Scaling and measurement techniques

1. Integral University,
Lucknow
Department of Commerce and Business
Management
Scaling & Measurement
Techniques
BM406 Business Research
Methods
(Unit-3)

2. In this unit we will cover the following topics:
● Concept of Measurement:
Need of Measurement; Problems in measurement in
management research – Validity and Reliability. Levels of
measurement – Nominal, Ordinal, Interval, Ratio.
● Attitude Scaling Techniques:
Concept of Scale – Rating Scales viz. Likert Scales,
Semantic Differential Scales, Constant Sum Scales,
Graphic Rating Scales – Ranking Scales – Paired
comparison & Forced Ranking – Concept and Application

3. Concept of
Measurement
Need of Measurement;
Problems in measurement in
management research –
Validity and Reliability. Levels
of measurement – Nominal,
Ordinal, Interval, Ratio.

4. Measurement & Scaling
Measurement means assigning numbers or other symbols to
characteristics of objects according to certain pre-specified rules.
We measure not the object but some characteristic of it. Thus, we do
not measure consumers, only their perceptions, attitudes, preferences
or other relevant characteristics.
Scaling may be considered an extension of measurement. Scaling
involves creating a continuum upon which measured objects are located.
Scaling is the process of placing the respondents on a continuum with
respect to their attitude towards banks. In our example, scaling is the
process by which respondents would be classified as having an
unfavourable, neutral or positive attitude.

5. Importance or need of measurement
• Research conclusions are only as good as the data on which they are based
• Observations must be quantifiable in order to subject them to statistical analysis
• The dependent variable(s) must be measured in any quantitative study.
• The more precise, sensitive the method of measurement, the better.
• Establish Standard Interchangeability.
• To check Customer Satisfaction
• To Validate the design
• Physical parameter into meaningful number.
• True dimension Evaluate the Performance.

6. Levels of Measurement
NOMINAL
Level 1
INTERVAL
Level 3
ORDINAL
Level 2
RATIO
Level 4
01
03
02
04

7. Scales Nominal Ordinal Interval Ratio
labels
Variables ✓ ✓ ✓ ✓
Ranks
categories in
order ✓ ✓ ✓
Has known,
equal intervals ✓ ✓
Has a true or
meaningful
zero ✓
Levels of Measurement

8. Problems in measurement in management research
– Validity and Reliability
• In terms of Validity are:
• History,
• Maturation,
• Instrumentation,
• Testing,
• Selection bias,
• Social interaction
• In terms of Reliability are:
• Stability of responses
• Opinions may vary regarding each study
• Knowledge
• Quality of the questions
• Total number of questions

9. 1. Nominal Scale
(A) Nominal Scale
 Nominal Scale is a very simple scale.
 In Nominal Scale numbers/symbols are no more than labels and are used
specifically to identify different categories of responses.
 Nominal Scale is used to show relationship between two variables.
 In Nominal Scale numbers/ symbols are assigned to cricket players/ football
players/ events in order to label them.
 Nominal Scale provides convenient ways of keeping tracks of pupil, objects
and events.
 The numbers which are assigned do not reflect the amount of characteristics
possessed by the objects. The only permissible operation is counting.

10. 2. Ordinal Scale
(B) Ordinal Scale
 Ordinal Scale is more powerful than Nominal Scale because the numbers possess the
property of rank order.
 Ordinal Scale is the simple scale for measuring the attitude.
 Ordinal Scale ranks on the basis of their importance.
 Ordinal Scale provides ranks to cricket players/ football players/ events/objects from
highest to lowest or lowest to highest.
 Ordinal Scale provides first place, second place or third place to winners.
 Ordinal Scale provides statements of ‘greater than’ or ‘less than’ but do not state how
much greater or less than. It means there is hidden information of how much first is
first, second is second or third is third.

