THE CONCEPT OF MEASUREMENT

MBA Student Name : Marissa A. Rivera

Course Name : MBA 106- Marketing Research
Course Facilitator : Dr. Minerva Ferranco - Prof. Graduate Program

THE CONCEPT OF MEASUREMENT

LEARNING OBJECTIVES:
To understand the concept of measurement.
To learn about the measurement process and how to develop a good measurement scale.
To understand the four levels of measurement
To explore the concepts of reliability and validity.

MEASUREMENT
The process of assigning numbers or labels to persons, objects, or events in accordance with specific
rules for representing quantities or qualities or attributes.

Measurement, then, is a procedure used to assign numbers that reflect the amount of an attribute
possessed by a person, object, or event. Note that it is not the person, object, or event that is being
measured, but rather its attributes. A researcher, for example, does not measure a consumer per se
but rather measures that consumers attitudes, income, brand loyalty, age, and other relevant
factors.

The concept of rules is key to measurement. RULE: The guide, method, or command that tells a
researcher what to do.

Rules for assigning labels to properties of variables are the most important component of
measurement, because poor rules can make the outcome meaningless. Accurate measurement
requires rules that are both clear and specific.

WHAT IS MEASUREMENT PROCESS?

MEASUREMENT PROCESS is an important part of marketing research studies which involves

different steps of defining the constructs and concepts and the evaluating the reliability and validity
of measurement studies.

The measurement process comprises the following steps:

(1) Identify the concept of interest
(2) Develop a construct
(3) Define the concept constitutively
(4) Define the concept operationally
(5) Develop a measurement scale
(6) Evaluate the reliability and validity of the measurement

MARKETING RESEARCH REPORT- CONCEPT OF MEASUREMENT SUBMITTED BY: MARISSA A. RIVERA/

1
SUBMITTED TO: DR. MINERVA FERRANCO, PROF.-GRADUATE PORGRAM
 THE MEASUREMENT PROCESS

STEPS IN MEASUREMENT PROCESS

Step One: Identify the Concept of Interest

This is the first stage of measurement process which involves the identification of concept of interest.

A CONCEPT is an abstract idea generalized from particular facts.

It is a category of thought used to group sense data together as if they were all the same.

Step Two: Develop a Construct

CONSTRUCTS are specific types of concepts that exist at higher levels of abstraction than do
everyday concepts.

Constructs are invented for theoretical use and thus are likely to cut across various preexisting
categories of thought. The value of specific constructs depends on how useful they are in explaining,
predicting, and controlling phenomena, just as the value of everyday concepts depends on how
helpful they are in everyday affairs. Generally, constructs are not directly observable. Instead, they
are inferred by some indirect method from results such as findings on a questionnaire.

Constructs aid researchers by simplifying and integrating the complex phenomena found in the
marketing environment.
i.e., Brand loyalty, social class, personality, purchasing power

MARKETING RESEARCH REPORT- CONCEPT OF MEASUREMENT SUBMITTED BY: MARISSA A. RIVERA/

2
SUBMITTED TO: DR. MINERVA FERRANCO, PROF.-GRADUATE PORGRAM
Step Three: Define the Concept Constitutively
The next step of the measurement process is about defining the concept constitutively, as the title
states. Defining a concept constitutively is actually its theoretical or conceptual definition of the
meaning of the central theme of study, also defining its boundaries.

Constructs that are associated with a scientific theory are required to be defined in the above
mentioned terms. Hence, any constructs that possess constitutive meaning can be used in the
theories.

Step Four: Define the Concept Operationally

If the constitutive definition is done well and in a precise manner, the operational definition of the
concept becomes much easier.

OPERATIONAL DEFINITION- specifies what the researcher must do to measure the concept
under investigation.

This CONCEPT refers to the measurement of observable characteristics and the process that will
be used for assigning value to the concept.

Step Five: Develop a Measurement Scale

This can be said as the most important step in a measurement process which is about developing a
measurement scale.

A scale can be defined as a set of number or symbols which are constructed in such a way that these
numbers or symbols can be assigned using a rule to the individuals (attitudes or their behaviors) to
whom the scale is applied.

Hence, this stage of the measurement process is completely about developing such a scale which
fulfills the requirement of the study and the process.

