Meaning of Measurement & Scaling, 4 types of Scaling techniques and differences inbetween the techniques

1. Measurement & Scaling
Techniques
Dr. D. Heena Cowsar
Assistant Professor of Commerce
Bon Secours College for Women,
Thanjavur
heena.raffi@gmail.com

2. Objective of the study
• Introduction on Measurement & Scaling Techniques
• An understanding of the four levels of measurement
that can be taken by researchers
• The ability to distinguish between comparative and
non-comparative measurement scales,
• A basic tool-kit of scales that can be used for the
purposes of marketing research.
https://www.slideshare.net/ujjmishra1/measurement-
and-scaling-techniques

3. Measurement
Measurement means assigning numbers or
other symbols to characteristics of objects
according to certain pre-specified 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.

4. Scaling
Scaling technique is a method of placing
respondents in continuation of gradual change in
the pre-assigned values, symbols or numbers based
on the features of a particular object as per the
defined rules. All the scaling techniques are based
on four pillars, i.e., order, description, distance and
origin.
Eg., 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

5. Why Numbers are assigned?
Numbers are usually assigned for two
reasons:
– First, numbers permit statistical analysis of
the resulting data
– Second, numbers facilitate the
communication of measurement rules and
results

6. Issues in Measurement
When the researcher is interested in the
measuring the attitude, feelings or opinion of
the respondents, he should be clear of the
following
What is to be measured?
Who is to be measured?
The choices available in data collection
techniques

7. Scale characteristics determine the
level of measurement
• Description
• Order
• Distance
• Origin

8. Scaling Techniques
• Types
– Primary Scaling Techniques
• Nominal Scale
• Ordinal Scale
• Interval Scale
• Ratio Scale
– Other Scaling Techniques
• Comparative Scales
• Non-Comparative Scales

9. Nominal Scale
Nominal scales are adopted for non-quantitative (containing no numerical
implication) labeling variables which are unique and different from one
another.
Types of Nominal Scales:
•Dichotomous: A nominal scale that has only two labels is called
‘dichotomous’; for example, Yes/No.
•Nominal with Order: The labels on a nominal scale arranged in an
ascending or descending order is termed as ‘nominal with
order’; for example, Excellent, Good, Average, Poor, Worst.
•Nominal without Order: Such nominal scale which has no sequence, is
called ‘nominal without order’; for example, Black, White.

10. Ordinal Scale
The ordinal scale functions on the concept of the relative
position of the objects or labels based on the individual’s
choice or preference.
For example, At Amazon.in, every product has a customer
review section where the buyers rate the listed product
according to their buying experience, product features,
quality, usage, etc.
The ratings so provided are as follows:
•5 Star – Excellent
•4 Star – Good
•3 Star – Average
•2 Star – Poor
•1 Star – Worst

11. Interval Scale
• Interval scale refers to the level of measurement in which the attributes
composing variables are measured on specific numerical scores or values
and there are equal distances between attributes. The equal distances
between attributes on an interval scale differ from an ordinal scale.
• An interval scale is also called a cardinal scale which is the numerical
labeling with the same difference among the consecutive measurement
units.
• With the help of this scaling technique, researchers can obtain a better
comparison between the objects.
• For example; A survey conducted by an automobile company to know the
number of vehicles owned by the people living in a particular area who can
be its prospective customers in future.
• It adopted the interval scaling technique for the purpose and provided the
units as 1, 2, 3, 4, 5, 6 to select from.
• In the scale mentioned above, every unit has the same difference, i.e., 1,
whether it is between 2 and 3 or between 4 and 5.
• Temperature (Farenheit), Temperature (Celcius), pH, SAT score (200-800),

