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Download VTU MBA 2nd Sem 17MBA23-Research Methodology RM Module 4 -Important Notes

Download VTU (Visvesvaraya Technological University) MBA 2nd Semester (Second Semester) 17MBA23-Research Methodology RM Module 4 Important Lecture Notes (MBA Study Material Notes)

This post was last modified on 18 February 2020

VTU MBA Lecture Notes - 1st Sem, 2nd Sem, 3rd Sem and 4th Sem || Visvesvaraya Technological University


Measurement and Scaling

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

  • One-to-one correspondence between numbers and the characteristics being measured.
  • The rules for assigning numbers should be standardized and applied uniformly.
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  • Rules must not change over time.

Scale Characteristics

Description: By description, we mean the unique labels or descriptors that are used to designate each value of the scale. All scales possess description.

Order: By order, we mean the relative sizes or positions of the descriptors. Order is denoted by descriptors such as greater than, less than, and equal to.

Distance: The characteristic of distance means that absolute differences between the scale descriptors are known and may be expressed in units.

Origin: The origin characteristic means that the scale has a unique or fixed beginning or true zero point.

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Primary Scales of Measurement

Scale Fig. 8.1
Nominal Numbers Assigned to Runners
Ordinal Rank Order of Winners Third place Second place
Interval Performance Rating on a 0 to 10 Scale 8.2 9.5
Ratio Time to Finish in Seconds 15.2 14.1

Primary Scales of Measurement

Scale Basic Characteristics Common Examples Marketing Examples
Nominal Numbers identify & classify objects Social Security nos., numbering of football players Brand nos., store types
Ordinal Nos. indicate the relative positions of objects but not the magnitude of differences between them Quality rankings, rankings of teams in a tournament Preference rankings, market position, social class
Interval Differences between objects Temperature (Fahrenheit) Attitudes, opinions, index
Ratio Zero point is fixed, ratios of scale values can be compared Length, weight Age, sales, income, costs

Four types of scales are generally used for Marketing Research:

  • Nominal Scale
  • Ordinal Scale
  • Interval Scale
  • Ratio Scale
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Nominal Scale

  • It consists of assignment of facts/choices to categories which are usually exhaustive as well.
  • These scales are just numerical and are the least powerful scales.
  • Instances of Nominal Scale are - credit card numbers, employee id numbers etc. It is simple when relationship between two variables is 1:1.
  • In a Nominal Scale numbers are no more than labels specifically to identify different categories of responses.
  • Example is - a survey of retail stores done on maintaining stocks and daily turnover.
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  • How do you stock items at present?
    ( ) By product category
    ( ) At a centralized store
    [ ] Department wise
    [ ] Single warehouse
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  • Daily turnover of consumer is?
    ( ) Between 100 – 200
    [ ] Between 200 - 300
    [ ] Above 300

A two way classification can be made as follows:

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Daily/Stock Turnover Method Product Category Department wise Centralized Store Single Warehouse
100 - 200
200-300
Above 300

2.Ordinal Scale

  • Ordinal scales are the simplest attitude scales used in Marketing Research.
  • It is more powerful than a nominal scale in that it has the property of rank order.
  • The ranking of certain product attributes important by the respondents is obtained through ordinal scales.
  • Example 1: Rank the following attributes (1 - 5), for a microwave oven.
    • Company Name
    • Functions
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    • Price
    • Comfort
    • Design
  • The most important attribute is ranked 1 by the respondent and the least important is ranked 5. Instead of numbers, letters can also be used to rate in a ordinal scale. Such scale makes it easy to judge the degree of favourability of different rankings.
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  • Example 2 - If there are 4 different types of fruits ordered on the basis of quality as Grade A, Grade B, Grade C, Grade D is again an Ordinal Scale.
  • Example 3 - If there are 5 different brands of soaps and the respondent ranks them based on say, "Freshness Rank 1 the maximum Freshness Rank 2 the second maximum Freshness and so on, an Ordinal Scale results.
  • Median and mode are meaningful for ordinal data.

3.Interval Scale

  • Herein the distance between the various points on the Nominal, or numbers unlike in Ordinal, are equal and hence these are Interval Scales.
  • The Interval Scales are also termed as Rating Scales.
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  • An Interval Scale has an arbitrary Zero point which is placed at equal intervals.
  • A very good example of Interval Scale is a Thermometer.

Illustration 1 - How do you rate your present refrigerator?

