The score per latent variable

The score of each latent variable is a weighted index score computed from the customer responses to a small set of required questions per variable with an answering scale 1 to 10 value. The weighting factors are equally distributed. Meaning each question weights the same as we have set the importance and relevance of each question at the same level.

The total score of a variable represent the weighted sum of the set of questions which are transformed into 0 to 100 scale value.

Computing the score is done in three steps:

  1. Compute the mean of each question
  2. Compute the 0 to 100 scale value for each question
  3. Compute the latent variable score

Example: perceived product quality

The survey has four question and you have determined that each question is equaly important > each question weight (100% : 4 =) 25%.

Step one, computing the mean....let us assume:

Step two, the mean values from the data set must first be transformed to the value on a 0 to 100 scale. This is done by:

Compute 0 to 100 value score for each question:

Step three, compute the weighted variable score:

The score of the perceived product quality is the sum of the above = 76.14

The score per latent variable = 76.14