering abuse memories; either the age when the abuse began, r(45)

= .0, p = .8, or when it ended, r(45) = .08, p = .61.

With regard to the nature of the recovered abuse memories that were

reported, there was only one participant who endorsed the response

indicating that she would not have been able to remember the abuse

even with reminders due to a lack of conscious memories of the abuse

for some period (see Item 1, Table ). Another nine individuals

indicated that they would not have recalled the abuse without being

reminded. The majority of these participants, however, indicated that

they had been intentionally avoiding thinking about the abuse and

could have remembered it if they had wanted to (n = 5).

The participants indicated a variety of reasons for why they thought

they lacked memories of their abuse for some period (see Item , Table

). Three of the response options were intended to indicate

subconscious memory processes (repression or dissociation, ordinary

forgetting, and developing a false memory), while the others indicate

primarily conscious processes such as intentional memory avoidance or

a reinterpretation of always remembered experiences. Nearly one-half

of the participants (n = 17) chose responses suggesting subconscious

processes (i.e., repressing or forgetting the abuse, and one

participant wrote in that recurring dreams and familiar smells and

places reminded her of the abuse). One-half of these participants (n =

8) had indicated on the previous item, however, that they were

intentionally avoiding thoughts of the abuse. It is not possible to

know what these participants meant by these responses, but perhaps

they originally intentionally attempted to avoid thoughts of the

abuse, and at some point became successful at habitually or

automatically (i.e., subconsciously) avoiding those thoughts (cf.

Bower, 10; Erdelyi, 1). The other participants (n = 0) endorsed

responses more clearly suggesting conscious processes (i.e.,

intentionally avoiding the memories, reinterpreting continuously held

memories, or using substances or compulsive behaviors to help avoid

the memories). The majority of the participants rated their recovered

memories as being mostly accurate, and most also indicated that

nothing seemed to trigger the recall of those memories. Reporting no

cues for the recovery of their memories (responses 1,, , and 5 were

coded as having cues) was not significantly associated with endorsing

subconscious versus conscious explanations for the recovered memories,

Chi[sup ](1, N = 7) =. 1, p = .67. One half of these participants

(n = 1) also reported that they never received any corroboration that

the abuse actually happened. Receiving corroboration regarding ones

recovered memories also was not related to endorsing subconscious

versus conscious explanations for the memories, Chi[sup ](1, N = 6)

= .14, p = .71.

Dissociation

The mean score on the DES was 15.5 (SD = 1.1). The dissociation

scores were not significantly correlated with general quality of

childhood memory, r(40) = -.0, p = .66, but they were weakly

correlated with the number of recovered general childhood memories

reported, r(5) = .4, p .001. There were very weak associations

between dissociation scores and reporting a history of EA, r(5) =.

14, p = .00, and the combined abuse severity scores, r(5) =. 14, p

= .00. DES scores were not significantly associated with a history of

PA, r(5) = .06, p = .15, or a history of SA, r(5) = .08, p = .07.

DES scores for the 8 participants who reported recovering abuse

memories (M= ., SD = 15.01) were significantly higher than for

those who did not report recovering abuse memories (M = 17.4, SD =

11.86), F(1,1) = 5.6, p = .01 (for the 5 who indicated a lack of

memory for their abuse for some period, F(1,1) = 4.66, p = .0). The

16 participants who endorsed responses suggesting that subconscious

processes were responsible for their recovered memories had a mean DES

score (1.7, SD = 16.6) near the mean for the 0 participants whose

responses suggested conscious processes (.68, SD =14.06).

Repression

As noted above, the Cronbach alpha coefficient for the WRRS was low,

so results based on this measure are presented only for exploratory

purposes. Scores on this scale (M = .0, SD = 1.) were not

significantly correlated with general quality of childhood memory

scores, r(487) = -.07, p =. 11, or number of recovered general

childhood memories reported, r(518) =-.01, p = .76. They also were not

correlated with reporting a history of PA, EA, or SA, rs(5) = .06, p

=. 17; .0, p = .67; and -.01, p = .81, respectively, or with the

combined abuse severity scores, r(5) = .0, p = .4. Scores for the

8 participants who reported recovered abuse memories were not

significantly different from those who did not report recovered abuse

memories, F(1, 1) =., p = .64 (this was also true for the 5 who

indicated that they lacked memories of their abuse for a period,

F(1,1) = .05, p = .8). The participants who endorsed responses

suggesting that subconscious processes were responsible for their

recovered memories had a lower mean WRRS score (1.71, SD = 1.64) than

those whose responses suggested conscious processes (.61, SD = .0).

DISCUSSION

This study helps address several questions that have been hotly

debated in the recovered memory controversy. First, the study found a

large amount of variation in individuals perceptions of the general

quality of their childhood memory. Assessing the reliability of

adults childhood memory is a very difficult measurement problem, and

there are no widely accepted measures of this variable (Lezak, 15).

Responses to the items used to measure the variable in this study,

however, showed a reasonable level of internal consistency and were

generally consistent with research regarding the offset of infantile

amnesia and the gradual improvement in autobiographical memory across

childhood (Bauer, 16; Fivush & Hudson, 10). However, a small

number (7%) of the participants did report that their first memories

are from the age of 1, which is probably not possible. These

participants likely underestimated their age when the events occurred

or they recall stories that family members told them regarding events

that happened at age 1 but which they cannot actually directly

remember. Nevertheless, a reported history of child abuse or of more

severe abuse was not significantly associated with reported quality of

childhood memory. This is now the third controlled study which has

resulted in this finding (see also Melchert, 16; Melchert & Parker,

17). Perhaps significant numbers of the relatively young

participants in these studies will eventually recover veridical child

abuse memories and the study findings would change as a result. All

three of these studies also used nonclinical samples and

uncorroborated self-report data, and other methodologies using

clinical samples might result in different findings. Until this

research is conducted, however, the available data do not support the

hypothesis that child abuse is associated with poor memory for ones

childhood.

The majority of the study participants, regardless of their abuse

history, also reported recovering memories from their childhood in

general. The hypothesis that these memories would be

disproportionately negative because a significant number of them had

originally been repressed or dissociated was not supported, however.

