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Marketing Research: An Applied Orientation: Global Edition, 6/E

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### Malhotra08

1. 1. Chapter Eight Measurement and Scaling: Fundamentals and Comparative Scaling
2. 2. 8-2Chapter Outline1) Overview2) Measurement and Scaling3) Primary Scales of Measurement i. Nominal Scale ii. Ordinal Scale iii. Interval Scale iv. Ratio Scale4) A Comparison of Scaling Techniques
3. 3. 8-3Chapter Outline5) Comparative Scaling Techniques i. Paired Comparison ii. Rank Order Scaling iii. Constant Sum Scaling iv. Q-Sort and Other Procedures6) Verbal Protocols7) International Marketing Research8) Ethics in Marketing Research
4. 4. 8-4Chapter Outline9) Internet and Computer Applications10) Focus on Burke11) Summary12) Key Terms and Concepts
5. 5. 8-5Measurement and Scaling Measurement means assigning numbers or other symbols to characteristics of objects according to certain prespecified rules.  One-to-one correspondence between the numbers and the characteristics being measured.  The rules for assigning numbers should be standardized and applied uniformly.  Rules must not change over objects or time.
6. 6. 8-6Measurement and Scaling Scaling involves creating a continuum upon which measured objects are located. Consider an attitude scale from 1 to 100. Each respondent is assigned a number from 1 to 100, with 1 = Extremely Unfavorable, and 100 = Extremely Favorable. Measurement is the actual assignment of a number from 1 to 100 to each respondent. Scaling is the process of placing the respondents on a continuum with respect to their attitude toward department stores.
7. 7. 8-7 Primary Scales of MeasurementScale Figure 8.1Nominal Numbers Finish Assigned 7 8 3 to RunnersOrdinal Rank Order Finish of Winners Third Second First place place placeInterval Performance Rating on a 8.2 9.1 9.6 0 to 10 Scale 15.2 14.1 13.4Ratio Time to Finish, in
8. 8. Primary Scales of Measurement 8-8Nominal Scale The numbers serve only as labels or tags for identifying and classifying objects. When used for identification, there is a strict one-to- one correspondence between the numbers and the objects. The numbers do not reflect the amount of the characteristic possessed by the objects. The only permissible operation on the numbers in a nominal scale is counting. Only a limited number of statistics, all of which are based on frequency counts, are permissible, e.g., percentages, and mode.
9. 9. 8-9 Illustration of Primary Scales of Measurement Table 8.2Nominal Ordinal Interval RatioScale Scale Scale Scale Preference Preference \$ spent last No. Store Rankings Ratings3 months 1-7 11-17 7 79 5 15 01. Lord & Taylor 2 25 7 17 2002. Macy’s 8 82 4 14 03. Kmart 3 30 6 16 1004. Rich’s 1 10 7 17 2505. J.C. Penney 5 53 5 15 356. Neiman Marcus 9 95 4 14 07. Target 6 61 5 15 1008. Saks Fifth Avenue 4 45 6 16 09. Sears 10 115 2 12 1010.Wal-Mart
10. 10. Primary Scales of Measurement 8-10Ordinal Scale A ranking scale in which numbers are assigned to objects to indicate the relative extent to which the objects possess some characteristic. Can determine whether an object has more or less of a characteristic than some other object, but not how much more or less. Any series of numbers can be assigned that preserves the ordered relationships between the objects. In addition to the counting operation allowable for nominal scale data, ordinal scales permit the use of statistics based on centiles, e.g., percentile, quartile, median.
11. 11. Primary Scales of Measurement 8-11Interval Scale Numerically equal distances on the scale represent equal values in the characteristic being measured. It permits comparison of the differences between objects. The location of the zero point is not fixed. Both the zero point and the units of measurement are arbitrary. Any positive linear transformation of the form y = a + bx will preserve the properties of the scale. It is meaningful to take ratios of scale values. Statistical techniques that may be used include all of those that can be applied to nominal and ordinal data, and in addition the arithmetic mean, standard deviation, and other statistics commonly used in marketing research.
12. 12. Primary Scales of Measurement 8-12Ratio Scale Possesses all the properties of the nominal, ordinal, and interval scales. It has an absolute zero point. It is meaningful to compute ratios of scale values. Only proportionate transformations of the form y = bx, where b is a positive constant, are allowed. All statistical techniques can be applied to ratio data.
13. 13. 8-13 Primary Scales of Measurement Table 8.1Scale Basic Common Marketing Permissible Statistics Characteristics Examples Examples Descriptive InferentialNominal Numbers identify Social Security Brand nos., store Percentages, Chi-square, & classify objects nos., numbering types mode binomial test of football playersOrdinal Nos. indicate the Quality rankings, Preference Percentile, Rank-order relative positions rankings of teams rankings, market median correlation, of objects but not in a tournament position, social Friedman the magnitude of class ANOVA differences between themInterval Differences Temperature Attitudes, Range, mean, Product- between objects (Fahrenheit) opinions, index standard momentRatio Zero point is fixed, Length, weight Age, sales, Geometric Coefficient of ratios of scale income, costs mean, harmonic variation values can be mean compared
14. 14. A Classification of Scaling 8-14 Techniques Figure 8.2 Scaling Techniques Comparative Noncomparative Scales ScalesPaired Rank Constant Q-Sort and Continuous ItemizedComparison Order Sum Other Rating Scales Rating Procedures Scales Semantic Stapel Likert Differential
15. 15. 8-15A Comparison of Scaling Techniques Comparative scales involve the direct comparison of stimulus objects. Comparative scale data must be interpreted in relative terms and have only ordinal or rank order properties.  In noncomparative scales , each object is scaled independently of the others in the stimulus set. The resulting data are generally assumed to be interval or ratio scaled.
