RESEARCH

METHODOLOGY
(Business Research Methods)
Week 9

29 August 2005

MBA III (Research Methodology)

Course

Measurement and Scaling (1)

In business research, measurement of variables is a
indispensable requirement
Problem Defining what is to be measured, and how it is
to be accurately and reliably measured
Some things (or concepts) which are inherently abstract
in their nature (e.g. job satisfaction, employee morale,
brand loyalty of consumers) are more difficult to measure
than concepts which can be assigned numerical values
(e.g. sales volume for employees X, Y and Z)

29 August 2005

MBA III (Research Methodology)

Course

Measurement and Scaling (2)

In order for a concept to have the quality of being measurable,
it must first be made operational
An operation definition may be defined as a definition that
gives meaning to concept by specifying the activities or
operations which are necessary in order to measure it
Example A satisfied consumer will make at least five
purchases of Product A from Shop T over a three-month period
of time
Note that sometimes depending on the context of the
research study - it may be difficult to make operational
definitions
29 August 2005

MBA III (Research Methodology)

Course

Measurement and Scaling (3)

A scale is basically a continuous spectrum or series of
categories and has been defined as any series of items that
are arranged progressively according to value or
magnitude, into which an item can be placed according to
its quantification
Four popular scales in business research are:

Nominal scales
Ordinal scales
Interval scales
Ratio scales

29 August 2005

MBA III (Research Methodology)

Course

Measurement and Scaling (4)

A nominal scale is the simplest of the four scale types
and in which the numbers or letters assigned to objects
serve as labels for identification or classification
Example:
Males = 1, Females = 2
Sales Zone A = Islamabad, Sales Zone B = Rawalpindi
Drink A = Pepsi Cola, Drink B = 7-Up, Drink C = Miranda

29 August 2005

MBA III (Research Methodology)

Course

Measurement and Scaling (5)

An ordinal scale is one that arranges objects or
alternatives according to their magnitude
Examples:
Career Opportunities = Moderate, Good, Excellent
Investment Climate = Bad, inadequate, fair, good, very good
Merit = A grade, B grade, C grade, D grade
A problem with ordinal scales is that the difference between
categories on the scale is hard to quantify, I,e., excellent is better
than good but how much is excellent better?
29 August 2005

MBA III (Research Methodology)

Course

Measurement and Scaling (6)

An interval scale is a scale that not only arranges objects or
alternatives according to their respective magnitudes, but
also distinguishes this ordered arrangement in units of
equal intervals (i.e. interval scales indicate order (as in
ordinal scales) and also the distance in the order)
Examples:
Consumer Price Index
Temperature Scale in Fahrenheit
Interval scales allow comparisons of the differences of magnitude
(e.g. of attitudes) but do not allow determinations of the actual
strength of the magnitude
29 August 2005

MBA III (Research Methodology)

Course

Measurement and Scaling (7)

A ratio scale is a scale that possesses absolute rather
than relative qualities and has an absolute zero.
Examples:

Money
Weight
Distance
Temperature on the Kelvin Scale
Interval scales allow comparisons of the differences of
magnitude (e.g. of attitudes) as well as determinations of the
actual strength of the magnitude

29 August 2005

MBA III (Research Methodology)

Course

Measurement and Scaling (8)

Type of Scale

Numerical Operation

Descriptive Statistics

Nominal

Counting

Frequency in each
category, percentage in
each category, mode

Ordinal

Rank Ordering

Median, range,
percentile ranking

Interval

Arithmetic Operations on
Intervals between
numbers

Mean, standard
deviation, variance

Ratio

Arithmetic Operations on
actual quantities

Geometric mean,
coefficient of variation

29 August 2005

MBA III (Research Methodology)

Course

Index Measures
If a concept is simple, it can be measured easily usually with one
question or observation
Example: To what extent do consumers of Product X like the products
packaging material? (very much, somewhat, not at all)

If, however, the concept to be measured is complex and abstract, two

or more questions or observations may be required in order to get
accurate data
Example: The level of a salespersons motivation depends on (1) job
satisfaction (2) workplace environment (3) family life
Indexes (or composite measures) are meant to deal with the issue
of multidimensionalty (e.g. an index of social class may be the
variables residence, occupation and education)

29 August 2005

MBA III (Research Methodology)

Course

10

Criteria for Good Measurement (1)