There was a very slight increase in the number of participants who

rated their recovered memories negatively as compared to their first

memories, but even with a very large amount of statistical power, this

difference was not significant at p .01. Although this hypothesis

was not supported, it must also be emphasized that the data do not

disconfirm the hypothesis because they were based on two assumptions

(a) A significant number of the memories that were recovered had

originally been repressed or dissociated; and (b) participants first

memories are more representative of their childhood experiences than

their recovered memories are. Both of these assumptions may be

incorrect. It is possible that the participants have not yet recovered

significant numbers of repressed or dissociated childhood memories

(i.e., mechanisms besides repression or dissociation are responsible

for the loss and later recall of virtually all of their recovered

memories). If this is true, however, it would suggest that repressed

or dissociated childhood memories are at most only rarely recovered by

undergraduate students, despite the substantial amount of child abuse

and recovered childhood memories that they report. It is also possible

that the participants repressed many of their early negative

experiences and their first memories are not more representative of

their childhood than their recovered memories are. The likelihood of

this possibility cannot be evaluated given the available evidence at

this time.

A large majority of those who reported recovering childhood memories

also reported that cues helped trigger the recall of their memories.

This suggests that cued memory recovery may play a significant role in

individuals autobiographical memory. No data were collected regarding

the reliability of these memories, and it should be noted that the use

of cues has been found to generate a large amount of recall but also

more errors in recall than traditional fact-oriented interviews

(Memon, Wark, Bull, & Koehnken, 17). Cues were reported to play a

smaller role, however, in recovering child abuse memories than they

did in recovering memories from ones childhood in general. No

explanation for this difference was found, but the kinds of cues which

most frequently triggered recall for general childhood events (i.e.,

listening to others stories about past events, viewing photographs of

past events) could serve as relatively direct cues. Experiencing

similarly direct cues for recovering child abuse memories probably

occurs far less frequently. This raises the possibility that more

frequent cues regarding child abuse would result in more frequent

recovery of child abuse memories as well.

Of those reporting child abuse histories, 18% reported that there was

a period of time when they could not recall the abuse, although their

memories later returned. There were also several additional

participants who reported that they recovered child abuse memories

even though they did not have a period of time when they lacked

memories of their abuse. Presumably these participants had

continuously remembered some abuse but recovered memories of

additional abuse experiences or additional details regarding the abuse

they had always remembered. It is important to note that the wording

of the two items used to elicit these responses appears to have

affected the rate of endorsement of the items. Nevertheless, at least

one-sixth of abuse survivors across a variety of clinical and

nonclinical samples have reported that they recovered child abuse

memories (Briere & Conte, 1; Elliott & Briere, 15;

Feldman-Summers & Pope, 14; Herman & Schatzow, 187; Loftus,

Polonsky, & Fullilove, 14; Melchert, 16; Melchert & Parker, 17;

Polusny & Follette, 16; Williams, 15). There also was a weak

relationship in the present study between the reported severity of

ones abuse and reporting recovered abuse memories. This may result

from a greater likelihood of repression or dissociation among those

who experienced more severe abuse, but it may also simply result from

having a larger pool of abuse experiences from which memories of

individual incidents could be lost and later recovered.

The participants in this study endorsed a variety of descriptions of

their recovered abuse memories, and it appears that many of these

memories were not unavailable for conscious recall. The proportions of

participants endorsing various conscious and unconscious memory

processes in this study are also similar to those found by Melchert

(16). At the present time, it is not possible to definitively

identify the mechanisms responsible for many recovered memories of

childhood, and the survey methodology used in this study provides

limited data for this purpose. There also is no clear boundary between

conscious and unconscious mental processes. Nevertheless, the above

findings clearly suggest that multiple explanations, including both

conscious and unconscious processes, are responsible for the child

abuse memories that individuals report recovering in survey

questionnaires.

This study also found only minimal support for an association between

repressive or dissociative personality traits and recovered child

abuse memories. Scores on the repressive personality instrument

contained a large proportion of measurement error, so the findings

based on those scores must be interpreted cautiously. The DES scores

were internally consistent, however, and were weakly associated with a

history of EA, recovering greater numbers of childhood memories

generally, and recovering child abuse memories specifically, although

they were not significantly correlated with quality of general

childhood memory. Perhaps the repression or dissociation of

threatening child abuse memories is at most only weakly related to

repressive or dissociative traits, or the WRRS and DES measure aspects

of repression and dissociation that are unrelated to memory

impairments for psychologically threatening material. Although these

and other possibilities await further examination, the initial

findings of this study do not suggest a strong relationship between

dissociative and repressive traits and recovering child abuse memories

or the general quality of individuals childhood memory.

Autobiographical memory is an enormously complex phenomenon, and much

more research is needed before these questions will be thoroughly

answered. Our findings begin to address some of these questions, but

the limitations of the data also render the results tentative. In

addition to a lack of corroboration regarding the self-reported

memories that were examined, the data were obtained from undergraduate

students while much of the controversy regarding recovered abuse

memories has involved clinical cases. Many college students have been

or do become mental health clients, but clearly the present findings

are not generalizable to clinical populations with mental disorders

known to affect autobiographical memory (e.g., clients with

dissociative disorders). There are also limitations associated with

the measures used in this study, particularly with regard to what

participants meant when they referred to having poor childhood memory

or recovered childhood memories, or the self-identification and

severity ratings of the child abuse that was reported (severity of

sexual abuse was also rated differently than severity of physical or

emotional abuse). Gender differences with regard to all of these

processes also need examination. Therefore, replicating this study

with a variety of samples and with different methodological approaches

as well as continuing to investigate other aspects of autobiographical

memory is the only way that the recovered memory controversy will

eventually be satisfactorily resolved.

Authors Note The author is grateful to Kaylene Brown, Jennifer Main,

and D. Alan Woods for their assistance with data collection and entry

for this study.

NOTE

(n1.) Several terms have been used to describe recovered child abuse

memories (e.g., repressed, delayed, reinstated, discovered). The

nature of these memories is not yet well understood, however, and

there appears to be no consensus about the best term for referring to

these memories. The choice to use the term recovered in this study

is not meant to presume the superiority of any particular theoretical

perspective, but is used to refer to individuals subjective

experiences of having recovered the memories. It does not presume that

these memories are veridical, that they were once unavailable for

conscious recall, or that any particular memory mechanism is involved

in their recovery.

Table 1 Responses (in percentage) to the Childhood Memory Items

Legend for Chart

B - No memories at all

C - I can remember one or two things

D - I can remember several things

E - I can remember most of my (nd-10th) year

F - Very clear--there are no periods that I cannot remember

A B C D E F

1-4. What is your memory like for your childhood at...

Age 10? 14 50 5 8

Age 7? 5 0 4 14

Age 5? 51 7

Age ? 57 4 1 1

Legend for Chart

B - I cant remember at all

C - I can remember his/her face

D - I can remember his/her name

E - I can remember his/her face and name

A B C D E

5-6. Can you remember your...

Third grade teacher? 5 7 6 8

First grade teacher? 11 7 7

Legend for Chart

A - Age 1

B - Age

C - Age

D - Age 4

E - Age 5

F - Age 6

G - Age 7

H - Age 8

I - Age

J - Age 10

A B C D E F G H I J

7. How old were you in your earliest memory

that you have of your life?