Step Six: Evaluating the Reliability and Validity Measurement

This is another valuable step in the measurement process which is also the last step. It is believed
that an ideal marketing study would provide information that is precise, timely and accurate. .

Here, a formula is used to measure the reliability and validity of measurement considering M=A.
M refers to measurement while A is used for complete accuracy. Hence, the last step of the
measurement process is about evaluating and assessing the reliability and validity of measurement
results.

Accurate Data Imply Accurate Measurement or M = A + E

where M = measurement
A = accuracy
E = errors- (random or systematic)

MARKETING RESEARCH REPORT- CONCEPT OF MEASUREMENT SUBMITTED BY: MARISSA A. RIVERA/

3
SUBMITTED TO: DR. MINERVA FERRANCO, PROF.-GRADUATE PORGRAM
FOUR LEVELS OF MEASUREMENT

There are four basic levels of measurement: nominal, ordinal, interval, and ratio. These levels differ
as to how closely they approach the structure of the number system we use. It is important to
understand the level of measurement of variables in research, because the level of measurement
determines the type of statistical analysis that can be conducted, and, therefore, the type of
conclusions that can be drawn from the research.

1. Nominal:
Scales that partition data into mutually exclusive and collectively exhaustive categories.
Example:
Gender: (1) Male (2) Female
Geographic Area: (1) Urban (2) Rural (3) Suburban

The numbers assigned to objects or phenomena have no true numerical meaning; they are
simply labels and nothing else. The term nominal means name-like.

MARKETING RESEARCH REPORT- CONCEPT OF MEASUREMENT SUBMITTED BY: MARISSA A. RIVERA/

4
SUBMITTED TO: DR. MINERVA FERRANCO, PROF.-GRADUATE PORGRAM
2. Ordinal:
Scales that maintain the labeling characteristics of nominal scales and have the ability to
order data.

Ordinal numbers are used strictly to indicate rank order. The numbers do not indicate
absolute quantities, nor do they imply that the intervals between the numbers are equal.

Example:
A controversial (and common) use of ordinal scales is to rate various characteristics. (1) Very
Certain, (2) Certain, (3) Neutral, (4) Uncertain, (5) Very certain

3. Interval:
Scales that have the characteristics of ordinal scales, plus equal intervals between points to
show relative amounts; they may include an arbitrary zero point.

Examples are the Fahrenheit and Celsius scales;

Interval scales enable the researcher to discuss differences separating two objects. They are
amenable to computation of an arithmetic mean, standard deviation, and correlation
coefficients.

4. Ratio:
Scales that have the characteristics of interval scales, plus a meaningful zero point so that
magnitudes can be compared arithmetically.

Ratio scale reflects the actual amount of a variable. Physical characteristics of a respondent
such as age, weight, and height are examples of ratio-scaled variables.

Other ratio scales are based on area, distance, money values, return rates, population counts,
and lapsed periods of time.

Example: The actual weight of a hamburger or serving of fries is measured in ratio and is
meaningful to the research.

DATA TYPES AND LEVELS OF MEASUREMENT

Every Statistical procedure we will use and model we build depends on the nature of the type of the
data. Datasets are formed by two types of data Qualitative data and Quantitative data.

We can further classify them based on TYPE and LEVEL of measurement.

Qualitative Data consist of values that describe qualities or non-numerical (i.e. brand names, letter
grades, area codes, social security numbers, gender).
Quantitative Data consist of values representing counts or measurements with which you can
make meaningful calculations (i.e. IQ scores, percentage grades, price of cars)

MARKETING RESEARCH REPORT- CONCEPT OF MEASUREMENT SUBMITTED BY: MARISSA A. RIVERA/

5
SUBMITTED TO: DR. MINERVA FERRANCO, PROF.-GRADUATE PORGRAM
DATA TYPES AND LEVELS OF MEASUREMENT
Nominal data consisting of names, labels, or categories only. The data are qualitative and
cannot be ranked or ordered.

Ordinal qualitative or quantitative data that can be arranged in some order. It generally
does not make sense to do computations with ordinal data.

Interval quantitative data which intervals are meaningful, but ratios are not. Data at this
level have an arbitrary zero point.

