ERIC ED382206: Studying the Cost and Value of Library Services: Final Report. Technical Report APLAB/94-3/1,2,3,4.

313 Pages·1995·8.8 MB·English

by  ERIC

DOCUMENT RESUME
ED 382 206
IR 055 487
AUTHOR
Kantor, Paul B.; And Others
TITLE
Studying the Cost and Value of Library Services:
Final Report. Tech.L:al Report APLAB/94-3/1,2,3,4.
INSTITUTION
Rutgers, The State Univ., New Brunswick, NJ. School
of Communication, Information, and Library
Studies.
SPONS AGENCY
Council on Library Resources, Inc., Washington,
D.C.
PUB DATE
95
NOTE
324p,
PUB TYPE
Reports
Research/Technical (143)
Tests /Evaluation Instruments (160)
EDRS PRICE
MF01/PC13 Plus Postage.
DESCRIPTORS
*Classification; *Costs; *Evaluation Methods;
Information Services; Library Research; *Library
Services; *Measurement Techniques; Research
Libraries; User Needs (Information); *Users
(Information); User Satisfaction (Information)
ABSTRACT
This is the final technical report (in three parts)
of a 15-month long project to study the costs and value of library
functions at five major research libraries. Twenty-one services
or
service aspects were studied, and numerous measures of the importance
or benefit of the service to the users were made. These measures were
.
studied together to lay a foundation for the development of an
economically valid scale for assessing the impact of library
services. More than 500 interviews were transcribed, and an empirical
taxonomy was developed for classifying the contexts and the value to
users of library services. Finally, the principles of data
envelopment analysis have been adapted to this situation and
illustrated using representative measures of library impact. This
study has established not only the characteristics of the numerous
services studied, but also the fact that a single uniform instrument
can be applied to study many diverse services at many libraries.
Instruments and a manual for their use in replicating these studies
were also developed. The long-termgoal of this study is the
development of a general taxonomy and metrology for library benefits,
toward which substantial progress has been made, yet more remains to
be done. Specific conceptual problems were identified that arise when
the goal is to extract economically useful information from interview
data, and points the way to further methods that will resolve these
problems. Overall, it was discovered that users of library services:
(1) value these services very highly;
(2) have very little experience
purchasing information services;
(3) value the library more highly
than other university-supplied services;
do not assign dollar
(4)
estimates to the value of services which are commensurate with the
cost of the services; and (5) can articulate, with proper
questioning, the. context and purposes which bring them to use library
services. Part
1 "Models, Methods, Results," summarizes the project's
findings. Part 2, "Detailed History of Project Management and
Processes," provides a detaileH history of project management and
processes, including preliminary studies, selection of interviewers
and research instruments, and delayed impact assessment. Part 3 is -k
Manual for Replication of These Studies." A fourth part, appendices
A-h, include: instruments and SPSS codes; open ended coding;
open
ended coding results tables; cost data collection forms; interviewer
training manual; miscellaneous forms; focus group moderator guide;
and questionnaire instructions.
(MAS)
U.S. DEPARTMENT OP EDUCATION
Office of Educavonal Rarch and Immovenmmt
EDUCATIONAL RESOURCES INFORMATION
CENTER (ERIC)
0 This document has been romx0dugad as
(*cowed from the person Or ofganiaahon
Originating it.
0 Minor chant's tun, teen mud, to imptor
reproduction ouelaY
Poems of view Of opniOnt Stated in thif docu-
ment do not neCeSaarily replasant Official
0E141 politico or policy
CD
00
Studying The Cost and Value
2
of Library Services.
Final Report
by
Paul B. Kantor, Project Director and Principal kvestigator
Tefko Saracevic, Co-Principal Investigator.
Joann D'Esposito-Wachtmann, Project Manager
Alexandria Project Laboratory.
School of Communication Information and Library Studies,
Rutgers, the State University of New Jersey.
Technical Report APLAB/94-3/1,2,3,4. (Rev Mar 95)
REPRODUCE THIS
"PERM SSION TO
GRANTED BY
MATEFLAL HAS BEEN
Paul B. Kantor
Based on Research Supported in Part by the Council on Library Resources.
RESOURCES
TO THE EDUCATIONAL
(ERIC)."
INFORMATION CENTER
Yl
APLAB-B%DICLRIFINALREV1FINALBIG.51
Copyright (c) 1995
March 21, 1995 P. 1
BEST COPY AVAILABLE
Studying The Cost and Value
of Library Services
Final Technical
eport
Part 1: Models, Methods, Results
by
Paul B. Kantor, Project Director
Tefko Saracevic, Co-Principal Investigator
Alexandria Project Laboratory.
School of Communication Information and Library Studies,
Rutgers, the State University of New Jersey.
Technical Report APLAB/94-3/1. (Rev Mar 95)
Based on Research Supported in Part by the Council on Library Resources.
