SlideShare a Scribd company logo
1 of 14
Factor Analysis By: 	Vineet Jogalekar Vinayak Potadar 	 Sucheta S. Sirsikar
FACTOR ANALYSIS 		A data reduction technique designed to represent a wide range of attributes on a smaller number of dimensions.
FACTOR ANALYSIS 		For example, suppose that a bank asked a large number of questions about a given branch.  Consider how the following characteristics might be represented by just a few constructs (factors).
FACTOR ANALYSIS
 BENEFITS  A more concise representation of the market situation. Fewer questions may be required on future surveys. Identification of groups of interrelated variables to see how they are related to each other. Factor analyses can be used to identify hidden dimensions or constructs which may not be apparent from direct analysis. It is easy and inexpensive to do.
CONDUCTING FACTOR ANALYSIS Formulate the problem Determine the method of factor analysis Determine the number of factors Rotate the factors Interpret the factors
SPSS DATA
COMPONENT MATRIX OBTAINED FROM SPSS
WHAT SHALL THESE COMPONENTS BE CALLED?
THESE COMPONENTS MAY  BE CALLED AS ATTRACTIVENESS TRUSTWORTHINESS EXPERTISE
CALCULATE COMPONENT SCORES TRUSTWORTHINESS = (Dependable + Honest + Reliable + Trustworthy + Sincere)/5      (0.6874) ATTRACTIVENESS = (Attractiveness + Classy + Beautiful + Elegant + Sexy)/5            (0.9) EXPERTISE = (Knowledgeable + Qualified)/2                                                    (0.756)
APPLICATIONS IN MARKET RESEARCH Used in market segmentation for identifying the underlying variables to group the customers. Identify the brand attributes that influence consumer choice Identify the characteristics of a certain type of customers (eg. price sensitive)
THAN ueries???? "Q" THAN

More Related Content

What's hot

Chp9 - Research Methods for Business By Authors Uma Sekaran and Roger Bougie
Chp9  - Research Methods for Business By Authors Uma Sekaran and Roger BougieChp9  - Research Methods for Business By Authors Uma Sekaran and Roger Bougie
Chp9 - Research Methods for Business By Authors Uma Sekaran and Roger BougieHassan Usman
 
Measurement and scaling
Measurement and scalingMeasurement and scaling
Measurement and scalingBalaji P
 
Statistical analysis and interpretation
Statistical analysis and interpretationStatistical analysis and interpretation
Statistical analysis and interpretationDave Marcial
 
Chp8 - Research Methods for Business By Authors Uma Sekaran and Roger Bougie
Chp8  - Research Methods for Business By Authors Uma Sekaran and Roger BougieChp8  - Research Methods for Business By Authors Uma Sekaran and Roger Bougie
Chp8 - Research Methods for Business By Authors Uma Sekaran and Roger BougieHassan Usman
 
Multivariate Analysis Techniques
Multivariate Analysis TechniquesMultivariate Analysis Techniques
Multivariate Analysis TechniquesMehul Gondaliya
 
Mba2216 week 11 data analysis part 03 appendix
Mba2216 week 11 data analysis part 03 appendixMba2216 week 11 data analysis part 03 appendix
Mba2216 week 11 data analysis part 03 appendixStephen Ong
 
Research Methodology (MBA II SEM) - Introduction to SPSS
Research Methodology (MBA II SEM) - Introduction to SPSSResearch Methodology (MBA II SEM) - Introduction to SPSS
Research Methodology (MBA II SEM) - Introduction to SPSSGB Technical University
 
Research Methodology: Questionnaire, Sampling, Data Preparation
Research Methodology: Questionnaire, Sampling, Data PreparationResearch Methodology: Questionnaire, Sampling, Data Preparation
Research Methodology: Questionnaire, Sampling, Data Preparationamitsethi21985
 
Confirmatory Factor Analysis Presented by Mahfoudh Mgammal
Confirmatory Factor Analysis Presented by Mahfoudh MgammalConfirmatory Factor Analysis Presented by Mahfoudh Mgammal
Confirmatory Factor Analysis Presented by Mahfoudh MgammalDr. Mahfoudh Hussein Mgammal
 
Scope and objective of the assignment
Scope and objective of the assignmentScope and objective of the assignment
Scope and objective of the assignmentGourab Chakraborty
 
marketing research & applications on SPSS
marketing research & applications on SPSSmarketing research & applications on SPSS
marketing research & applications on SPSSANSHU TIWARI
 
Statistics Assignments 090427
Statistics Assignments 090427Statistics Assignments 090427
Statistics Assignments 090427amykua
 
