Nominal scale (market research)

A nominal scale is a basic measurement scale used in market research which categorises or labels variables without indicating any quantitative value or order. For instance, classifications such as gender, religion and ethnicity would represent a nominal scale, as this data cannot be ranked nor does it convey any numerical values. Nominal data is qualitative in nature, describing attributes rather than quantities.

Nominal scale is one of four levels of measurement that a market researcher may use with ordinal, interval and ratio scales making up the other three. Only certain statistical tests can be carried out with each level of measurement, and this determines the depth of insights you’re able to obtain from your data.

Nominal scales are often used in surveys to collect categorical information such as brand preference, product type or demographic details. Once the frequencies of each category have been determined through analysis, researchers can segment consumers into distinct groups based on preferences and buying behaviours to give a greater understanding of market composition.

The use of a nominal scale in market research is important in ensuring data collection is structured and follows a certain format which guarantees the data is comparable and translates to unambiguous interpretation. As nominal scales allow researchers to identify patterns and segment consumers, it makes them key for comprehending market segments and outlining basic preference data, which can be essential in market research.

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