Business & Management Studies

How do we measure the intangible? Overcoming the measurement challenge in services

How do we measure the intangible? Overcoming the measurement challenge in services

This study proposes the usefulness of a discrete choice experiment (DCE), where respondents are asked the same questions (i.e., items) and are presented with a scale while dichotomizing the possible responses for each scale item.

Authors

Diptiman Banerji, Professor, Jindal Global Business School, O.P. Jindal Global University, Sonipat, India.

Aishwarya Ramasundaram, Department of Marketing, Indian Institute of Management Kozhikode, Kozhikode, India.

S. Sreejesh, Department of Marketing, Indian Institute of Management Kozhikode, Kozhikode, India.

Yupal S. Shukla, Centre for Research Excellence in Marketing (CREM), MICA, Ahmedabad, India.

Ravi Chatterjee, Department of Marketing, Institute of Management Technology, Dubai, UAE.

Summary

Measuring service tangibility and intangibility aspects has been an interest to service researchers. While the Likert rating scale has been widely employed for measuring mental intangibility or its dimensions, it is not free from issues such as different anchoring, that is, the same words pointing to different attitudes and understanding for different individuals.

The present study proposes the usefulness of a discrete choice experiment (DCE), where respondents are asked the same questions (i.e., items) and are presented with a scale while dichotomizing the possible responses for each scale item.

We show that our proposed method is accurate and generalizable across contexts and samples through multiple studies. The DCE method gives managers a better way to measure intangibility or similar service constructs like service quality, which can help them manage their service offerings and make customers happier.

Published in: International Journal of Consumer Studies

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