11. 3. Interval Scale
(C) Interval scale
 Interval scale provides the specific values to the objects and the intervals.
 Interval scale has 0 point which is arbitrary i.e. man made. Interval Scale
lacks true zero because it does not have the capacity to measure the
complete absence of the characteristic. Here we cannot say that one value
is twice the other value because we do not know the zero point.
 Interval Scale has performance rating on 0-10 scale or 20-30 scale.
 In Ordinal Scale we do not know by how much there is a gap between two
levels but in Interval Scale we can know the level of gap.
 Interval Scale is also known as Rating Scale.

12. 4. Ratio Scale
(D) Ratio scale
 Ratio scale shows ratio between two figures.
 Ratio scale possesses all the properties of the Nominal, Ordinal &
Interval Scale.
 Ratio scale has a natural zero.
 Ratio scale can measure physical quantities like length, weight etc.
 Ratio scale is not widely used in marketing research but they are
very common on physical part.

13. Examples of levels of
Measurement
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14. Attitude Scaling
Techniques:
Concept of Scale – Rating
Scales viz. Likert Scales,
Semantic Differential Scales,
Constant Sum Scales, Graphic
Rating Scales – Ranking Scales
– Paired comparison & Forced
Ranking – Concept and
Application

15. Attitude
measurement
Attitudes are persuasive component of business research component.
Researcher measure attitudes that peoplecustomer have toward any
concepts, events, phenomenon and entities. Attitude is a learned pre-
disposition to behave in a consistently favourable or un-favourable way with
respect to a given object. The measuring of attitude is difficult as we have
lower scales of measurement.
Attitude scaling procedures
Attitude scaling is the term commonly used to prefer to process of measuring
attitudes. Attitude scaling tends to focus on measurement of the respondents
belief about a particular attribute.

16. Type of Scaling Techniques

17. Comparative Scales
Comparative Scales are those scales where two or more than two objects are measured
simultaneously. Comparative Scales have the characteristics of ordinal or rank order
scale. Comparative Scales are of the following types:
Paired Comparison Scale
Rank Order Rating Scale
Constant Sum Rating Scale
Q Sort Scale (Not frequent)
A. Comparative Scales

18. Advertisement
Copy
A B C D E
A X AB AC AD AE
B X X BC BD BE
C X X X CD CE
D X X X X DE
E X X X X X
(i) Paired Comparison Scale
In Paired Comparison Scales the respondents are required to compare two
objects, individuals or situations simultaneously on a particular criterion at a
particular time. For example: Advertisement copies are given and are asked
to compare pair wise
Two groups of AB, AC, AD, AE and others are formed.

19. (ii) Rank Order Rating Scale
In Rank Order Rating Scale the respondents are required to compare objects, individuals or
situations by arranging them or ranking them on some criteria at a particular time. The criteria
can be environment, package or promotions in context with human resource. It is like
OrdinalRank Scale which describes objects from most liking to least liking (1 is most liking or
best while 3 is least liking or worse).
S. No. Name of companies Criteria= Environment
1. SAHARA 2
2. TELCO 1
3. SCOOTERS INDIA 3
S. No. Name of companies Criteria= Package
1. SAHARA 2
2. TELCO 1
3. SCOOTERS INDIA 3
S. No. Name of companies Criteria= Promotion
1. SAHARA 2
2. TELCO 1
3. SCOOTERS INDIA 3

20. (iii) Constant Sum Rating Scale
In Constant Sum Rating Scale the respondents are required to compare objects, individuals or
situations by allocating points and then arranging them or ranking them on some criteria at a
particular time. The criteria can be style, mileage and maintenance in context with marketing. It
is like OrdinalRank Scale where objects, individuals or situations are ranked through the
technique of Ratio Scale on some criteria. (100 points are divided among objects, individuals or
situations related with some criteria).
For example
S. No. Name of companies Criteria= Style (Points) Rank
1. HONDA 30 2
2. HERO 40 1
3. BAJAJ 20 3
4. TVS 10 4
S. No. Name of companies Criteria= Mileage (Points) Rank
1. HONDA 30 2
2. HERO 40 1
3. BAJAJ 20 3
4. TVS 10 4