Chapter 8 Marketing Research Malhotra
Chapter 8 Marketing Research MalhotraChapter 8 Marketing Research Malhotra
Chapter 8 Marketing Research MalhotraAADITYA TANTIA
 

What's hot (20)

Chp9 - Research Methods for Business By Authors Uma Sekaran and Roger Bougie
Chp9  - Research Methods for Business By Authors Uma Sekaran and Roger BougieChp9  - Research Methods for Business By Authors Uma Sekaran and Roger Bougie
Chp9 - Research Methods for Business By Authors Uma Sekaran and Roger Bougie
 
Measurement and scaling
Measurement and scalingMeasurement and scaling
Measurement and scaling
 
Statistical analysis and interpretation
Statistical analysis and interpretationStatistical analysis and interpretation
Statistical analysis and interpretation
 
Indexes scales and typologies
Indexes scales and typologiesIndexes scales and typologies
Indexes scales and typologies
 
Chp8 - Research Methods for Business By Authors Uma Sekaran and Roger Bougie
Chp8  - Research Methods for Business By Authors Uma Sekaran and Roger BougieChp8  - Research Methods for Business By Authors Uma Sekaran and Roger Bougie
Chp8 - Research Methods for Business By Authors Uma Sekaran and Roger Bougie
 
Chap019
Chap019Chap019
Chap019
 
Factor analysis (1)
Factor analysis (1)Factor analysis (1)
Factor analysis (1)
 
Multivariate Analysis Techniques
Multivariate Analysis TechniquesMultivariate Analysis Techniques
Multivariate Analysis Techniques
 
Inferential statistics
Inferential statisticsInferential statistics
Inferential statistics
 
Mba2216 week 11 data analysis part 03 appendix
Mba2216 week 11 data analysis part 03 appendixMba2216 week 11 data analysis part 03 appendix
Mba2216 week 11 data analysis part 03 appendix
 
Exploratory factor analysis
Exploratory factor analysisExploratory factor analysis
Exploratory factor analysis
 
Research Methodology (MBA II SEM) - Introduction to SPSS
Research Methodology (MBA II SEM) - Introduction to SPSSResearch Methodology (MBA II SEM) - Introduction to SPSS
Research Methodology (MBA II SEM) - Introduction to SPSS
 
Research Methodology: Questionnaire, Sampling, Data Preparation
Research Methodology: Questionnaire, Sampling, Data PreparationResearch Methodology: Questionnaire, Sampling, Data Preparation
Research Methodology: Questionnaire, Sampling, Data Preparation
 
Confirmatory Factor Analysis Presented by Mahfoudh Mgammal
Confirmatory Factor Analysis Presented by Mahfoudh MgammalConfirmatory Factor Analysis Presented by Mahfoudh Mgammal
Confirmatory Factor Analysis Presented by Mahfoudh Mgammal
 
Mr4 ms10
Mr4 ms10Mr4 ms10
Mr4 ms10
 
Scope and objective of the assignment
Scope and objective of the assignmentScope and objective of the assignment
Scope and objective of the assignment
 
marketing research & applications on SPSS
marketing research & applications on SPSSmarketing research & applications on SPSS
marketing research & applications on SPSS
 
Priya
PriyaPriya
Priya
 
Statistics Assignments 090427
Statistics Assignments 090427Statistics Assignments 090427
Statistics Assignments 090427
 
Chapter 8 Marketing Research Malhotra
Chapter 8 Marketing Research MalhotraChapter 8 Marketing Research Malhotra
Chapter 8 Marketing Research Malhotra
 

Similar to Factor Analysis: A Data Reduction Technique

Data Analysis - Approach & Techniques
Data Analysis - Approach & TechniquesData Analysis - Approach & Techniques
Data Analysis - Approach & TechniquesInvenkLearn
 
Module_6_-_Datamining_tasks_and_tools_uGuVaDv4iv-2.pptx
Module_6_-_Datamining_tasks_and_tools_uGuVaDv4iv-2.pptxModule_6_-_Datamining_tasks_and_tools_uGuVaDv4iv-2.pptx
Module_6_-_Datamining_tasks_and_tools_uGuVaDv4iv-2.pptxHarshitGoel87
 
Customer analytics. Turn big data into big value
Customer analytics. Turn big data into big valueCustomer analytics. Turn big data into big value
Customer analytics. Turn big data into big valueJosep Arroyo
 
Ch 3 -continued.pptx
Ch 3 -continued.pptxCh 3 -continued.pptx
Ch 3 -continued.pptxbalewayalew
 
