CH03 Measurement to Build Marketing Insights

Question 1

what is a measurement?

Answer 1

measurement: the process of assigning numbers or labels to persons, objects, or events in accordance with specific rules for representing quantities or qualities or attributes
eg. questions in a survey that provide a scale of 1 to 5 for possible responses

Question 2

what is a rule?

Answer 2

rule: a guide, method, or command that tells a researcher what to do
eg. assign the number 1 through 5 to people according to their disposition to do household chores, 1 being the willingness to do chores while 5 being not willing to do chores at all

Question 3

what are the steps in the measurement process?

Answer 3

1. identify the concept of interest
2. develop a construct
3. define the concept constitutively
4. define the concept operationally
5. develop a measurement scale
6. evaluate the reliability and validity of the measurement

Question 4

explain step 1 of the measurement process, (1. identifying the concept of interest)

Answer 4

1. identify the concept of interest
   - identifying the concept of interest, aka an abstract idea derived from specific facts
   - concepts are used to group similar sense data together
   eg. perceptions of “things to sit on” is a concept

eg. of marketing concepts include brand loyalty, consumer satisfaction, market segmentation, purchase intent, etc.

Question 5

define constructs

Answer 5

constructs: specific types of concepts that exist at higher levels of abstraction

Question 6

explain step 2 of the measurement process (2. developing a construct)

Answer 6

• a theoretical or conceptual representation of a specific marketing concept in a measurable form
  created to operationalize or measure abstract concepts that cannot be directly observed or quantified
• constructs help researchers define and quantify the concept they are studying, allowing for empirical investigation and statistical analysis
  eg. “degree of comfort” is a construct

eg. of marketing construct include
- brand equity
- perceived quality
- attitude towards a product
- consumer trust
- customer loyalty

• any specific construct will be of value with regard to observable phenomena to the extent that it contributes to:
• explanation
• prediction, and
• control

generally, constructs themselves are not directly observable
eg. what constitutes “comfortable seating” for our research purposes?
- a desk chair that can be used for hours?
- a theatre seat that reclines?
- a child seat for a car?

Question 7

define constitutive definition

Answer 7

constitutive definition: statement of the meaning of the central idea or concept under study, establishing its boundaries; also known as theoretical, or conceptual definition

Question 8

define operational definition

Answer 8

operational definition: a statement for precisely which observable characteristics will be measured and the process for assigning a value to the concept

Question 9

explain step 3 of the measurement process (3. defining the concept constitutively)

Answer 9

it establishes the meaning and boundaries of a concept by specifying its essential features
- a clear and precise description of what the concept represents
- this ensures consistent interpretation and measurement of concepts across studies

a vague constitutive definition can cause an incorrect research question to be addressed
- defining “comfortable seating” as “no back pain” is an improvement
- … but it’s still too general to serve research purposes

in marketing, a constitutive definition of brand loyalty could be:
“the extent to which a customer exhibits repeat purchasing behavior and positive attitudes towards a particular brand”

Question 10

define operational definition

Answer 10

operational definition: statement of precisely which observable characteristics will be measured and the process for assigning a value to the concept

Question 11

explain step 4 of the measurement process (4. defining the concept operationally)

Answer 11

• refers to the process of defining a construct in measurable terms for empirical research
• involves specifying the indicators or variables that will be used to assess the construct

in marketing, an operational definition of brand equity could be:
“the sum of a brand’s perceived quality, brand awareness, and brand loyalty scores measured on a 7-point likert scale”

Question 12

what is construct equivalence?

Answer 12

construct equivalence deals with how people see, understand, and develop measurements of a particular phenomenon
- a construct in cross-cultural comparisons must have the same meaning across cultural groups being surveyed
- that common theoretical meaning of the construct then must be adequately represented in the measurement instrument

eg. the construct “friend” could mean
- someone who is very close psychologically and can be counted on when needed, or …
- close friends, short-time friends, long-time friends, and acquaintances

Question 13

give an example of the measurement process using the first 4 steps

Answer 13

1. concept: familiarity with brands of ketchup
2. construct: brand awareness
3. constitutive definition: “the extent to which consumers know the brand, recall the brand when promoted, and have previous experiences with the brand”
4. operational definition: percentage of respondents who recognize the designated brand of ketchup

Question 14

what is a scale?