7 1 15 4 1 1 1

8. How would you rate the events which happened

in your earliest memory in terms of them being

good versus bad experience?

Really good 4

Nice

Neutral 1

Bad 7

Really awful

. Was there a time when you had no memory

of something from your childhood, and then later

the memories came back to you?

I have never remembered new

things about my childhood 8

I have remembered one new thing 1

I have remembered two or three

new things

I have remembered several new things 15

I have remembered at least 10 new things 4

10. How would you rate the events which happened

in these recovered memories in terms of them being

good vs. bad experience?

Really good 40

Nice 1

Neutral 0

Bad 7

Really awful

11. Was there anything that happened that

triggered the recovery of these memories?[a]

Other people talked about the events and

reminded me of what happened. 58

I saw some photograph(s) of what happened,

and that reminded me. 50

I read my childhood diary, and that

reminded me. 7

I visited the place(s) where the events

happened, and the memories came back to me. 7

Nothing seemed to remind me of what

happened-the-memories just came out of nowhere. 18

Other (please write in) 5[b]

NOTE The first seven items comprised the general childhood

memory measure. Remembering nothing about ones first or

third grade teacher was coded one, remember either his or

her face or name was coded three, and remembering both his

or her face and name was coded five.

[a.] These percentages sum to more than 100% because many

respondents indicated that there had been more than one

trigger for their recovered childhood memories.

[b.] Three participants referred to dreams, referred to

seeing a particular person again, referred to smells that

triggered memories, referred to a fathers death, and there

were a variety of individual responses such as my boyfriend

and I were wrestling, relistening to music I had listened

to when I was little, and having to write a paper.

TABLE Responses to the Recovered Abuse Memory Items

Item n (%)

If you ever recovered memories of any form of

child abuse, please answer the following questions.

1. Which of the following is the most true of you?

a. I would not have been able to remember the abuse

even if someone had reminded me of it because

I simply did not have any conscious memories of

it for a period of time. 1 ()

b. I could have remembered it if someone or

something had reminded me, but without being

reminded, I would not have thought about or

recalled the abuse. (4)

c. I could have remembered it if I had wanted

to think about it, but I was intentionally

avoiding thinking about the abuse. 5 (66)

d. Other (please write in) ----- (8)[a]

Why do you think you lacked memories of the

abuse for a period of time?

a. I never really lacked the ability to remember

the abuse because I was intentionally avoiding

thinking about the abuse. 11 ()

b. I think I repressed those memories; they were

blocked out from my consciousness because they

were too painful, and I would not have been able

to remember the abuse even if someone told me

about it. 6 (16)

c. I think I just forgot about what happened,

and the memories came back to me later when

I was reminded of the abuse. 10 (6)

d. I could always remember what happened, but I

did not think of it as abuse until I was older. 8 (1)

e. I used a lot of alcohol and/or drugs or

engaged in other compulsive behaviors to help

me avoid thinking about it. 1 ()

f. It is possible that I just imagined that

the abuse happened though it never actually

did, and the memories that I have are not

based on real events. 0 (0)

g. Other (please write in) ----- (5)[b]

. How accurate do you think your

recovered abuse memories are?

a. Could be completely false 0 (0)

b. Maybe false (8)

c. Probably some significant errors 5 (14)

d. Mostly accurate 5 (68)

e. Perfectly accurate, exactly as I remember

it happening 4 (11)

Was there anything that triggered the recovery

of your abuse memories?

a. A book, article, TV show, or movie reminded me. (5)

b. Someone who knew about the abuse reminded me. (8)

c. In therapy or a support group, the memory

began to return. 1 ()

d. Nothing seemed to be related to my

remembering the abuse. (58)

e. Other (please write in) ----- 10 (6)[c]

5. Did you ever get confirmation that the

things that happened in your recovered

memories actually took place?

a. The abuser(s) acknowledged what he/she

had done to me. 7 (18)

b. Someone who knew about what happened

told me about it. 6 (16)

c. A diary that I kept (but that I had

forgotten about) described the abuse. 1 ()

d. Someone else reported abuse by the

same perpetrator. 1 ()

e. Medical or legal records referred to

or described the abuse. 1 ()

f. I have never received any support or

confirmation that the abuse occurred. 1 (50)

g. Other (please write in) ----- (8)[d]

[a.] Written in responses I had just forgotten

I can remember the event, but not exactly what

happened and I just remembered.

[b.] Written in response Recurring dreams reminded

me, familiar smells and places reminded me-(the other

participant did not write in a response).

[c.] Written in responses New abuse reminded me of

past abuse, Becoming romantically involved with men

It wasnt that long ago Someone else close to me

(best friend) going through it Someone else remembered

and told me their experience and I could relate, My

boyfriend The person who did it and I have talked about

it, Surveys, Dreams, and Getting abused a second time.

[d.] Written in responses My dad admitted my mother

emotionally abused my sister and me My memory has

always been accurate and I dont know who

he was, I was only - 4.

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Organizational Mission

Avon wants to provide everyone with high quality and innovative health and beauty products as well as financial opportunities through sales representatives that are easily obtainable, in many ways, in every part of the world. Avon hopes by bringing these products to everyone everywhere through global markets the company can improve the quality of life for anyone around the world.

Corporate Objectives

Corporate objectives bring structure to a company's operations so it will sustain growth, achieve its mission/vision and set the outcome and target for the company to achieve. Corporate objectives include financial and strategic objectives.

Financial Objectives

Growth in Sales

In 001 the success of the Goodbye to Breast Cancer lipstick campaign, inventory clearance programs, and the increase of active representatives acquired through the successful implementation of the Sales Leadership program resulted in revenues growing 5% from $5,68 million in 000 to $5,58 million in 001. The growth in sales was due to the % increase in units because of the success of the programs implemented that are mentioned above. Avon plans to increase sales annually by continuing to recruit Leadership Representatives around the world, utilizing the Internet to help these Representatives sell Avon products more efficiently, and extending the Avon brand to new products and possibly new channels. ()

Bigger profit margins

Lower sales in Latin America than expected and additional strategic spending on consumer marketing initiatives caused the slight decrease in profits for the 001 year. The drop may have been a lot worse if it was not offset by considerable margin improvement form the business transformation initiatives. Despite the incredible achievements of the business transformation initiatives (about $150 million in savings), Avon's operating margin went down 0 basis points last year from 16.1% to 15.%. The benefits from the business transformation will hopefully become more noticeable in 00 and will free up additional funds to invest in things such as consumer marketing strategies. Avon has a goal to increase their operating margin by 50 basis points by the end of 004. (1)

Capital Expenditures

Avon's capital expenditures during 001 were $155. million compared with $1.5 million in 000. Most of these expenditures were used for continued investments on new technological information systems, improvements and modernization on existing facilities, investment on improving Internet strategy, and equipment replacement projects. In 001 it cost $11. million to complete projects under construction and information system projects that took place during the year. Avon's capital expenditure goal is to average $5 annually and be spent on the same expenditures that they have been spent on in the past.

