Measuring customer satisfaction and factor analysis - Measurement theory

4 important questions on Measuring customer satisfaction and factor analysis - Measurement theory

How can you cancel out the measurement errors in surveys?

By asking multiple questions on the same topic so that the scale reflects the basic nature of the concept.

What type of correlations do you expect when the survey is good?

High correlations between the grouped questions about one topic.

What index is used to capture reliability and how is it calculated?

Coefficient alpha. Ranges from 0-1 and best when above 0.7
Standardized:
  • With p = number of items in the scale (i.e. how many questions in the group)
  • With the denominator = p+sum of all correlations

Variances and covariances:
  • With sigma2i = variance of each item
  • With sigma2T = variance of total scale (all p items)

Variance of total scale
  • With sigmaij = covariance between i and j
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What is an easy form of validation?

Content validity or face validity which means whether you can affirm that the items look like they capture the content you are hoping to measure.

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