Measurement and Scaling

Prof. Kuldeep Baishya

Assistant Professor
FORE School of Management, New Delhi
(Note: ppt is based on (Malhotra and Dash, 2016))
Measurement and Scaling
Measurement means assigning numbers or other symbols to
characteristics of objects according to certain pre-specified 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.
Scale Characteristics
Description
By description, we mean the unique labels or descriptors that are
used to designate each value of the scale. All scales possess
description.
Order
By order, we mean the relative sizes or positions of the descriptors.
Order is denoted by descriptors such as greater than, less than, and
equal to.
Scale Characteristics
Distance
The characteristic of distance means that absolute differences
between the scale descriptors are known and may be expressed in
units.
Origin
The origin characteristic means that the scale has a unique or fixed
beginning or true zero point.
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. Scaling is the process of
placing the respondents on a continuum with respect to their attitude
toward department stores.
Primary Scales of Measurement
Primary Scales of Measurement
Blank Blank Blank Blank  Permissible Blank
Statistics
Scale Basic Characteristics Common Examples Marketing Examples Descriptive Inferential
Nominal Numbers identify and Social Security Brand numbers, store Percentages, mode Chi-square, binomial
classify objects numbers, numbering types, sex classification test
of football players
Ordinal Numbers indicate the Quality rankings, Preference rankings, Percentile, median Rank-order
relative positions of the rankings of teams in a market position, social correlation, Friedman
objects but not the tournament class ANOVA
magnitude of differences
between them
Interval Differences between Temperature Attitudes, opinions, Range, mean, Product-moment
objects can be compared; (Fahrenheit, index numbers standard deviation correlations, t-tests,
zero point is arbitrary centigrade) ANOVA, regression,
factor analysis
Ratio Zero point is fixed; ratios of Length, weight Age, income, costs, Geometric mean, Coefficient of variation
scale values can be sales, market shares harmonic mean
computed
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.
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.
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.
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, are allowed.
• All statistical techniques can be applied to ratio data.
Illustration of Primary Scales of
Measurement
Blank Nominal Scale Ordinal Scale Blank Interval Scale Blank Ratio Scale
Preference Preference $ Spent Last 3
No. Store Rankings Blank Ratings Blank Months
Blank Blank Blank Blank 1–7 11–17 Blank
1. Nordstrom 7 79 5 15 0
2. Macy’s 2 25 7 17 200
3. Target 8 82 4 14 0
4. Kohl’s 3 30 6 16 100
5. JCPenney 1 10 7 17 250
6. Neiman-Marcus 5 53 5 15 35
7. Marshalls 9 95 4 14 0
8. Saks Fifth Avenue 6 61 5 15 100
9. Dillard’s 4 45 6 16 0
10. Wal-Mart 10 115 2 12 10
A Classification of Scaling Techniques
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 noncomparative 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.
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.
Relative Disadvantages of Comparative
Scales
• Ordinal nature of the data
• Inability to generalize beyond the stimulus objects scaled
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.
• Under the assumption of transitivity, it is possible to convert paired
comparison data to a rank order.
Obtaining Shampoo Preferences Using Paired
Comparisons
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
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.
Preference for Toothpaste Brands
Using Rank Order Scaling
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.
Importance of Bathing Soap Attributes
Using a Constant Sum Scale
Noncomparative Scaling Techniques
• Respondents evaluate only one object at a time, and for this reason
non-comparative scales are often referred to as monadic scales.
• Non-comparative techniques consist of continuous and itemized
rating scales.
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 Wal-Mart as a department store?
Version 1
Probably the worst - - - - - - I - - - - - - - - - - - - - Probably the best
Version 2
Probably the worst - - - - - - I - - - - - - - - - - - - -Probably the best
0 10 20 30 40 50 60 70 80 90 100
Continuous Rating Scale
Version 3
Very bad Neither good nor bad Very good
Probably the worst - - - - - - - I - - - - - - - - - - - - -Probably the best
0 10 20 30 40 50 60 70 80 90 100
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.
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.
Blank Strongly Disagree Neither agree Agree Strongly
disagree nor disagree agree
1. Wal-Mart sells high-quality merchandise. 1 2X 3 4 5
2. Wal-Mart has poor in-store service. 1 2X 3 4 5
3. I like to shop at Wal-Mart. 1 2 3X 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.
Semantic Differential Scale
The semantic differential is a seven-point rating scale with end points
associated with bipolar labels that have semantic meaning.
WAL-MART 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.
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
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.
Wal-Mart
+5 +5
+4 +4
+3 +3
+2 +2X
+1 +1
HIGH QUALITY POOR SERVICE
-1 -1
-2 -2
-3 -3
-4X -4
-5 -5

