13

Measurement and
Scaling Concepts

©2013 Cengage Learning. All Rights Reserved. May
not be scanned, copied or duplicated, or posted to a
publicly accessible
website,
in whole
or in part.
©2013
Cengage
Learning.
All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

• Key question is. copied or duplicated. • An overall ranking of all CRM employees. in whole or in part. or posted to a publicly accessible website. May not be scanned.Money Matters? • Evaluation on customer relationship management (CRM) employees. 13-2 . “What is performance?” • Sales? Profits? • Director’s evaluation? • Customer satisfaction? ©2013 Cengage Learning. All Rights Reserved.

13–3 .What Do I Measure? • Measurement • The process of describing some property of a phenomenon. • The numbers should convey information about the property being measured. All Rights Reserved. usually by assigning numbers in a reliable and valid way. copied or duplicated. in whole or in part. or posted to a publicly accessible website. ©2013 Cengage Learning. May not be scanned.

copied or duplicated. in whole or in part. All Rights Reserved. May not be scanned. 13–4 .Course grade • Letter grade • • • • • A: excellent B: good C: average D: poor F: failing • Percentage grade • 100 percent: perfect • 60-99: differing degrees of passing performance • P/F grade • P: passing mark • F: failing mark ©2013 Cengage Learning. or posted to a publicly accessible website.

EXHIBIT 13. copied or duplicated. May not be scanned. or posted to a publicly accessible website. All Rights Reserved. in whole or in part. 13–5 .1 Are There Any Validity Issues with This Measurement? 1 2 3 4 ©2013 Cengage Learning.

copied or duplicated. • Most elementary level of measurement. in whole or in part. • Have nominal properties. May not be scanned. • Sweeteners: cane sugar. corn syrup. 13–6 . or posted to a publicly accessible website. ©2013 Cengage Learning. All Rights Reserved.Levels of Scale Measurement • Nominal (categorical) • Assigns a value to an object for identification or classification purposes. fruit extract • Ordinal (categorical) • allow things to be ranked based on certain properties.

May not be scanned. • Have all the properties of interval scales • Represents absolute quantities: zero—absent of some property.Levels of Scale Measurement (cont’d) • Interval • Capture information about differences in quantities of a concept. • Have both nominal and ordinal properties. • Temperature: ◗ June 6—80°F (26. 13–7 .4 °C) ◗ Attitude • Ratio • Highest form of measurement. copied or duplicated. All Rights Reserved. ©2013 Cengage Learning. or posted to a publicly accessible website.7°C) ◗ December 7—40°F (4. in whole or in part.

copied or duplicated. All Rights Reserved. 13–8 . • Infinite number of values • Interval and ratio sales ©2013 Cengage Learning.Mathematical and Statistical Analysis of Scales • Discrete Measures • Measures that can take on only one of a finite number of values. • Nominal and ordinal scales • Continuous Measures • Measures that can take on any value along some scale range. May not be scanned. in whole or in part. or posted to a publicly accessible website.

• Indexes often are formed by putting several variables together. copied or duplicated. May not be scanned. All Rights Reserved. 13–9 . or posted to a publicly accessible website. • Different variables may have different weight. ©2013 Cengage Learning.Index Measures • Index Measures • Multi-item instruments for measuring a concept. in whole or in part.

• Perceived quality • Customer expectations • Perceived value • http://www. May not be scanned. All Rights Reserved. or posted to a publicly accessible website. 13–10 .org/the-american-customersatisfaction-index ©2013 Cengage Learning.theacsi.American Consumer Satisfaction Index • a weighted average of three survey questions that measure different facets of satisfaction with a product or service. copied or duplicated. in whole or in part.

May not be scanned. or posted to a publicly accessible website. 13–11 . copied or duplicated. in whole or in part. All Rights Reserved.Three Criteria for Good Measurement Reliability Validity Good Measurement Sensitivity ©2013 Cengage Learning.

copied or duplicated.Good measurement • Reliability • The degree to which measures are free from random error and therefore yield consistent results. in whole or in part. • An indicator of a measure’s internal consistency. ◗ Does a scale measure what was intended to be measured? ©2013 Cengage Learning. 13–12 . • Validity • The accuracy of a measure or the extent to which a score truthfully represents a concept. May not be scanned. or posted to a publicly accessible website. All Rights Reserved.

May not be scanned. All Rights Reserved.Good measurement • Sensitivity • A measurement instrument’s ability to accurately measure variability in stimuli or responses. in whole or in part. 13–13 . • Generally increased by adding more response points or adding scale items. copied or duplicated. ©2013 Cengage Learning. or posted to a publicly accessible website.