Marketing Research An Applied

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 Chapter 8

MEASUREMENT AND SCALING: FUNDAMENTALS

AND COMPARATIVE SCALING

FIGURES AND TABLES

Figures
Figure 8.1 An Illustration of Primary Scales of Measurement
Figure 8.2 A Classification of Scaling Techniques
Figure 8.3 Obtaining Shampoo Preferences Using Paired Comparisons
Figure 8.4 Preference for Toothpaste Brands Using Rank Order Scaling
Figure 8.5 Importance of Toilet Soap Attributes Using a Constant Sum Scale
Figure 8.6 Ordinal Scales for Measuring Education and Income
Figure 8.7 A Concept Map for Primary Scales

Tables
Table 8.1 Primary Scales of Measurement
Table 8.2 Illustration of Primary Scales of Measurement

CHAPTER OBJECTIVES

1. Introduce the concepts of measurement and scaling and show how scaling may be
considered an extension of measurement.
2. Explain the characteristics of description, order, distance, and origin and how they define

the level of measurement of a scale.

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3. Discuss the primary scales of measurement and differentiate nominal, ordinal, interval,
and ratio scales.
4. Classify and discuss scaling techniques as comparative and noncomparative, and describe
the comparative techniques of paired comparison, rank order, constant sum, and Q-sort
scaling.
5. Discuss the considerations involved in implementing the primary scales of measurement
in an international setting.
6. Understand the ethical issues involved in selecting scales of measurement.
7. Discuss the use of the Internet and computers in implementing the primary 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 9.

The discussion of scaling techniques is much more extensive when 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 chapter objectives, sequentially. Discuss the
concepts of measurement and scaling (Chapter Objective 1), the characteristics of description,
order, distance, and origin (Chapter Objective 2), the primary scales of measurement (Chapter
Objective 3), and the comparative scaling techniques (Chapter Objective 4). The material on
conducting international marketing research (Chapter Objective 5), ethical considerations
(Chapter Objective 6), and Internet and computers (Chapter Objective 7) should also be covered.
The concept map can be used to effectively and efficiently summarize primary scales (Figure
8.7).

CHAPTER OUTLINE
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 1. Objectives
2. Overview
3. Measurement and Scaling
4. Primary Scales of Measurement
(i) Nominal Scale
(ii) Ordinal Scale
(iii) Interval Scale
(iv) Ratio Scale
5. A Comparison of Scaling Techniques
6. Comparative Scaling Techniques
(i) Paired Comparison Scaling
(ii) Rank Order Scaling
(iii) Constant Sum Scaling
(iv) Q-Sort and Other Procedures
7. International Marketing Research
8. Ethics in Marketing Research
9. SPSS Windows
10. Summary
11. Key Terms and Concepts
12. Suggested Cases, Video Cases, and HBS Cases
13. Live Research: Conducting a Marketing Research Project
14. Acronyms
15. Exercises
16. Internet and Computer Exercises
17. Activities

TEACHING SUGGESTIONS

Chapter Objective 1
● Explain the differences between measurement and scaling.

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 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
▪ See Question 1.

Chapter Objective 2
● Discuss characteristics of description, order, distance, and origin, and how they define the
level of measurement of a scale.

There are four basic characteristics: description, order, distance and origin, and together
they define the level of measurement of a scale. The level of measurement denotes what
properties of an object the scale is measuring or not measuring.
By description we mean the unique labels or descriptors that are used to designate each
value of the scale, e.g., 1. Female, 2. Male. It is important to remember that all scales possess this
characteristic of description. Thus, all scales have unique labels or descriptors that are used to
define the scale values or response options.
By order we mean the relative sizes or positions of the descriptors. There are no absolute
values associated with order, only relative values. Order is denoted by descriptors such as
greater than, less than, and equal to. All scales do not possess the order characteristic. In the
gender scale (1. Female, 2. Male) considered earlier, we have no way of determining whether a
female is greater than or less than a male. Thus, the gender scale does not possess order.
The characteristic of distance means that absolute differences between the scale
descriptors are known and may be expressed in units. A five-person household has one person
more than a four-person household, which in turn has one person more than a three-person
household. Thus, the following scale possesses the distance characteristic.
Number of persons living in your household ___________
Notice, that a scale that has distance also has order. We know that a five-person household is
greater than the four-person household in terms of the number of persons living in the household.
Likewise, a three-person household is less than a four-person household. Thus, distance implies
order but the reverse may not be true.
The origin characteristic means that the scale has a unique or fixed beginning or true zero
point. Thus, an exact measurement of income by a scale such as:
What is the annual income of our household before taxes? $ ______________
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has a fixed origin or a true a zero point. An answer of zero would mean that the household has
no income at all. A scale that has origin also has distance (and order and description). Many
scales used in marketing research do not have a fixed origin or true zero point, as in the disagree-
agree scale considered here. Such a scale is defined as 1 = Strongly disagree, 2 = Disagree, 3 =
Neither agree nor disagree, 4 = agree, and 5 = Strongly agree. However, 1 is an arbitrary origin
or starting point. This scale could just as easily have been defined as 0 = Strongly disagree, 1 =
Disagree, 2 = Neither agree nor disagree, 3 = agree, and 4 = Strongly agree, with 0 as the origin.
Both these forms of the agree-disagree scale, with the origin at 1 or 0 are equivalent. Thus, this
scale does not have a fixed origin or a true zero point and consequently does not possess the
characteristic of origin.
Description, order, distance, and origin represent successively higher-level
characteristics, with origin being the highest-level characteristic. Description is the most basic
characteristic that is present in all scales. If a scale has order, it also has description. If a scale
has distance, it also has order and description. Finally, a scale that has origin also has distance,
order, and description. Thus, if a scale has a higher-level characteristic, it also has all the lower-
level characteristics. However, the reverse may not be true, i.e., if a scale has a lower-level
characteristic, it may or may not have a higher level characteristic.

