Measurment Scales in Bznz Resrch

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MBA III (Resear ch Methodology) Course Instructor: Dr. Aurangzeb Z. Khan  1 RESEARCH METHODOLO GY (Business Research Methods) Week 9 29 August 2005 MBA III (Resear ch Methodology) Course Instructor: Dr. Aurangzeb Z. Khan  2 Measurement and Scaling (1) In business research, measurem ent of variables is a indispens able requirement  
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    MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan1

    RESEARCH METHODOLOGY

    (Business Research

    Methods)

    Week 9

    29 August 2005MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan

    2

    Measurement andScaling (1)

    In business research,measurement of variables is a indispensable requirement

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    Problem Definingwhat 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 conceptswhich can be assigned numerical values

    (e.g. sales volume for employees X, Yand Z)

    29 August 2005MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan

    3

    Measurement andScaling (2)

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    In order fora concept to have the quality of

    being measurable, it must first be madeoperational

    An operation definition

    may be defined as a definition that

    gives meaning to concept by specifyingthe activities or operations which arenecessary in order to measure it

    Example A

    satisfied consumer will make at leastfive purchases of Product A from ShopT over a three-month period of time

    Note that sometimes

    depending on the context of theresearch study - it may be difficultto make operational definitions

    29 August 2005

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    MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan4

    Measurement andScaling (3)

    A scale isbasically a continuous spectrum or serie

    sof categories and has been defined asany series of items that are arrangedprogressively according to value or magnitude,into which an item can be placed

    according to its quantification

    Four popular scalesin business research are:

    o Nominal scaleso Ordinal scaleso Interval scales

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    o Ratio scales

    29 August 2005MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan

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    Measurement andScaling (4)

    A nominal scaleis the simplest of the four scaletypes and in which the numbers orletters assigned to objects serve as labels for identification or classification

    Example:

    o Males = 1, Females = 2o Sales Zone A = Islamabad, Sales

    Zone B = Rawalpindio Drink A = Pepsi Cola, Drink B = 7-

    Up, Drink C = Miranda

    29 August 2005

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    MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan6

    Measurement andScaling (5)

    An ordinal scaleis one that arranges objects or alternativ

    es according to their magnitude Examples:

    o Career Opportunities= Moderate, Good, Excellent

    o Investment Climate = Bad,inadequate, fair, good, very good

    o Merit = A grade, B grade, C grade, Dgrade

    A problem

    with ordinal scales is that the differencebetween categories on the scale is hard

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    to quantify, I,e., excellent is betterthan good but how much is excellent

    better?

    29 August 2005MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan

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    Measurement andScaling (6) An interval scale

    is a scale that not only arrangesobjects or alternatives according to their

    respective magnitudes, but also distinguishesthis ordered arrangement in units of equalintervals (i.e. interval scales indicate ord

    er (as in ordinal scales) and also thedistance in the order)

    Examples:

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    o Consumer Price Indexo Temperature Scale in Fahrenheit

    Interval

    scales allow comparisons of the differencesof magnitude (e.g. of attitudes) but do

    not allow determinations of the actualstrength of the magnitude29 August 2005

    MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan8

    Measurement andScaling (7)

    A ratio scaleis a scale that possesses absolute rathe

    rthan relative qualities and has an absolute zero.

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    Examples:o Moneyo

    Weighto Distanceo Temperature on the Kelvin Scale

    Interval

    scales allow comparisons of the differencesof magnitude (e.g. of attitudes) as wellas determinations of the actual strengthof the magnitude

    29 August 2005MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan

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    Measurement andScaling (8)

    Frequency in each category,percentage in each category, modeCounting

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    NominalMedian, range, percentile rankingRank OrderingOrdinal

    Descriptive StatisticsNumerical Operation

    Type of ScaleGeometric mean, coefficient of variationArithmetic Operations on actual quantitiesRatioMean, standard deviation, varianceArithmetic Operations on Intervals between numbersInterval

    29 August 2005MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan

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    Index Measures

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    If a conceptis simple, it can be measured easily

    usually with one question or observationo 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 observationsmay be required in order to get accuratedata

    o

    Example: The levelof a salespersons motivation depends on

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    (1) job satisfaction (2) workplace environment (3) family life

    Indexes (or compositemeasures) are meant to deal with theissue

    of multidimensionalty (e.g.

    an index of social class may be the

    variables residence, occupationand education)

    29 August 2005MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan

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    Criteria forGood Measurement (1)