Bigger cash flows

Avon had a significant increase in net cash provided by operating activities in 001. Net cash totals accumulated to$754. million at the end of 001 compared to $. million in 000. The increase is a result of money received from an income tax refund in 001, higher net income, as well as higher working capital needs in 000, including the payout of a long-term incentive plan, timing of cash payments, and a larger increase in inventories. Avon already has a very strong cash flow with a single credit rating and their goal is $700 million in net cash flows next year.

Growth in earnings

Earnings per share have been on the increase. In 000 earnings per share went up by 11% to $.0. This double-digit growth is exactly what Avon was hoping for. Because there was a drop in earnings per share during the 001 year due to a restructuring charge $.8 per share in order to put the business transformation initiatives in play, which are designed to improve operations and streamline Avon's worldwide operations into practice. This dropped Avon's stock price to $1.7 at the end of 001 trading year. With the help of the business transformation in place Avon hopes to have a 10% increase in annual earnings per share in the next few years to come.

Inventory Days

Because Avon markets a number of products it is necessary for them to maintain a relatively high inventory level. The nature of Avon's business, including the number of campaigns conducted annually and the large number of products marketed makes this necessary. Avon's operations are seasonal with the holiday sales causing a peak in the fourth quarter, which results in a build-up of inventory at the end of the third quarter. Inventory levels are reduced by the end of the fourth quarter after the holiday season is over and sometimes a clearance or sale on items. It is Avon's objective to continue focus on inventory management and get inventory turnover down to 8-10 days.

Strategic Objectives

Superior customer service compared to rivals

Avon has gained an outstanding reputation as the best direct seller of beauty products. Through the continued efforts and achievements of its Sales Representatives Avon is now known worldwide. Avon's core competence has mainly been through direct selling, knowing this Jung and the management team implemented a Sales Leadership program in its ten largest markets and provided these markets with incentives to acquire, train, motivate, and retain the number of active Sales Representatives it needs to sustain significant growth. Avon also has a Representative development program that focuses on the professional training of Representatives, which enables them to provide valuable information on Avon brand products. Avon also keeps its superior customer service in other ways of distribution such as the Internet and in the department store sales by having a timely and correct order delivery, one on one information exchange and sincere professional advice and service in department sales.

Wider geographic coverage than rivals

Avon's management team decided to achieve growth in revenue by expanding its customer base into international markets, while continuing to compete based on their reputation as the leading direct seller of beauty products. Avon brand products are now recognized all over the world due to the success of their international campaign. The company is in great position to take advantage on growth in new global markets because of the demand for quality products. Avon now has operations in 50 different countries outside of the United States, and continues to reach new markets. Avon has entered into 4 new markets since 10, including Europe, Russia, China, Latin America, and the Pacific region. International net sales in dollars increased 4% and operating profit increased 7% in 001. The sales improvement was a result of significant increases in Europe. Excluding the effect of foreign exchange, international sales increased 1% in 001. (1)

Quicker design-to-market times than rivals

In 00 Avon invested $100 million to construct a state-of-the-art facility for the research and development operations in order to quicken design-to-market times. The ability to develop and release new products more quickly than rivals will give Avon the first mover advantage and further associate the name with quality and innovation and hopefully increase the company's market share in the CFT industry. Product innovation will continue to be a key factor of sales growth in the future. New product lines such as "Avon Wellness" and "Becoming" and the most recent "Anew" will attract new consumers, which will also help to increase revenue growth.

More attractive product line than rivals

Avon's history as a beauty product distribution only enhances their credibility as a company and quality beauty product distributor. With Avon's ability in research and development they will be able to develop more new products and introduce them to the Avon product line more quickly than rivals. New products with the symbol of Avon quality and state-of-the-art technology will only increase brand image and hopefully sales while acquiring a more loyal customer base by establishing and providing a more attractive product line. In Avon's vision they stated they wanted to enter into new business lines, a more attractive product line is the easiest and quickest and will be the first step in achieving that particular objective.

Improved e-commerce and Internet sales capabilities than rivals

Avon's executives realized the company needed a more efficient method to communicate with its independent sales force, because current newsletters and brochures were not keeping up with the demands of the sales force. Once Jung realized that the Internet was the best choice to transform the relationships between customers, representatives, and Avon's supply chain and marketing operations she decided to incorporate e-commerce into Avon's sales strategy. The e-commerce sales strategy achieved early success in 000, with increases of 0% on average when linked to Avon's website. The Internet brings instant global reach, with thousands of products and prices that can be updated constantly at anytime. Due to the fact that e-commerce is one of the fastest growing sales places Avon will increase the e-Representatives participation by 7% by 004 and over $17 million will be spend for Representative support cost Savings. Once the e-commerce was implemented it cut order costs from $.0 to $.0.

Stronger brand name than rivals

Again Avon's history is a big player here because it gives the company credibility and name recognition. Avon continues to strengthen its image of core beauty products and international brand product line. In the past few years the company has made several upgrades in imaging and formulations, packaging, and customer service and the accuracy and speed of order delivery have also been improved. Avon products provide a consistent, high-quality image in every market and include brands such as Anew, Skin-So-Soft, Far Away, Rare Gold, Perceive, Avon Color, and Avon Skin Care. Global brand have continued to grow and account for a substantial percentage of Avon's business, and in 1 these brands accounted for 51% of the beauty sales core. Avon's development of quality global brands gave them a chance to deliver a consistent beauty image around the world, as well as improve relationships with suppliers and become familiar with the most efficient way to get foreign sales.

Stronger global distribution and sales capabilities than rivals

Avon's ability to produce and distribute products in multiple countries enables them to have a significant amount of international sales. Avon continues to drive their products into new markets and have always been looking for ways in which they can improve their distribution channels. With e-commerce and the implementation of the Sales Leadership program Avon has been able to deliver quality service along with their high quality products. These areas continue to be a focus for Avon in terms of sales capabilities and distribution in foreign markets relative to their rivals.

Corporate-level Strategies

Market Penetration

This is an attempt to find new ways to acquire more market share for the products that already exist. By expanding aggressively into Eastern Europe, the Middle East, China, and Africa and by coming to the needs of women in Mexico, is one of Avon's biggest market penetration strategies. The Internet objective is another good example of Avon trying to market penetration because it is providing a new channel to sell existing products and gain more market share. Selling its products in retail stores is another good example of market penetration and also the new television commercials make more of the market aware of Avon products.

