8-1 Business Research Methods Measurement and Scaling: Fundamentals and Comparative Scaling

8-2 Measurement and Scaling Measurement means assigning numbers or other symbols to characteristics of objects according to certain prespecified rules. –One-to-one correspondence between the numbers and the characteristics being measured. –The rules for assigning numbers should be standardized and applied uniformly. –Rules must not change over objects or time.

8-3 Measurement and Scaling Scaling involves creating a continuum upon which measured objects are located. Consider an attitude scale from 1 to 100. Each respondent is assigned a number from 1 to 100, with 1 = Extremely Unfavorable, and 100 = Extremely Favorable. Measurement is the actual assignment of a number from 1 to 100 to each respondent. It is the process of placing the respondents on a continuum with respect to, say,their attitude toward department stores.

Primary Scales of Measurement Scale Nominal Numbers Assigned to Runners Ordinal Rank Order of Winners Interval Performance Rating on a 0 to 10 Scale Ratio Time to Finish, in Seconds Third place Second place First place Finish

8-5 Primary Scales of Measurement Nominal Scale The numbers serve only as labels or tags for identifying and classifying objects. When used for identification, there is a strict one-to-one correspondence between the numbers and the objects. The numbers do not reflect the amount of the characteristic possessed by the objects. The only permissible operation on the numbers in a nominal scale is counting. Only a limited number of statistics, all of which are based on frequency counts, are permissible, e.g., percentages, and mode.

8-6 Illustration of Primary Scales of Measurement Nominal Ordinal Ratio Scale Scale Scale Preference $ spent last No. Store Rankings 3 months 1. Lord & Taylor 2. Macy’s 3. Kmart 4. Rich’s 5. J.C. Penney 6. Neiman Marcus 7. Target 8. Saks Fifth Avenue 9. Sears 10.Wal-Mart Interval Scale Preference Ratings 1-7

8-7 Primary Scales of Measurement Ordinal Scale A ranking scale in which numbers are assigned to objects to indicate the relative extent to which the objects possess some characteristic. Can determine whether an object has more or less of a characteristic than some other object, but not how much more or less. Any series of numbers can be assigned that preserves the ordered relationships between the objects. In addition to the counting operation allowable for nominal scale data, ordinal scales permit the use of statistics based on centiles, e.g., percentile, quartile, median.

8-8 Primary Scales of Measurement Interval Scale Numerically equal distances on the scale represent equal values in the characteristic being measured. It permits comparison of the differences between objects. The location of the zero point is not fixed. Both the zero point and the units of measurement are arbitrary. Any positive linear transformation of the form y = a + bx will preserve the properties of the scale. It is not meaningful to take ratios of scale values. Statistical techniques that may be used include all of those that can be applied to nominal and ordinal data, and in addition the arithmetic mean, standard deviation, and other statistics commonly used in marketing research.

8-9 Primary Scales of Measurement Ratio Scale Possesses all the properties of the nominal, ordinal, and interval scales. It has an absolute zero point. It is meaningful to compute ratios of scale values. Only proportionate transformations of the form y = bx, where b is a positive constant, will preserve the properties of the scale All statistical techniques can be applied to ratio data.

8-10 Primary Scales of Measurement

8-11 A Classification of Scaling Techniques Likert Semantic Differential StapelScaling Techniques Noncomparative Scales Comparative Scales Paired Comparison Rank Order Constant Sum Q-Sort and Other Procedures Continuous Rating Scales Itemized Rating Scales

8-12 A Comparison of Scaling Techniques Comparative scales involve the direct comparison of stimulus objects. Comparative scale data must be interpreted in relative terms and have only ordinal or rank order properties. In non comparative scales, each object is scaled independently of the others in the stimulus set. The resulting data are generally assumed to be interval or ratio scaled.

8-13 Relative Advantages of Comparative Scales Small differences between stimulus objects can be detected. Same known reference points for all respondents. Easily understood and can be applied. Involve fewer theoretical assumptions. Tend to reduce halo or carryover effects from one judgment to another.

8-14 Relative Disadvantages of Comparative Scales Ordinal nature of the data Inability to generalize beyond the stimulus objects scaled.

