1. Slide 9-1 © 1999 South-Western Publishing McDaniel Gates Contemporary Marketing Research, 4e Understanding Measurement Carl McDaniel, Jr. Roger Gates Slides Prepared by Bruce R. Barringer University of Central Florida Chapter 9

2. Slide 9-2 © 1999 South-Western Publishing McDaniel Gates Contemporary Marketing Research, 4e Learning Objectives To understand the concept of measurement. To learn about the measurement process and how to develop a good measurement. To understand the four levels of scales and their typical usage. To become aware of the concepts of reliability and validity.

3. Slide 9-3 © 1999 South-Western Publishing McDaniel Gates Contemporary Marketing Research, 4e The Concept of Measurement Measurement is the process of assigning numbers or labels to objects, persons, states, or events in accordance with specific rules to represent quantities or qualities of attributes.

4. Slide 9-4 © 1999 South-Western Publishing McDaniel Gates Contemporary Marketing Research, 4e Rule Defined A rule is a guide, a method, or a command that tells a researcher what to do.

5. Slide 9-5 © 1999 South-Western Publishing McDaniel Gates Contemporary Marketing Research, 4e The Measurement Process Identify the concept of interest Identify the concept of interest Develop a construct Develop a construct a constitutive definition a constitutive definition operational definition operational definition measurement scales measurement scales evaluate the reliability and the validity of the scales evaluate the reliability and the validity of the scales utilizes the scales utilizes the scales research findings research findings Use the concept to Which is used to create Which enables a researcher to develop an Which enables a researcher to create That require the researcher to If the evaluation is satisfactory, the researcher Which leads to

6. Slide 9-6 © 1999 South-Western Publishing McDaniel Gates Contemporary Marketing Research, 4e Step One: Identify the Concept of Interest Measurement begins by identifying a concept of interest for study. – –A concept is an abstract idea generalized from particular facts.

7. Slide 9-7 © 1999 South-Western Publishing McDaniel Gates Contemporary Marketing Research, 4e Step Two: Develop a Construct Constructs are specific types of concepts that exist at higher levels of abstraction. – –Constructs are invented for theoretical use. – –The value of specific constructs depends on how useful they are in explaining, predicting, and controlling phenomena, just as the value of everyday concepts depends on how much they assist us in everyday affairs.

8. Slide 9-8 © 1999 South-Western Publishing McDaniel Gates Contemporary Marketing Research, 4e Steps Three and Four: Define the Concept Both Constitutively and Operationally Slide 1 of 2 Constitutive – –A constitutive (or theoretical or conceptual) definition defines a concept with other concepts and constructs, establishing boundaries for the construct under study; it states the central idea or concept under study.

9. Slide 9-9 © 1999 South-Western Publishing McDaniel Gates Contemporary Marketing Research, 4e Steps Three and Four: Define the Concept Both Constitutively and Operationally Slide 2 of 2 Operational Definition – –An operational definition defines which observable characteristics will be measured and the process for assigning a value to the concept. – –In other words, an operational definition serves as a bridge between a theoretical concept and real-world events or factors.

10. Slide 9-10 © 1999 South-Western Publishing McDaniel Gates Contemporary Marketing Research, 4e Step Five: Develop a Measurement Scale Scale – –A scale is a set of symbols or numbers so constructed that the symbols or numbers can be assigned by a rule to the individuals (or their behaviors or attitudes) to whom the scale is applied.

11. Slide 9-11 © 1999 South-Western Publishing McDaniel Gates Contemporary Marketing Research, 4e Types of Scales Slide 1 of 8 Nominal Scale – –Description Uses numerals to identify objects, individuals, events, or groups. – –Basic Empirical Operations Determination of equality/inequality – –Typical Usage Classification (male/female; buyer/nonbuyer)

12. Slide 9-12 © 1999 South-Western Publishing McDaniel Gates Contemporary Marketing Research, 4e Types of Scales Slide 2 of 8 Nominal Scale (continued) – –Typical Descriptive Statistics Frequency Counts, percentages/modes – –Example of Nominal Scale Sex(1) Male (2) Female Geographic Area (1) Urban (2) Rural (3) Suburban

13. Slide 9-13 © 1999 South-Western Publishing McDaniel Gates Contemporary Marketing Research, 4e Types of Scales Slide 3 of 8 Ordinal Scale – –Description In addition to identification, the numerals provide information about the relative amount of some characteristic posed by an event, object, etc. Basic Empirical Operations Determination of greater or less. – –Typical Usage Rankings/ratings

14. Slide 9-14 © 1999 South-Western Publishing McDaniel Gates Contemporary Marketing Research, 4e Types of Scales Slide 4 of 8 Ordinal Scale (continued) – –Typical Descriptive Statistics Median (mean and variance metric) – –Example of Ordinal Scale: Please rank the following fax machines from 1 to 5 with 1 being the most preferred and 5 the least preferred. _____ Panasonic _____ Toshiba _____ Sharp _____ Savin _____ Ricoh

15. Slide 9-15 © 1999 South-Western Publishing McDaniel Gates Contemporary Marketing Research, 4e Types of Scales Slide 5 of 8 Interval Scale – –Description Possesses all the properties of nominal and ordinal scales plus the intervals between consecutive points are equal. – –Basic Empirical Operations Determination of equality of intervals. – –Typical Usage Preferred measure of complex concepts/constructs.

