Measurement & Scaling Techniques.pptx
- 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?