1 2 3
Company Name Less Known
Functions Few
Price Low
Design Poor
Overall Satisfaction Very Dissatisfied - Satisfied
  • The data obtained from the Interval Scale can be used to calculate Mean scores of each attributes over all respondents.
  • The Standard Deviation (a measure of dispersion) can also be calculated.
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4.Ratio Scale

  • It has meaningful zero point
  • With this scale length, weight or distance can be measured.
  • In this scale, it is possible to say, how many times greater one object is being compared to the other.
  • Eg : sales this year for product A are twice that of the product last year.
  • All statistical operations can be performed on ratio scales.
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Scaling Techniques

  • Likert Scale
  • It was developed by Rensis Likert.
  • Here the respondents are asked to indicate agreement and disagreement with each of a series of statements.
  • Each scale item has 5 response categories ranging from strongly agree and strongly disagree.
5 4 3
Strongly agree Agree Indifferent
  • For example quality of Mother Diary ice-cream is not good is a negative statement and Strongly Agree will mean that the quality is not good.
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  • Each degree of agreement is given a numerical score and the respondents total score is computed by summing these scores. The total score of respondent reveals the particular opinion.
  • Thus, likert scale is a five point scale ranging from 'strongly agreement 'to 'strongly disagreement'. No judgment is involved in this method.

Semantic Differential Scale

  • This is a seven point scale and the end points are associated with bipolar labels.
1 2 3 4 5
Unpleasant
Submissive
  • When Semantic Differential Scale is used to develop an image it provides a good basis for comparing images.
  • The big advantage of this scale is its simplicity while being compared with those of the more complex scaling techniques.
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  • The method is easy and fast to administer, produces reliable and valid.
  • Mean and median are used for comparison to determine overall similarities and differences among the objects.

Stapel's Scale

  • It was developed by Jan Stapel. This scale has several unique features:-
  • Each item has only one word/phrase indicating the attribute it represents.
  • Each item has ten response categories.
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  • Each item has an even number of categories.
  • The response categories have numerical labels.
  • For example, in the following items, suppose we ask respondents to rank from +5 to -5.
  • Select a plus number for words which best describe ice cream quality accurately.
  • Select a minus number for words you think describe ice cream quality accurately.
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  • Thus, we can select any number from +5,for words we think are accurate, to -5,for words we think are very inaccurate.
  • This scale is usually presented vertically.
  • +5
  • +4
  • +3
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  • +2
  • +1
  • High Quality
  • -1
  • -2
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  • -3
  • -4
  • -5
  • This is a unipolar rating scale.

Multi-Dimensional Scaling (Perceptual Mapping)

  • This is used to study consumer attitudes, particularly perceptions and preferences.
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  • These techniques help identify the product attributes important to the customers and to measure their relative importance.
  • This is used to describe similarity and preference judgments.
  • This is also known as Perceptual Mapping
  • There are two ways of collecting the input data for perceptual mapping.
    1. Non-attribute method
    2. Attribute method
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  • Non-Attribute method
    • Here, researcher asks the respondent to make a judgment directly.
    • In this method, the criteria for comparing the objects is left to the respondent himself
  • Attribute method
    • In this method, instead of respondents selecting the criteria to compare the objects based on the criteria specified by the researcher.
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Thurston Scales

  • These are also known as equal appearing interval scales.
  • They are used to measure the attitude towards a given construct.
  • For this purpose a large number of statements are generated that relate to the concept or construct being measured.
  • The judges rate these statements along an 11 category scale each category expresses a different degree of favourableness towards the concept.
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Thurston Scales

  • The statements are worded in such a way so that respondents can agree or disagree with them.
  • The scale is then administered to assemble data and individual scores are determined by computing the median value of the items agreed with.
  • A person who disagrees with all the items has a zero score. The advantage of this scale is that it is an interval scale. The disadvantage is it is the time consuming method and labour intensive.
  • They are commonly used in psychology and education.

Eg: crime and violence in movies

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  1. All movies with crime and violence should be prohibited
  2. Watching crime and violence in movies is a waste of time
  3. Most movies with crime are bad and harmful.
  4. The direction and theme in most crime movies are meaningless
  5. Watching a movie with crime and violence does not increase crime
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  7. I have no opinion one way or the other, about watching crime and violence
  8. I like to watch crime and violence in movie
  9. Most movies with crime and violence are interesting
  10. Crime movies acts as knowledge bank gained by the audience
  11. People learn "how to be safe and protect oneself" by watching crime movies
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  13. Watching crime in a movie does not harm our life

Thurston Scales

8 9 10 - Favourable attitude towards crime & violence

1 3 4 -- Unfavourable attitude towards crime & violence

1 5 11 - not consistent about subject

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This download link is referred from the post: VTU MBA Lecture Notes - 1st Sem, 2nd Sem, 3rd Sem and 4th Sem || Visvesvaraya Technological University

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