Category: Scales

Analysts use a rating scale in research when they intend to associate a qualitative measure with the various aspects of a product or feature. Rating agencies make use of a large number of different rating scales. Generally, rating scales are used to evaluate the performance of a financial product or service, employee skills, customer service performances, etc. An ordinal scale e.g. is a scale the depicts the answer options in an ordered manner. Rating systems have evolved in response to the increasing depth and breadth of the global markets. Much of the innovation in e.g. credit rating scales is a response to market needs for clarity around the components of credit risk or to demands for finer distinctions in rating classifications.