December 20, 2019

Do you agree or disagree with the Burke, Inc. interpretation of the value they provide their clients using the Customer Loyalty Index?

Chapter 7

Measurement and Scaling

Learning Objectives

• Understand the role of measurement in marketing research

• Explain the four basic levels of scales

• Describe scale development and its importance in gathering primary data

• Discuss comparative and noncomparative scales

Measurement in Information Research

• Value of measurement in marketing

– Accurate measurement is essential to effective decision making

• Example – Predicting the success of a product based on current consumer preferences

• Overview of the measurement process

– Measurement: Integrative process of determining the intensity or amount of information about constructs, concepts, or objects

• Tasks – Construct selection and scale measurement

Construct

• Hypothetical variable made up of a set of component responses or behaviors that are perceived to be related

– Construct development: Integrative process in which researchers determine what specific data should be collected for solving the defined research problem

Exhibit 7.1 – Examples of Concrete Features and Abstract Constructs of Objects

Objects

Consumer Concrete properties: Age, sex, marital status, income, brand last

purchased, dollar amount of purchase, types of products purchased, and

color of eyes and hair

Abstract properties: Attitudes toward a product, brand loyalty, high-

involvement purchases, emotions (love, fear, anxiety), intelligence, and

personality

Organization Concrete properties: Name of company, number of employees, number of

locations, total assets, Fortune 500 rating, computer capacity, and types and

numbers of products and service offerings

Abstract properties: Competence of employees, quality control, channel

power, competitive advantages, company image, and consumer-oriented

practices

Exhibit 7.1 – Examples of Concrete Features and Abstract Constructs of Objects (continued)

Marketing

Constructs

Brand loyalty Concrete properties: The number of times a particular brand is purchased,

the frequency of purchases of a particular brand, amount spent

Abstract properties: Like/dislike of a particular brand, the degree of

satisfaction with the brand, and overall attitude toward the brand

Customer

satisfaction

Concrete properties: Identifiable attributes that make up a product, service, or

experience

Abstract properties: Liking/disliking of the individual attributes making up the

product, positive feelings toward the product

Service quality Concrete properties: Identifiable attributes of a service encounter, for

example amount of interaction, personal communications, and service

provider’s knowledge

Abstract properties: Expectations held about each identifiable attribute and

evaluative judgment of performance

Advertising recall Concrete properties: Factual properties of the ad (for example, message,

symbols, movement, models, and text), aided and unaided recall of ad

properties

Abstract properties: Favorable/unfavorable judgments, attitude toward the ad

Scale Measurement

• Process of assigning descriptors to represent the range of possible responses to a question about a particular object or construct

– Scale points: Designated degrees of intensity assigned to the responses in a given questioning or observation method

Basic Scale Levels

Nominal Scale

• Questions require respondents to provide only some type of descriptor as the raw response

Ordinal Scale

• Allows a respondent to express relative magnitude between the answers to a question

Interval Scale

• Demonstrates absolute differences between each scale point

Ratio Scale

• Allows the researcher to identify the absolute differences between each scale point and make comparisons between the responses

Exhibit 7.2 – Examples of Nominal Scales

Example 1:

Please indicate your marital status.

__ Married __ Single __ Separated __ Divorced __ Widowed

Example 2:

Do you like or dislike chocolate ice cream?

__ Like __ Dislike

Example 3:

Which of the following supermarkets have you shopped at in the last 30 days?

Please check all that apply.

__ Albertson’s __ Winn-Dixie __ Publix __ Safeway __ Walmart

Example 4:

Please indicate your gender:

__ Female __ Male __ Transgender

Exhibit 7.3 – Examples of Ordinal Scales

Example 1:

We would like to know your preferences for actually using different banking methods. Among the

methods listed below, please indicate your top three preferences using a “1” to represent your first

choice, a “2” for your second preference, and a “3” for your third choice of methods. Please write the

numbers on the lines next to your selected methods. Do not assign the same number to two methods.

__ Inside the bank __ Bank by mail

__ Drive-in (Drive-up) windows __ Bank by telephone

__ ATM __ Internet banking

__ Debit card

Example 2:

Which one statement best describes your opinion of the quality of an Intel PC processor? (Please

check just one statement.)

__ Higher than AMD’s PC processor

__ About the same as AMD’s PC processor

__ Lower than AMD’s PC processor

Example 3:

For each pair of retail discount stores, circle the one store at which you would be more likely to shop.

__ Kmart or Target

__ Target or Walmart

__ Walmart or Kmart

Exhibit 7.4 – Examples of Interval Scales

Example 1:

How likely are you to recommend

the Santa Fe Grill to a friend?

Definitely Will Not Recommend Definitely Will Recommend

1 2 3 4 5 6 7

Example 2:

Using a scale of 0-10, with “10” being Highly Satisfied and “0” being Not

Satisfied At All, how satisfied are you with the banking services you currently

receive from (read name of primary bank)? Answer:___

Exhibit 7.4 – Examples of Interval Scales (continued)

Example 3:

Please indicate how frequently you use different banking methods. For each of

the banking methods listed below, circle the number that best describes the

frequency you typically use each method.

