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Measurement scale and scale types
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Measurement Scales Paper
Marketers use scales to measure the assignment of numbers to objects or persons to represent quantities to their attributes (Aaker, 2007). This includes the measurement of agreements or disagreements that relates to attitudes or objects. For example, the measurement is in two parts, the item part, and the evaluative part. It is important to understand the level of characteristics of scales such as nominal, ordinal, interval, and ratio because scales differ with respect to the scaling characteristics. Nominal scales label the objects. Ordinal scales rank the order and size difference of the respondents or their responses. Interval scales represent the equal distance between the descriptor. Finally, the ratio scales have a true zero point such as an actual number. These types of scales can be beneficial to an organization that needs to measure and understand various characteristics when analyzing questionnaires. It helps determine what can or cannot be said about the object and helps determine which statistical analysis should be used.
Nominal
Nominal scales are a type of measurement most commonly used when conducting market research. This type of scale divides data into different categories that are mutually exclusive and collectively exhausted so that the data will be categorized into a group (McDaniel, 2006). Nominal scales use numeral to identify objects, groups, or individuals. When working with a questionnaire, nominal scales will allow the researcher to measure the results by labeling and identifying the objects to a number. The numbers are not added and have no true number value but are used as a reference to identify answers in the questionnaire. For example, if there were a questionnaire that wa...
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...ls. Ratio scales incorporates the nominal, ordinal, and interval characteristics with a true zero point. Both interval and ratio-scaled data are also called metric data and parametric and nonparametric tests can be performed on the data. Properties need to be examined on different scales to evaluate the measurement and ensure accuracy. Information is knowledge and seeking data for decision-making can improve logistics, sales, promotions, new product development, brand management, and pricing (McDaniel & Gates, 2006).
Works Cited
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Burns, A. C., Bush, R. F. (2006). Marketing research: Online research applications (5th ed.). Upper Saddle River, NJ: Prentice Hall.
McDaniel, C. & Gates, R. (2006). Marketing research (7th ed.). Hoboken, NJ: John Wiley & Sons.
Cravens, D. W., & Piercy, N. F. (2009). Strategic marketing (9th ed.). New York, NY: McGraw-Hill Company.
Armstrong, Gary, and Philip Kotler. Marketing: an introduction. 11th ed. Upper Saddle River, NJ: Pearson Prentice Hall, 2013. Print.
There are two basic psychometric properties, validity and reliability that have been used to evaluate the quality of scale development. Psychometric testing used to evaluate the quality of instrument (Polit& Beck, 2010).
Polaris Marketing Research (2008). Marketing Research Process: An Overview. Retrieved May 8, 2008, from http://www.polarismr.com/edctr_overview.html
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Etzel, Michael J., Stanton, Bruce J., Stanton, William J. (2004). Marketing. (13th ed.). Boston: McGraw-Hill.
Cravens, D. W., & Piercy, N. F. (2009). Strategic marketing (9th ed.). New York, NY: McGraw-Hill.
Ratios traditionally measure the most important factors such as liquidity, solvency and profitability, as well as other measures of solvency. Different studies have found various ratios to be the most efficient indicators of solvency. Studies of ratio analysis began in the 1930’s, with several studies of the concluding that firms with the potential to file bankruptcy all exhibited different ratios than those companies that were financially sound.
Ratios analysis also makes possible comparison of the performance of different divisions of the firm. The ratios are helpful in deciding about their efficiency or otherwise in the past and likely performance in the future.
Burns and Grove (2011) add that this test provides an examination of frequencies for two nominal scaled variables in a cross-tabulated form to determine whether the variables have a non-monotonic relationship. The Chi-square test (2) examines the relationships between two variables at nominal and discrete level. The test compares the actual frequencies with the expected results or how strongly they match or differ from the expected distribution and whether two variables are independent or not. In this study, most of the questions were nominal and discrete hence the test was used for interpretation of data (Burns and Grove, 2011). Chi-square test (2) is used to test the statistical relationship between two discrete variables using a set of frequencies (Carver and Nash,
Armstrong G. & Kotler P. (2007) Marketing: An Introduction 8E Upper Saddle River, NJ Pearson Prentice Hall Publishers
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Armstrong, G, Adam, S, Denize, S, Kotler, P, 2010, Principles of Marketing 5th Edition, Pearson Australia Group, Frenchs Forest
Categorical Data: These are statistical procedures which can be used for the analysis of categorical data, also known as data on the nominal scale.
Philip Kotler; Kevin Lane Keller (2009): “Marketing Management”, 13th edition, Pearson Prentice Hall, pg 61-62