Chapter 3

Measurement Concept
 Content
3.1 Measurement and scaling concept
3.2 Types of scales
3.3 Reliability , and validity of measuring
tools/scales
3.1 Measurement and scaling concepts
• Concept : A generalized idea that represents
something of meaning.

• Measurement : quantifying a concept

• Scales: a range of values that captures the

variance in a concept

• Operationalization: The process of measuring a

concept by identifying scales that correspond to
variance in it
3.2 Types of scale measurements
Scales could be nominal, ordinal, interval, and
ratio levels .
• Variables are in business research could be
classified as categorical or continuous
variables.

• Variables expressed in a nominal and ordinal

scales are collectively called categorical
variables

• Variables expressed in an interval and ratio

scales are classified as continuous variables.
3.3 Reliability , validity and sensitivity
• Two criteria for good measurement are validity,
and reliability.
• Validity is the ability of an instrument /tool or
test to measure what was intended to be
measured. (its accuracy)
• Reliability is the degree to which measures
yield consistent and stable results.
• Reliability is a necessary but not sufficient
condition for validity.
Reliability and Validity on Target
• Reliability test involves a check on the Internal
consistency and stability of the scale or measure
• Internal consistency : measure’s homogeneity or
the extent to which each indicator of a concept
converges on some common meaning. Split half
method and coefficient alpha ( α ) help evaluate
the internal consistency of a data collection tool
• split-half method is a method for assessing
internal consistency by checking the results of
one-half of a set of scaled items against the
results from the other half. coefficient alpha ( α )
is also the most commonly applied estimate
• Stability could be assessed by the test-retest
method.
• construct validity exists when a measure reliably measures
and truthfully represents a unique concept; consists of several
components including face validity, content validity,
criterion validity, convergent validity, and discriminant
validity.
• face validity
– is a scale’s content logically appears to reflect what was
intended to be measured.
– When an inspection of the test items convinces experts
that the items match the definition, the scale is said to
have face validity.
• content validity is the degree that a measure cover
the breadth of the domain of interest.
• criterion validity refers to the ability of a measure to
correlate with other standard measures of similar
constructs or established criteria.
• convergent validity
– concepts that should be related to one another
are in fact related. Highly reliable scales contain
convergent validity.
• discriminant validity
– how unique or distinct is a measure;
– a scale should not correlate too highly with a
measure of a different construct.
End