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RESEARCH
                   METHODOLOGY
                 (Business Research Methods)

                                        Week 9



29 August 2005       MBA III (Research Methodology)   Course Instructor: Dr. Aurangzeb Z. Khan   1
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 Instructor: Dr. Aurangzeb Z. Khan   2
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 Instructor: Dr. Aurangzeb Z. Khan   3
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 Instructor: Dr. Aurangzeb Z. Khan   4
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 Instructor: Dr. Aurangzeb Z. Khan   5
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 Instructor: Dr. Aurangzeb Z. Khan   6
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 Instructor: Dr. Aurangzeb Z. Khan   7
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 Instructor: Dr. Aurangzeb Z. Khan   8
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             Mean, standard
                                  Intervals between                    deviation, variance
                                  numbers
  Ratio                           Arithmetic Operations on             Geometric mean,
                                  actual quantities                    coefficient of variation


29 August 2005             MBA III (Research Methodology)   Course Instructor: Dr. Aurangzeb Z. Khan   9
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
           product’s 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 salesperson’s 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 Instructor: Dr. Aurangzeb Z. Khan   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 Instructor: Dr. Aurangzeb Z. Khan   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, don’t agree offer more
    choices than a scale with just two choices - agree and
    don’t agree – and is thus more sensitive)




29 August 2005     MBA III (Research Methodology)   Course Instructor: Dr. Aurangzeb Z. Khan   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                      Cognitive                            Behavioural
             Component                      Component                             Component


29 August 2005            MBA III (Research Methodology)   Course Instructor: Dr. Aurangzeb Z. Khan   13
Components of Attitude
   Affective Component – Reflective of a person’s
    general feelings or emotions towards an object
    or subject (like, dislike, love, hate)

   Cognitive Component – Reflective of a person’s
    awareness of and knowledge about an object or
    subject (know, believe)

   Behavioural Component – Reflective of a
    person’s intentions and behavioural
    expectations, and predisposition to action

29 August 2005       MBA III (Research Methodology)   Course Instructor: Dr. Aurangzeb Z. Khan   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 Instructor: Dr. Aurangzeb Z. Khan   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 Instructor: Dr. Aurangzeb Z. Khan   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 Instructor: Dr. Aurangzeb Z. Khan   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 Instructor: Dr. Aurangzeb Z. Khan   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 respondent’s attitude,
    and these items collectively form an an index
29 August 2005     MBA III (Research Methodology)   Course Instructor: Dr. Aurangzeb Z. Khan   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 Instructor: Dr. Aurangzeb Z. Khan   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 Instructor: Dr. Aurangzeb Z. Khan   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 Instructor: Dr. Aurangzeb Z. Khan   22

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Measuring Variables and Attitudes in Business Research

  • 1. RESEARCH METHODOLOGY (Business Research Methods) Week 9 29 August 2005 MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan 1
  • 2. 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 Instructor: Dr. Aurangzeb Z. Khan 2
  • 3. 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 Instructor: Dr. Aurangzeb Z. Khan 3
  • 4. 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 Instructor: Dr. Aurangzeb Z. Khan 4
  • 5. 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 Instructor: Dr. Aurangzeb Z. Khan 5
  • 6. 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 Instructor: Dr. Aurangzeb Z. Khan 6
  • 7. 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 Instructor: Dr. Aurangzeb Z. Khan 7
  • 8. 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 Instructor: Dr. Aurangzeb Z. Khan 8
  • 9. 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 Mean, standard Intervals between deviation, variance numbers Ratio Arithmetic Operations on Geometric mean, actual quantities coefficient of variation 29 August 2005 MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan 9
  • 10. 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 product’s 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 salesperson’s 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 Instructor: Dr. Aurangzeb Z. Khan 10
  • 11. 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 Instructor: Dr. Aurangzeb Z. Khan 11
  • 12. 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, don’t agree offer more choices than a scale with just two choices - agree and don’t agree – and is thus more sensitive) 29 August 2005 MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan 12
  • 13. 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 Cognitive Behavioural Component Component Component 29 August 2005 MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan 13
  • 14. Components of Attitude  Affective Component – Reflective of a person’s general feelings or emotions towards an object or subject (like, dislike, love, hate)  Cognitive Component – Reflective of a person’s awareness of and knowledge about an object or subject (know, believe)  Behavioural Component – Reflective of a person’s intentions and behavioural expectations, and predisposition to action 29 August 2005 MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan 14
  • 15. 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 Instructor: Dr. Aurangzeb Z. Khan 15
  • 16. 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 Instructor: Dr. Aurangzeb Z. Khan 16
  • 17. 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 Instructor: Dr. Aurangzeb Z. Khan 17
  • 18. 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 Instructor: Dr. Aurangzeb Z. Khan 18
  • 19. 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 respondent’s attitude, and these items collectively form an an index 29 August 2005 MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan 19
  • 20. 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 Instructor: Dr. Aurangzeb Z. Khan 20
  • 21. 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 Instructor: Dr. Aurangzeb Z. Khan 21
  • 22. 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 Instructor: Dr. Aurangzeb Z. Khan 22