1. 1995 7888 4320 000 000001 00023 Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved.

2. 1995 7888 4320 000 000001 00023 Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. CHAPTERCHAPTERCHAPTERCHAPTER 1234 0001 897251 00000 12 Overview of Measurement: Construct Development and Scale Measurement 12-2

3. 1995 7888 4320 000 000001 00023 Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. The Value of Measurement  Measurement, like sampling, is an integral part of what it means to be “human”.  Measurement, when applied in marketing research (like sampling) is more complex, and consistently strives to approximate the values of the scientific method.  In the marketing arena, concepts such as “satisfaction” and “preference” are difficult to measure; hence the need for a research team to approach the task of construct development with an appreciation for its importance.  Consumer attitudes, beliefs, and behaviors remain fascinating subjects of study; hence the need for researchers to approach the task of construct measurement with precision. 12-3

4. 1995 7888 4320 000 000001 00023 Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Concrete Features & Abstract Constructs 12-4a AirplaneConcrete properties: number engines, height, weight, length, seating capacity, physical characteristics of seats, type of airplane, etc. Abstract constructs: quality of in-flight cabin service, comfortability of seating, smoothness of takeoff and landing, etc. ConsumerConcrete properties: age, sex, marital status, income, brand last purchased, dollar amount of purchase, types of products purchased, color of eyes and hair, etc. Abstract properties: attitudes toward a product, brand loyalty, high-involvement purchases, emotions (love, fear, anxiety), intelligence, personality, risk taker, etc.

5. 1995 7888 4320 000 000001 00023 Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Concrete Features & Abstract Constructs 12-4b OrganizationConcrete properties: name of company, number of employees, number of locations, total assets, Fortune 500 rating, computer capacity, types and numbers of products and service offerings, type of industry membership, etc. Abstract constructs: competence of employees, quality control, channel power, competitive advantages, company image, consumer-oriented practices, etc.

6. 1995 7888 4320 000 000001 00023 Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Operationalizing A Construct When a research team operationalizes a construct they go through a process of “breaking-it-down”. Here’s some examples:  Brand loyalty.  Customer satisfaction.  Quality.  Consumer emotions.  Consumer preferences. 12-5

7. 1995 7888 4320 000 000001 00023 Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Types of Data There are four principal types of data of interest to a research team: State-of-Being Data State-of Mind Data State-of-Behavior Data State-of-Intention Data 12-6

8. 1995 7888 4320 000 000001 00023 Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Properties of Scaling 12-7a Scaling PropertiesDescription and Examples Assignment propertyThe employment of unique descriptors to identify an object in a set. Some examples: the use of numbers (10, 38, 44, 18, 23, etc.); the use of colors (red, blue, green, pink, etc.); yes and no responses to questions that identify objects into mutually exclusive groups. Order propertyEstablishes “relative magnitudes” between the descriptors, creating hierarchical rank-order relationships among objects. Some examples: 1 st place is better than a 4 th- place finish; a 5-foot person is shorter than a 7-foot person; a regular customer purchases more often than a rare customer.

9. 1995 7888 4320 000 000001 00023 Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Properties of Scaling 12-7b Scaling PropertiesDescription and Examples Distance propertyAllows the researcher and respondent to identify, understand, and accurately express absolute differences between objects. Some examples: family A with six children living at home, compared to family B with three children at home, has three more children than family B; differences in income ranges or age categories Origin propertyA unique scale descriptor that is designated as being a “true natural zero” or “true state of nothing.” Some examples: asking a respondent his or her weight or current age; the number of times one shops at a supermarket; or the market share of a specific brand of hand soap.

10. 1995 7888 4320 000 000001 00023 Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Levels of Scales There are four levels of scales of interest to a research team: Nominal Ordinal Interval Ratio 12-8

11. 1995 7888 4320 000 000001 00023 Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Scales & Scaling Properties: Relationships 12-9 Scaling Properties Level of Scale AssignmentOrderDistanceOrigin NominalYesNo OrdinalYes No IntervalYes No RatioYes

12. 1995 7888 4320 000 000001 00023 Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Nominal Scales: Examples 12-10 Example 1: Please indicate your current marital status. _____ Married____ Single____ Single, never married____ Widowed Example 2: Do you like or dislike chocolate ice cream? ____ Like____ Dislike Example 3: Please check those information and HCP service areas in which you have had a face-to-face or telephone conversation with a representative of your main HCP in the past six month. (Check as many as apply.) ____ Appointments____ Treatment at home____ Referral to other HCP ____ Prescriptions____ Medical test results____ Hospital stay Some other service area(s); Please specify ____________________________________