12. Ratio Scale
• One of the most superior measurement technique is the ratio
scale. Similar to an interval scale, a ratio scale is an abstract
number system. It allows measurement at proper intervals,
order, categorization and distance, with an added property
of originating from a fixed zero point. Here, the comparison
can be made in terms of the acquired ratio.
• For example, A health product manufacturing company
surveyed to identify the level of obesity in a particular
locality. It released the following survey questionnaire:
Select a category to which your weight belongs to:
• Less than 40 kilograms
• 40-59 Kilograms
• 60-79 Kilograms
• 80-99 Kilograms
• 100-119 Kilograms
• 120 Kilograms and more

13. Difference between the Primary scaling techniques:
PARTICULAR
NOMINAL
SCALE
ORDINAL
SCALE
INTERVAL
SCALE
RATIO SCALE
Characteristics Description Order Distance Description,
Order, Distance &
Origin
Sequential
Arrangement
Not Applicable Applicable Applicable Applicable
Fixed Zero Point Not Applicable Not Applicable Not Applicable Applicable
Multiplication &
Division
Not Applicable Not Applicable Not Applicable Applicable
Addition and
Subtraction
Not Applicable Not Applicable Applicable Applicable
Difference
between Variables
Non-Measurable Non-Measurable Measurable Measurable
Mean Not Applicable Not Applicable Applicable Applicable
Median Not Applicable Applicable Applicable Applicable
Mode Applicable Applicable Applicable Applicable

14. Primary Scale of Measurement

15. Primary Scale of Measurement

16. Case Study
ChemCo is a leading manufacturer of car batteries in the
U.K. market started in 1965. Since then, it has been under the charge
of Mr. Jones, the founder-owner of the firm.
In 1999, the company decided to go for a diversification by
expanding the product line. The new product was batteries for fork-
lift trucks.
At the same time, Mr. Marek was appointed the Senior Vice
President of marketing in the company. However, soon after its
successful diversification into fork-lift batteries, the sales in this
segment began dropping steadily.
Mr. Marek wanted to introduce some radical changes in the
advertising and branding of the new business but the proposal was
turned down by the old-fashioned Mr. Jones.
At this juncture in 2002, the firm is losing heavily in the fork-
lift batteries business and its market share in car batteries is also on a
decline.
Mr. Jones has asked Mr. Marek to show a turnaround in the
company within a year. What steps should Mr. Marek take to take
the company out of its troubles?

17. Case Study
The Nakamura Lacquer Company (NLC) of Kyoto, Japan, employed several
thousand men and produced 500,000 pieces of lacquer tableware annually, with its
Chrysanthmum brand becoming Japan's best known and bestselling brand. The annual profit
from operations was $250,000.
The market for lacquerware in Japan seemed to have matured, with the production steady at
500,000 pieces a year. NLC did practically no business outside Japan.
In May 2000, (much to your chagrin!) the ambitious and dynamic, Mr. Nakamura (Chairman,
NLC) received two offers from American companies wishing to sell lacquer ware in America.
The first offer was from the National China Company. It was the largest manufacturer of good
quality dinnerware in the U.S., with their “Rose and Crown” brand accounting for almost 30%
of total sales. They were willing to give a firm order for three years for annual purchases of
400,000 sets of lacquer dinnerware, delivered in Japan and at 5% more than what the Japanese
jobbers paid. However, Nakamura would have to forego the Chrysanthemum trademark to
“Rose and Crown” and also undertake not to sell lacquer ware to anyone else in the U.S.
The second offer was from Sammelback, Sammelback and Whittacker (henceforth SSW),
Chicago, the largest supplier of hotel and restaurant supplies in the U.S. They perceived a U.S.
market of 600,000 sets a year, expecting it to go up to 2 million in around 5 years. Since the
Japanese government did not allow overseas investment, SSW was willing to budget $1.5
million for the next two years towards introduction and promotion. Nakamura would sell his
“Chrysanthemum” brand but would have to give exclusive representation to SSW for five
years at standard commission rates and also forego his profit margin toward paying back of
the $ 1.5 million.
What should Mr. Nakamura do?