Market Development

There are two ways Avon uses this approach, when the company wants to develop new markets through existing customers or through geographic regions. Avon has been able to develop new customers by adding new innovative products for teens as well as anti-aging and preventative aging cosmetics for the older portion of the market. Developing different products for different complexions and skin tones generate new markets as well. Avon's strategy to expand globally also helps with mew market development as Avon products reach people it has never encountered before. Avon also had launched an unbecoming campaign aimed at a more affluent group of women with its retail efforts as an attempt to develop a new market through existing customers. (17)

Horizontal Diversification

Avon used this approach when introduced the Anew Retroactive and the Vita Tonics bath products. The company also developed a couple of new fragrances, Incandescence and Little Black Dress. When Avon introduces new products such as the ones mentioned it helps the company to gain market share.

Product Diversification

This strategy includes all efforts made by Avon to compete for new customers and it is often teamed up with certain advertising and market operations to make sure the target market group is aware of the new products. This would include Avon's new products for different skin types and tones as well as the teen and preventative aging products. New colors of foundations and new additives for different complexions as well as self tanners, face bronzers, face washing cloths, vitamins and aroma therapy bath oils and lotions are all new products that may be used in attempt to find some new customers. All of the marketing projects launched in the past four to five years such as the new "Avon" product line are ways in which Avon has tried to gain sales through new product diversification.

Horizontal Integration

Avon was utilizing this strategy when it merged with Parfums Stern, Tiffany & Company, Giorgio Beverly Hills and with its most recent alliance formation with Mattel. Merging with or acquiring competitors in the same industry has many benefits such as increased technology, more market share, and expertise in unknown areas of the industry. The alliance with Mattel is a blending of Avon's sales expertise with Mattel's high quality products resulting in reduced costs. (1)

Business Level Strategy

The term business concerns to the managerial approaches for a single business to incorporate and out perform its competitors. The corporate strategy Avon's management team chose to implement is the focus-differentiation strategy. Avon has focused on high quality beauty products as well as superior customer service in the global markets and although it has a wide variety of products they all hold the Avon name keeping it associated with high quality. Avon customers tend to have more disposable income than the average making it possible for them to purchase the higher priced Avon products.

External Analysis (industry stand point)

Opportunities

Expand product line

Sales concerning men fragrances increased by 18% from 16 to 00. According to the Beiersdorf market research concerning the market for men cosmetic products, this market grew on average by 7% within the last six years. Avon stated in its mission that it is focused on products for women globally and they may want to think about entering the market for men as well. For example the market for shaving products would not only create new customer but also offers Avon a chance to improve their corporate strategy of product diversification. Avon could also look into baby products since they already have a large market for all types of women why not make it convenient for mothers to purchase skin products for their babies at the same time they purchase cosmetics for themselves. Avon definitely has the ability to expand their product line it is just a matter of capitalizing on that opportunity.

Retail chain stores

In order for Avon to reach more customers the company should implement a way of targeting its customer by using more retail stores such as JC Penny that still follow the direct selling approach, but offer the consumer the opportunity to purchase the products of Avon conveniently at a shopping mall. Additionally this could be combined with the sales leadership approach to increase sale and to offer the sales representatives a new way of selling. By offering incentives to sales representatives Avon would probably see a bigger profit from such retail chains.

US department-store sales

Department store sales of cosmetics totalled $7.1 billion in 001. The entire CFT industry sales increased % from the 001 level. Avon should try to make some beneficial alliances with some department stores that could result in a high increase in sales and reach people it may have never been available to before. If Avon could put their highest quality products in department stores such as Nordstrom, Niem Marcus, Lord and Taylor and Bloomingdales they could appeal the upper as well as the upper middle classes of America and Europe. Avon can expand to these department stores with their highly regarded global brands re-establishing their innovative and quality image as a company.

International Markets

The most difficult thing to figure out when entering international markets is to realize what countries will best fit the companies' products. If Avon can venture into new international markets and can continue to keep strong sales increases then they are a huge success. Avon can reach this goal without competing vigorously because it has already established high quality global brands and has been able to begin entry to a number of different countries. As long as Avon recognizes the particular demand for each market they will be able to profit from each different international market. Avon's new alliance with Mattel enables Avon to penetrate foreign markets with speed and cost benefits, again making this goal even easier for Avon to achieve. (18)

Technology

Avon spends millions of dollars on research and development every year. This helps Avon keep its products new, innovative and up to date with other rivals and competition. Technology continues to be new and emerging and Avon has done well in keeping up with the latest trends in their particular industry as well as develops its own state-of-the-art products giving the company a more prestigious name in the cosmetic industry.

Customer satisfaction

Avon has been able to keep a strong customer base for decades. This has been achievable through their superior product quality and customer service. Avon has kept a focus on what the customers want and have continued to deliver it to them throughout the life of the company. Avon's business transformation initiatives were due to complaints by which Avon acted on and began packaging all products in a new modern look as well as distribution them more efficiently in effort to keep customer satisfaction high. Avon was ranked number four in "Most Admired Soap and Cosmetic Industry of 00", in Fortune magazine and has been in the top four for the past three years, Avon achieved this ranking not only because of their quick turnaround but because of their commitment to their customers.

Threats

Foreign economic and currency issues

Every company will want to research countries thoroughly before entering their markets. Countries that possess corrupt politics and unstable economies will probably not be worth the risk of entering. A lot of South American countries struggle with this problem. A good example of this threat is when Argentina's peso was devaluated in 001 due to adverse reaction in the geographic region and the country's unstable economic situation.

Rivals and competition

The cosmetic industry is very large with numerous competitors. There is always a threat of losing sales to similar products. Every company in the industry fight for high market shares and are always trying to come out with new innovative products that will in turn result in name recognition and increased sales. Avon has to be aware of the CFT industry in terms of what products are popular, what their competition is developing and their marketing schemes. Falling behind on trends and awareness of competition will only cause Avon to fade away and lose customers, sales, and money.

High operating costs

In order for Avon to stay competitive in its industry it must continue spend millions on research and development and although the products that result from this research and development and spent money benefit the company it continues to be a huge cost. It is almost impossible for the company to cut costs in research and development so Avon must attempt to find other areas in which costs can be reduced or eliminated and although Avon has been able to find ways to do such things in the past they are beginning to run out of places to cut cost. High operating costs can cut considerably into profits and can eliminate equity in the company and drive down stock prices.

