Question

The Kroger Company is one of the largest grocery retailers in the United States with over two thousand grocery stores across the country. Kroger uses an online customer opinion questionnaire to obtain performance data about its products and services and learn about what motivates its customers (Kroger website, April 2012). In the survey, Kroger customers were asked if they would be willing to pay more for products that had each of the following four characteristics. The four questions were: Would you pay more for
products that have a brand name?

products that are environmentally friendly?

products that are organic?

products that have been recommended by others?

For each question, the customers had the option of responding yes if they would pay more or no if they would not pay more.

1. Is the data collected by Kroger in this example categorical or quantitative?

2. What measurement scale is used? (ratio, interval, nominal, ordinal)

Answer 1

Answer:

1) Categorical

2) Norminal

Step-by-step explanation:

1)

The data collected by Kroger in this example categorical or quantitative identified below:

From the given information, Kroger uses an online customer opinion to obtain the data about its products and services. All the questions based on yes or no type questions. Here the questions are ‘products that have a brand name, products that are environmentally friendly, products that are organic’ these type of questions cannot be expressed numerically so the data collected by Kroger Company is categorical variable because these answers of the questions cannot be counted.

Any variable which is grouped into two or more attributes then it is a categorical variable. The data collected by Kroger Company is categorical variable and any variable which can be counted or measured in numerical then it is quantitative variable.

2)

The measurement scale is identified below:

Here the variable cannot be counted in numerical sale so the level of measurement cannot be ratio, interval because ratio and interval scale can be used for numerical data. The nominal scale can be used to identify the ‘products that have a brand name, products that are environmentally friendly, products that are organic, products that have been recommended by others’ because natural order need not be used.

The ratio and interval scale can be used for Quantitative data and nominal and ordinal scale can be used for Qualitative data. When the order is needed to categorize the objects Ordinal scale is used, when the order is not needed to categorize the objects Nominal scale is used.