© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Measurement in Marketing Research Measurement in Marketing Research CHAPTER 3 © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Q. 1. What are the steps in controlling measurement error?

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Basic Concepts in Measurement To control measurement error effectively, one needs to take account of:  degree of difficulty in obtaining accurate measures  alternate measurement procedures for obtaining the information  cost of measurement relative to the accuracy of measurement

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Q. 2. Define Measurement.

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Measurement assigns numbers to objects, characteristics or events in the empirical system, according to a set of rules in the abstract system. The measurement process uses numbers to represent phenomena under investigation. The Measurement Process

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Number System Characteristics Four characteristics of the number system of first ten integers, corresponding to the four types of scales of measurement:  nominal: each number in the series merely a label  ordinal: ordered in increasing size  interval: equal differences (e.g., = 7 - 6)  ratio: interval, but also equal ratios (e.g.,10 / 5 = 6 / 3) The operations appropriate for manipulating data in analysis depend on which of these characteristics exist in the empirical system being modeled.

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Q. 3. Define the four types of scales.

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Types of Scales 1. nominal  numerals serve only as labels to categorize objects  can apply chi-squared test, mode, percentages 2. ordinal 1. numerals assigned in order of amount of characteristic 2. no information on how much more or less of the characteristic 3. can apply median, percentiles

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Types of Scales (continued) 3. interval  ordinal properties plus distances between the numerals is proportional to amounts of characteristic  can apply mean, standard deviation, linear transformation 4. ratio  interval properties plus absolute zero point  can apply geometric and harmonic mean

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Types of Scales (continued) FIGURE 3.2 Permissable transformation by scale type

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Q. 4. Define Construct.

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Difficulty in Measurement Marketing often employs the lower scales of measurement (ordinal and nominal), and can entail substantial measurement error.  often measuring internal subjective states of individual consumers  constructs: mental abstractions that form the basis for modeling the behavior of larger systems involving many individuals  constitutive definition defines a construct with other constructs, as in a dictionary  operational definition specifies how a construct is to be measured

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Validity and Reliability Concepts total measurement error = systematic error (e S, consistent bias) + random error (e R ) Sources of measurement error: 1. respondent characteristics, such as mood 2. situational factors, such as time of day 3. data collection factors, such as the influence of the interviewing method 4. measuring instrument factors, such as flawed survey questions 5. data analysis factors, such as coding error

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Q. 5. Distinguish between Validity and Reliability.

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Estimating Validity Validity is the extent to which measurement is free from systematic error – the average accuracy. Reliability is the extent to which a measurement is free from random errors – its consistency.

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Q. 6. What are the four methods of estimating validity?

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Estimating Validity  construct validity: compares measurements from the construct of interest and related constructs  content (face) validity: compares measurements with judgments by experts  concurrent validity: compares two different measurements of the same marketing phenomenon at the same point in time  predictive validity: compares current measurements with predicted measurements

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Q. 7. What are the three methods of estimating reliability?

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Estimating Reliability  test-retest reliability: compares repeated measurements using the same scaling device under similar conditions on the same subjects  alternative-forms reliability: compares measurements between two equivalent but not identical forms, administered to the same subjects  split-half reliability: compares measurements between equivalent groups of item responses in a multi-item measurement device

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Q. 8. Define Attitude. What are its three main components?

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Attitude Measurement An attitude is an individual’s enduring perceptual, knowledge-based, evaluative, and action-oriented processes relative to an object.  has cognitive, affective, and behavioral components  exists in the minds of individuals – not directly observable  involves nominal and ordinal scales of measurement While one cannot perfectly predict an individual’s behavior based on measured attitudes, statistical methods allow more accurate predictions for aggregate group behavior.

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Model of Behavioral Response The hierarchy-of-effects model hypothesizes that the buyer’s response falls along a spectrum for each component of attitude.  cognitive (or belief) component – respondent’s awareness of and knowledge about object  affective (or feeling) component – respondent’s liking of and preference for object  behavioral component – respondent's intention to buy and purchase behavior

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Model of Behavioral Response (continued) FIGURE 3.5 Hierarchy of Effects Model of Behavioral Response

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Do Intentions Really Predict Behavior? Self-generated validity: when the act of measuring intentions itself influences measured subsequent behavior.  correlation between purchase intentions and actual purchase 58% greater among surveyed consumers than among similar non-surveyed consumers  measurement also decreased purchase behavior among those who did not intend to purchase  self reports less valid than once believed  can be corrected for with a control sample whose intentions have not been measured

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Q. 9. What are the two types of attitude-scaling techniques?

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Attitude-Scaling Procedures  communication techniques  self-reports – responses to questionnaires  responses to stimuli – expressions of reaction to pictorial stimuli  performance of objective tasks – ability to recall factual information about product  observation techniques  recording of overt behavior – allows inferences about underlying beliefs and feelings  measurement of physiological reactions galvanic skin response (GSR) eye dilation – measures intensity of feeling

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Q. 10. What are the different types of self-reporting techniques?

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Self-Reporting Techniques  nominal scales – labeled categories  rating scales – respondent indicates own position on a continuum or among ordered categories  graphic rating scales – respondent indicates position on a continuum illustrated by graphic images  verbal rating scales – respondent selects among verbally identified categories (see list of issues to consider)  rank-order scales – respondent places various objects in strict order with regard to the attitude in question  paired-comparison scales – respondent makes series of paired judgments between objects regarding preference

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Self-Reporting Techniques (continued)  semantic differential scales – respondent evaluates object on 7-point rating scales bounded by opposing adjectives  descriptive phrases: single-word adjectives are sometimes replaced with descriptive phrases  moderating extremes: polar opposites can be replaced with phrases that may eliminate the overtly negative portion of the scale  comparison to ideal  numerical scale: ordinal but often treated as interval data in order to calculate the mean  Stapel scales – respondent evaluates object on a unipolar version of a semantic differential scale (typically ranging from +5 to -5)

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Verbal Rating Scales Issues to consider for design of verbal rating scales: 1. overall number of categories 2. odd or even number of categories 3. balanced vs. unbalanced scale 4. extent of verbal description 5. category numbering 6. forced vs. non-forced scales 7. comparative vs. non-comparative scales 8. symmetric vs. asymmetric scales 9. scale direction 10. choice of endpoints

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. International Attitude Research Great care must be taken to assure the reliability and validity of the attitude measures used internationally.  cross-cultural comparability cannot be assumed  differences in language, values and priorities, and conventions can dramatically affect attitude measurement  life-style scales, such as Global Scan, Japan VALS, and Cross Cultural Consumer Characterization help segment international markets