Chapter Objective 3
● 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.
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 4. Ratio scale. This is used to identify or classify objects, rank order the objects,
and compare intervals and differences. For example, height, age, and income.

Figures 8.1 and 8.2, Tables 8.1 and 8.2 provide a framework and examples for explaining
scaling.
▪ See Questions 2, 3, 4, and 5.

Chapter Objective 4
● Distinguish the two broad scaling measures .

Begin by stating the two types of scales: comparative and noncomparative.

o Comparative scales—a direct comparison of stimulus objects is elicited. Thus,
two brands may be compared along a dimension such as quality.
o 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 8.2 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 are
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 8.3 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 8.4 for an example of rank order scaling.
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 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 8.5 for an example.
4. Q-sort scaling. This technique uses a rank order procedure in which objects are
sorted into piles based on similarity with respect to some criterion.
5. Magnitude estimation. Here numbers are assigned to objects such that ratios
between the assigned numbers reflect ratios among the objects on the specified
criterion.
6. Guttman scaling or scalogram analysis. This is a procedure for determining
whether a set of objects can be ordered into an internally consistent,
unidimensional scale.
▪ See Questions 6, 7, 8, 9, and 10.

Chapter Objective 5
● Identify the measurement and scaling issues in International research.

From the viewpoint 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.).

Chapter Objective 6
● Discuss the ethical concerns of scaling.
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 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 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.

Chapter Objective 7
● 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 for testing to end early, without compromising test
reliability, if one product is clearly winning.

ACTIVE RESEARCH

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It should be noted that a variety of answers are appropriate. The ones given here are merely
illustrative. DM denotes decision maker and MR denotes marketing researcher.

DM: Sears
Marketing Strategies:
o Seasonal Promotions
o Use the power of Internet to reach out to customers
o Target families as they are the biggest consumers of the products offered by Sears
o Use local media such as local newspapers to advertise

MR: Sears
Nominal 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.

MR: Coach
Consumer 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, say 1 to 5
where 1 implies very poor and 5 imply excellence. Ratio scales that measure the amount
of money spent on leather goods during a specified time period can also be used.

DM: Coach
o Identify which qualities are valued by consumers
o Find qualities associated with most successful products
o Demographic variations in preferences
o Price versus quality tradeoff can be used for segmentation

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

MR: Lexus
Purchase Intentions for luxury car are determined by factors such as:
o Social Status
o Comfort
o Daily Commute
o Convenience
o Security
o Rank order scaling or constant sum scaling are two comparative scaling
techniques which could be used.
o Constant sum scaling gives a precise and holistic picture of preferences, their
relative values and order.
o Rank order scaling gives a relative comparison but fails to reveal the value of
each quality. It just gives a preference order.
o But rank order scaling is easier for the customer to fill in and so response rates
might be better.

EXPERIENTIAL LEARNING

Coke or Pepsi?
This exercise is designed to give students experience in conducting an actual taste test. 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.
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.

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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? 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. 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.

Qualtrics! Question Types and Corresponding Scales

Types of question formats available using Qualtrics:

(a) Multiple Choice
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 (b) Multiple Choice Battery
(c) Open Ended Text
(d) Rank Order
(e) Constant Sum
(f) Text only (no response)
All the primary scales (nominal, ordinal, interval and ration) can be constructed using
Qualtrics. Students should be able to identify all the primary scales (nominal, ordinal,
interval and ration).

DECISION RESEARCH

It should be noted that a variety of answers are appropriate. The ones given here are merely
illustrative.

