Posted in Marketing and Strategy Terms, Total Reads: 413

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.


Hence, this concludes the definition of Rating along with its overview.


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