Explain how indexes or composite measures are formed and give an ...

[Coya19@aol.com]

Explain how indexes or composite measures are formed and give an example of how they are used in business research.

Question 2

Which of the following marketing communications strategies is usually applied to cigarettes, candy, and liquor purchases?
 a. informative c. habit formation
  b. affective d. self-satisfaction

[fromAlphatoOmega22]

Answer to Question 1

Multi-item instruments for measuring a construct are either called index measures or composite measures. An index measure assigns a value based on how characteristic an observation is of the thing being measured. Indexes often are formed by putting several variables together. For example, a social class index is based on three weighted variables: income, occupation, and education. With an index, the different attributes may not be strongly correlated with each other. Composite measures also assign a value based on a mathematical derivation of multiple variables. For most practical applications, composite measures and indexes are computed in the same way. However, composite measures are distinguished from index measures in that the composite's indicators should be both theoretically and statistically related to each other.

These types of measures are used in several areas of business research, especially when measuring latent concepts.

Answer to Question 2

D
Low involvement and feeling products require the self-satisfaction strategy.2

[Coya19@aol.com]

Thanks for the timely response, appreciate it

[Jsherida]

Excellent