21. (iv) Q Sort Scale (Not frequent)
Q Sort Scale is not very frequent. Q Sort Scale is like Rank Order Rating Scale where
the number of objects, individuals or situations is to be ranked in piles of 60 objects to
140 objects. In Q Sort Scale there are 3 piles of low, medium or high on the basis of
some criteria i.e. quality, price or promotion.
S. No. Name of companies Criteria= Maintenance (Points) Rank
1. HONDA 20 3
2. HERO 40 1
3. BAJAJ 30 2
4. TVS 10 4

22. Non comparative Scales
Non comparative Scales are those scales where two or more than two characteristics or
functions of a particular object, individual or situation are measured simultaneously. Non
comparative Scales also have the characteristics of ordinal or rank order scale. Non comparative
Scales are of the following types:
Continuous Rating Scale
Itemized Rating Scale
B. Non comparative Scales

23. (i) Continuous Rating Scale
In Continuous Rating Scales the respondents are required to rate two or more than two
characteristics or functions of a particular object, individual or situation simultaneously at a
particular time. In Continuous Rating Scales the respondents are given range and they have to
either tick mark ( ) or cross (x) the characteristic or function in terms of importance over the line.
In Continuous Rating Scales the measurement of physical distance is known. The greater the
distance the more favourable is the response or attitude towards the characteristics or functions.
It is also known as Graphical Rating Scale.
Example Criteria
Characteristics Very Bad
Neither Bad nor
Good
Very Good
0 10 20 30 40 50 60 70 80 9
0
100
Courteous
environment
Convenient
Location
Convenient
Hours

24. (ii) Itemized Rating Scale
Itemized Rating Scales are similar to Continuous Rating Scales as the respondents are required to rate
two or more than two characteristics or functions of a particular object, individual or situation
simultaneously at a particular time. Itemized Rating Scales are different to Continuous Rating Scales
as the respondents are required to rate the brief description associated with each characteristic or
function of a particular object, individual or situation. Itemized Rating Scales are of following types:
(a) Likert Scale (Ordinal Scale)
Likert Scale was developed by Rensis Likert. Likert Scale is the most widely used scale. Likert Scale is 5
point scales ranging from strongly agree to strongly disagree related with the series of the statement.
The 5 point means 5 responses which are strongly agree, agree, neither agree nor disagree, disagree
and strongly disagree. There are about 20-30 statements. Each response is assigned a numerical score
ranging from 1 to 5 or +2 to -2. The total of the score of the respondents is computed by adding the
different scores received from the respondents. The total score of the respondent reveals the
particular opinion of a person towards the particular statement. It has ability to rank the attitudes. It is
also called as Summated Rating Scale.

25. Example
Criteria
Statements Strongly
agree
5
Agree
4
Neither agree
nor disagree
3
Disagree
2
Strongly
disagree
1
+2 +1 0 -1 -2
The environment given
by the organization is
optimum.
The location of the
organization is
convenient for everyone.
The hours of the
organization are
convenient for everyone.

26. Calculating attitude through Likert Scale
Respondent 1= The environment given by the organization is optimum= strongly agree=5
Respondent 2= The environment given by the organization is optimum= agree=4
Respondent 3= The environment given by the organization is optimum= strongly agree=5
The attitude measurement related with this statement = 5+4+5=14
Respondent 1= The location of the organization is convenient for everyone= agree=4
Respondent 2= The location of the organization is convenient for everyone= disagree=2
Respondent 3= The location of the organization is convenient for everyone= agree=4
The attitude measurement related with this statement = 4+2+4=10
Respondent 1= The hours of the organization are convenient for everyone= strongly agree=5
Respondent 2= The hours of the organization are convenient for everyone = strongly agree=5
Respondent 3= The hours of the organization are convenient for everyone = strongly agree=5
The attitude measurement related with this statement = 5+5+5=15

27. (B) Semantic Differential Scale
Semantic Differential Scale is a 7 point scale and the end points of the scales are associated with
the two opposite streams. 7 point scale means 7 responses between two opposite poles bi-poles.
7 responses are 7 scores ranging from 1 to 7 or -3 to +3. The basis of the responses forms the
profile of the product. The summing or joining of the profile is called as profile analysis. Semantic
Differential Scale is used to develop an image profile as it provides a good basis for comparing
images of two or more products of the same company through mean & median. This scale helps
to determine overall similarities and differences among products of the same company by using
different scales for different products while in comparative scales same scale is used for
comparison.
Example

