2.Survey: Measurement and Scaling
2.4 Multi-item Scales
Latent Constructs
A Latent Construct – is a variable that cannot be observed or measured directly but can be inferred from other observable measurable variables.
Thus, the researcher must capture the variable through questions representing the presence/level of the variable in question.
Latent Constructs & Multi-Item Scales
Latent Constructs & Multi-Item Scales
Examples:
- Satisfaction
- Loyalty
- Trust
- Service Quality
- Purchase intention
- Attitude Toward the Brand
- Involvement
- Price Perception
- Website Ease-of-Use
Advantages:
+ allow to assess abstract concepts
+ make it easier to understand the data and phenomenon
+ reduce dimensionality of data through aggregating a large number of observable variables in a model to represent an underlying concept
+ link observable (“sub-symbolic”) data of the real world to symbolic data in the modeled world
Multi-Item Scales: Make or Steal
Secure Customer Index™
Assessing Consumer Loyalty and Retention
Overall Satisfaction:
4 = very satisfied
3 = somewhat satisfied
2 = somewhat dissatisfied
1 = very dissatisfied
Willingness to Recommend:
5 = definitely would recommend
4 = probably would recommend
3 = might or might not recommend
2= probably would not recommend
1= definitely would not recommend
Likelihood to Use Again:
5 = definitely will use again
4 = probably will use again
3= might or might not use again
2= probably will not use again
1 = definitely will not use again
Secure Customers | % very satisfied/definitely would repeat/definitely would recommend |
Favorable Customers |
% giving at least “second best” response on all three measures of satisfaction and loyalty |
Vulnerable Customers |
% somewhat satisfied/might or might not repeat/might or might not recommend |
At Risk Customers |
% somewhat satisfied or dissatisfied/probably or definitely would not repeat/probably or definitely would not recommend |
Extended Secure Customer Index™ Burke Inc.
Overall Satisfaction | What is your overall level of satisfaction with (BRAND/CO)? |
Willingness to Recommend |
If you were asked to recommend a (INDUSTRY) how likely would you be to recommend (BRAND/CO.)? |
Likelihood to Repurchase |
How likely are you to continue using (BRAND/CO.)? |
Earned Loyalty |
(BRAND/CO.) has earned my loyalty |
Preferred Company |
I prefer (BRAND/CO.) to all other providers |