1. (Business Research Methods)
RESEARCH METHODOLOGY
(Business Research Methods)
Week 9
29 August 2005
MBA III (Research Methodology) Course Instructor: Dr. Aurangzeb Z. Khan

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

21. For practical examples, see text book
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

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