Measurement and Scaling Copyright © 2010 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

7-2 Learning Objectives  Understand the role of measurement in marketing research  Explain the four basic levels of scales  Describe scale development and its importance gathering primary data  Discuss comparative and noncomparative scales

7-3 Burger King: Location and Loyalty

7-4 Measurement is the process of assigning intensity to the information about constructs, concepts, and objects Scale Measurement Scale Measurement Construct Development Construct Development Measurement

7-5 Nominal Scales Ordinal Scales Interval Scales Ratio Scales Four Basic Scale Levels

7-6 Properties of Scale Measurements  Assignment  Order  Distance  Origin

7-7 Nominal Scales Nominal scales focus on only requiring a respondent to provide some type of descriptor as the raw response Nominal scales focus on only requiring a respondent to provide some type of descriptor as the raw response Example. Please indicate your current martial status. __Married __ Single __ Single, never married __ Widowed

7-8 Ordinal Scales Ordinal scales allow the respondent to express “relative magnitude” between the raw responses to a question Example. Which one statement best describes your opinion of an Intel PC processor? __ Higher than AMD’s PC processor __ About the same as AMD’s PC processor __ Lower than AMD’s PC processor

7-9 Interval Scales Interval scales demonstrate the absolute differences between each scale point Example. How likely are you to recommend the Santa Fe Grill to a friend? Definitely will not Definitely will

7-10 Ratio Scales Ratio scales allow for the identification of absolute differences between each scale point, and absolute comparisons between raw responses Example 1. Please circle the number of children under 17 years of age currently living in your household (if more than 7, please specify ___.)

7-11 Criteria for Scale Development  Understanding o the questions  Discriminatory power of scale descriptors  Balanced versus unbalanced scales  Forced or nonforced choice scales  Desired measure of central tendency and dispersion

7-12 Central Tendency and Dispersion  Central Tendency  Mode  Median  Mean  Dispersion  Frequency distribution  Range  Standard deviations

7-13 Central Tendency and Dispersion  If a nominal scale is used, analysis of raw data can only be done using modes and frequency distributions  If ordinal scales are used, analysis of raw data can be done using medians and ranges (plus modes and frequency distributions)  If interval or ratio scales are used, analysis of raw data can be done through the use of sample means and estimated standard deviations as the sample statistic (plus the above)

7-14 Construct/Scale Development Process  1: Identify and define construct  2: Create initial pool of attribute statements  3: Assess and select reduced set of items  4: Design scales and pretest  5: Complete statistical analysis  6: Refine and purify scales  7: Complete final scale evaluation

7-15 Likert Scale  A Likert scale is an ordinal scale format that asks respondents to indicate the extent to which they agree or disagree with a series of mental or behavioral belief statements about a given object

7-16 Exhibit 7.9 Likert Scale Example

7-17 Semantic Differential Scale  A semantic differential scale is a unique bipolar ordinal scale format that captures a person’s attitudes and/or feelings about a given object

7-18 Example 7.10 Semantic Differential Scale Format

7-19 Behavioral Intention Scale  A behavioral intention scale is a special type of rating scale designed to capture the likelihood that people will demonstrate some type of predictable behavior intent toward purchasing an object or service in a future time frame

7-20 Exhibit 7.12 Shopping Intention Scale

7-21 Other Rating Scales  Noncomparative Rating Scales  format that requires a judgment without reference to another object, person, or concept  Comparative Rating Scales  format that requires a judgment comparing one object, person, or concept against another on the scale

7-22 Exhibit 7.13 Graphic Rating Scale

7-23 Exhibit 7.14 Comparative Rating Scales

7-24 Scale Measurement Issues  Single-item or multiple-item scales  Clear wording  Screening questions  Skip questions

7-25 Marketing Research in Action: Customer Loyalty Index_1  What level of scale design would be most appropriate in creating necessary scale measurements for collecting primary data on each construct?  Design an example of the actual scale measurement that could be used to collect the data

7-26 Marketing Research in Action: Customer Loyalty Index_2  What weaknesses exist in how Burke assesses its Secure Customer Index?  What type of scale measurements would you use to collect the data for calculating SCI?  Do you agree with Burke’s interpretation of the value of its Customer Loyalty Index?