Recession/ national economy

Every industry is affected by the general state of the economy. No industry can feel zero effects due to turns in the cycle of the economy because so many aspects are interrelated. During periods of a recession Avon will feel the impact not only in sales but also with suppliers, employees and will also notice their competition experiencing the same difficulties. The economy in general may be seen as a threat to every industry in periods of economic downturn and recession.

Changing tastes and trends

Just like every other industry the tastes of consumers change. Trends in cosmetics change constantly with seasons and fashion trends. Avon must constantly be aware of new trends in fashion and be able to forecast what the new season may bring in terms of colors, and what new products may be introduced. For example Avon could run specials on their "Skin-so-Soft" insect repellent in April along with introducing new, improved, or just redesigned sun screens, self tanners, and extra moisturizing lotions and creams for the upcoming summer season as well as have new promotions and advertising introducing their latest colors for the upcoming season.

Competitive Analysis (Five Forces)

Rivalry within the industry STRONG

Rivalry intensifies as the number of competitors increases and as competitors become more equal in size and capability Unilever and Procter & Gamble dominate the world market in the CFT industry sales and they are highly competitive and mature corporations. Huge corporations who dominate the market make it more difficult for smaller companies in the same industry to gain market share and they are also able to mass produce at lower costs which in turn allows them to offer lower prices compared to competitors.

Rivalry is usually stronger when demand for the product is growing slowly At the current time growth rates are low in the domestic population and household formations, because of this it will be harder for CFT companies to acquire substantial sales gains. The slower a demand for the product is growing the more companies have to compete with another for sales and market share.

Rivalry is stronger when customer's costs to switch brands are low Switching costs in the CFT industry are very low, due to the endless amount of different brands of similar products. This cost is due to the higher number of competitors in the CFT industry and their tendency to mimic and copy new products in order to stay competitive. This minimizes the cost of switching to customers down to pennies.

New Entrants WEAK

Barriers of entry

Economies of scale This particular barrier is weak for new small companies wanting to enter the CFT industry because they would not have to enter on a scale larger than the amount of risk they can reasonably accept. New competitors will not be able to keep up with others in the industry in areas such as advertising, marketing and distribution, financing, research and development.

Cost and resource disadvantages independent of size Existing firms in the CFT industry such as Avon will have a lot of resource and cost advantages over any potential entrant. Avon's advantages would include product innovation acquired by the big investment in the research and development division, a grade A credit history along with a strong cash flow, the high quality associated with Avon brand products, and the leverage created by larger market share will allow Avon to have lower borrowing rates. Avon has lots of experience with suppliers and know who has the best quality for the best price, something the competition may only acquire through research and experience.

Learning and experience curve effects New firms entering the CFT industry are way behind according to this barrier also. Avon would be able to produce products in the same product line for a lot less due to their acquired expertise and experience they have gained by being in the business for over a century.

Brand preferences and customer loyalty This barrier would be another problem for new entrants because having a quality brand with a strong customer base and loyalty is always a crucial competitive advantage. Company's such as Avon that have a strong brand name will automatically receive higher market share and create opportunities for additional growth along with the ability to fluctuate prices on their products. A new entrant with no loyalty from consumers or name recognition will find it hard to compete with Avon as well as other big players in the CFT industry.

Capital Requirements Entering the CFT industry may cost a pretty penny for new entry firms. Finding suppliers, research and development for products, finding a sales force and a marketing scheme to establish clientele all can add up to a significant amount of money. These costs are even excluding start up costs and losses that may be incurred.

Access to distribution channels New entry firms may see several problems here unless they have already dumped a substantial amount of money into marketing and are beginning to be recognized in the industry. Wholesalers may be reluctant to pick up a product with no buyer recognition. Retail distribution may have to be set up from scratch, or existing retailers may need convincing to give away shelf space to the new entry and allow it an ample amount of time to sell. In essence it may cost a new entry a lot of money just to convince someone to sell their product.

Expectation reactions of incumbent firms to new entry

I feel that the incumbent companies in the CFT industry are more concerned about fellow competitors of equal size rather than take the time to maliciously destroy anew small firm that has a tiny market share and will probably take years to develop even a percentage of the products or sales that a large corporation has. These new entries will have a hard time competing with the prices, advertising, loyalty of customers, and the years of experience that the larger firms like Avon have acquired over the years. Incumbent firms may not pay much attention to a new entry until it survives for a period of time or if they somehow come through with an innovative product that needs to be copied under the larger name.

Substitute products WEAK

Looking at the CFT industry I do not believe it has any real substitutes, because by definition substitutes have to come from a different industry. The only substitute products are similar products from another company within the industry. Basically you either buy from Avon or one of its competitors or you just do not use products from the CFT industry at all. Because there are no true substitute products from a different industry the threat of substitutes is extremely weak.

Suppliers WEAK

I will have to say that supplier power is weak because of the accessibility of the Internet and the fact that Avon uses a huge variety of products and most of them are easily obtainable through multiple different means. This makes it hard for suppliers to exercise sufficient bargaining power to influence the terms and conditions of supply in their favor. The Internet now makes it possible for companies to find the best suppliers for the best prices and collaborate closely with them to obtain maximum efficiency. Avon can get supplies basically from anywhere in the world not only because of the Internet but because they have entered foreign markets and produce products in different countries as well. A lot of Avon's supplies such as packaging and so forth may be easily substituted if a supplier raised prices substantially. I will also assume that supplier's would enjoy being a supplier for Avon because of the size of the company and the fact that it is a well-established firm basically guaranteeing sales. Avon could possibly keep a supplier in business.

Customers MODERATE

Customer buying power is moderate because switching costs are low and customers have the flexibility to fill their needs by switching brands. Buyers tend to be well informed about Avon's product prices and costs largely due to the Internet and this puts customers at a position of higher bargaining power. Customers do not pose a threat of integrating backwards; I cannot imagine women actually making their own make-up, perfume or skin care products, or mass-producing plastic bottles or containers that Avon uses to package its products. There are also a large number of buyers, not to say that all of Avon's customers are not important but losing one will not significantly impact the company's market share or financial position.

Key Success Factors

Key success factors concern the product attributes, competencies, competitive capabilities and market achievements with the greatest bearing on company profitability. These are the things that the company does well and helps them obtain profits.

Ability to get new products out of R&D and into the market

With all the money and time Avon has put into the Research and Development part of the company it ahs paid off. In 00 Avon spent $100 million on a new state-of-the-art research and development facility. This provides researchers with the materials they need in an easy work environment, which in turn improves efficiency in every aspect of the process. Having this facility enables Avon to have their new products out in the market very quickly compared to other rivals such as Revlon and Estee Lauder. This skill gives Avon an image of superior technology and quality and provides them with the first mover advantage in many cases as well.

