Understanding Measurement in Marketing Research

1. Chapter 4 Chapter 4-Measurement in Marketing Research

2. Measurement & Scaling • Measurement – Process of assigning numbers to objects to measure amount of attributes. • Rules – A guide. • Scale

3. MeasurementScales • Nominal - Counting • Ordinal – Median / Mode • Interval - Mean • Ratio – Geometric Mean

4. Difficulty in Measurement needs to measure ‘internal’ subjective states of individual consumers constructs: mental abstractions that form the basis for modeling the behavior of larger systems involving many individuals constitutive definition defines a construct with other constructs, as in a dictionary operational definition specifies how a construct is to be measured

5. Example of concepts: mass , love, strength, advertising effectiveness, consumer attitude, market share Example of constructs: consumer attitude, advertising effectiveness. Constructs are concepts used for research purpose. Construct ‘attitude’ may be defined as a learned tendency to respond in a consistent manner with respect to a given object of orientation’ or as’ latent dispositions toward objects’ Constructs that can be measured and quantified are called variables. They…vary!

6. Operational definition Height: Measure 1: in inches, with a ruler with the person wearing shoes Measure 2: in inches, with a ruler w/out the person wearing shoes Measure 3: Measured by an altimeter or barometer Measure 4: Measured by the number of hands

7. Operational definition Purchase intentions: measured as answer to: I will definitely purchase Brand x…………… I probably will purchase Brand x……………. I probably will not purchase Brand x………… I definitely will not purchase Brand x………… Can you think of an alternative operationalization?

8. MeasurementScales • Nominal - Counting • Ordinal – Median / Mode • Interval - Mean • Ratio – Geometric Mean

9. Scale Types

10. Scale Types

11. Scale Types • Please divide 100 points among each of the following soft drinks according to your degree of liking for each. • Coke ________ • Pepsi ________ • Dr. Pepper ________ • Sprite ________

12. Basic Comparisons Typical Examples Measures of Average Scale Nominal Ordinal Interval Ratio Identity Order Comparison of intervals Comparison of absolute magnitudes Male-female User-nonuser Occupations Uniform numbers Preference for brands Social class Hardness of minerals Graded quality of lumber Temperature scale Grade point average Attitude toward brands Awareness of advertising Units sold Number of purchasers Probability of purchase Weight Mode Median Mean Geometric mean Harmonic mean

13. Reliability • Reliability – consistency of measures– should capture the core concept. • Test-retest reliability • Equivalent forms • Internal consistency • Split-half • Cronbach alpha

14. Reliability

15. Reliability

16. Validity • Face validity. • Content validity. • Criterion-related validity – the degree to which an instrument can predict • Predictive – FUTURE - SAT scores; Attitudes. • Concurrent - CURRENT • Construct validity – the degree to which a measure confirms a theory based upon the concepts • Discriminant • Convergent

17. Reliability and Validity

18. Scaling Issues • Graphic Rating Scales • A graphic continuum typically anchored by two extremes. • Easily constructed and simple to use. • Ability to discern fine distinctions. • Itemized Rating Scales • Respondentsmust select from a limited number of ordered categories rather than placing a check mark on a continuous scale.

19. Three Types of Graphic Rating Scales Scale A Uncomfortable Comfortable Scale B 0 10 20 30 40 50 60 70 80 90 100 Uncomfortable Comfortable Neutral

20. Three Types of Graphic Rating Scales Scale C 1 2 3 4 5 6 7 8 9 10 Very very Uncomfortable Very very Comfortable

21. Exhibit 8.13 Graphic Rating Scale

22. Attitude Measurement Scales To learn about various types of attitude scales. • Rank Order Scale • Respondent judges one item against another • Paired Comparison Scales • Asks a respondent to pick one of two objects from a set based upon some stated criteria. • The respondent makes a series of paired judgments between objects. • Constant Sum Scales • Requires the respondent to divide a given number of points, typically 100, among two or more attributes based on the importance to the person.

23. Exhibit 8.14 Comparative Rating Scales

24. Attitude Measurement Scales To learn about the various types of attitude scales. • The Semantic Differential • Begins with the determination of a concept to be rated. • The researcher selects opposite pairs of words or phrases that describe the object • Respondents rate on a scale. • The mean is computed and plotted as a profile or image.

25. Semantic Differential

26. AttitudeMeasurementScales To learn about the various types of attitude scales. • Stapel Scale • Designed to measure both the direction and intensity of attitudes simultaneously. • Likert Scales • A series of statements that express either a favorable or unfavorable attitude toward the concept under study. • The respondent is asked the level of agreement or disagreement with each statement.

27. Exhibit 8.9 Likert Scale Example

28. The Validity and Reliability Concepts 1. respondent characteristics, such as mood 2. situational factors, such as time of day 3. data collection factors, such as the influence of the interviewing method 4. measuring instrument factors, such as flawed survey questions 5. data analysis factors, such as coding error Sources of measurement error: total measurement error = systematic error (eS, consistent bias) plus random error (eR)

29. Estimating Validity construct validity: compares measurements from the construct of interest and related constructs content (face) validity: compares measurements with judgments by experts concurrent validity: compares two different measurements of the same marketing phenomenon at the same point in time predictive validity: compares measurements at one point in time with predicted measurements at a future point in time Validity is the extent to which measurement is free from both systematic and random error – its overall accuracy. It is estimated with:

30. Estimating Reliability test-retest reliability: compares repeated measurements using the same scaling device under similar conditions on the same subjects alternative-forms reliability: compares measurements between two equivalent but not identical forms, administered to the same subjects split-half reliability: compares measurements between equivalent groups of item responses in a multi-item measurement device Reliability is the extent to which a measurement is free from random errors – its consistency, precision, and predictability. It is estimated with:

31. A Model of Behavioral Response cognitive (or belief) component – respondent's awareness of and knowledge about object affective (or feeling) component – respondent's liking of and preference for object behavioral component – respondent's intention to buy and purchase behavior The hierarchy-of-effects model hypothesizes that the buyer's response falls along a spectrum for each component of attitude.

32. A Model of Behavioral Response (cont.) Figure 4-4 Model of Behavioral Response

33. Verbal Rating Scales-Issues to consider 1. overall number of categories 2. odd or even number of categories 3. balanced vs. unbalanced scale 4. extent of verbal description 5. category numbering 6. forced vs. non-forced scales 7. comparative vs. non-comparative scales 8. symmetric vs. asymmetric scales 9. scale direction 10. choice of endpoints Issues to consider for design of verbal rating scales: