CHAPTER 9

MEASUREMENT AND SCALING:FUNDAMENTALS AND COMPARATIVE SCALING

OPENING QUESTIONS

1. What is meant by measurement and scaling? Can scaling be considered a part of measurement?

2. What are the primary scales of measurement, and how do we differentiate among them?3. How can scaling techniques be classified, and what are the various comparative scaling

techniques?4. How do measurement and scaling relate to the various steps of the marketing research

process?5. What considerations are involved in implementing the primary scales of measurement in

an international setting?6. How does technology improve measurement and scaling?7. What ethical issues are involved in selecting scales of measurement?

AUTHOR’S NOTES: CHAPTER FOCUS

This chapter provides an introduction to primary scales of measurement: nominal, ordinal, interval, and ratio. Scaling techniques are classified as comparative and noncomparative. The comparative techniques consisting of paired comparison, rank order, constant sum, and Q-sort scaling are discussed. The noncomparative scales are discussed in Chapter 10.

The discussion of scaling techniques is much more extensive as compared to competing texts. Two chapters are devoted to covering in detail the type of scales used in marketing research. Examples, including instructions for administering these scales, have been provided.

This chapter could be taught by focusing on the opening questions, sequentially. Greater emphasis could be placed on the concept of measurement and scaling (Opening Question 1), the primary scales of measurement (Opening Question 2), and comparative scaling techniques (Opening Question 3). In addition, material on conducting international marketing research (Opening Question 5), ethical considerations (Opening Question 7), and Internet and computers could be discussed.

CHAPTER OUTLINE 1. Overview 2. Measurement and Scaling 3. Primary Scales of Measurement

i. Nominal Scaleii. Ordinal Scaleiii. Interval Scaleiv. Ratio Scale

4. A Classification of Scaling Techniques 5. Comparative Scaling Techniques

i. Paired Comparison Scalingii. Rank Order Scalingiii. Constant Sum Scaling

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6. Relationship of Measurement and Scaling to the Marketing Research Process 7. Summary Illustration Using the Opening Vignette 8. International Marketing Research 9. Technology and Marketing Research 10. Ethics in Marketing Research11. Summary12. Key Terms and Concepts13. Acronyms

TEACHING SUGGESTIONS

Opening Question 1

* Explain the differences between measurement and scaling.

Distinguish the two concepts by noting that measurement precedes scaling in test construction. Measurement is the assignment of numbers or other symbols to characteristics of objects according to certain prespecified rules. Scaling is an extension of measurement where it involves the generation of a continuum upon which measured objects are located.

Opening Question 2

* Discuss and illustrate the primary scales of measurement.

1. Nominal scale: this is used only as a labeling scheme where numbers serve only as labels or tags for identifying and classifying objects. The numbers in a nominal scale do not reflect the amount of a characteristic possessed by the objects; rather, they are used only for identification--for example, numbers on baseball players’ uniforms, street names, or social security numbers.

2. Ordinal scale: this is a ranking scale in which numbers are assigned to objects to indicate the relative extent to which some characteristic is possessed. It is then possible to determine whether an object has more or less of a characteristic than some other object--for example, rankings of teams for the NCAA Basketball tournament, socioeconomic status, and quality rankings.

3. Interval scale: numbers are used to rank objects such that numerically equal distances on the scale represent equal distances in the characteristic being measured. Examples include time and temperature.

4. Ratio scale: this is used to identify or classify objects, rank order the objects, and compare intervals or differences--for example, height, age, and income.

Figure 9.4 and Table 9.2 provide a framework and examples for explaining scaling.

Opening Question 3

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* Distinguish the two broad scaling measures.

Begin by stating the two types of scales: comparative and noncomparative.Comparative scales - a direct comparison of stimulus objects is elicited. Thus, two brands may be compared along a dimension such as quality.Noncomparative scales - the respondent provides whatever standard seems appropriate to him/her, thus, only one object is evaluated at a time. In this case, one brand is rated on a scale independent of other brands.

See Figure 9.5 for the hierarchy of scaling procedures.

* Describe the different comparative scaling techniques. If available, bring examples of different scales to class to show to students.

Begin by recalling that all comparative scaling techniques involve a direct comparison of stimulus objects with one another. This should be highlighted as each of the scales is discussed in turn.

