1 hair, babin, money & samouel, essentials of business research, wiley, 2003. learning...
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1Hair, Babin, Money & Samouel, Essentials of Business Research, Wiley, 2003.
Learning Objectives:
• Understand the role of concepts in business
research.
2. Explain the notion of measurement.
3. Provide an overview of the types of measurement
scales.
4. Distinguish between reliability and validity.
Measurement and ScalingChapter 6
2Hair, Babin, Money & Samouel, Essentials of Business Research, Wiley, 2003.
A concept is a mental abstraction or
idea formed by the perception of
some phenomena. Examples of
concepts in business include job
satisfaction, job commitment, brand
awareness, brand loyalty, service
quality, image, risk, channel conflict,
empathy, and so on.
What is a concept?
3Hair, Babin, Money & Samouel, Essentials of Business Research, Wiley, 2003.
12 Dimensions of a Great 12 Dimensions of a Great WorkplaceWorkplace
Go On-Line www.gallup.com
Item 1. I know what is expected of me at work.
Item 2. I have the materials and equipment I need to do my work right.
Item 3. At work, I have the opportunity to do what I do best everyday.
Item 4. In the last seven days, I have received recognition or praise for doing good work.
Item 5. My supervisor, or someone at work, seems to care about me as a person.
Item 6. There is someone at work who encourages my development.
Item 7. At work, my opinions seem to count.
Item 8. The mission or purpose of my company makes me feel my job is important.
Item 9. My fellow employees are committed to doing quality work.
Item 10. I have a best friend at work.
Item 11. In the last six months, someone at work has talked to me about my progress.
Item 12. This last year, I have had opportunities at work to learn and grow.
4Hair, Babin, Money & Samouel, Essentials of Business Research, Wiley, 2003.
Measurement
. . . involves assigning
numbers to a variable
according to certain
rules that reflect the
characteristics of the
phenomenon being
measured.
5Hair, Babin, Money & Samouel, Essentials of Business Research, Wiley, 2003.
The measurement process involves
specifying the variables that serve as
proxies for the concepts (constructs). A
proxy is a variable that represents a single
component of a larger concept and, taken
together, several proxies (indicator
variables) are said to measure a concept.
What is the measurement
process?
6Hair, Babin, Money & Samouel, Essentials of Business Research, Wiley, 2003.
Scale
. . . a scale is a measurement
tool that can be discrete or
continuous. Discrete scales
measure only direction, but
continuous scales measure
both direction and intensity.
7Hair, Babin, Money & Samouel, Essentials of Business Research, Wiley, 2003.
NominalNominal
OrdinalOrdinal
IntervalInterval
RatioRatio
??
Four Levels of Measurement
8Hair, Babin, Money & Samouel, Essentials of Business Research, Wiley, 2003.
Metric Scales• Summated Ratings
• Numerical
• Semantic Differential
• Graphic Ratings
Nonmetric Scales• Categorical
• Rank Order
• Sorting
• Constant Sum
• Paired Comparison
Metric Scales• Summated Ratings
• Numerical
• Semantic Differential
• Graphic Ratings
Nonmetric Scales• Categorical
• Rank Order
• Sorting
• Constant Sum
• Paired Comparison
Types of
Scales
9Hair, Babin, Money & Samouel, Essentials of Business Research, Wiley, 2003.
Gino’s Italian Ristorante has a wide variety of menu choices.
Strongly Disagree Neither Agree Agree Strongly
Disagree nor Disagree Agree
1 2 3 4 5
Summated Ratings Summated Ratings ScaleScale
10Hair, Babin, Money & Samouel, Essentials of Business Research, Wiley, 2003.
Using a 10-point scale, where 1 is “not at all important” and 10 is “very important” how important is ________ in your decision to do business with a particular vendor?
Numerical ScaleNumerical Scale
11Hair, Babin, Money & Samouel, Essentials of Business Research, Wiley, 2003.
“My supervisor is . . . . “
Courteous ___ ___ ___ ___ ___ Discourteous
Friendly ___ ___ ___ ___ ___ Unfriendly
Helpful ___ ___ ___ ___ ___ Unhelpful
Supportive ___ ___ ___ ___ ___ Hostile
Competent ___ ___ ___ ___ ___ Incompetent
Honest ___ ___ ___ ___ ___ Dishonest
Enthusiastic ___ ___ ___ ___ ___ Unenthusiastic
Semantic Differential Scale
12Hair, Babin, Money & Samouel, Essentials of Business Research, Wiley, 2003.
On a scale from 0 to 10 how would you rate the atmosphere of Samouel’s Greek Cuisine restaurant? Indicate by placing an “X” at the appropriate place on the line.
Poor OK Excellent |____________________|____________________|
0 5 10
Graphic RatingsGraphic Ratings
13Hair, Babin, Money & Samouel, Essentials of Business Research, Wiley, 2003.
How satisfied are you with your current job?[ ] Very Satisfied[ ] Somewhat Satisfied[ ] Neither Satisfied nor Dissatisfied[ ] Somewhat Dissatisfied[ ] Very Dissatisfied
How interested are you in learning more about the benefits that are offered with this health plan?[ ] Very Interested[ ] Somewhat Interested[ ] Not Very Interested
CategoricalCategorical
14Hair, Babin, Money & Samouel, Essentials of Business Research, Wiley, 2003.
Rank OrderRank Order
“Please rank the five attributes listed below on a scale from ‘1’ (the most important) to ‘5’ (the least important) in searching for a job.”
Job Attributes Ranking
Pay
Benefits
Co-workers
Flexible Scheduling of Work Hours
Working Conditions
15Hair, Babin, Money & Samouel, Essentials of Business Research, Wiley, 2003.
