general eletrics case study

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Tatiana Nemirovsky

Liza Levin

BMGT452, Section 0101

Case 10.2 (pg 328-329)

What is the construct that GE is trying to measure?

The construct that GE is trying to measure is customer satisfaction. In the book, the article refers to the net-promoter concept used by GE. This concept provides GE with a "net-promoter score" which is used to track customer attitude. This score, however, is mainly focused around the question "How likely are you to recommend us to a friend?" While this score may be focused around this one question, it is not the only criteria they ask customers to rate. GE also asks a number of other questions relating to their performance such as "How would you rate our processes?" or "How would you rate the cost of doing business with us?" Overall, the main goal of GE is to gain information about customer satisfaction in order to get a better sense of what needs improvement.

With this information, GE hopes to address these issues in a timely manner to make their service the best it can be.

How might GE assess construct validity?

There is two statistical measures of construct validity: convergent validity and discriminant validity. Convergent validity is defined in the textbook as the degree of correlation among different measurement instruments that claim to measure the same construct. Discriminant validity is defined in the textbook as a measure of the lack of association among constructs that are supposed to be different. The best way GE could assess their construct validity is by measuring convergent validity. GE could do this by administering the questions designed to provide information about customer satisfaction to a sample of respondents. Based on the information gathered, they should come to the conclusion that each question accurately relates to the construct topic, proving that there...