1. Paired comparison scaling: here a respondent is presented with two objects at a time and asked to select one object in the pair according to some criterion. The data obtained is ordinal in nature. This is frequently used in marketing when comparisons of products or brands are being made.

See Figure 9.6 for an example of paired comparison scaling.2. Rank order scaling: respondents are presented with several objects simultaneously and

asked to order or rank them according to some criterion. This is commonly used to measure preferences for brands as well as the importance of attributes. See Figure 9.7 for an example of rank order scaling.

3. Constant sum scaling: respondents are required to allocate a constant sum of units such as points, dollars, chits, stickers, or chips among a set of stimulus objects with respect to some criterion. Specific instructions are provided that if an attribute is not at all important, it is possible to assign zero points. If an attribute is twice as important as some other attribute it should receive twice as many points. See Figure 9.8 for an example.

Opening Question 4

* Discuss the relationship of measurement and scaling to the marketing research process.

The relationship of measurement and scaling to the previous and subsequent steps of the marketing research process is described in Figure 9.9. The marketing research problem is defined in step 1. Based on this definition, an approach to the problem is developed (step 2). Measurement and scaling are part of the research design (step 3). The researcher must identify an appropriate level of measurement (nominal, ordinal, interval or ratio) for each item of information needed. If the measurement level is ordinal, the researcher generally selects one of the comparative techniques (paired comparison, rank order, or constant sum). If the data are interval, the researcher selects one of the noncomparative techniques (continuous or itemized rating scale: Likert, semantic differential, or Stapel).

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Likewise, the researcher must select an appropriate scale for an information item that is to be measured on a nominal or ordinal level. When designing a questionnaire, also part of the research design, the researcher must translate the information needed to appropriate questions using the identified scales. When analyzing the data (step 5), the researcher should only use those statistical techniques that are compatible with the measurement level of the data.

Opening Question 5

* Identify the measurement and scaling issues in International research.

From the view point of the respondents, nominal scales are the simplest to use, whereas ratio scales are the most complex. Respondents in many developed countries, due to higher education and consumer sophistication levels, are quite used to providing responses on interval and ratio scales; however, such is not the case in less developed countries. Preferences can, therefore, be best measured by using ordinal scales in less developed countries. In particular, the use of binary scales (e.g., preferred/not preferred) is recommended.

EXAMPLE: While measuring preferences for jeans in the United States, Levi Strauss & Co. could ask consumers to rate their preferences for wearing jeans on specified occasions using a seven point interval scale. However, consumers in Papua New Guinea could be shown a pair of jeans and simply asked whether or not they would prefer to wear it for a specific occasion (e.g., when shopping, working, relaxing on a holiday, etc.).

Opening Question 6

* Discuss how computers and software can be used to implement comparative scaling.

Database managers allow researchers to develop and test several different scales to determine their appropriateness for a particular application. EzPair by Barry Cohen can design paired comparison scale and paired comparison product tests using statistical quality control techniques. It allows testing to end early, without compromising test reliability, if one product is clearly winning. Pulse/MPC by Pulse Analytics enables multiple paired comparison analysis. It projects pairwise comparison data onto a share-of-preference scale. Up to 30 brands or variables can be analyzed simultaneously. Computers can also be used to construct and administer rank order, constant sum, and ratio scales to determine consumer preferences among competing alternatives.

Opening Question 7

* Discuss the ethical concerns of scaling.

The researcher has the responsibility to use the appropriate type of scales to get the data needed to answer the research questions and test the hypotheses. For example, if personality characteristics are measured using ordinal scales, these data cannot be easily used in multivariate analysis. To examine differences in the personality characteristics and relate them to other consumer behavior variables, interval scale data are needed.

After the data have been collected, they should be analyzed correctly. If ordinal scaled data are collected, statistical procedures developed for use with interval or ratio data should not be used. Conclusions based on the misuse of statistics are misleading. Using the personality

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example above, if after data collection the client wishes to know how the users and nonusers differed, the researcher should treat these data correctly and use nonmetric techniques for analysis (discussed in Chapter 15). When the researcher lacks the expertise or the computer software to compute these statistics, ethical dilemmas arise. Either an outside statistician should be hired or the relevant software should be obtained.