APLAB-B%DICLRIFINALREVIFINALBIG.51
Copyright (c) 1995
March 21, 1995 P. 1
I)
This page intentionally blank
APLAB-B%DICLRIFINALREV1FINALBIG.51
Copyright (c) 1995
March 21, 1995 P. 2
1
EXECUTIVE SUMMARY
This is the final technical report of a 15-month long project to study the costs and
value of library functions at five major research libraries. A total of 21 services or service
aspects were studied. Numerous measures of the importance or benefit of the service to the
users were made. These measures were studied together to lay a foundation for the
development of an economically valid scale for assessing the impact of library services.
Further, more than 500 interviews were transcribed, and through detailed content analysis an
Empirical Taxonomy was developed for classifying the contexts and the value to users of
library services. Cost estimates, using functional cost analysis, were developed for all the
services. A Derived Taxonomy of Value in Using Library Service has been developed from
the Empirical Taxonomy to provide a foundation for further research in this area.
Finally, the
principles of Data Envelopment Analysis have been adapted to this situation, and illustrated
using representative measures of library impact.
This study has definitely established not only the characteristics of the numerous
services studied, but also the fact that a single uniform instrument can be applied to study
many diverse services at many libraries. Additional goals met include the development of
instruments and a manual for their use in replicating this study. The long-term goal of this
research is the development of a general taxonomy and metrology for library benefits.
Substantial progress has been made, and yet more remains to be done. The study has
identified specific conceptual problems that arise when the goal is to extract economically
useful information from interview data, and points the way to further methods that will
resolve these problems.
Overall, we have found that users of services at research libraries (1) value these
services very highly, (2) have very little experience purchasing information services, (3) value
the library more highly than other university-supplied services, (4) do not assign dollar
estimates to the value of services which are commensurate with the cost of the services, and
(5) can articulate, with proper questioning, the context and purposes which bring them to use
library services.
APLAB-EMDICLRIFINALREVIFINALBIG.51
Copyright (c) 1995
March 21, 1995 P. 3
This page intentionally blank
APLAB-B%DICLRIRIVALREVIFINALBIG.51
Copyright (c) 1995
March 21, 1995 P. 4
C
Table of Contents
EXECUTIVE SUMMARY
3
1 COST AND VALUE OF SERVICES IN RESEARCH LIBRARIES: PROJECT
OVERVIEW
7
1.1 Problem, Objectives, Organization
7
1.2 Non-Profit Setting
9
1.3 Scholarly and Practical Importance
9
1.4 Measurement Focused on Patrons
10
1.5 Ideal Economic Perspective
11
1.6 The Nature of Library Value
11
1.7 The Costs of Services
12
1.8 Scales for Assessing Value
12
1.9 Development of Taxonomy
12
1.10 Overview of the Libraries and Services Studied
13
1.11 Replicability of this Study
17
1.12 Combining Values and Costs
17
2 STATISTICAL RESULTS AND SCALE DEVELOPMENT
19
2.1 Scale Variables and Metrology
19
2.2 Reliability Analysis
19
2.3 Factor Analysis
19
2.4 Variation of Value with Service
20
2.5 Confounding Factors: The Local Context
20
2.6 Detailed Statistical Results
21
2.6.1 Descriptive and Demographic Variables.
21
Age of interviewee
2.6.1.1 AGEGRP
21
Area of study
2.6.1.2 AREAST
21
How frequently do you
2.6.1.3 FRESER
use the service
22
Sex of interviewee
2.6.1.4 GENDER
22
2.6.1.5 LIBRY Library
22
2.6.1.6 STATUS
Patron category
22
2.6.2 About the Impact of the Service
23
2.6.3 Scale Variables for Impact of Service
24
2.6.4 Experience with other University Services
24
2.6.5 Assessment of the Importance of other University Services
25
2.6.6 Experience with Purchasing Information Services
25
3 COSTS OF LIBRARY FUNCTIONS AND SERVICES
27
3.1 General Principles
27
3.1.1 Methods for Cost Analysis: General Principles
27
3.1.2 Methods fcr Cost Analysis: Worked Example
28
3.1.2.1 Analysis of salary expenditure distribution
28
APLAB-B%DICLRIFINALREVIFINALBIG.51
Copyright (c) 1995
March 21, 1995 P. 5
3.1.2.2 Analysis of equipment and other expenditure distribution
29
3.1.2.3 Example Calculation of a Unit Cost of Service
30
3.2 Administrative Costs
30
3.3 Costs of the Collection
31
3.4 Summary of the Cost Data
32
4 DEVELOPING A TAXONOMY OF VALUES FOR LIBRARY SERVICES
35
4.1 Framework: assumptions, definitions, approach
35
4.2 Related works and concepts
36
4.3 Methodology: General approach
37
4.4 Methodology: Specific procedures
38
4.5 Structure and attributes of the taxonomy
40
4.6 Contents of the taxonomy
41
4.6.1 Class A. Reasons
42
4.6.2 Class B. Interaction
50
4.6.3 Class C. Results
50
4.7 Encoding and overlap
51
4.8 Statistics and testing
52
4.9 Theoretical derivations
56
5 COMBINING COST AND VALUE DATA
59
5.1 Impact Data
59
5.2 Combining Cost and Impact Data
60
5.3 The Principles of Data Envelopment Analysis (DEA)
60
6 DIRECTIONS FOR FURTHER STUDY AND APPLICATION
63
6.1 Development of Scales and Measures of Value
63
6.1.1 Applying the New Taxonomy
63
6.1.2 Calibrating individual coding labels
63
6.1.3 Gathering better scale information
63
6.2 Suggestions for application
64
6.3 Conclusions
65
7 ACKNOWLEDGEMENTS
67
8 REFERENCES AND LITERATURE
69
9 Contents: Volume 2: Process
75
10 CONTENTS: Volume 3: MANUAL
79
Contents of Appendices
81
11
APLAB-B%DICLRIFINALREVIFINALBIC. 51
Copyright (c) 1995
March 21, 1995 P. 6
1 COST AND VALUE OF SERVICES IN RESEARCH
LIBRARIES: PROJECT OVERVIEW
1.1 Problem, Objectives, Organization
Research libraries and their supporting institutions are increasingly concerned about costs
incurred and values received. This concern grows from difficult decisions on allocation of limited
resources and the bewildering array of modern technology- based resources and services available
to libraries. Libraries provide an ever increasing array of services. But the library is an internal
service supported by the institution as a whole, in aid of its overall goals and objectives.