Answer 14

scale: a set of symbols or numbers so constructed that the symbols or numbers can be assigned by a rule to the individuals (or the behaviors or attitudes) to whom the scale is applied

Question 15

explain step 5 in the measurement process (5. developing a measurement scale)

Answer 15

• creating a measurement scale begins with determining the level of measurement that is desirable or possible
• there are 4 basic levels of measurement: nominal, ordinal, interval, and ratio
• higher levels are more “powerful”

Question 16

define nominal data

Answer 16

mutually exclusive (aka 2 things cannot happen at the same time)
- avoids overlap in the question options
eg. how old are you?
0-30, 31-55, 55-70, 71+

collectively exhaustive:
- all options are included
eg. 71+ (rather than just ending at 70)

typical statistics:
- frequency counts
- percentages
- modes

Question 17

define ordinal data

Answer 17

ordinal data: scales that maintain the labelling characteristics of nominal scales but also have the ability to order data

ranking type data examples:
- best liked, worse liked
- win, place, or show
- first, second, or third
- small, medium, and large
- comparison rankings: “rank these movies from best to worst”

typical statistic:
- median

Question 18

define interval data

Answer 18

interval data: scales that have the characteristics of ordinal scales, pus equal intervals between points

comparison type data eg.
- on a “1 to 10” scale
- age, income, etc. as ranges with equal intervals

eg. how old are you?
- 0-20, 21-40, 41-60, 61-80, 80+

typical statistic:
- average, aka arithmetic mean

Question 19

define ratio data

Answer 19

ratio data: scales that have the characteristics of interval scales, plus a meaningful zero point

flat numeric type data eg.
- age + 50 (not an age range)
- income = $45,000 (not an income range)
- number of children: _____

typical statistic
- geometric mean, aka a mean (average) that indicates the central tendency or typical value of a set of numbers by using the product of their values (as opposed to the arithmetic mean, which uses their sum)

consider 2 and 8
- arithmetic mean = (2+8)/2 = 5
- geometric mean = sqrt (2 x 8) = 4

Question 20

explain step 6 in the measurement process (6. evaluating the reliability and validity of the measurement)

Answer 20

the ideal: M = A
where M refers to the measurement and A stands for complete accuracy

the reality: M = A + E
where E = errors

Question 21

there are 2 types of errors, what are they?

Answer 21

systematic or random errors

Question 22

compare systematic errors vs random errors

Answer 22

• systematic error results in a constant bias in the measurements
  eg. if the measurement instrument is flawed
• random error is transient in nature
  eg. if someone fills out a survey incorrectly

Question 23

what are the reasons for measurement errors?

Answer 23

• difference due to a stable characteristic of individual respondents (eg. personality, values, and intelligence)
• differences due to short-term personal factors (eg. temporary mood swings, health problems, time constraints, or fatigue)
• differences cause by situational factors (eg. distractions or others present in the interview situation)
• differences resulting from variations in administering the survey (interviewers can ask questions with different voice inflections, causing response variation)
• differences due to the sampling of items included in the questionnaire (eg. when researchers attempt to measure the quality of service at McDo’s, the scales and other questions used represent only a portion of the items that could have been used)
• difference cue to a lack fo clarity in the measurement instrument (eg. a question may be ambiguous, complex, or incorrectly interpreted)
• differences due to mechanical or instrument factors (eg. blurred questionnaires, lack of space to fully record answers, missing pages in a questionnaire, etc.)

Question 24

define reliability

Answer 24

reliability: degree to which measures …
- are free from random error, and
- provide consistent data

extent to which the survey responses are internally consistent
- a reliable measurement does not change when the concept is being measured remains constant in value

Question 25

what are the 3 ways to assess reliability?

Answer 25

test-retest, the use of equivalent forms, and internal consistency

Question 26

define test-retest reliability

Answer 26

test-retest reliability: ability of the same instrument to produce consistent results when used a second time under conditions as similar as possible to the original conditions

Question 27

define stability

Answer 27

stability: lack of change in results from test to retest

Question 28

define equivalent form reliability

Answer 28

equivalent form reliability: the ability of two very similar forms of an instrument to produce closely correlated results

Question 29

define internal consistency reliability

Answer 29

internal consistency reliability: the ability of an instrument to produce similar results when used on different samples during the same time period to measure a phenomenon

Question 30

what is the split-half technique?

Answer 30

split-half technique: a method of assessing the reliability of a scale by dividing the total set of measurement items in half and correlating the results

Question 31

define validity

Answer 31

validity: degree to which what the research was intending to measure was actually measured
- refer to the extent to which the measurement instrument and procedure are free from both systematic and random error

a measuring divide is valid only if differences in scores reflect true differences on characteristic being measured

Question 32

what is face validity?

Answer 32

face validity: the degree to which a measurement seems to measure what is supposed to measure

Question 33

what is content validity?

Answer 33

content validity: the representativeness, or sampling adequacy, of the content of the measurement instrument

Question 34

what is criterion-related validity?