28. (a) Staple Scale
Staple Scale was developed by Jan Stapel. Staple Scale is a 10 point scale with uni-
pole label of high quality or good food with 10 responses scattered along the word
in a horizontal or vertical line. These 10 responses are ranging from +5 to -5.
Example
Vertical Representation
+5
+4
+3
+2
+1
High quality
-1
-2
-3
-4
-5
Horizontal Representation
+5 +4 +3 +2 +1 High quality -1 -2 -3 -4 -5
+5 +4 +3 +2 +1 Good food -1 -2 -3 -4 -5
+5 +4 +3 +2 +1 Courteous service -1 -2 -3 -4 -5
+5 +4 +3 +2 +1 Low price -1 -2 -3 -4 -5

29. (D) Thurston Scale (Interval Scale)
Thurston Scale was developed by L. L. Thurston. Thurston Scale is an advantage over Likert
Scale as it has 11 point scale where statements are to be placed in the very 1st place of most
un-favourable and the most favourable in the 11th place. Thurston Scale has following stage:
Stage 1: Initially there is a construction of scale having large number of statements with
arbitrary numbers for their identification.
Stage 2: The researcher then selects panel of judges.
Stage 3: Judges will rate each statement on 11 point rating scale where 1st is of most un-
favourable and 11th is of most favourable. If the judges will not agree with the statements or
their response varies from most un-favourable to most favourable then the statements will be
omitted.
Stage 4: The researcher will then calculate the mean or median value of each statement and
will plot graphically.
Stage 5: The researcher then makes the final scale selecting 15-20 statements preferably those
statements on which Judges have least dis-agreement. This leads to the final construction of
Questionnaire or Interview Schedule.
Advantage: It is more reliable measure of attitude.
Dis-advantage: It is difficult to construct and requires much cost and time.

30. (E) Guttman Scale (Ratio Scale)
Guttman Scale is difficult to construct and is rarely used by the researcher. It consists of small
number of statements with uni-dimensionality i.e. concerning one variable only.
Like Statement 1: Consists of children should not be allowed to watch indecent programmes.
Statement 2: Consists of government should ban indecent programmes.
Statement 3: Consist of channels not airing the indecent programmes.
They all are related to one variable.
Every response showing agree is given 1 score and is represented by cross (x).
Every response showing dis-agree is given 0 score and is represented by blank space.
Then the total score of every individual is obtained.
Example Statements
Respondents I II III IV V Score
A X X X X X 5
B X X X X 4
C X X X 3
D X X 2
E X 1
F 0
The score 3 means that
the respondent agrees
with I,II & III but do not
agrees with the
statement IV & V.

31. Forced Ranking – Concept and Application
Forced ranking is a controversial workforce management tool that uses intense yearly evaluations to
identify a company's best and worst performing employees, using person-to-person comparisons. In
theory, each ranking will improve the quality of the workforce.
There are benefits to a force ranking system. It forces organizations to articulate the criteria for
success and differentiate talent which can, in turn, inspire high performing individuals. For everyone
else, it triggers the Survive channel and can create a self-fulfilling prophesy.
Forced ranking became popular in the 1980s and 1990s, and many companies, such as GE,
Honeywell, Ford, Microsoft, Texas Instruments, Goodyear and Hewlett Packard used it.
What do you look in your shampoo?
Not important Slightly important Moderatelty
Important
Important Very important
Fragrance
Conditioning
Herbal constitute
Foaming
Economy

32. Conclusion
There are four
levels of
measurements:
nominal, ordinal,
interval, and ratio.
The measurement
scales, commonly used
in marketing research,
can be divided into two
types; comparative and
non-comparative
scales.
A number of
scaling
techniques are
available for
measurement of
attitudes.
There is no unique
way that you can
use to select a
particular scaling
technique for your
research study.
01 02 03 04

33. THANK YOU!
This brings us to the end of unit 3.
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