Internet capability

It was only in the past decade that Avon became familiar with the Internet. When Jung took over she saw that e-commerce was on a fast rise and that Avon was not capitalizing on this sales opportunity. It was only a matter of time before Avon had their own website that now has all kinds of e-commerce activities. Avon's website enables customers to order products, read on the most recent developments by Avon, informs them of sales and clearances as well as free gift giveaways and the top ten selling items. Customers can shop by product or category and check on their account status, review the most frequently asked questions or get assistance all at the click of a mouse. By making their web site easy to navigate and perform multiple tasks, Avon has helped reduce ordering costs and increase sales.

Managerial Experience

Andrea Jung, Avon's Chief Executive Officer, has been with Avon since 14. Before working for Avon, she graduated from Princeton and joined Bloomingdales where she rose to second in command before the age of thirty. When she joined Avon she entered as the President of United States product marketing and continued to impress her upper management. Her bold decisions made her stand out and she was named CEO in 001 at the age of forty. Susan Kropf who has been with Avon since the early 0's moved and Executive Lieutenant, to Executive Vice President and President of North American operations. Kropf has worked along side Jung and was key in the Business Process Reengineering efforts that achieved great success in 001, with savings of more than $150 million. The experience and success of Avon managers is unteachable, irreplaceable and are definitely a huge factor on why Avon is where it is today.

Accurate filling of orders

Only six years ago you would hear customers complain about the inaccuracy of Avon's mail orders. This is a rare complaint today. New training programs and the implementation of the Avon website has enable the company to fill orders fast and accurately. The days of human error with direct selling have almost become obsolete with the new initiatives taken place to eliminate such error. Incentives implemented by the sales leadership program have also made Avon give consistent quality service.

Internal Analysis

Strengths

Strong advertising and promotion

Traditionally Avon has been a word-of-mouth and catalog company that did not spend a tremendous amount of money on advertising. You now can turn on the television and see commercials for Avon products. These commercials not only advertise the products but they give the web-address, a phone number, or advise one to seek a local Avon representative so consumers know how to obtain Avon products. The new commercials also give the image of elegance and are quality enhancing the Avon products and showing consumers that Avon is truly concerned with the quality of their products.

Globalization

Avon has been consistently improving and developing particularly high quality global products in the past ten years. Only 11% of the company's beauty products were attributable to the international brands during the mid to late 0's. That percentage increased greatly to 60% by the end of 001. This is a huge success for Avon and their global products. The driving force of this substantial success was their focus on global and cross-cultural appeal and the aggressive venture into new countries. The multiple distribution channels that Avon has throughout the world enable them to have a successful globalization campaign.

Brand name recognition

Avon has been around for decades and is a very widely known cosmetic company. The Avon name is usually associated with quality and superior customer service and more recently has been associated with product diversification and innovation. Avon is continuing to try to use this image it has developed in the states and expand it to more international markets.

Product innovation

When Andrea Jung became CEO of Avon she saw that customers wanted more innovative products to accompany Avon service and quality. This is exactly what she did and the company has been a lot more profitable since. New markets such as anti-aging and preventative aging as well as teen products opened up and Avon wasted little time capitalizing on the potential sales in such markets. Their innovation not only gave them more sales but developed a better name for Avon in the product innovation category.

New product developments

Avon has continued to expand its product line almost every year along with improving their existing products. The most recent "Anew" product line is an example of and extension of products and has a specific anti-aging purpose that has become increasingly popular in the last few years. The Anew product line contains products such as triple lifting eye cream and triple lifting night cream along with retinal facial treatment and transforming cream. These products are aimed at more affluent older women and come in very attractive compact packaging. The success of the Anew product line has been considerable and I am sure that Avon is developing more products to add to the Anew line as well as possibly launch another brand new product line.

Competitive capabilities

Avon's competitive capabilities are superior because of their experience, management, financial capabilities, research and development, and brand recognition. The Avon name is known all over the world and is associated with quality. This gives Avon an edge when people are looking for a more high quality beauty product, most consumers will buy the name they know before trying something completely new by a no name company. Avon has been in the business for over a century and is very familiar with markets and knows how to identify their personal strengths and weaknesses and what steps to take in improving them. Constant change is a must in any industry and Avon has been able to do this while maintaining superior competitiveness in the industry.

Weaknesses

Internal operating problems

Avon has been on a turn around for several years now but this turn around was needed because of the internal operating problems. Orders were being placed and not filled, packaging was out of date and customers were becoming disgruntled. The Internet was also not being utilized as a marketing and selling tool. Since these problems have been brought to the attention of Andrea Jung changes have been made but Avon needs to continue to pay attention to its internal operations to avoid a reoccurring problem in the future.

Obsolete products

Although Avon develops new products every year they have in the past overlooked current products that are becoming obsolete. This causes a loss in profits due to decreased sales and wasted money spent on marketing, packaging, and buying the supplies for the product. More recently Avon has retired products off of the product line but they need to get into the habit of evaluating every product at some time during the year and determining if they need to produce less, more, or stop producing the product altogether.

Focused product line

Avon has been in the cosmetic industry since it was founded in the 1800's. Major companies that are ahead of Avon in the CFT industry include Unilever and Procter and Gamble. Both of these companies offer a variety of products including cosmetics, lotions, shaving products for men and women, baby care products, and shampoos/ conditioners and other hair care products just to name a few. If Avon wants to become the number one seller in the CFT industry they have tough competition to surpass because of their diverse product line. Putting the Avon name and symbol of quality on a new product line would definitely attract consumers.

Inconsistency

Although Avon has been around for over 100 years they have never really been super consistent with their promotions, product launches or retirements, and training and distribution changes. Avon has gone through some changes more so in the past 15 years than any other time but it has always been an abrupt change without warning to people in the company such as direct sales representatives. This causes tension because people are reluctant to change and always like a warning before it happens. I am by no means trying to say that the changes Avon has gone through are a weakness but I am saying their inconsistency in the warning or enlightenment of the change to the rest of the company has been weak.

Financial Analysis

Profitability

Gross profit is an indicator of the total margin available that is used to cover operating expenses and yield a profit.

Gross Profit Margin1000001

Avon61.6.6.0

Industry Avg.44.04.4.7

Estee Lauder Co.77.77.7 78.

Avon seems to be doing well with their gross profit margin coming in above the industry average but they are still below one of their big competitors.

Operating margin is an indication of the firm's profitability from current operations without regard to the interest charges accruing from the capital structure.

Operating Profit Margin1000001

Avon10.1.81.5

Industry Avg.6.05.46.1

Estee Lauder Co. 11.5 11.8 10.8

Avon continues to operate with a high profit margin, but you will see later that it goes to its shareholders.

