UNIT 3

Scaling & measurement techniques: Concept of Measurement: Need of Measurement;

Problems in measurement in management research – Validity and Reliability.

Levels of measurement – Nominal, Ordinal, Interval, Ratio. Attitude Scaling

Techniques

Concept of Scale – Rating Scales viz. Likert Scales, Semantic Differential Scales,
Constant Sum Scales, Graphic Rating Scales – Ranking Scales – Paired comparison &
Forced Ranking – Concept and Application.

Scaling Techniques

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.

The marketing research is highly dependable upon the scaling techniques, without
which no market analysis can be performed.

Types of Scaling Techniques

The researchers have identified many scaling techniques; today, we will discuss some of
the most common scales used by business organizations, researchers, economists,
experts, etc.

These techniques can be classified as primary scaling techniques and other scaling
techniques.

A. Primary Scaling Techniques

The major four scales used in statistics for market research consist of the following:
1. Nominal Scale:-

Nominal scales are adopted for non-quantitative (containing no numerical implication)

labelling variables which are unique and different from one another.

Types of Nominal Scales:

1. Dichotomous: A nominal scale that has only two labels is called

‘dichotomous’; for example, Yes/No.
2. 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.
3. Nominal without Order: Such nominal scale which has no sequence, is called
‘nominal without order’; for example, Black, White.

2. 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

3. Interval Scale

An interval scale is also called a cardinal scale which is the numerical labelling 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.

4. 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

The following table will better clarify the difference between all the four primary
scaling techniques:

NOMINAL ORDINAL INTERVAL

PARTICULAR RATIO SCALE
SCALE SCALE SCALE

Characteristics Description Order Distance Description, Order,

Distance and Origin

Sequential Not Applicable Applicable Applicable

Arrangement Applicable

Fixed Zero Point Not Not Not Applicable

Applicable Applicable Applicable

Multiplication and Not Not Not Applicable

Division Applicable Applicable Applicable
 NOMINAL ORDINAL INTERVAL
PARTICULAR RATIO SCALE
SCALE SCALE SCALE

Addition and Not Not Applicable Applicable

Subtraction Applicable Applicable

Difference Non- Non- Measurable Measurable

between Variables Measurable Measurable

Mean Not Not Applicable Applicable

Applicable Applicable

Median Not Applicable Applicable Applicable

Applicable

Mode Applicable Applicable Applicable Applicable

Other Scaling Techniques

Scaling of objects can be used for a comparative study between more than one objects
(products, services, brands, events, etc.). Or can be individually carried out to
understand the consumer’s behaviour and response towards a particular object.

Following are the two categories under which other scaling techniques are placed based
on their comparability:
Comparative Scales

For comparing two or more variables, a comparative scale is used by the respondents.
Following are the different types of comparative scaling techniques:

Paired Comparison

A paired comparison symbolizes two variables from which the respondent needs to
select one. This technique is mainly used at the time of product testing, to facilitate the
consumers with a comparative analysis of the two major products in the market.

To compare more than two objects say comparing P, Q and R, one can first compare P
with Q and then the superior one (i.e., one with a higher percentage) with R.

For example, A market survey was conducted to find out consumer’s preference for the
network service provider brands, A and B. The outcome of the survey was as follows:
Brand ‘A’ = 57%
Brand ‘B’ = 43%
Thus, it is visible that the consumers prefer brand ‘A’, over brand ‘B’.
Rank Order

In rank order scaling the respondent needs to rank or arrange the given objects
according to his or her preference.

For example, A soap manufacturing company conducted a rank order scaling to find
out the orderly preference of the consumers. It asked the respondents to rank the
following brands in the sequence of their choice:

SOAP BRANDS RANK

Brand V 4

Brand X 2

Brand Y 1

Brand Z 3

The above scaling shows that soap ‘Y’ is the most preferred brand, followed by soap
‘X’, then soap ‘Z’ and the least preferred one is the soap ‘V’.

Constant Sum

It is a scaling technique where a continual sum of units like dollars, points, chits, chips,
etc. is given to the features, attributes and importance of a particular product or service
by the respondents.