Ultimately, the critical question that must be answered by institutional managers is:
"Does the sum total of value flowing from the library justify our cost in maintaining it?"
This most difficult problem leads, in turn, to many other ones. Studying the cost of
university libraries raises a host of interesting methodological challenges. Adding the study of
value, as perceived and/or defined by users, increases the methodological challenge many fold.
These concern three aspects: the definition and determination (that is, the model and method) of
the cost of library services; definition and determination of value of services to users; and finally
combining in some way both cost and value, together.
The goal of this study is to address the problem of developing models and methods for
studying the cost and value of library services in a way that can be pragmatically generalized and
applied by libraries wishing to conduct similar studies. In other words, the goal of this study is
to provide libraries and information services in general, arid research libraries in particular, with
methods for gathering information on the cost and value of their services; information that will
aid in justification and decision making.
The objectives are to:
Define and apply methods for obtaining costs for several library services.
1.
Derive an empirical taxonomy of values for these services based on users'
2.
assessments.
Provide methods for combining cost and value data.
3.
Provide a detailed description and manual that will allow for replication of these
4.
types of studies.
To achieve these goals and objectives required an empirical study involving collection of
a large amount of data from several libraries and a number
'fferent services. Five libraries,
21 services, and over 500 user interviews were involved, Nu,
cf, this among the largest, if not
APLAB-B%DICLRIFINALREVIFINALBIG.51
Copyright (0) 1995
March 21, 1995 P. 7
9
the largest study of cost and value of library services. The study incorporated development of
appropriate models and methods for study of cost and value, extensive validation of these with
data from actual services and situations, and extensive documentation of these efforts.
Accordingly, this Final Report is organized as follows:
Models. Methods, Results.
Part. 1:
Section 1. provides a general discussion of problems and issues and description of the
approach to data collection.
SLction 2. discusses development of scales and provides statistics of the samples and
scales involved.
Section 3. is devoted to description and data on cost of different services.
Section 4. is on value: description of approach to study of value and presentation of the
Derived Taxonomy of Value in Using Library Service, together with some statistical
results.
Section 5. combines cost and value data.
Section 6. provides directions for further study and application.
Back matter, 'acknowledgements, a comprehensive bibliography, and title pages of other
parts and appendices provide links to the remainder of this report, and to the literature.
Detailed History of Project Management
Part 2:
Incorporates details on services studied; extensive statistics related to numbers in samples,
interviews, and efforts to collect the data; and
descriptions of development of
instruments. This part describes what was actually done, the management of complex data
collection, and the effort needed to get data. This material is for designers and managers
of similar studies and any researchers seeking to replicate these results.
A Manual for Replication of these Studies.
Part 3.:
Provide's pragmatic suggestions for organization of a study of cost and value of library
service, (detailed guidelines and.worksheets are in Appendix D).
Appendix A. Provides the instruments used in interviews, and the mapping of variables defined
for statistical manipulation into questions in questionnaires.
Appendix B.
Describes development of value taxonomies. Incorporates the initial coding of data
and the first Empirical Taxonomy of Value derived directly from the user
responses in interviews, and later used for development of the Derived Taxonomy.
Gives the full statistical distribution of codes using the Empirical Taxonomy of
Appendix C.
Value, Version 1.
Appendix D.
Provides description and forms for cost data collection.
Appendix E. A manual for training of interviewers.
All data for determination of value were
APLAB-B%DICLRIFINALREVIFINALBIG.51
Copyright (c) 1995 March 21, 1995 P. 8
10