Liquidity

The Quick Ratio is a tool used to measure the ability to pay off short-term obligations without having to liquidate inventory.

Quick Ratio1000001

Avon0.50.70.

Industry Avg.1.00.80.8

Revlon0.70.80.

Avon has had a steady improvement over the last three years telling us that Avon is getting rid of debt without sacrificing savings, having liquidation sales, or things of such nature. This also informs us that if Avon went under at this moment they would be able to pay off 05 of their debt without including current inventories.

The current ratio is indicative of the extent to which the assets can cover the short-term claims of its creditors and be converted to cash in a timely manner; hence, current ratio shows how liquid a company is.

Current Ratio1000001

Avon0.81.11.

Industry Avg.1.61.51.4

Revlon1.1 1.

Avon again has been improving every year in this category and now is right at the industry average and even with a major competitor Revlon. This shows us that Avon is a stable company worth its stock price.

Leverage

Long-term debt to equity ratio is used to measure the balance between debt and equity in the firm's long-term capital structure.

Long Term Debt to Equity1000001

AvonNANA NA

Industry Avg. 4..8 .

Estee Lauder Co. 45.7 6.1 0.4

Avon information on long-term equity was not available.

Long-term debt to asset is used to measure the balance between debt and assets in the firm's long-term capital structure.

Long-Term Debt to Capital1000001

Avon7.814.106.4

Industry Avg.7.5.18.4

Estee Lauder Co.1.46.5 .

This tells us that Avon has done well in reducing the amount of debt compared to their number of assets but are way above industry average and competitor Estee Lauder. Avon's long-term debts have continued to be paid off in the last three years.

Activity

Inventory turnover provides an indication of whether a company has excessive or perhaps inadequate finished goods inventory.

Inventory Turnover1000001

Avon.8.7.6

Industry Avg....4

Estee Lauder Co. 1.81.8 1.7

Avon's inventory has finished goods above the industry average showing us that they have more inventories of finished goods available for sale than other companies in the industry.

Total Assets turnover is a tool used to measure whether the firm is above or below the industry average in utilization of their assets.

Asset Turnover1000001

Avon.1.1

Industry Avg.1.1.1.

Estee Lauder Co.1.51.5 1.5

Avon has consistently been above the industry average and competitors showing us that Avon's assets are utilized efficiently, generating more profit than the industry average and major competitor Estee Lauder on each asset.

Other Ratios

The interest earned ratio provides us with information regarding the amount of interest a company has acquired on their outstanding debt.

Times Interest Earned 1000001

Avon1.7.10.4

Industry Avg..4.1

Revlon.4.1

Avon is significantly above the industry average and competitors but has been improving over the years by getting rid of some of their outstanding debt.

The dividend payout ratio indicates the percentage of profits paid out as dividends.

Payout Ratio1000001

Avon616.841.8

Industry Avg.000

Revlon000

Avon has been struggling but hopes to keep shareholders happy while giving up fewer profits in payout to them at the same time.

Strategic Problems To Address

What to do about new product lines

It would be a good idea for Avon to research into launching new products in different lines than they are currently in but keep them similar in the industry. In order to continue growing and obtain bigger cash flows and profits you have to spend before you get a payoff. With Avon's new research and development plant they should be able to quickly design and market new product lines without many problems. Having new product lines will help maintain growth and internal expansion.

How to maintain growth

Avon has been growing globally for decades to continue to do this Avon needs to be aware of what it will entail. They have taken care of research and development with their new facility but there are many other factors that could inhibit them. Reluctances to expand internally will hold them down as well as finances. Avon may have to look into selling totally new products, which is consistent with what was before mentioned.

How to continue cutting costs

Throughout Avon's business transformation they have done an incredible job cutting costs mostly thanks to Kropf. How to continue to cut costs may rise a problem because they have launched new cosmetics that are selling well, put millions into research and development, and do not want to upset loyal customers by retiring old products that have a loyal customer base. Some customers may be hooked on a classic product such as Skin-so-Soft and just happen to by other products every once in a while when they reorder their Skin-so-Soft. Cutting this product out of the line will not only result in a loss of sales due to the product but all other little buys that each customer may order in the process. Avon's business transformation may have to look elsewhere at every part of its value chain to try and cut out expensive virtually unneeded parts to try and cuts costs.

Internal expansion

Some may say that there is no room for internal expansion because Avon has done such a good job in international markets and that it is not needed. I believe that the CFT market is so big that internal expansion within the company should be a must. I think Avon should continue to grow within and outside the United States, create more jobs and look into developing more new product lines in the men's shaving and baby care areas. Avon's strategy wants to diversify and penetrate new markets and what better way to do it than with new products (after research on the demand of course!). Developing alliances with department stores and more Internet selling will also help with internal expansion.

References

1. www.avon.com

. Standards And Poors Industry Survey. Vol. 170, No17, section

P.6

. Business and Company Resource Center (ECU data base)

4. Stock Investor Professional software database.

Amor, Adlei. "Global trends are reshaping business strategy and markets."

World Resources Institute, Washington

5. Business Week Online "Cosmetics Industry Recessions" by Wee Heesun August 0, 00

6. Handy, Charles. "Taming the giants."

http//www.umanitoba.ca/faculties/science/esp/courses/800

7. Wall Street Journal "Avon Calls on Good Looking Research" May , 00 by Emily Nelson page B6

8.The New York Times "Avon to Lay Off ,500 workers, 8% of Work Force"

March 1, 00 Author Unknown, page C.4

.Business Week Online "Cosmetics Industry Recessions" by Wee Heesun August 0, 00

10.Incentive "Don't Cry For Me Argentina" April 00 By Estell, Libby, Casison, and Jeanie. p.8

11.ebscohost WSJ Eastern Addition /0/0 Vol P. B1A

1.Direct Marketing, Garden City "Avon to Target Teens" November 001Anonymous, Volume 64 Issue 7 p.

1.Investor Relation Business "Avon Ups Johansen" Editorial Staff, January 8, 00, p.1

14.Brandweek, "Avon Calls on Upscale Women for Becoming" by Christine Bittar, August 1 001, p.6

15.Quarterly Report (SEC for 10Q)

16."Unbecoming" by Moreno, Katarzyna, Forbes, June 10, 00 Vol. 16 Issue 1

17.Business and Company Resource Center "Cosmetics, Household, and Personal Care Products US outlook" Lewis May , 00

18."Alliance Formation with Direct Selling Companies Avon and Mattel", Lawrence B. Chonko, Journal of Personal Selling and Sales Management, Winter ' Vol.1 Issue 1 pg 51.

1."Most admired Soap and Cosmetic Companies, 00". Fortuen, March 4, 00. pg. 77

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