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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

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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)


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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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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


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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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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?


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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



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


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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


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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)


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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)


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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)


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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


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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


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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


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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


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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


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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


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



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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


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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


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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