This type of scaling approach asks respondents to indicate their beliefs or opinions by arranging objects (items) on the basis of perceived similarity, preference, or some other attribute.
SortingSorting
16Hair, Babin, Money & Samouel, Essentials of Business Research, Wiley, 2003.
Constant SumConstant Sum
“Please allocate 100 points across the following four attributes to indicate their relative importance.”
Attributes Score
On-Time Delivery
Price
Tracking Capability
Invoice Accuracy
Sum 100
17Hair, Babin, Money & Samouel, Essentials of Business Research, Wiley, 2003.
Paired ComparisonPaired Comparison
Below you will find ten pairs of attributes that have been identified a being important when choosing a restaurant. For each pair mark the attribute you feel is more important to you in choosing a restaurant to dine at.
Pairs Attribute 1 Attribute 2
Pair 1 Food Quality Atmosphere
Pair 2 Food Quality Prices
Pair 3 Food Quality Service
Pair 4 Food Quality Cleanliness
Pair 5 Atmosphere Prices
Pair 6 Atmosphere Service
Pair 7 Atmosphere Cleanliness
Pair 8 Prices Service
Pair 9 Prices Cleanliness
Pair 10 Service Cleanliness
18Hair, Babin, Money & Samouel, Essentials of Business Research, Wiley, 2003.
Go On-Linewww.raosoft.com
Validity
Reliability
Criteria for Criteria for
Assessing Assessing
Measurement ScalesMeasurement Scales
19Hair, Babin, Money & Samouel, Essentials of Business Research, Wiley, 2003.
Number of Scale Categories
Practical Decisions When Developing Scales
Number of Items to Measure a Concept
Odd or Even Number of Categories
Balanced of Unbalanced Scales
Forced or Non-forced Choice
Category Labels for Scales
20Hair, Babin, Money & Samouel, Essentials of Business Research, Wiley, 2003.
“To what extent do you consider TV shows with sex and violence to be acceptable for teenagers to view?”
Balanced: __ Very Acceptable
__ Somewhat Acceptable__ Neither Acceptable or Unacceptable__ Somewhat Unacceptable__ Very Unacceptable
Unbalanced:
__ Very Acceptable
__ Somewhat Acceptable
__ Unacceptable
Balanced vs. Unbalanced Scales
21Hair, Babin, Money & Samouel, Essentials of Business Research, Wiley, 2003.
Forced or Non-Forced?
“How likely are you to purchase a laptop PC in the next six months?”
Very Very
Unlikely Likely ___ No
1 2 3 4 5 6 Opinion
22Hair, Babin, Money & Samouel, Essentials of Business Research, Wiley, 2003.
Verbal Label: “How important is the size of the hard drive in selecting a laptop PC to purchase?” Very Somewhat Neither Important Somewhat Very
Unimportant Unimportant or Unimportant Important Important
1 2 3 4 5
Numerical Label:
“How likely are you to purchase a laptop PC in the next six months?”
Very Very
Unlikely Likely
1 2 3 4 5
Unlabeled:
“How important is the weight of the laptop PC in deciding which brand
to purchase?”
Very Very
Unimportant Important
___ ___ ___ ___ ___
Category Labels for Scales?
23Hair, Babin, Money & Samouel, Essentials of Business Research, Wiley, 2003.
Choosing a Measurement Scale
Capabilities of Respondents
Context of Scale Application
Data Analysis Approach
Validity and Reliability
24Hair, Babin, Money & Samouel, Essentials of Business Research, Wiley, 2003.
Measurement Error = occurs when the values obtained in a survey (observed values) are not the same as the true values (population values).
Validity
Reliability
Assessing Assessing Measurement Measurement Scales:Scales:
25Hair, Babin, Money & Samouel, Essentials of Business Research, Wiley, 2003.
Reliability
Test-retest
Alternative Forms
Internal Consistency
26Hair, Babin, Money & Samouel, Essentials of Business Research, Wiley, 2003.
Exhibit 6-5 Rules of Thumb about
Cronbach’s Alpha Coefficient Size
Coefficient Strength of Range Association
< .6 Poor
.6 to < .7 Moderate
.7 to < .8 Good
.8 to < .9 Very Good
> = .9 Excellent
27Hair, Babin, Money & Samouel, Essentials of Business Research, Wiley, 2003.
Validity
Content
Construct
Convergent
Discriminant
Criterion
Concurrent
Predictive
28Hair, Babin, Money & Samouel, Essentials of Business Research, Wiley, 2003.
Multi-Item Scales
The Secure Customer Index
TM
Burke, Inc., www.burke.com
“Secure Customers”
% Definitely Recommend to Others
% Definitely Buy Again% Very Satisfied
™
Go On-Line www.burke.com
29Hair, Babin, Money & Samouel, Essentials of Business Research, Wiley, 2003.
Two Options:
1. Use published scales.
2. Develop original
scales.
Scales – used to measure concepts
(constructs).
30Hair, Babin, Money & Samouel, Essentials of Business Research, Wiley, 2003.
Steps in Developing a Scale:
1. Definition of the concept(s) to be measured.
2. Identification of the components of the concept.
3. Specification of a sample of observable and measurable items to represent the components.
4. Selection of the appropriate scales to measure the items.
5. Combination of the items into a composite scale to measure the concept.
6. Administer the scale to a sample and assess respondent understanding.
7. Revise the scale as needed.
31Hair, Babin, Money & Samouel, Essentials of Business Research, Wiley, 2003.
Measurement and Scaling
Go On-Line www.sric-bi.com
How does this website help you to
better understand measurement
and scaling?