The Marketing Research Decision

1. Rank order, constant sum, and itemized rating scales can be used.
2. Rank order provides an easy comparison of brand preferences. The constant sum method
has the advantage that it provides a measure of the degree of preference. However, 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. He should use celebrity endorsements, enhance color and style of shoes, and increase
promotional budget.
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 for the high-end market. They should be aiming for 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

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 campaign) endorsements and increased promotional spending should be able to win the
attention of this segment.

PROJECT ACTIVITIES

The demographic variables should be measured as follows:

1. Marital status of respondent (nominal scale)

2. Age of respondent (ordinal scale: categorical)
3. Annual household income before taxes (ordinal scale: categorical)
4. Familiarity with Sears (interval scale)
5. Importance of price in selecting a department store (interval scale)
6. Number of bank credit cards owned (ratio scale)

EXERCISES

Questions

1. Measurement is the assignment of numbers or other symbols to characteristics of objects

according to certain prespecified rules.
2. The basic scales characteristics are description, order, distance, and origin.
3. The primary scales of measurement are nominal, ordinal, interval, and ratio.
4. 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.
5. 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.
6. The advantage 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. However,

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 this advantage is not significant because the commonly used statistics in marketing
research can be calculated on interval data.
7. A comparative rating scale involves the direct comparison of stimulus objects with one
another.
8. 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.
9. 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 are 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.
10. 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.
11. Q-sort scaling was developed to discriminate among a relatively large number of objects
while taking less time than other comparative scaling techniques. This technique uses a
rank order procedure in which objects are sorted into piles based on similarity with
respect to some criterion. The number of objects to be sorted should not be less than 60
nor more than 140—with 60 to 90 objects constituting a reasonable range. The number of
objects to be placed in each pile is prespecified, often to result in a roughly normal
distribution of objects over the whole set. In analyzing the data, successive integers are
assigned to denote the subjective values of the piles.

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, (a) Find the mean and variance.
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 (b) Find the mean and variance.
(c) Find the median and mode for each scale item.
(d) List each response with the respondent number.
(e) Find the median and mode for each scale item.
(f) Find the mean and variance.

Internet and Computer Exercises

1. The URLs of several marketing research firms are given in Table 1.2. 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. Based on the Web site, the top selling passenger cars for 2002, in
order of sales, were Toyota Camry, Honda Accord, and Ford Taurus, Honda Civic, and
Toyota Corolla.
4. The Marshalls and Wal-Mart Web sites can be visited at www.marshalls.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
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.

ACTIVITIES: QUESTIONS AND ANSWERS

Role Playing

Q1. You are a marketing research analyst with the Coca-Cola Company. After missing the
mark in changing the formulation of Coke, management has become wary of taste tests.
You are asked to write a technical report on the uses and limitations of taste tests and
make a recommendation about whether taste tests should be used in the future research
conducted by the Coca-Cola Company. Present your report to a group of students
representing Coca-Cola management.

A1. Taste tests have the following applications:

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 (a) allow for direct comparison of Coke versus other products
(b) allow for responses that are based on an actual sample of the drink as opposed to
an imagined sample
(c) allow for manipulation of marketing parameters on attitude toward the product

Taste tests have the following disadvantages:

(a) cannot measure attitude towards brand image
(b) must determine how much information to reveal to respondent

Taste tests offer a contribution to product planning, but they must be constructed to solve
the problem that has been specified. If they are improperly structured, misleading results
can emerge.

Fieldwork

Q1. Develop three comparative (paired comparison, rank order, and constant sum) scales to
measure attitude toward five popular brands of toothpaste (Crest, Colgate, Aim,
Pepsodent, and Ultra Brite). Administer each scale to five students. No student should be
administered more than one scale. Note the time it takes each student to respond. Which
scale was the easiest to administer? Which scale took the shortest time?

A1. The purpose of this exercise is to have the students gain hands-on experience in devising
and administering a scale. Students should also gain an understanding of the
misinterpretations and mistakes that are possible when laymen try to use scales. In
general, the paired comparison scaling should be the easiest to administer since
preference between two objects is a relatively simple cognitive operation as compared to
ranking or assigning values. The amount of time a scale takes to finish may vary across
students.

Q2. Develop a constant sum scale to determine preferences for restaurants. Administer this
scale to a pilot sample of 20 students to determine their preferences for some of the
popular restaurants in your city. Based on your pilot study, which restaurant is most
preferred?

A2. The purpose of this exercise is similar to Question 1 above, however, the student is also
given the task of analyzing the results from a constant sum scale.

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Group Discussion

Q1 “A brand could receive the highest median rank on a rank order scale of all the brands
considered and still have poor sales.” Discuss.

A1. 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
be undesirable.

Note: Answers to the Running Case on Dell are provided in the case solutions

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