Banking Methods Never Use Use Very Often

Inside the bank 0 1 2 3 4 5 6 7 8 9 10

Drive-up window 0 1 2 3 4 5 6 7 8 9 10

24-hour ATM 0 1 2 3 4 5 6 7 8 9 10

Debit card 0 1 2 3 4 5 6 7 8 9 10

Bank by mail 0 1 2 3 4 5 6 7 8 9 10

Bank by phone 0 1 2 3 4 5 6 7 8 9 10

Bank by Internet 0 1 2 3 4 5 6 7 8 9 10

Exhibit 7.5 – Examples of Ratio Scales

Example 1:

Please circle the number of children under 18 years of age currently living in

your household.

0 1 2 3 4 5 6 7 If more than 7, please specify: _____

Example 2:

In the past seven days, how many times did you go shopping at a retail

shopping mall?

_____ # of times

Example 3:

In years, what is your current age?

_____ # of years old

Evaluating Measurement Scales

• Scale reliability – Extent to which a scale can reproduce the same or similar measurement results in repeated trials

• Scale reliability is assessed by:

– Test-retest technique

– Equivalent form technique

– Internal consistency technique

• Split-half test

• Coefficient alpha (Cronbach’s alpha)

Evaluating Measurement Scales (continued)

• Scale validity – Assesses the accuracy of a measurement scale

– Face validity – Based on the researcher’s skills of intuitive evaluation

– Content validity – Measures the extent to which a construct represents all the relevant dimensions

– Convergent validity – Evaluated with multi-item scales

– Discriminant validity – Extent to which a single construct differs from other constructs

Criteria for Scale Development

• Intellectual capacity of respondents

• Discriminatory power: Scale’s ability to discriminate between the categorical scale responses (points)

• Use of balanced or unbalanced scales

• Use of forced or nonforced choice scales

• Inclusion of negatively worded statements

• Desired measures of central tendency and dispersion

Exhibit 7.7 – Relationships between Scale Levels and Measures of Central Tendency and Dispersion

Basic Levels of Scales

Measurements Nominal Ordinal Interval Ratio

Central Tendency

Mode Appropriate Appropriate Appropriate Appropriate

Median Inappropriate More Appropriate Appropriate Appropriate

Mean Inappropriate Inappropriate Most Appropriate Most Appropriate

Dispersion

Frequency Distribution Appropriate Appropriate Appropriate Appropriate

Range Inappropriate More Appropriate Appropriate Appropriate

Estimated Standard

Deviation

Inappropriate Inappropriate Most Appropriate Most Appropriate

Scales to Measure Attitudes and Behaviors

• Likert scale

– Asks respondents to indicate the extent to which they agree or disagree with a series of mental belief or behavioral belief statements about a given object

• Semantic differential scale: Unique bipolar ordinal scale that captures attitudes or feelings about a given object

– Dimensions – Expertise, trustworthiness, and attractiveness

Scales to Measure Attitudes and Behaviors (continued)

• Behavioral intention scale

– Captures the likelihood that people will demonstrate some type of predictable behavior intent toward purchasing an object or service in a future time frame

Exhibit 7.8 – Construct or Scale Development Process

Steps Activities

1. Identify and define construct Determine construct dimensions/factors

2. Create initial pool of attribute

statements

Conduct qualitative research, collect secondary data,

and identify theory

3. Assess and select reduced set of

items/statements

Use qualitative judgment and item analysis

4. Design scales and pretest Collect data from pretest

5. Complete statistical analysis Evaluate reliability and validity

6. Refine and purify scales Eliminate poorly designed statements

7. Complete final scale evaluation Most often qualitative judgment, but may involve further

reliability and validity tests

Other Rating Scales

• Noncomparative rating scales

– Require a judgment without reference to another object, person, or concept

• Comparative rating scales

– Require a judgment comparing one object, person, or concept against another on the scale

• Graphic rating scales

– Use a scale point format that presents a respondent with a graphic continuum as the set of possible raw responses to a given question

Other Rating Scales (continued)

• Rank-order scales

– Allow respondents to compare their own responses by indicating their first, second, third, and fourth preferences, and so forth

• Constant-sum scales

– Require respondents to allocate a given number of points among each separate attribute or feature relative to all the other listed ones

Scale Measurement Issues

• Single-item scale: Collects data about only one attribute of an object or construct

• Multiple-item scale: Simultaneously collects data on several attributes of an object or construct

• Clear wording prevents ambiguity

Marketing Research in Action What Can You Learn from a Customer Loyalty Index?

• What level of scale design would be the most appropriate in creating the necessary scale measurements for collecting primary data on each construct?

• For each construct, design an example of the actual scale measurement that could be used to collect the data

Marketing Research in Action What Can You Learn from a Customer Loyalty Index?

(continued 1)

• Identify the weaknesses associated with how Burke, Inc. measured its Secure Customer Index (SCI®)

– Identify each weakness and explain why it is one

• If you were the lead researcher, what types of scale measurement would you have used to collect the needed data for calculating SCI®?