Internet Emphasis

* Identify software programs relevant to measurement and scaling.

All the primary scales of measurement can be implemented on the Internet. The same is true for the commonly used comparative scales. Paired comparisons involving verbal, visual, or auditory comparisons can be implemented with ease; however, taste, smell, and touch comparisons are difficult to implement. The process of implementing comparative scales may be facilitated by searching the Internet for similar scales that have been implemented by other researchers.

Database managers allow researchers to develop and test several different scales to determine their appropriateness for a particular application. Microcomputers have been used to administer paired comparison scales in taste tests. EzPair by Barry Cohen can design paired comparison scales and paired comparison product tests using statistical quality control techniques. It allows testing to end early, without compromising test reliability, if one product is clearly winning.

BE AN MR! AND BE A DM!It should be noted that a variety of answers are appropriate. The ones given here are merely illustrative.

Be a DM!: Home DepotMarketing Strategies:

Seasonal Promotions Use the power of Internet to reach out to customers. Target families, as they are the biggest consumers of the products offered by Home Depot. Use local media, such as local newspapers, to advertise.

Be an MR!: Home DepotNominal scales can be used to assign numbers to the stores for identification purposes. Ordinal scales can be used to rank order the stores based on customer satisfaction.Various characteristics need to be measured to get a holistic picture. An initial study needs to be conducted to identify the characteristics that need to be measured based on their relevance to customer satisfaction.

Be an MR!: CoachConsumer preferences for leather good are determined by factors such as finish, durability, comfort, brand name, price, etc. The use of intervals would be a good idea since preferences can be rated from 1 to 5, where 1 implies very poor and 5 implies excellence. Ratio scales that measure the amount of money spent on leather goods during a specified time period can also be used.

Be a DM!: Coach

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1. Identify which qualities are valued by consumers.2. Find qualities associated with most successful products.

3. Demographic variations in preferences.4. Price versus quality tradeoff can be used for segmentation.

Be a DM!: Lexus Study the way customers intend to use the cars. Identify the values and qualities that are relevant for the type of use. Understand driving forces behind purchase decisions. Demographic variations in intentions and interests. Understand the target segments better. Input for the range of products to be offered (to cater to various segments). Analyze segment- product fit.

Be an MR!: LexusPurchase Intentions for luxury car are determined by factors such as:Social StatusComfortDaily CommuteConvenienceSecurity

Rank Order Scaling or constant sum scaling are two comparative scaling techniques which could be used.

Constant sum scaling gives a precise and holistic picture of preferences, their relative values and order.

Rank order scaling gives a relative comparison but fails to reveal the value of each quality. It just gives a preference order.

Rank order scaling is easier for the customer to fill in, however, so response rates might be better.

Be an MR!: GapStudents should be encouraged to make the online search.

Rank order scaling should be used in the United States where casual clothing is compared to other styles of clothing (e.g., formal wear, part wear, etc.). Respondents in the United States are sophisticated enough to make such comparisons and provide such information. In rural Nigeria, the simple form of paired comparison should be used where the respondents merely indicate which style of clothing in a pair they prefer.

Be a DM!: Gap Study the way customers intend to wear the clothes of different styles. Identify the values and qualities that are relevant for the type of styles. Understand driving forces behind preference for different styles. Demographic variations in preference for different styles. Understand the target segments better.

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EXPERIENTIAL LEARNINGCoke or Pepsi?

This exercise is designed to give students experience in conducting an actual taste test. The students should download the KitKat Taste Test from the Web site of this textbook and use it as a guide to develop a script for testing for preference between two cola drinks. The answers will likely vary from student to student or group to group.

The following answers occurred in an actual taste test conducted in a marketing research class in October 2004. Responses would likely vary across classes.

An execution technique that worked well was this: using different colored board markers to put the same colored dot on Dixie cups holding the same contents. Every person in the class then lined up, and took four Dixie cups back to their seats containing the sample for Pepsi, Coke, the redundant sample of Pepsi or Coke, and bottled water.

Then, votes were taken as to which colored cup corresponded to which cola brand.

