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Business Research Methods

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1 Business Research Methods
Measurement and Scaling: Noncomparative Scaling Techniques

2 Noncomparative Scaling Techniques
Respondents evaluate only one object at a time, and for this reason noncomparative scales are often referred to as monadic scales. Noncomparative techniques consist of continuous and itemized rating scales.

3 Continuous Rating Scale
Respondents rate the objects by placing a mark at the appropriate position on a line that runs from one extreme of the criterion variable to the other. The form of the continuous scale may vary considerably. How would you rate Sears as a department store? Version 1 Probably the worst I Probably the best Version 2 Probably the worst I Probably the best Version 3 Very bad Neither good Very good nor bad Probably the worst I Probably the best

4 Itemized Rating Scales
The respondents are provided with a scale that has a number or brief description associated with each category. The categories are ordered in terms of scale position, and the respondents are required to select the specified category that best describes the object being rated. The commonly used itemized rating scales are the Likert, semantic differential, and Stapel scales.

5 Likert Scale The Likert scale requires the respondents to indicate a degree of agreement or disagreement with each of a series of statements about the stimulus objects. Strongly Disagree Neither Agree Strongly disagree agree nor agree disagree 1. Sears sells high quality merchandise X 3 4 5 2. Sears has poor in-store service. 1 2X 3 4 5 3. I like to shop at Sears X 4 5 The analysis can be conducted on an item-by-item basis (profile analysis), or a total (summated) score can be calculated. When arriving at a total score, the categories assigned to the negative statements by the respondents should be scored by reversing the scale.

6 Semantic Differential Scale
The semantic differential is a seven-point rating scale with end points associated with bipolar labels that have semantic meaning. SEARS IS: Powerful --:--:--:--:-X-:--:--: Weak Unreliable --:--:--:--:--:-X-:--: Reliable Modern --:--:--:--:--:--:-X-: Old-fashioned The negative adjective or phrase sometimes appears at the left side of the scale and sometimes at the right. This controls the tendency of some respondents, particularly those with very positive or very negative attitudes, to mark the right- or left-hand sides without reading the labels. Individual items on a semantic differential scale may be scored on either a -3 to +3 or a 1 to 7 scale.

7 A Semantic Differential Scale for Measuring Self- Concepts, Person Concepts, and Product Concepts
1) Rugged :---:---:---:---:---:---:---: Delicate 2) Excitable :---:---:---:---:---:---:---: Calm 3) Uncomfortable :---:---:---:---:---:---:---: Comfortable 4) Dominating :---:---:---:---:---:---:---: Submissive 5) Thrifty :---:---:---:---:---:---:---: Indulgent 6) Pleasant :---:---:---:---:---:---:---: Unpleasant 7) Contemporary :---:---:---:---:---:---:---: Obsolete 8) Organized :---:---:---:---:---:---:---: Unorganized 9) Rational :---:---:---:---:---:---:---: Emotional 10) Youthful :---:---:---:---:---:---:---: Mature 11) Formal :---:---:---:---:---:---:---: Informal 12) Orthodox :---:---:---:---:---:---:---: Liberal 13) Complex :---:---:---:---:---:---:---: Simple 14) Colorless :---:---:---:---:---:---:---: Colorful 15) Modest :---:---:---:---:---:---:---: Vain

8 Stapel Scale The Stapel scale is a unipolar rating scale with ten categories numbered from -5 to +5, without a neutral point (zero). This scale is usually presented vertically. SEARS X HIGH QUALITY POOR SERVICE -4X The data obtained by using a Stapel scale can be analyzed in the same way as semantic differential data.

9 Basic Noncomparative Scales
Examples Advantages Disadvantages Characteristics Continuous Place a mark on a Reaction to Easy to construct Scoring can be Rating continuous line TV cumbersome Scale commercials unless computerized Itemized Rating Scales Likert Scale Degrees of Measurement Easy to construct, More agreement on a 1 of attitudes administer, and time - consuming (strongly disagree) understand to 5 (strongly agree) scale Semantic Seven - point scale Brand, Versatile Controversy as Differential with bipolar labels product, and to whether the company data are interval images Stapel Unipolar ten - point Measurement Easy to construct, Confusing and Scale scale, - 5 to +5, of attitudes administer over difficult to apply witho ut a neutral and images telephone point (zero)

10 Summary of Itemized Scale Decisions
1) Number of categories Although there is no single, optimal number, traditional guidelines suggest that there should be between five and nine categories 2) Balanced vs. unbalanced In general, the scale should be balanced to obtain objective data 3) Odd/even no. of categories If a neutral or indifferent scale response is possible from at least some of the respondents, an odd number of categories should be used 4) Forced vs. non-forced In situations where the respondents are expected to have no opinion, the accuracy of the data may be improved by a non-forced scale 5) Verbal description An argument can be made for labeling all or many scale categories. The category descriptions should be located as close to the response categories as possible 6) Physical form A number of options should be tried and the best selected