16. Slide 9-16 © 1999 South-Western Publishing McDaniel Gates Contemporary Marketing Research, 4e Types of Scales Slide 6 of 8 Interval Scale (continued) – –Typical Descriptive Statistics Mean/variance – –Example of an Interval Scale Thermometer

17. Slide 9-17 © 1999 South-Western Publishing McDaniel Gates Contemporary Marketing Research, 4e Types of Scales Slide 7 of 8 Ratio Scale – –Description Incorporates all the properties of nominal, ordinal, and interval scales plus it includes an absolute zero point. – –Basic Empirical Operations Determination of equality of ratios. – –Typical Usage When precision instruments are available.

18. Slide 9-18 © 1999 South-Western Publishing McDaniel Gates Contemporary Marketing Research, 4e Types of Scales Slide 8 of 8 Ratio Scale (continued) – –Typical Descriptive Statistics Mean. – –Example of a Ratio Scale Age, weight, height, population of the U.S., etc.

19. Slide 9-19 © 1999 South-Western Publishing McDaniel Gates Contemporary Marketing Research, 4e Step Six: Evaluate the Reliability and Validity of the Measures Reliability – –Is the degree to which measures are free from random error and, therefore, provide consistent data. Validity – –Validity addresses the issue of whether what we try to measure was actually measured.

20. Slide 9-20 © 1999 South-Western Publishing McDaniel Gates Contemporary Marketing Research, 4e Assessing the Reliability of a Measurement Instrument Test-Retest ReliabilityUse the same instrument a second time under nearly the same conditions as possible. Equivalent Form ReliabilityUse two instruments that are as similar as possible to measure the same object during the same time period. Internal ConsistencyCompare different samples of items being Reliabilityused to measure a phenomenon during the same time period.

21. Slide 9-21 © 1999 South-Western Publishing McDaniel Gates Contemporary Marketing Research, 4e Assessing the Validity of a Measurement Instrument Slide 1 of 2 Face ValidityResearchers judge the degree to which a measurement instrument seems to measure what it is supposed to. Content ValidityThe degree to which the instrument items represent the universe of the concept under study.

22. Slide 9-22 © 1999 South-Western Publishing McDaniel Gates Contemporary Marketing Research, 4e Assessing the Validity of a Measurement Instrument Slide 1 of 2 Criterion-related ValidityThe degree to which a measurement instrument can predict a variable that is designed a criterion. A. Predictive Validity- The extent to which a future level of a criterion variable can be predicted by a current measurement on a scale. B. Concurrent Validity- The extent to which a criterion variable measured at the same point in time as the variable of interest can be predicted by the measurement instrument.

23. Slide 9-23 © 1999 South-Western Publishing McDaniel Gates Contemporary Marketing Research, 4e Assessing the Validity of a Measurement Instrument Slide 2 of 2 Construct ValidityThe degree to which a measure confirms a hypothesis created from a theory based upon the concepts under study. A. Convergent validity - The degree of association among different measurement instruments that purport to measure the same concept. B. Discriminant Validity - The lack of association among constructs that are supposed to be different.

24. Slide 9-24 © 1999 South-Western Publishing McDaniel Gates Contemporary Marketing Research, 4e Illustrations of Possible Reliability and Validity Situations in Measurement........................... Situation 1Situation 3Situation 2 Neither reliable nor valid Highly reliable but not valid Highly reliable and valid...

25. Slide 9-25 © 1999 South-Western Publishing McDaniel Gates Contemporary Marketing Research, 4e Summary of Key Points Slide 1 of 3 Measurement consists of using rules to assign numbers to objects in such a way as to represent quantities of attributes. A measurement rule is a guide, a method, or command that tells the researcher what to do. Accurate measurement requires rules that are both clear and specific.

26. Slide 9-26 © 1999 South-Western Publishing McDaniel Gates Contemporary Marketing Research, 4e Summary of Key Points Slide 2 of 3 The measurement process is as follows: identify the concept of interest, develop a construct, define the concept constitutively and operationally, develop a measurement scale, evaluate the reliability and validity of the scale, and then use the scale. There are four basic levels of measurement: nominal, ordinal, interval, and ratio.

27. Slide 9-27 © 1999 South-Western Publishing McDaniel Gates Contemporary Marketing Research, 4e Summary Slide 3 of 3 Measurement data consists of accurate information and errors. Reliability is the degree to which measures are free from random error and therefore provide consistent data. Validity refers to the notion of actually measuring what we are attempting to measure.