Which cola drink would be the most popular among your friends in a taste test? Using the Actual Taste Test for the KitKat candy bar as a guide, develop a script for testing for preference between two cola drinks: Coke and Pepsi. Make sure the drinks are chilled to the same temperature, and poured in three groups of identical cups. Each person will select a cup from the first group, taste the cola, eat a cracker, and take a swallow of water. This will be repeated for each person when tasting from the second, and the third groups, also. (The first group might be Pepsi, the second group Coke, and the third group Pepsi). After tasting from each of the three cola sample groups, have the respondents complete the survey form you created similar to that in the KitKat piece included in this chapter. To avoid a biasing effect from the order of presentation of the samples, it will be important for half of the respondents to have a rotated order of presentation: (The first group Coke, the second group Pepsi, and the third group Coke).

1. How many correctly identified the two identical samples of cola?Answer: 50 per cent of the class.

2. Of those who correctly identified the two identical samples of cola, which cola was preferred - Coke or Pepsi?

Answer: Coke by a 2:1 margin. Note the respondents loyal to Coke were seeking this taste because they knew Coke was one of the tested samples.

3. Of those who correctly identified the two identical samples of cola, how many had no preference between Coke and Pepsi?

Answer: About 20 %.

4. In sum, who would you say is the winner in your taste test: Coke or Pepsi? Or is it too close to tell?

Answer: Coke, because loyal Coke drinkers were actively seeking Coke. In hindsight, not disclosing which brands would be sampled, and then having respondents take the test would likely bring different results.

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Surveyz! Question Types and Corresponding ScalesPart I.

(a) Spreadsheet Example

Example Question Preview

    Visa   MasterCard   American Express   Discover Card  

Please indicate the number of cards you own :

       

Please indicate your account credit limit :

       

Please indicate your current account balance :

       

(b) Select to Add a Question: Single Multiple Answers

Which credit card do you most often use ?

 Visa

 MasterCard

 American Express

 Discover Card

(c) Side-by-side Matrix

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   Please evaluate our performance on

each of the following attributes:   

When purchasing a product how important are

the following attributes:

Excellent  

Very

Good   Good   Fair   Poor     

Very

Important  

Somewhat

Important  

Somewhat

Unimportant   Unimportant  

   

Easy to use      

                     

Comfortable      

                     

Reasonably Priced      

                     

(d) Rank Order

 

Rank the following credit cards in order of preference (1 - Highest, 4 - Lowest):

  Visa

  MasterCard

  American Express

  Discover Card

Part II

1. Types of question formats available using Surveyz.com:

a) Multiple Choiceb) Multiple Choice Batteryc) Open Ended Text

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d) Rank Ordere) Constant Sumf) Text only (no response)

2. Types of analyses available using Surveyz.com:

a) Analyses using criteria to specific subgroups, which include users, demographic groups, etc.

b) Cross tabulation of two variables at time that allows for the examination of two variables

c) Advanced reports which contain complete summary reports with tables and charts

3. Types of formats in which results can be exported?

Results may be saved into an Excel file in preparation for importing into SPSS. Command files are also prepared and exported.

WHAT WOULD YOU DO?It should be noted that a variety of answers are appropriate. The ones given here are merely illustrative.

The Marketing Research Decision

1. B, C and E

2. Rank order provides an easy comparison of brand preferences; however, the constant sum method has the advantage that it provides a measure of the degree of preference. While both methods will give a relative order of brand preferences, the magnitude of difference in preference between brands will not be obvious using these methods. To get an idea of the absolute preference, itemized rating scales should be used.

The Marketing Management Decision

1. A, C, D

2. Scaling techniques can reveal brand preferences, consumer priorities and perceptions. Marketing decisions can be taken based on these facts. In this case, New Balance is a premium brand aiming the high end market. They should be aiming youngsters who are serious about athletic shoes and affluent customers with a greater propensity to spend. While they are successful with the affluent group, they need to launch newer models (more colorful) to attract the young men. Celebrity (such as Nike’s NBA campaign) endorsements and increased promotional spending should be able to win the attention of this segment.

REVIEW QUESTIONS

1. Measurement is the assignment of numbers or other symbols to characteristics of objects according to certain prespecified rules.

