Lecture 9

Measurement and scaling

Learning Objectives
1. 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.

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 Concept
• Concept: abstraction or idea formed by the perception of
phenomena.
– Objects: person, firm, car, etc.
– Characteristics of objects.

Concept, construct, and variable

Concept Construct Variable

Generalizable properties or Abstract concept that is specifically Measurable representation of an

characteristics associated with chosen (or “created”) to explain a abstract construct.
objects, events, or people. given phenomenon.
Conceptualization: the process
whereby these concepts are
given theoretical meaning

Examples: A simple concept • Person’s weight measured in kg.

• Duration of a project
• Person’s weight
• Firm’s competitiveness
• Person’s weight • Person’s IQ
 Unidimensional construct • Person’s satisfaction in the
workplace (with the job, the
Combination of related concepts
payments, the co-workers, the
• Person’s communication skill
supervisor, etc.).
(consisting underlying concepts,
such as vocabulary, syntax, spelling)
 Multi-dimensional construct

A construct used in a study must have

a precise and clear definition: what it
means and what it does not mean.
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 Measurement
• Measurement involves assigning numbers to a variable
according to certain rules.
– The assigned numbers must reflect the characteristics of the
phenomenon being measured.
• A scale is a measurement tool that can be used to measure
a question with a predetermined number of outcomes.
– Categorical
– Directional
– Intensity

Types of scales

Nominal Ordinal

Uses numbers as labels to identify and classify objects, Ranking scale; places objects in a predetermined
individuals, or events. category that is ordered according to a criterion (e.g.,
age group, preference, importance).
Are you happy? Please rank the following attributes from 1 (the least
Yes / No important) to 4 (the most important):
Food quality: ___
Atmosphere: ___
Prices: ___
Employees: ___

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 Types of scales

Interval Ratio

Uses numbers to rate objects or events so the • Possesses a unique origin, or zero point.
distances between the numbers are equal. • Possible to compute ratios of points on the scale.
• The location of the zero point is not fixed.
• The zero point and unit are arbitrary.
Please indicate the extent of your agreement or How many employees are there in your company?
disagreement with the following statement by circling
the appropriate number. __________

This restaurant is a fun place to go:

Neither
Strongly agree nor Strongly
disagree Disagree disagree Agree agree

1 2 3 4 5

Frequently used measurement scales

Metric Nonmetric

• Likert (summated ratings) • Categorical

• Numerical • Rank order

• Semantic differential • Sorting

• Graphic ratings • Constant sum

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 Likert scale
• Measuring attitudes or opinions.
• Summated rating scale: combine several statements that all
related to a single concept.

Neither
Strongly agree nor Strongly
disagree Disagree disagree Agree agree

When I hear about a new restaurant, I eat there to see

1 2 3 4 5
what it is like.

Numerical scale
• Numbers as response options rather than verbal
descriptions.

Please indicate your satisfaction with your current job by placing a percentage in the blank,
__________
with 0% = Not satisfied at all and 100% = Highly satisfied.

How likely is it that you will look for another job in the next six months?
____ Extremely likely
____ Very likely
____ Somewhat likely
____ Neither—about a 50–50 chance
____ Somewhat unlikely
____ Very unlikely
____ Extremely unlikely

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 Semantic differential scale
• Use of bipolar end points (or anchors)
– The end points describe individuals, objects, or events with
opposite adjectives or adverbs.
– The intermediate points typically numbered.

My supervisor is…
Friendly ___ ___ ___ ___ ___ Unfriendly

Helpful ___ ___ ___ ___ ___ Unhelpful

Supportive ___ ___ ___ ___ ___ Unsupportive

Enthusiastic ___ ___ ___ ___ ___ Unenthusiastic

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Graphic ratings scale

• Continuum in the form of a line with anchors that are
numbered and named.

On a scale from 0 to 10 how would you rate the atmosphere of this restaurant?

Poor OK Excellent

0 5 10

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 Categorical scales
• Nominally measured opinion scales that have two or more
response categories.

What is your job title?

____ Attorney
____ Professor
____ Physician
____ Manager
____ CEO (chief executive officer)
____ Other (please specify) _______________________

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Rank-order scale
• Rank a set of objects or characteristics in terms of
preference, similarity, importance, or similar adjectives

Please rank the following five attributes on a scale from 1 (most important)
to 5 (least important) in searching for a job.

Job Attributes Ranking

Pay _____

Benefits _____

Coworkers _____

Flexible scheduling of work hours _____

Working conditions _____

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 Sorting scale
• Respondents indicate their beliefs or opinions by arranging
objects (items) on the basis of perceived similarity or some
other attribute.

• Particularly useful in ranking the importance of objects

because it prevents respondents from giving all objects a
high rating.

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Constant sum scale

• Respondents are asked to divide a constant sum over
several categories to indicate, for example, the relative
importance of the attributes.

Attributes Score

On-time delivery _____

Price _____

Tracking capability _____

Invoice accuracy _____

SUM 100

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 Practical decisions when developing scales
• Number of scale categories.
• Odd or even number of categories.
• Number of items in measuring a concept.
• Forced or nonforced choices.
– “No opinion”
• Category labels for scales.
• Converting metric scales to nonmetric.
• Reversing established scales.

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Assessing measurement scales

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 Criteria for Assessing Measurement Scales

Reliability Validity

• Test-retest reliability • Content validity

• Alternative-forms reliability • Construct validity

• Internal consistency reliability ‒ Convergent validity

‒ Discriminant validity
• Criterion validity:
‒ Concurrent validity
‒ Predictive validity

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