11 Balanced and Unbalanced Scales
Figure 9.1 Jovan Musk for Men is Jovan Musk for Men is Extremely good Extremely good Very good Very good Good Good Bad Somewhat good Very bad Bad Extremely bad Very bad Balanced Scale Unbalanced Scale

12 Rating Scale Configurations
A variety of scale configurations may be employed to measure the gentleness of Cheer detergent. Some examples include: Cheer detergent is: 1) Very harsh Very gentle 2) Very harsh Very gentle 3) . Very harsh . . Neither harsh nor gentle . Very gentle 4) ____ ____ ____ ____ ____ ____ ____ Very Harsh Somewhat Neither harsh Somewhat Gentle Very harsh Harsh nor gentle gentle gentle 5) Very Neither harsh Very harsh nor gentle gentle Figure 9.2 Cheer -3 -2 -1 +1 +2 +3

13 Some Unique Rating Scale Configurations
Thermometer Scale Instructions: Please indicate how much you like McDonald’s hamburgers by coloring in the thermometer. Start at the bottom and color up to the temperature level that best indicates how strong your preference is. Form: Smiling Face Scale Instructions: Please point to the face that shows how much you like the Barbie Doll. If you do not like the Barbie Doll at all, you would point to Face 1. If you liked it very much, you would point to Face 5. Figure 9.3 Like very much Dislike very much

14 Thurstone Scale It is a two stage procedure
In the first stage researcher selects 80 to 100 items indicating different degrees of favourable attitude for concept under study They are given to a group of judges to group them into favourable & disfavour able by keeping equal intervals between categories All items that have consensus from judges are selected & distributed uniformly on a scale of favourability This scale is then administered to respondents to measure their attitude towards a particular concept It is time consuming & costly & is rarely used in applied BR

15 Measurement Accuracy The true score model provides a framework for understanding the accuracy of measurement. XO = XT + XS + XR where XO = the observed score or measurement XT = the true score of the characteristic XS = systematic error XR = random error

16 Systematic Error Lack of clarity of the scale, including the instructions or the items themselves. Mechanical factors, such as poor printing, overcrowding items in the questionnaire, and poor design.

17 Random Error Short-term or transient personal factors, such as health, emotions, and fatigue. Situational factors, such as the presence of other people, noise, and distractions.

18 Criteria for evaluating measurement
The criteria for evaluating measurements are Reliability Validity Sensitivity Generalizability Relevance

19 Reliability The degree to which measures are free from random error and therefore yield consistent results across time or situations. Perfect reliability requires that there is no random error XR=0 19

20 Validity The ability of a scale to measure what was intended to be measured. Perfect validity requires that there is no measurement error either systematic or random. XR=o XS=0 20

21 Relationship between validity & reliability
If a measure is perfectly valid it is also perfectly reliable However if a measure is perfectly reliable it may or may not be perfectly valid If a measure is unreliable it will not be valid Reliability is a necessary but not a sufficient condition for validity

22 THE GOAL OF MEASUREMENT: VALIDITY and RELIABILITY
22

23 Reliability and Validity on Target
Old Rifle New Rifle New Rifle Sunglare Low Reliability High Reliability Reliable but Not Low Validity High Validity Valid (Target A) (Target B) (Target C) 23

24 RELIABILITY Repeatability Of index measures 24

25 Types of Reliability There are two dimensions of reliability:Repeatability & Internal consistency If the results of the research are the same even when it is conducted second or third time it confirms repeatability aspect Test-Retest Method: An approach for assessing reliability in which respondents are administered identical sets of scale items at two different times under as nearly equivalent conditions as possible This measures repeatability since the same scale or measure is administered to the same set of respondents at two separate points. If the measure is stable over time , it should obtain similar results.(40% satisfied with jobs both times) However it is difficult to locate all respondents for the second round, their attitudes may change over time or the first measure may sensitize the respondents

26 Equivalent Forms Method
An approach to assess reliability that requires two equivalent forms of scale to be constructed &administered to the same respondents at two different times However it is difficult , time consuming & expensive to construct two equivalent forms of scale 26

27 Internal Consistency This measure of reliability focuses on internal consistency of the set of items forming the scale. It is used to assess reliability of a summated scale where several items are summed to form a total score .Each item measures some aspect of the construct and the items should be consistent in what they indicate about the characteristics

28 Split half Method Split half Method: It is a method of measuring internal consistency reliability in which the items constituting the scale are divided into two halves and the resulting scores of two halves are correlated. High correlation indicates high consistency However results will depend on how the scale items are split Coefficient alpha(Cronbach’s Alpha) :A measure of internal consistency reliability that is the average of all possible split half coefficients resulting from different splitting of the scale items