    Reliability Reliability is the degree towhich measurements are devoid of errorand therefore in the position to yieldconsistent results, also over repeated

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    attempts over time (ordinal measuresalways yield the same order, interval

    measurements always yield the sameorder and same distance between themeasured items)

    Validity Validity is the ability of a scale

    or measuring instrument to measurewhat it is intended to measure (e.g. isabsenteeism from work a valid measureof job satisfaction or are there otherinfluences like a flu epidemic which iskeeping employees from work)

    29 August 2005MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan

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    Criteria for

    Good Measurement (2) Sensitivity Sensitivity is the ability of

    a measurement instrument to accurately

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    measure variability in stimuli orresponses (e.g. on a scale, the choices

    very strongly agree, strongly agree,agree, dont agree offer more choicesthan a scale with just two choices -agree and dont agree and is thusmore sensitive)

    29 August 2005MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan

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    Attitude Measuring Attitude

    is a frequent undertaking in businessresearch

    Attitude may be

    defined as an enduring disposition to

    consistently respond in a given mannerto various aspects

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    Attitude has three dimensions:

    Affective

    ComponentCognitive

    ComponentBehavioural

    Component

    29 August 2005MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan

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    Components of Attitude Affective Component Reflective of a persons general

    feelings or emotions towards an objector subject (like, dislike, love, hate)

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    Cognitive Component Reflective of a persons awareness

    of and knowledge about an object orsubject (know, believe)

    Behavioural Component Reflective of a persons intentions

    and behavioural expectations, and predisposition to action

    29 August 2005MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan

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    Measuring Attitude It can be difficult

    to measure attitude, therefore, indicatorssuch as verbal expression, physiological measurement

    techniques and overt behaviour are used for this purpose. The three differentcomponents of attitude may require different measuring techniques

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    Common techniques

    used in business research to determineattitude include rating, ranking, sorting and the choice technique

    29 August 2005MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan

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    Rating Techniquesto Measure Attitude

    Rating Scales arefrequently employed in business research formeasuring attitude, and many scales havebeen developed for this purpose, includi

    ng:o Simple Attitude Scaleso Category Scales

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    o Likert Scaleo Semantic Differentialo

    Numerical Scaleso Constant-Sum Scaleo Stapel Scaleo Graphic Scales

    29 August 2005MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan

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    Simple Attitude Scales In attitude scaling,

    individuals are typically asked whether t

    heyagree or disagree with a question (orquestions) put to them, or they areasked to respond to a question orquestions

    Simple attitudescales have the properties of a nominalscale and the disadvantages that go wit

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    h it, also, they do not permit finedistinctions in the respondents answers

    because their choice of answers is limited, but they can be useful in instanceswhere the respondents education level is low and questionnaires lengthy

    29 August 2005MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan

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    Category Scales

    A category scale

    consists of several response categories toprovide the respondent with alternative ratings

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    Category scales

    are more sensitive than rating scaleswhich allow only two answer categories

    (because of the larger number of choices),and thus provides more data and information

    (see text example)29 August 2005

    MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan19

    The Likert Scale A likert Scale

    is a measure of attitudes designed to

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    allow respondents to indicate how strongly

    they agree or disagree with carefullyconstructed statements that range fromverypositive to very negative towards an object or subject

    The number of

    alternatives on the Likert scale can vary,often five alternatives are foreseen (seetext book examples)

    A Likert Scale

    may include a number of question items,each covering some aspect of the respondentsattitude, and these items collectively

    form an an index29 August 2005

    MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan20

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    The Semantic Differential

    The semantic differentialis an attitude measuring technique thatwhich consists of a series of seven bi-polar rating scales which allow responseto 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 extremeswhich may influence respondents answers

    29 August 2005MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan

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    Other Scales

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    Numerical Scales

    Constant-Sum Scals Stapel Scales Graphic Rating Scales

    For practicalexamples, see text book

    29 August 2005MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan

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    Measuring BehavioralIntentions

    Behavioural intentions

    relate to will, shall or mayquestions:

    Examples:

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    o I will purchase Product Xo I shall change my job from 1st

    January 2006o I may participate in Training

    Workshop Z

    The Behavioural Differential: This is an

    instrument for measuring the behaviouralintentions of subjects towards an object orcategory of objects. Example:

    A Housewife

    Would ___ : ___ : ___ : ___ : ___

    : ___ : ___ Would Not

    Purchase this laundry detergent