Answer 34

criterion-related validity: the degree to which a measurement instrument can predict a variable that is designated a criterion

Question 35

define predictive validity

Answer 35

predictive validity: the degree to which a future level of a criterion variable can be forecast by a current measurement scale

Question 36

define concurrent validity

Answer 36

concurrent validity: the degree to which another variable, measured at the same point in time as the variable of interest, can be predicted by the measurement instrument

Question 37

define construct validity

Answer 37

construct validity: the degree to which a measurement instrument represents and logically connects, via the underlying theory, the observed phenomenon to the construct

Question 38

define convergent validity

Answer 38

convergent validity: the degree of correlation among different measurement instruments that purport to measure the same construct

Question 39

define discriminant validity

Answer 39

discriminant validity: the measure of the lack of association among constructs that are supposed to be different

Question 40

what is scaling?

Answer 40

scaling: procedures for assigning numbers (or other symbols) to properties of an object in order to impart some numerical characteristics to the properties in question
- scares are either unidimensional or multidimensional

Question 41

what are the 2 scaling approaches?

Answer 41

1. unidimensional: measures only one dimension of a concept, respondent, or object
2. multi-dimensional: measures several dimensions of a concept, respondent, or object

Question 42

define graphic rating scales

Answer 42

graphic rating scales: a measurement scale that includes a graphic continuum, anchored by two extremes

Question 43

what are itemized rating scales?

Answer 43

itemized rating scales: measurement scales in which the respondent selects an answer from a limited number of ordered categories

Question 44

what are noncomparative scales?

Answer 44

noncomparative scales: measurement scales in which judgement is made without reference to another object, concept, or person

Question 45

what are rank-order scales?

Answer 45

rank-order scales: measurement scales in which the respondent compares 2 or more items and ranks them

Question 46

what are comparative scales?

Answer 46

comparative scales: measurement scales in which one object, concept, or person is compared with another on a scale

Question 47

define paired comparison scales

Answer 47

paired comparison scales: measurement scales that ask the respondent to pick one of the 2 objects in a set, based on some stated criteria

Question 48

what are constant sum scales?

Answer 48

constant sum scales: measurement scales that ask the respondent to divide a given number of points typically 100, among 2 or more attributes, based on their importance to him or her

Question 49

what is the semantic differential scale?

Answer 49

semantic differential scale: measurement scales that examine the strengths and weaknesses of a concept by having the respondent rank it between dichotomous pairs of words of phrases that could be used to describe it; the means of the responses are them plotted as a profile or image

Question 50

define a stapel scale

Answer 50

stapel scale: measurement scales that require that respondent to rate, on a scale ranging +5 to -5, how closely and in what direction a descriptor adjective fits a given concept

Question 51

define a likert scale

Answer 51

likert scale: measurement scales in which the respondent specifies a level of agreement or disagreement which statements expressing either a favourable or an unfavourable attitude toward the concept under study

Question 52

what is a purchase-intent scale?

Answer 52

purchase-intent scale: scales used to measure a respondent’s intention to buy or not to buy a product

Question 53

what is a net promoter score?

Answer 53

net promotor score: a measure of satisfaction; the percentage of promotors minus the percentage of detractors when answering the question, “would you recommend this to a friend?”

Question 54

considerations in selecting a scale

Answer 54

the nature of the construct being measured
- the objective o the research study is the fundamental effect on the manner in which scales are used for survey measurement

type of scale
- choice of which type of scale to use (depends on the problem at hand and the questions that must be answered)
- research approach (one might select a scale that can be administered over the telephone or via the internet to save interviewing expense)
- ease of administration and development

Question 55

define balanced scales

Answer 55

balanced scales: measurement scales that use the same number of positive and negative categories

Question 56

define nonbalanced scales

Answer 56

nonbalanced scales: measurement scales that are weighted toward one end of the other of the scale

Question 57

number of scale categories: even vs odd

Answer 57

even number of scale categories:
- there is no neutral point, forcing the respondent to indicate some degree of positive or negative feelings

odd number of scale categories:
- researcher claim that having a neutral point on a scale gives me the respondent an easy way out

Question 58

forced vs non-forced choice

Answer 58

forced choice:
- argument for a forced choice is that the respondent has to concentrate on his or her feelings

non-forced choice
- allows the respondent to have a selection when they do not have an opinion or have no knowledge of the subject

Question 59

direct questioning: direct vs dual questions

Answer 59

direct questions:
- respondents may be asked to explain their reasons for preferring one product or brand over another

dual questions:
- involves asking 2 questions concerning each product attribute that might be determinant
- first ask what factors consumers consider important
- then ask how these factors differ among the company’s products or brands

Question 60

define indirect questioning

Answer 60

indirect questioning: any interviewing approach that does not directly ask respondents to indicate the reasons why they bought a product or service

Question 61

define observation

Answer 61

observation: observing shoppers and recording their movements and statements while interacting with certain products on display

Question 62

how to choose a method for identifying determinant attitudes:

Answer 62

• direct questioning, indirect questioning, and observation each have some limitations in identifying determinant attitudes
• the marketing researcher should therefore use 2 or more of the techniques