RESEARCH METHODOLOGY(Business Research Methods)Week 9

Measurement and Scaling (1)In business research, measurement of variables is a indispensable requirement

Problem Defining what is to be measured, and how it is to be accurately and reliably measured

Some things (or concepts) which are inherently abstract in their nature (e.g. job satisfaction, employee morale, brand loyalty of consumers) are more difficult to measure than concepts which can be assigned numerical values (e.g. sales volume for employees X, Y and Z)

Measurement and Scaling (2)In order for a concept to have the quality of being measurable, it must first be made operational

An operation definition may be defined as a definition that gives meaning to concept by specifying the activities or operations which are necessary in order to measure it

Example A satisfied consumer will make at least five purchases of Product A from Shop T over a three-month period of time

Note that sometimes depending on the context of the research study - it may be difficult to make operational definitions

Measurement and Scaling (3)A scale is basically a continuous spectrum or series of categories and has been defined as any series of items that are arranged progressively according to value or magnitude, into which an item can be placed according to its quantification

Four popular scales in business research are:

Nominal scalesOrdinal scalesInterval scalesRatio scales

Measurement and Scaling (4)A nominal scale is the simplest of the four scale types and in which the numbers or letters assigned to objects serve as labels for identification or classification

Example:

Males = 1, Females = 2Sales Zone A = Islamabad, Sales Zone B = RawalpindiDrink A = Pepsi Cola, Drink B = 7-Up, Drink C = Miranda

Measurement and Scaling (5)An ordinal scale is one that arranges objects or alternatives according to their magnitude

Examples:

Career Opportunities = Moderate, Good, ExcellentInvestment Climate = Bad, inadequate, fair, good, very goodMerit = A grade, B grade, C grade, D grade

A problem with ordinal scales is that the difference between categories on the scale is hard to quantify, I,e., excellent is better than good but how much is excellent better?

Measurement and Scaling (6)An interval scale is a scale that not only arranges objects or alternatives according to their respective magnitudes, but also distinguishes this ordered arrangement in units of equal intervals (i.e. interval scales indicate order (as in ordinal scales) and also the distance in the order)

Examples: Consumer Price IndexTemperature Scale in Fahrenheit

Interval scales allow comparisons of the differences of magnitude (e.g. of attitudes) but do not allow determinations of the actual strength of the magnitude

Measurement and Scaling (7)A ratio scale is a scale that possesses absolute rather than relative qualities and has an absolute zero.

Examples: MoneyWeightDistanceTemperature on the Kelvin Scale

Interval scales allow comparisons of the differences of magnitude (e.g. of attitudes) as well as determinations of the actual strength of the magnitude

Measurement and Scaling (8)

Index MeasuresIf a concept is simple, it can be measured easily usually with one question or observation

Example: To what extent do consumers of Product X like the products packaging material? (very much, somewhat, not at all)

If, however, the concept to be measured is complex and abstract, two or more questions or observations may be required in order to get accurate data

Example: The level of a salespersons motivation depends on (1) job satisfaction (2) workplace environment (3) family life

Indexes (or composite measures) are meant to deal with the issue of multidimensionalty (e.g. an index of social class may be the variables residence, occupation and education)

Criteria for Good Measurement (1)Reliability Reliability is the degree to which measurements are devoid of error and therefore in the position to yield consistent results, also over repeated attempts over time (ordinal measures always yield the same order, interval measurements always yield the same order and same distance between the measured items)

Validity Validity is the ability of a scale or measuring instrument to measure what it is intended to measure (e.g. is absenteeism from work a valid measure of job satisfaction or are there other influences like a flu epidemic which is keeping employees from work)

Criteria for Good Measurement (2)Sensitivity Sensitivity is the ability of a measurement instrument to accurately measure variability in stimuli or responses (e.g. on a scale, the choices very strongly agree, strongly agree, agree, dont agree offer more choices than a scale with just two choices - agree and dont agree and is thus more sensitive)

AttitudeMeasuring Attitude is a frequent undertaking in business research

Attitude may be defined as an enduring disposition to consistently respond in a given manner to various aspects

Attitude has three dimensions:AffectiveComponentCognitiveComponentBehaviouralComponent

Components of AttitudeAffective Component Reflective of a persons general feelings or emotions towards an object or subject (like, dislike, love, hate)

Cognitive Component Reflective of a persons awareness of and knowledge about an object or subject (know, believe)

Behavioural Component Reflective of a persons intentions and behavioural expectations, and predisposition to action

Measuring AttitudeIt can be difficult to measure attitude, therefore, indicators such as verbal expression, physiological measurement techniques and overt behaviour are used for this purpose. The three different components of attitude may require different measuring techniques

Common techniques used in business research to determine attitude include rating, ranking, sorting and the choice technique

Rating Techniques to Measure Attitude

Rating Scales are frequently employed in business research for measuring attitude, and many scales have been developed for this purpose, including:

Simple Attitude ScalesCategory ScalesLikert ScaleSemantic DifferentialNumerical ScalesConstant-Sum ScaleStapel ScaleGraphic Scales

Simple Attitude ScalesIn attitude scaling, individuals are typically asked whether they agree or disagree with a question (or questions) put to them, or they are asked to respond to a question or questions

Simple attitude scales have the properties of a nominal scale and the disadvantages that go with it, also, they do not permit fine distinctions in the respondents answers because their choice of answers is limited, but they can be useful in instances where the respondents education level is low and questionnaires lengthy

Category ScalesA category scale consists of several response categories to provide the respondent with alternative ratings

Category scales are more sensitive than rating scales which allow only two answer categories (because of the larger number of choices), and thus provides more data and information (see text example)

The Likert ScaleA likert Scale is a measure of attitudes designed to allow respondents to indicate how strongly they agree or disagree with carefully constructed statements that range from very positive to very negative towards an object or subject

The number of alternatives on the Likert scale can vary, often five alternatives are foreseen (see text book examples)

A Likert Scale may include a number of question items, each covering some aspect of the respondents attitude, and these items collectively form an an index

The Semantic DifferentialThe semantic differential is an attitude measuring technique that which consists of a series of seven bi-polar rating scales which allow response to a concept (e.g. organization, product, service, job)

See text book example

An advantage of the semantic differential is its versatility, on the other hand, it uses extremes which may influence respondents answers

Other ScalesNumerical ScalesConstant-Sum ScalsStapel ScalesGraphic Rating Scales

For practical examples, see text book

Measuring Behavioral IntentionsBehavioural intentions relate to will, shall or may questions:

Examples:I will purchase Product XI shall change my job from 1st January 2006I may participate in Training Workshop Z

The Behavioural Differential: This is an instrument for measuring the behavioural intentions of subjects towards an object or category of objects. Example:

A HousewifeWould ___ : ___ : ___ : ___ : ___ : ___ : ___ Would NotPurchase this laundry detergent