8-15 Comparative Scaling Techniques Paired Comparison Scaling A respondent is presented with two objects and asked to select one according to some criterion. The data obtained are ordinal in nature. Paired comparison scaling is the most widely used comparative scaling technique. With n brands, [n(n - 1) /2] paired comparisons are required As n increases, the number of comparisons also increases, respondents may fatigue and no longer carefully discriminate among them.

8-16 Obtaining Shampoo Preferences Using Paired Comparisons Instructions: We are going to present you with ten pairs of shampoo brands. For each pair, please indicate which one of the two brands of shampoo you would prefer for personal use. Recording Form: a A 1 in a particular box means that the brand in that column was preferred over the brand in the corresponding row. A 0 means that the row brand was preferred over the column brand. b The number of times a brand was preferred is obtained by summing the 1s in each column.

8-17 Paired Comparison Selling The most common method of taste testing is paired comparison. The consumer is asked to sample two different products and select the one with the most appealing taste. The test is done in private and a minimum of 1,000 responses is considered an adequate sample. A blind taste test for a soft drink, where imagery, self-perception and brand reputation are very important factors in the consumer’s purchasing decision, may not be a good indicator of performance in the marketplace. The introduction of New Coke illustrates this point. New Coke was heavily favored in blind paired comparison taste tests, but its introduction was less than successful, because image plays a major role in the purchase of Coke. A paired comparison taste test

8-18 Comparative Scaling Techniques Rank Order Scaling Respondents are presented with several objects simultaneously and asked to order or rank them according to some criterion. It is possible that the respondent may dislike the brand ranked 1 in an absolute sense. Furthermore, rank order scaling also results in ordinal data. Only (n - 1) scaling decisions need be made in rank order scaling.

8-19 Preference for Toothpaste Brands Using Rank Order Scaling Instructions: Rank the various brands of toothpaste in order of preference. Begin by picking out the one brand that you like most and assign it a number 1. Then find the second most preferred brand and assign it a number 2. Continue this procedure until you have ranked all the brands of toothpaste in order of preference. The least preferred brand should be assigned a rank of 10. No two brands should receive the same rank number. The criterion of preference is entirely up to you. There is no right or wrong answer. Just try to be consistent.

8-20 Brand Rank Order 1. Crest _________ 2. Colgate _________ 3. Aim _________ 4. Gleem _________ 5. Macleans _________ 6. Ultra Brite _________ 7. Close Up _________ 8. Pepsodent _________ 9. Plus White _________ 10. Stripe _________ Preference for Toothpaste Brands Using Rank Order Scaling Form

8-21 Comparative Scaling Techniques Constant Sum Scaling Respondents allocate a constant sum of units, such as 100 points to attributes of a product to reflect their importance. If an attribute is unimportant, the respondent assigns it zero points. If an attribute is twice as important as some other attribute, it receives twice as many points. The sum of all the points is 100. Hence, the name of the scale.

8-22 Importance of Bathing Soap Attributes Using a Constant Sum Scale Instructions On the next slide, there are eight attributes of bathing soaps. Please allocate 100 points among the attributes so that your allocation reflects the relative importance you attach to each attribute. The more points an attribute receives, the more important the attribute is. If an attribute is not at all important, assign it zero points. If an attribute is twice as important as some other attribute, it should receive twice as many points.

8-23 Form Average Responses of Three Segments Attribute Segment I Segment II Segment III 1. Mildness 2. Lather 3. Shrinkage 4. Price 5. Fragrance 6. Packaging 7. Moisturizing 8. Cleaning Power Sum Importance of Bathing Soap Attributes Using a Constant Sum Scale

8-24 Constant Sum Scale Given below are 5 characteristics of a mall. Please give each characteristic some point based on the importance you attach to it. Total points should add up to100 Convenient location Enough range of products Items properly displayed Sales persons cooperative Adequate parking facility

8-25 n Sorting might present the respondent with several concepts typed on cards and require that the respondent arrange the cards into a number of piles or otherwise classify the concepts.