The data obtained by using a Stapel scale can be analyzed in the same
way as semantic differential data.
Basic Noncomparative Scales
Scale Basic Characteristics Examples Advantages Disadvantages
Continuous rating Place a mark on a Reaction to TV Easy to construct Scoring can be
scale continuous line commercials cumbersome unless
computerized

Itemized Rating Blank Blank Blank Blank

Scales

Likert scale Degree of agreement on a Measurement of Easy to construct, More time consuming
1 (strongly disagree) to 5 attitudes administer, and
(strongly agree) scale understand

Semantic Seven-point scale with Brand, product, and Versatile Controversy as to

differential bipolar labels company images whether the data are
interval

Stapel scale Unipolar ten-point scale, 25 Measurement of Easy to construct; Confusing and difficult
to 15, without a neutral attitudes and images administered over to apply
point (zero) telephone
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 versus unbalanced In general, the scale should be balanced to obtain objective data.

3. Odd or even number 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 versus nonforced In situations where the respondents are expected to have no
opinion, the accuracy of data may be improved by a nonforced
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 one selected.
Balanced and Unbalanced Scales
Some Commonly Used Scales in Marketing

Construct Blank Blank Scale Descriptors Blank Blank

Attitude Very bad Bad Neither bad nor good Good Very good
Importance Not at all Not important Neutral Important Very important
important
Satisfaction Very Dissatisfied Neither dissatisfied nor Satisfied Very satisfied
dissatisfied satisfied
Purchase Definitely will Probably will Might or might not buy Probably Definitely will
Intent not buy not buy will buy buy
Purchase Never Rarely Sometimes Often Very often
Frequency
Development of a Multi-Item Scale
Scale Evaluation
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
Potential Sources of Error in Measurement
Reliability
• Reliability can be defined as the extent to which measures are free
from random error, XR. If XR = 0, the measure is perfectly reliable.
• In test-retest reliability, respondents are administered identical sets of
scale items at two different times and the degree of similarity
between the two measurements is determined.
• In alternative forms reliability, two equivalent forms of the scale are
constructed and the same respondents are measured at two different
times, with a different form being used each time.
Reliability
• Internal consistency reliability determines the extent to which
different parts of a summated scale are consistent in what they
indicate about the characteristic being measured.
• In split-half reliability, the items on the scale are divided into two
halves and the resulting half scores are correlated.
• The coefficient alpha, or Cronbach's alpha, is the average of all
possible split-half coefficients resulting from different ways of splitting
the scale items. This coefficient varies from 0 to 1, and a value of 0.6
or less generally indicates unsatisfactory internal consistency
reliability.
Validity
• The validity of a scale may be defined as the extent to
which differences in observed scale scores reflect true
differences among objects on the characteristic being
measured, rather than systematic or random error.
Perfect validity requires that there be no measurement
error (XO = XT, XR = 0, XS = 0).
• Content validity is a subjective but systematic evaluation
of how well the content of a scale represents the
measurement task at hand.
• Criterion validity reflects whether a scale performs as
expected in relation to other variables selected (criterion
variables) as meaningful criteria.
Validity
• Construct validity addresses the question of what construct or characteristic the scale is,
in fact, measuring. Construct validity includes convergent, discriminant, and nomological
validity.
• Convergent validity is the extent to which the scale correlates positively with other
measures of the same construct.
• Discriminant validity is the extent to which a measure does not correlate with other
constructs from which it is supposed to differ.
• Nomological validity is the extent to which the scale correlates in theoretically predicted
ways with measures of different but related constructs.
Relationship Between Reliability and Validity
• If a measure is perfectly valid, it is also perfectly reliable. In this case
XO = XT, XR = 0, and XS = 0.
• If a measure is unreliable, it cannot be perfectly valid, since at a
minimum XO = XT + XR.
• Furthermore, systematic error may also be present, i.e.,
XS ≠ 0. Thus, unreliability implies invalidity.
• If a measure is perfectly reliable, it may or may not be perfectly valid,
because systematic error may still be present (XO = XT + XS).
• Reliability is a necessary, but not sufficient, condition for validity.
Question/Answer
Thank You