2. The primary scales of measurement are nominal, ordinal, interval, and ratio.

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3. The differences between a nominal and an ordinal scale are that in nominal scales, the numbers serve only as labels or tags for identifying and classifying objects, while in an ordinal scale the numbers are used as a ranking device. Although both nominal and ordinal scale data can be used for counting operations, ordinal scales permit the use of statistics based on centiles.

4. The implications of having an arbitrary zero point in an interval scale means that any positive linear transformation of the form y = a + bx will preserve the properties of the scale. Hence, it is not meaningful to take ratios of scale values.

5. The advantages of a ratio scale over an interval scale is that the origin is fixed. Hence, it is meaningful to take ratios of scale values. Statistics such as the geometric mean, harmonic mean, and coefficient of variation can be applied to analyze ratio scale data.

6. A comparative rating scale involves the direct comparison of stimulus objects with one another.

7. In paired comparison scaling, a respondent is presented with two objects at a time and asked to select one object in the pair according to some criterion.

8. Paired comparison scaling is useful when the number of brands is limited because it requires direct comparison of brands. Thus, the disadvantages of paired comparison scaling is that with a large number of brands the number of comparisons become unwieldy, violations of the assumption of transitivity may occur, the order in which the objects are presented may bias the results, and they bear little resemblance to the marketplace situation involving multiple alternatives.

9. In a constant sum scale, the respondents are required to allocate a constant sum of units such as points, dollars, chits, stickers, or chips among a set of stimulus objects with respect to some criterion. The constant sum is a more refined ranking scale in that it allows fine discrimination among stimulus objects without requiring too much time.

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APPLIED PROBLEMS

1. a. Interval - The scale represents increasing and uniform degrees of agreement.b. Ratio - An absolute 0 is assumed.c. Ordinal - Rankings display a relationship of order between the scale items.d. Nominal - A simple matching has occurred.e. Ordinal- The more minutes spent studying, the higher the scale response.f. Ratio - An absolute 0 is assumed.

2. Ordinal: Please rank order the following four brands of soft drinks in terms of your intentions to purchase them when you next buy soft drinks. The brand that you are most likely to purchase should be assigned a rank 1 and the brand you are least likely to purchase a rank 4.

Brand Rank1. Coke ____2. Pepsi ____3. Dr. Pepper ____4. 7-Up ____

Interval: How likely are you to buy each of the following four brands of soft drinks when you next buy soft drinks?

Not at all Very Likely Likely

1. Coke 1 2 3 4 5 6 72. Pepsi 1 2 3 4 5 6 73. Dr. Pepper 1 2 3 4 5 6 74. 7-Up 1 2 3 4 5 6 7

Ratio : Please indicate the amount of money you are likely to spend on the following four brands of soft drinks when you next buy soft drinks.

Brand $ Amount1. Coke ____2. Pepsi ____3. Dr. Pepper ____4. 7-Up ____

INTERNET AND COMPUTER EXERCISES

1. The URLs of several marketing research firms are given on the web site for the book. The students should be encouraged to find examples of the four primary scales discussed in this chapter.

2. It is important that the students relate the scales to the marketing research context (problem) and the managerial context (management decision problem).

3. This exercise is designed to give the students first hand experience in constructing an actual ranking scale.

4. The Target and Wal-Mart Web sites can be visited at www.targetstores.com and www.walmart.com. The characteristics identified should be similar to those given in Chapter 2, in the section on Relevant Characteristics: quality of merchandise, variety and

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assortment of merchandise, returns and adjustment policy, service of store personnel, prices, convenience of location, layout of store, and credit and billing policies. One paired comparison is needed for each characteristic.

GROUP DISCUSSIONS

1. Pertinent to this discussion is the issue of what is being measured. Products can be perceived very positively, yet economic or marketing considerations may negatively impact sales. If we are measuring attitude toward the brand, it can be very highly rated, however, a high price may be charged which eliminates most buyers, e.g., in the auto market consider a Porsche. Attitudes and intentions do not perfectly correlate with behavior because there are additional factors affecting behavior.Another issue is that none of the brands considered may be desirable. Hence, even the top ranked brand may not be desirable.

2. Any one of readings can be selected. The discussion should be related to one or more of the concepts discussed in this chapter.

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