13. 1995 7888 4320 000 000001 00023 Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Ordinal Scales: Examples 12-11 Which one category best describes your knowledge about the assortment of services offered by your main HCP? (Please check just one category.) ____ Complete knowledge of services ____ Good knowledge of services ____ Basic knowledge of services ____ Little knowledge of services ____ No knowledge of services

14. 1995 7888 4320 000 000001 00023 Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Interval Scales: Examples 12-12 Example 1: Approximately how many charges for overdrawn checks (NSF checks) has “your” bank imposed on you in the past year? _____ None____ 1-2____ 3-7____ 8-15____ 16-25____ More than 25 Example 2: Approximately how long have you lived at your current address? ____ Less than 1 year____ 4 to 6 years____ 11 to 20 years ____ 1 to 3 years____ 7 to 10 years____ Over 20 years Example 3: In which of the following categories does your current age fall? ____Under 18____ 26 to 35____ 46 to 55____ Over 65 ____ 18 to 25____ 36 to 45____ 56 t 65

15. 1995 7888 4320 000 000001 00023 Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Ratio Scales: Examples 12-13 Example 1: Please circle the number of children under 18 years of age currently living in your household. 01234567(If more than 7, please specify: ____.) Example 3: In the past seven days, how many times did you go shopping at a retail shopping mall? ____ # of times Example 3: In whole years, what is your current age? ____ # of years old

16. 1995 7888 4320 000 000001 00023 Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Ordinally Interval Scales: Examples 12-14 Using the scale provided below, select the number that best describes how important each of the listed attributes were in your deciding which restaurant to eat at. Please place your response on the line provided next to each attribute. Importance Scale 1 = Not at all important3 = Somewhat important5 = Definitely important 2 = Only slightly important4 = Important6 = Extremely important Restaurant Attributes ___ Quality of the food___ Dining Atmosphere___ Convenient location ___ Wide variety ___ Speed of service___ Has a no-smoking section ___ Allows reservations___ Reasonable-priced entrees

17. 1995 7888 4320 000 000001 00023 Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Rules of Thumb for Scale Development Are the questions intelligible? Are the primary scale descriptors appropriate? Do the primary scale descriptors have discriminatory power? Are the scales reliable? Are the scales balanced in a way appropriate to the research endeavor? Has the respondent been offered a neutral response option, where relevant and applicable? Have scales been developed with an eye to calculating measures of central tendency? Have scales been developed with an eye to calculating measures of dispersion? 12-15

18. 1995 7888 4320 000 000001 00023 Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Measures of Central Tendency There are three primary measures of central tendency (MCT): I.The Mean II.The Mode III.The Median 12-16

19. 1995 7888 4320 000 000001 00023 Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Measures of Dispersion There are three primary measures of dispersion (MOD): I.The Frequency Distribution II.The Range III.The Standard Deviation 12-17

20. 1995 7888 4320 000 000001 00023 Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Scale Levels and Additional Relationships 12-18a Four Basic Levels of Scales MeasurementsNominalOrdinalIntervalRatio Ordinally Interval Hybrid Central Tendency Mode Appropriate Median Inappropriate More AppropriateAppropriate Mean Inappropriate Most Appropriate

21. 1995 7888 4320 000 000001 00023 Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Scale Levels and Additional Relationships 12-18b Four Basic Levels of Scales MeasurementsNominalOrdinalIntervalRatio Ordinally Interval Hybrid Dispersion Frequency Distribution Appropriate Range Inappropriate More AppropriateAppropriate Estimated Standard Deviation Inappropriate Most Appropriate

22. 1995 7888 4320 000 000001 00023 Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. Summary of Learning Objectives  Explain what constructs are, how they are developed, and why they are important to measurement and scale designs.  Discuss the integrated validity and reliability concerns underlying construct development and scale measurement.  Explain what scale measurement is, and describe how to correctly apply it in collecting raw data from respondents.  Identify and explain the four basic levels of scales and discuss the amount of information they can provide a researcher or decision maker.  Discuss the ordinally interval hybrid scale design and the types of information it can provide researchers.  Discuss three components of the scale development and explain why they are critical to gathering primary data.