29 Some multi item scales include several sets of items measuring different dimensions of a multidimensional construct. Since these dimensions are independent a measure of internal consistency computed across dimensions would be inappropriate. so internal consistency reliability can be computed for each dimension Store image is a multidimensional construct that includes --- Quality of goods, --- variety of goods, ---returns policy, ---service , ----price, ----location, ----layout ----billing & credit policy

30 Content-Depends on established theories for support (objective)
Face – Professional agreement that logically it appears valid. (Subjective) Content-Depends on established theories for support (objective) Criterion – Does it fit or correlate with other similar measure/constructs? Body Fat – caliper, water displacement, electrical impedance, BMI. Concurrent – two measure, same time Predictive – Two measures at diff. times. Construct - confirmed with network of hypotheses. Convergent(High relationship with similar concepts). and divergent or discriminant validity (low relationship with dissimilar concepts). 30

31 Face Validity Face Validity: Subjective agreement among professionals that a scale logically appears to accurately measure what it is intended to measure. Weakest form without any analysis Face validity is concerned with how a measure or procedure appears. Does it seem like a reasonable way to gain the information the researchers are attempting to obtain? Does it seem well designed? Does it seem as though it will work reliably? Unlike content validity, face does not depend on established theories for support

32 To measure adequacies of facilities in schools:
Content Validity Content Validity is based on the extent to which a measurement reflects the specific intended domain of content . Researchers aim to study mathematical learning and create a survey to test for mathematical skill. If these researchers only tested for multiplication and then drew conclusions from that survey, their study would not show content validity because it excludes other mathematical functions. To measure adequacies of facilities in schools: attractiveness of school name, frequency of old students meet. eatables in the canteen –not relevant variables: Number of classrooms, Number of qualified teachers, playground, liabrary- relevant variables

33 Criterion related Validity
Criterion related validity, also referred to as instrumental validity, is used to demonstrate the accuracy of a measure or procedure by comparing it with another measure or procedure which has been demonstrated to be valid. For example, imagine a hands-on driving test has been shown to be an accurate test of driving skills. By comparing the scores on the written driving test with the scores from the hands-on driving test, the written test can be validated by using a criterion related strategy in which the hands-on driving test is compared to the written test. New measure correlates with criterion measure

34 Predictive Validity Predictive Validity. A type of criterion validity whereby a new measure correlates with criterion measure administered at a later time In order for a test to be a valid screening device for some future behaviour, it must have predictive validity. The SAT is used by college screening committees as one way to predict college grades. The GMAT is used to predict success in business .It measures predictive validity . We determine predictive validity by computing a correlation coefficient comparing SAT(NEW/Independent) scores, for example, and college grades (Criterion/dependent). If they are directly related, then we can make a prediction regarding college grades based on SAT score. We can show that students who score high on the SAT tend to receive high grades in college.

35 Concurrent Validity A type of criterion validity whereby a new measure correlates with a criterion measure at the same time. A new test of adult intelligence, for example, would have concurrent validity if it had a high positive correlation with the Wechsler Adult Intelligence Scale since the Wechsler is an accepted measure of the construct we call intelligence. An obvious concern relates to the validity of the test against which you are comparing your test.

36 Construct Validity Construct validity seeks agreement between a theoretical concept and a specific measuring device or procedure. For example, a researcher inventing a new IQ test might spend a great deal of time attempting to "define" intelligence in order to reach an acceptable level of construct validity. Construct validity can be broken down into two sub-categories: Convergent validity and discriminate validity. Convergent validity is the actual general agreement among ratings, where measures should be theoretically related. Discriminate validity is the lack of a relationship among measures which theoretically should not be related

37 To measure: Tendency to stay in low cost hotels
Four personality variables: High level of self confidence, low need for status, low need for distinctiveness, high level of adaptability Not related to: brand loyalty, high level of aggressiveness The scale can be said to have construct if it correlates highly with other measures of tendency to stay in low cost hotels: Reported hotels patronised and social class (convergent) Low correlation with the unrelated constructs of brand loyalty & high level of aggressiveness (Divergent)

38 SENSITIVITY A measurement instrument’s ability to accurately measure variability in stimuli or responses. “Yes and no” “agree or disagree” are not very sensitive Strongly agree, mildly agree, indifferent, mildly disagree, strongly disagree ,are categories whose inclusion increases scale’s sensitivity 38

39 Generizability It is the degree to which a study based on a sample applies to a universe of generalization Universe of generalization includes set of all conditions of measurement :items, interviewers, modes of data collection etc. To generalize a scale developed for personal interview to other modes of data collection such as mail, telephone etc. To generalize from a sample of items to universe of items

40 Relevance It represents appropriateness of using a particular scale for measuring a variable Relevance= Reliability x Validity If either reliability or validity is low then the scale will have little relevance If correlation coefficient is used to analyse both reliability & validity then the scale can have relevance from 0 to 1.


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