8-26 Q-Sort scales When the number of objects or characteristics to be ranked are very large in number it becomes tedious to rank order Here respondents are asked to sort out various objects or characteristics into various groups with pre-specified no. in each group often to result in roughly normal distribution. If respondents have to rank 100 different newly thought out toy products according to their tastes & preferences,each will be given100 cards containing a product & its feature. Customers are asked to segregate cards into 10 stacks so that first stack contains set of cards highly preferred and tenth stack contains least preferred cards Cards in each stack should be arranged in respondent’s order of preference It asks a lot of time & effort on the part of respondents

8-27 Attitude An enduring disposition to consistently respond in a given manner Attitudes are positive, negative or neutral Difficult to measure attitudes but attempts are made to do this by using various scales

8-28 Attitudes as Hypothetical Constructs The term hypothetical construct is used to describe a variable that is not directly observable, but is measurable by an indirect means such as verbal expression or overt behavior - attitudes are considered to be such variables.

8-29 Three Components of an Attitude Cognitive Affective Behavioral

8-30 Cognitive Knowledge and beliefs

8-31 Cognitive Component Air Traveller remembers names of several airlines He has knowledge about different features of the airlines gained through Ads, Dailies, Magazines, friends He has certain beliefs about their services. Once the positive beliefs increase they give rise to a favourable cognitive component towards a particular airline

8-32 Affective The feelings or emotions toward an object

8-33 Affective Component A woman says that she loves shopping at lifestyle This is based on woman’s overall emotional feelings which forms affective component Two persons may share a cognitive component but when it comes to affective component one may have a positive affective component and the other a negative affective component towards the same object

8-34 Behavioral Person’s future actions Intentions Behavioral expectations If the air traveler wants to fly a particular airlines in future too or the lady wants to shop from lifestyle for her next shopping it is behavioral component of the attitude

8-35 Relationship between attitude & behaviour Difficult to analyse relationship between attitude & behaviour Group behaviour is easier to analyse than individual behaviour Critical aspects governing attitude & behaviour of consumers are -Development of positive attitude will lead to increase in usage of product &services -Attitude will be neutral if consumers have never tried a product -Attitudes based on trials &experience are better predictors of behaviour than those based on ADs

8-36 Changing Attitudes Companies attempt to change attitude of consumers towards a product in 3 ways Altering existing beliefs(BPCL changing petrol stations from dusty poorly lit places to branding products & developing shopping malls) Changing importance of beliefs (KELLOG’S repositioning strategy changing from fun-filled brands to health brands) Adding new beliefs(TATA promoted salt from traditional taste attribute to essential for health with iodine content for growth, development, thyroid gland.,completely changing common belief

8-37 Techniques for measuring Attitude A variety of techniques have been developed Direct verbal statements are used to get behavioural intent in terms of all the components Obtaining verbal statements from respondents require respondents to perform tasks such as --Ranking --Rating --sorting --Choosing

8-38 Measuring Attitudes Ranking Rating Sorting Choice

8-39 The Attitude Measuring Process Ranking - Rank order preference Rating - Estimates magnitude of a characteristic Sorting - Arrange or classify concepts Choice - Selection of preferred alternative

8-40 n Ranking tasks require that the respondent rank order a small number of objects in overall performance on the basis of some characteristic or stimulus.

8-41 n Rating asks the respondent to estimate the magnitude of a characteristic, or quality, that an object possesses. The respondent’s position on a scale(s) is where he or she would rate an object.

8-42 n Sorting might present the respondent with several concepts typed on cards and require that the respondent arrange the cards into a number of piles or otherwise classify the concepts.

8-43 n Choice between two or more alternatives is another type of attitude measurement - it is assumed that the chosen object is preferred over the other.

8-44 n Physiological measures of attitudes provide a means of measuring attitudes without verbally questioning the respondent. for example, galvanic skin responses, measure blood pressure & pupil dilation may be used for assessing affective component of the attitude

8-45 Attitude scales Two major types of scales --Single Item scales --Multi item scales Single item scales are those with only one item to measure. Customer satisfaction can be measured as overall attitude using single item scale where respondents can select 1 if they are least satisfied,3 if they are moderately satisfied&6 if they are totally satisfied Multiple item scales are those where several attributes are used to measure people’s attitude.Motivational level is measured in terms of -work environment, - interpersonal relationship, -behaviour of top management -compensation procedure