16. 16. 8-16Relative Advantages of Comparative Scales Small differences between stimulus objects can be detected. Same known reference points for all respondents. Easily understood and can be applied. Involve fewer theoretical assumptions. Tend to reduce halo or carryover effects from one judgment to another.
17. 17. Relative Disadvantages of Comparative 8-17Scales Ordinal nature of the data Inability to generalize beyond the stimulus objects scaled.
18. 18. Comparative Scaling Techniques 8-18Paired Comparison Scaling A respondent is presented with two objects and asked to select one according to some criterion. The data obtained are ordinal in nature. Paired comparison scaling is the most widely used comparative scaling technique. With n brands, [n(n - 1) /2] paired comparisons are required Under the assumption of transitivity, it is possible to convert paired comparison data to a rank order.
19. 19. Obtaining Shampoo Preferences 8-19 Using Paired Comparisons Figure 8.3 Instructions: We are going to present you with ten pairs of shampoo brands. For each pair, please indicate which one of the two brands of shampoo you would prefer for personal use. Jhirmack Finesse Vidal Head & Pert Sassoon Shoulders Recording Form: Jhirmack 0 0 1 0 Finesse 1a 0 1 0 Vidal Sassoon 1 1 1 1 Head & Shoulders 0 0 0 0 Pert 1 1 0 1 Number of Times 3 2 0 4 1 Preferredba A 1 in a particular box means that the brand in that column was preferred overthe brand in the corresponding row. A 0 means that the row brand waspreferred over the column brand. b The number of times a brand was preferredis obtained by summing the 1s in each column.
20. 20. 8-20 Paired Comparison SellingThe most common method of taste testing is paired comparison. Theconsumer is asked to sample two different products and select the onewith the most appealing taste. The test is done in private and aminimum of 1,000 responses is considered an adequate sample. A blindtaste test for a soft drink, where imagery, self-perception and brandreputation are very important factors in the consumer’s purchasingdecision, may not be a good indicator of performance in themarketplace. The introduction of New Coke illustrates this point. NewCoke was heavily favored in blind paired comparison taste tests, but itsintroduction was less than successful, because image plays a major rolein the purchase of Coke.A paired comparison tastetest
21. 21. Comparative Scaling Techniques 8-21Rank Order Scaling Respondents are presented with several objects simultaneously and asked to order or rank them according to some criterion. It is possible that the respondent may dislike the brand ranked 1 in an absolute sense. Furthermore, rank order scaling also results in ordinal data. Only (n - 1) scaling decisions need be made in rank order scaling.
22. 22. Preference for Toothpaste Brands 8-22 Using Rank Order Scaling Figure 8.4Instructions: Rank the various brands of toothpaste in orderof preference. Begin by picking out the one brand that you likemost and assign it a number 1. Then find the second mostpreferred brand and assign it a number 2. Continue thisprocedure until you have ranked all the brands of toothpaste inorder of preference. The least preferred brand should beassigned a rank of 10.No two brands should receive the same rank number.The criterion of preference is entirely up to you. There is noright or wrong answer. Just try to be consistent.
23. 23. Preference for Toothpaste Brands 8-23Using Rank Order ScalingFigure 8.4 cont. Form Brand Rank Order 1. Crest _________ 2. Colgate _________ 3. Aim _________ 4. Gleem _________ 5. Macleans _________ 6. Ultra Brite _________ 7. Close Up _________ 8. Pepsodent _________ 9. Plus White _________10. Stripe _________
24. 24. Comparative Scaling Techniques 8-24Constant Sum Scaling Respondents allocate a constant sum of units, such as 100 points to attributes of a product to reflect their importance. If an attribute is unimportant, the respondent assigns it zero points. If an attribute is twice as important as some other attribute, it receives twice as many points. The sum of all the points is 100. Hence, the name of the scale.
25. 25. Importance of Bathing Soap Attributes 8-25 Using a Constant Sum Scale Figure 8.5InstructionsOn the next slide, there are eight attributes ofbathing soaps. Please allocate 100 points amongthe attributes so that your allocation reflects therelative importance you attach to each attribute.The more points an attribute receives, the moreimportant the attribute is. If an attribute is not at allimportant, assign it zero points. If an attribute istwice as important as some other attribute, itshould receive twice as many points.
26. 26. Importance of Bathing Soap Attributes 8-26 Using a Constant Sum Scale Figure 8.5 cont.Form Average Responses of Three Segments Attribute Segment I Segment II 8 Segment III 2 41. Mildness 2 4 172. Lather 3 9 73. Shrinkage 53 17 94. Price 9 0 195. Fragrance 7 5 96. Packaging 5 3 207. Moisturizing 13 60 15 Sum8. Cleaning Power 100 100 100