Reliability Reliability is the degree to which
measurements are devoid of error and therefore in the
position to yield consistent results, also over repeated
attempts over time (ordinal measures always yield the
same order, interval measurements always yield the same
order and same distance between the measured items)
Validity Validity is the ability of a scale or measuring
instrument to measure what it is intended to measure (e.g.
is absenteeism from work a valid measure of job
satisfaction or are there other influences like a flu epidemic
which is keeping employees from work)

29 August 2005

MBA III (Research Methodology)

Course

11

Criteria for Good Measurement (2)

Sensitivity Sensitivity is the ability of a measurement
instrument to accurately measure variability in stimuli or
responses (e.g. on a scale, the choices very strongly
agree, strongly agree, agree, dont agree offer more
choices than a scale with just two choices - agree and
dont agree and is thus more sensitive)

29 August 2005

MBA III (Research Methodology)

Course

12

Attitude
Measuring Attitude is a frequent undertaking in business
research
Attitude may be defined as an enduring disposition to
consistently respond in a given manner to various
aspects
Attitude has three dimensions:
Affective
Affective
Component
Component

29 August 2005

Cognitive
Cognitive
Component
Component

MBA III (Research Methodology)

Behavioural
Behavioural
Component
Component

Course

13

Components of Attitude
Affective Component Reflective of a persons
general feelings or emotions towards an object
or subject (like, dislike, love, hate)
Cognitive Component Reflective of a persons
awareness of and knowledge about an object or
subject (know, believe)
Behavioural Component Reflective of a
persons intentions and behavioural
expectations, and predisposition to action
29 August 2005

MBA III (Research Methodology)

Course

14

Measuring Attitude
It can be difficult to measure attitude, therefore,
indicators such as verbal expression,
physiological measurement techniques and
overt behaviour are used for this purpose. The
three different components of attitude may
require different measuring techniques
Common techniques used in business research
to determine attitude include rating, ranking,
sorting and the choice technique
29 August 2005

MBA III (Research Methodology)

Course

15

Rating Techniques to Measure

Attitude
Rating Scales are frequently employed in business research for
measuring attitude, and many scales have been developed for this
purpose, including:

Simple Attitude Scales

Category Scales
Likert Scale
Semantic Differential
Numerical Scales
Constant-Sum Scale
Stapel Scale
Graphic Scales

29 August 2005

MBA III (Research Methodology)

Course

16

Simple Attitude Scales

In attitude scaling, individuals are typically asked
whether they agree or disagree with a question (or
questions) put to them, or they are asked to respond to a
question or questions
Simple attitude scales have the properties of a nominal
scale and the disadvantages that go with it, also, they do
not permit fine distinctions in the respondents answers
because their choice of answers is limited, but they can
be useful in instances where the respondents education
level is low and questionnaires lengthy
29 August 2005

MBA III (Research Methodology)

Course

17

Category Scales
A category scale consists of several
response categories to provide the
respondent with alternative ratings
Category scales are more sensitive than
rating scales which allow only two answer
categories (because of the larger number
of choices), and thus provides more data
and information (see text example)
29 August 2005

MBA III (Research Methodology)

Course

18

The Likert Scale

A likert Scale is a measure of attitudes designed to allow
respondents to indicate how strongly they agree or disagree
with carefully constructed statements that range from very
positive to very negative towards an object or subject
The number of alternatives on the Likert scale can vary,
often five alternatives are foreseen (see text book
examples)
A Likert Scale may include a number of question items,
each covering some aspect of the respondents attitude,
and these items collectively form an an index
29 August 2005

MBA III (Research Methodology)

Course

19

The Semantic Differential

The semantic differential is an attitude
measuring technique that which consists of a
series of seven bi-polar rating scales which allow
response to a concept (e.g. organization,
product, service, job)
See text book example
An advantage of the semantic differential is its
versatility, on the other hand, it uses extremes
which may influence respondents answers
29 August 2005

MBA III (Research Methodology)

Course

20

Other Scales
Numerical Scales
Constant-Sum Scals
Stapel Scales
Graphic Rating Scales

For practical examples, see text book

29 August 2005

MBA III (Research Methodology)

Course

21

Measuring Behavioral Intentions

Behavioural intentions relate to will, shall or may questions:
Examples:
I will purchase Product X
I shall change my job from 1st January 2006
I may participate in Training Workshop Z

The Behavioural Differential: This is an instrument for measuring

the behavioural intentions of subjects towards an object or
category of objects. Example:
A Housewife
Would ___ : ___ : ___ : ___ : ___ : ___ : ___ Would Not
Purchase this laundry detergent
29 August 2005

MBA III (Research Methodology)

Course

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