Ratio quantitative data which both intervals and ratios are meaningful. Data at this level
have a true zero point.

RELIABILITY AND VALIDITY

Though reliability and validity are different from each other, they are still related. In order for
research data to be of value and of use, they must be both reliable and valid.

Reliability:
Degree to which measures are free from random error and, therefore, provide consistent data. The
extent to which the survey responses are internally consistent.

Validity:
Degree to which what the researcher was trying to measure was actually measured.

TESTING RELIABILITY
There are three ways to assess reliability:

1. Test and Retest:

The ability of the same instrument to produce consistent results when used a second time under
conditions as similar as possible to the original conditions. Stability means that very few
differences in scores are found between the first and second administrations of the test; the
measuring instrument is said to be stable.

MARKETING RESEARCH REPORT- CONCEPT OF MEASUREMENT SUBMITTED BY: MARISSA A. RIVERA/

6
SUBMITTED TO: DR. MINERVA FERRANCO, PROF.-GRADUATE PORGRAM
2. Equivalent Form:
Ability of two very similar forms of an instrument to produce closely correlated results. The
difficulties encountered with the testretest approach can be avoided by creating equivalent
forms of a measurement instrument. Equivalent form reliability is determined by measuring the
correlation of the scores on the two instruments.

There are two problems with equivalent forms that should be noted. First, it is very difficult, and
perhaps impossible, to create two totally equivalent forms. Second, if equivalence can be
achieved, it may not be worth the time, trouble, and expense involved.

3. Internal Consistency:
The ability of an instrument to produce similar results when used on different samples during
the same time period to measure a phenomenon.
Split Half Technique:
A method of assessing the reliability of a scale by dividing the total set of measurement items
in half and correlating the results.

TESTING VALIDITY
Validity addresses whether the attempt at measurement was successful. The validity of a measure
refers to the extent to which the measurement device or process is free from both systematic and
random error. Types of validity include face, content, criterion related, and construct validity.

1. Face:
The degree to which a measurement seems to measure what it is supposed to measure. It is the
weakest form of validity

2. Content:
The representativeness, or sampling adequacy, of the content of the measurement instrument.

3. Criterion Related:
The degree to which a measurement instrument can predict a variable that is designated a
criterion. Two subcategories of criterion-related validity are predictive validity and concurrent
validity.
Predictive:
The degree to which a future level of a criterion can be forecast by a current measurement
scale.
Concurrent:
The degree to which another variable, measured at the same point in time as the variable of
interest can be predicted by the measurement instrument.

4. Construct Validity:
The degree to which a measurement instrument represents and logically connects--via the
underlying theory--the observed phenomenon to the construct. Two statistical measures of
construct validity are convergent and discriminant validity.

MARKETING RESEARCH REPORT- CONCEPT OF MEASUREMENT SUBMITTED BY: MARISSA A. RIVERA/

7
SUBMITTED TO: DR. MINERVA FERRANCO, PROF.-GRADUATE PORGRAM
 Convergent Validity:
The degree of correlation among different measures that purport to measure the same
construct.
Discriminant Validity:
The measure of the lack of association among constructs that are supposed to be different.

THIS IS THE ILLUSTRATION OF POSSIBLE RELIABILITY VALIDITY SITUATIONS IN

MEASUREMENT.

Situation 1 shows holes all over the target, which could be caused by the use of an old rifle, being a
poor shot, or many other factors. This complete lack of consistency means there is no reliability.
Because the instrument lacks reliability, thus creating huge errors, it cannot be valid.

Situation 2 denotes a very tight pattern (consistency), but the pattern is far removed from the bulls-
eye. This illustrates that an instrument can have a high level of reliability (little variance) but lack
validity. The instrument is consistent, but it does not measure what it is supposed to measure. The
shooter has a steady eye, but the sights are not adjusted properly.

Situation 3 shows the reliability and validity that researchers strive to achieve in a measurement
instrument; it is on target with what the researcher is attempting to measure.

MARKETING RESEARCH REPORT- CONCEPT OF MEASUREMENT SUBMITTED BY: MARISSA A. RIVERA/

8
SUBMITTED TO: DR. MINERVA FERRANCO, PROF.-GRADUATE PORGRAM