Rating

Posted in Marketing and Strategy Terms, Total Reads: 304
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Definition: Rating

Rating is the assessment of something, like of a product (books, consumer goods), service (hospital, banks), with respect to quantity, quality or combination of both.

Some of the examples of rating could be –

• Credit Rating – on the basis of credit worthiness of an individual

• Health provider Rating -

• Performance Rating

• Content Rating


Rating scale defines sets to provide information about the qualitative and quantitative attributes of a product or a service. For example, in a 1-10 rating scale, a customer can select a number which can reflect the quality perceived by him/her.


Type of rating scales –

• Measuring at ordinal level – Number assigned shows the relative position for example “Hotel services are satisfactory”.

Response options –

1. Strongly Disagree

2. Disagree

3. Agree

4. Strongly Agree

For example:

 


• Measuring at interval level – Numbers show the difference between two items, and there is no absolute zero. For example- in Celsius scale difference in number are worth noticing and zero does not matter

• Measuring at ratio level – Numbers show the magnitude of difference and there is a fixed zero on the scale. Ratios can be calculated from the numbers like income, sales

Rating scales which are used online provide information on consumers’ opinion on a product or service like movie rating on IMDb, seller ratings on Flipkart, Hotel rating on TripAdvisor. Qualitative description like “1” stands for extremely poor improves the scale’s usefulness.

 

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