Brm Measurement+scaling

Business Research MethodsMeasurement and Scaling

Recap  What is Research?  What it is not, When to avoid  Selecting a Research Method(Quant vs Qual)

 Research Design  E,D or C  R Ms suitable /available for each type

Measurement Measurement means assigning numbers 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

Concept /Construct/Idea-how to measure?  Height—How to measure?    

Tall(1)/Short(0) Rank(with another 10 persons) Rate (5=quite tall, 1=quite short) In cm/m/ft/inches

 Brand Loyalty/Personality/Attitude towards Hollywood Movies/ a Company/New Attendance Policy?

Scaling Scaling involves creating a continum upon which measured objects are located. Consider an attitude scale from 1 to 5. Each respondent is assigned a number from 1 to 5, with 1 = Extremely Unfavorable, and 5 = Extremely Favorable. Measurement is the actual assignment of a number from 1 to 5 to each respondent. Scaling is the process of placing the respondents on a continuum with respect to their attitude .

Primary Scales of Measurement    

Scale Nominal

 

Ordinal

  

Interval

 

Ratio

Numbers Assigned to Runners

7

8

3

Rank Order of Winners Performance Rating on a 0 to 10 Scale

Third place

Second place

First place

8.2

9.1

9.6

14.1

13.4

Time to Finish, in Seconds

15.2

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.  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.  All statistical techniques can be applied to ratio data.

Primary Scales of Measurement S c a le

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Illustration of Primary Scales of Measurement  Nominal

Ordinal



No. Store

Pref. Rank Pref. Ratings Rs. spent

        

1 2 3 4 5 6 7 8 9

7 2 8 3 1 5 9 6 4

Wal-Mart FoodWorld Reliance FoodBazar JCPenny Subhiksha Spencer ABC XYZ

79 25 82 30 10 53 95 6 45

Intvl Ratio 5 7 4 6 7 5 4 15 6

15 14 14 16 17 15 14 15 16

0 200 0 100 250 35 0 100 0

Measurement Scales  Types of scales used in marketing research fall into two broad categories: comparative and non comparative.  In comparative scaling, the respondent is asked to compare one brand or product against another. In noncomparative scaling respondents need only evaluate a single product or brand- independent of the other product and/or brands under study.  Noncomparative scaling is frequently referred to as monadic scaling and this is the more widely used type of scale in commercial marketing research studies.

Assignment  Diff types of Comparative and Noncomparative Scales used in Mkt Research.

Project Details

Project-I  One of the leading IT companies at Hyderabad wants to know about the factors affecting employee turnover in IT industry.  Your group is asked to carry out a research to answer that question and segment employees on these factors.

Project-II  Determine the factors and their impact underlying consumers’ perceptions of rebate in readymade garment. Find out the segments of consumers.

Continuum  a continuous nonspatial whole or extent or succession in which no part or portion is distinct of distinguishable from adjacent parts  a continuous sequence in which adjacent elements are not perceptibly different from each other, but the extremes are quite distinct.  the set of real numbers (including both the rationals and the irrationals); broadly : a bounded set which cannot be separated into two sets neither of which contain a limit point of the other