For example, The respondents belonging to 3 different segments were asked to allocate
50 points to the following attributes of a cosmetic product ‘P’:

ATTRIBUTES SEGMENT 1 SEGMENT 2 SEGMENT 3

Finish 11 8 9

Skin Friendly 11 12 12
 ATTRIBUTES SEGMENT 1 SEGMENT 2 SEGMENT 3

Fragrance 7 11 8

Packaging 9 8 10

Price 12 11 11

From the above constant sum scaling analysis, we can see that:

 Segment 1 considers product ‘P’ due to its competitive price as a major factor.
 But segment 2 and segment 3, prefers the product because it is skin-friendly.

Sort Scaling

Q-sort scaling is a technique used for sorting the most appropriate objects out of a large
number of given variables. It emphasizes on the ranking of the given objects in a
descending order to form similar piles based on specific attributes.

It is suitable in the case where the number of objects is not less than 60 and more than
140, the most appropriate of all ranging between 60 to 90.

For example, The marketing manager of a garment manufacturing company sorts the
most efficient marketing executives based on their past performance, sales revenue
generation, dedication and growth.

The Q-sort scaling was performed on 60 executives, and the marketing head creates
three piles based on their efficiency as follows:
In the above diagram, the initials of the employees are used to denote their names.

Non-Comparative Scales

A non-comparative scale is used to analyse the performance of an individual product or

object on different parameters. Following are some of its most common types:

Continuous Rating Scales

It is a graphical rating scale where the respondents are free to place the object at a
position of their choice. It is done by selecting and marking a point along the vertical or
horizontal line which ranges between two extreme criteria.

For example, A mattress manufacturing company used a continuous rating scale to find
out the level of customer satisfaction for its new comfy bedding. The response can be
taken in the following different ways (stated as versions here):
The above diagram shows a non-comparative analysis of one particular product, i.e.
comfy bedding. Thus, making it very clear that the customers are quite satisfied with
the product and its features.

Itemized Rating Scale

Itemized scale is another essential technique under the non-comparative scales. It

emphasizes on choosing a particular category among the various given categories by the
respondents. Each class is briefly defined by the researchers to facilitate such selection.

The three most commonly used itemized rating scales are as follows:

 Likert Scale: In the Likert scale, the researcher provides some statements and
ask the respondents to mark their level of agreement or disagreement over these
statements by selecting any one of the options from the five given alternatives.
For example, A shoes manufacturing company adopted the Likert scale technique
for its new sports shoe range named Z sports shoes. The purpose is to know the
agreement or disagreement of the respondents.
For this, the researcher asked the respondents to circle a number representing the
most suitable answer according to them, in the following representation:

o 1 – Strongly Disagree
o 2 – Disagree
o 3 – Neither Agree Nor Disagree
o 4 – Agree
 o 5 – Strongly Agree

NEITHER
STRONGLY DISAGRE AGREE AGRE STRONGLY
STATEMENT
DISAGREE E NOR E AGREE
DISAGREE

Z sports shoes are 1 2 3 4 5

very light weight

Z sports shoes are 1 2 3 4 5

extremely
comfortable

Z sports shoes 1 2 3 4 5
look too trendy

I will definitely 1 2 3 4 5
recommend Z
sports shoes to
friends, family and
colleagues

The above illustration will help the company to understand what the customers think
about its products. Also, whether there is any need for improvement or not.

 Semantic Differential Scale: A bi-polar seven-point non-comparative rating scale

is where the respondent can mark on any of the seven points for each given
attribute of the object as per personal choice. Thus, depicting the respondent’s
attitude or perception towards the object.

For example, A well-known brand for watches, carried out semantic differential
scaling to understand the customer’s attitude towards its product. The pictorial
representation of this technique is as follows:
 From the above diagram, we can analyze that the customer finds the product of
superior quality; however, the brand needs to focus more on the styling of its watches.

 Stapel Scale: A Stapel scale is that itemized rating scale which measures the
response, perception or attitude of the respondents for a particular object through
a unipolar rating. The range of a Stapel scale is between -5 to +5 eliminating 0,
thus confining to 10 units.

For example, A tours and travel company asked the respondent to rank their
holiday package in terms of value for money and user-friendly interface as
follows:
With the help of the above scale, we can say that the company needs to improve its
package in terms of value for money. However, the decisive point is that the interface is
quite user-friendly for the customers.

Conclusion

Scaling techniques provide a clear picture of the product life cycle and the market
acceptability of the products offered.

It facilitates product development and benchmarking through rigorous market

research.