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Correcting the t statistic for measurement error

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  • Srinivas Durvasula
  • Subhash Sharma
  • Kealy Carter

Abstract

Studies in marketing often involve application of multi-item scales to measure latent constructs. Once the psychometric properties of a scale have been assessed, responses to individual scale items are often summed to form a composite score, which then is compared across groups by performing statistical tests such as a t test. In this note, we draw researchers’ attention to an often overlooked fact that the t test is attenuated by imperfect measures. As a solution, we propose the disattenuated t statistic and discuss how it would increase accuracy of estimates and affect decisions in the marketing discipline. Copyright Springer Science+Business Media, LLC 2012

Suggested Citation

  • Srinivas Durvasula & Subhash Sharma & Kealy Carter, 2012. "Correcting the t statistic for measurement error," Marketing Letters, Springer, vol. 23(3), pages 671-682, September.
    • Handle: RePEc:kap:mktlet:v:23:y:2012:i:3:p:671-682
    DOI: 10.1007/s11002-012-9170-9
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    References listed on IDEAS

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    1. Durvasula, Srinivas, et al, 1993. "Assessing the Cross-National Applicability of Consumer Behavior Models: A Model of Attitude toward Advertising in General," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 19(4), pages 626-636, March.
    2. Steenkamp, Jan-Benedict E M & Baumgartner, Hans, 1998. "Assessing Measurement Invariance in Cross-National Consumer Research," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 25(1), pages 78-90, June.
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    Cited by:

    1. Varsha Verma & Dheeraj Sharma & Jagdish Sheth, 2016. "Does relationship marketing matter in online retailing? A meta-analytic approach," Journal of the Academy of Marketing Science, Springer, vol. 44(2), pages 206-217, March.
    2. Mandal, Sudipta & Sharma, Dheeraj, 2016. "Antecedents and Consequences of Product Innovation: A Meta-Analytic Review," IIMA Working Papers WP2016-03-47, Indian Institute of Management Ahmedabad, Research and Publication Department.
    3. Sudipta Mandal & Dheeraj Sharma, 2016. "Antecedents and Consequences of Product Innovation : A Meta - Analytic Review," Working Papers id:10969, eSocialSciences.

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