Whitepaper: Predictive Analytics - Looking to the Future
Whitepaper: Predictive Analytics - Looking to the FutureWhitepaper: Predictive Analytics - Looking to the Future
Whitepaper: Predictive Analytics - Looking to the FutureIconixx
 
[MPKD1] Introduction to business analytics and simulation
[MPKD1] Introduction to business analytics and simulation[MPKD1] Introduction to business analytics and simulation
[MPKD1] Introduction to business analytics and simulationNguyen Ngoc Binh Phuong
 
Unit 1 pptx.pptx
Unit 1 pptx.pptxUnit 1 pptx.pptx
Unit 1 pptx.pptxrekhabawa2
 
Business Analyst Training - Gain America
Business Analyst Training - Gain AmericaBusiness Analyst Training - Gain America
Business Analyst Training - Gain AmericaGainAmerica
 
The Customer Success Metrics That Matter
The Customer Success Metrics That MatterThe Customer Success Metrics That Matter
The Customer Success Metrics That MatterOpsPanda
 
The Insider's Guide to Workforce Analytics
The Insider's Guide to Workforce AnalyticsThe Insider's Guide to Workforce Analytics
The Insider's Guide to Workforce AnalyticsVisier
 
Competitive Intelligence 2.0 – Incisive Intelligence, Collaborative Innovatio...
Competitive Intelligence 2.0 – Incisive Intelligence, Collaborative Innovatio...Competitive Intelligence 2.0 – Incisive Intelligence, Collaborative Innovatio...
Competitive Intelligence 2.0 – Incisive Intelligence, Collaborative Innovatio...Arik Johnson
 
Expert Judgement Credit Rating for SME & Commercial Customers
Expert Judgement Credit Rating for SME & Commercial CustomersExpert Judgement Credit Rating for SME & Commercial Customers
Expert Judgement Credit Rating for SME & Commercial CustomersMike Coates
 
Munyaradzi Nyikavaranda- Assessing the intersect between UX, AI, Big Data: Cr...
Munyaradzi Nyikavaranda- Assessing the intersect between UX, AI, Big Data: Cr...Munyaradzi Nyikavaranda- Assessing the intersect between UX, AI, Big Data: Cr...
Munyaradzi Nyikavaranda- Assessing the intersect between UX, AI, Big Data: Cr...itnewsafrica
 
Data analysis (Seminar for MR) (1).pptx
Data analysis (Seminar for MR) (1).pptxData analysis (Seminar for MR) (1).pptx
Data analysis (Seminar for MR) (1).pptxCHIPPYFRANCIS
 
HR / Talent Analytics
HR / Talent AnalyticsHR / Talent Analytics
HR / Talent AnalyticsAkshay Raje
 
Survey analytics conjointanalysis_1
Survey analytics conjointanalysis_1Survey analytics conjointanalysis_1
Survey analytics conjointanalysis_1QuestionPro
 
Business Analyst Course
Business Analyst CourseBusiness Analyst Course
Business Analyst CourseArunadeviS
 
Business Analyst Course
Business Analyst CourseBusiness Analyst Course
Business Analyst CourseArunadeviS
 

Similar to Factor Analysis: A Data Reduction Technique (20)

Data Analysis - Approach & Techniques
Data Analysis - Approach & TechniquesData Analysis - Approach & Techniques
Data Analysis - Approach & Techniques
 
Module_6_-_Datamining_tasks_and_tools_uGuVaDv4iv-2.pptx
Module_6_-_Datamining_tasks_and_tools_uGuVaDv4iv-2.pptxModule_6_-_Datamining_tasks_and_tools_uGuVaDv4iv-2.pptx
Module_6_-_Datamining_tasks_and_tools_uGuVaDv4iv-2.pptx
 
MARKETING RESEARCH
MARKETING RESEARCHMARKETING RESEARCH
MARKETING RESEARCH
 
Big data analytics
Big data analyticsBig data analytics
Big data analytics
 
Customer analytics. Turn big data into big value
Customer analytics. Turn big data into big valueCustomer analytics. Turn big data into big value
Customer analytics. Turn big data into big value
 
Ch 3 -continued.pptx
Ch 3 -continued.pptxCh 3 -continued.pptx
Ch 3 -continued.pptx
 
Whitepaper: Predictive Analytics - Looking to the Future
Whitepaper: Predictive Analytics - Looking to the FutureWhitepaper: Predictive Analytics - Looking to the Future
Whitepaper: Predictive Analytics - Looking to the Future
 
[MPKD1] Introduction to business analytics and simulation
[MPKD1] Introduction to business analytics and simulation[MPKD1] Introduction to business analytics and simulation
[MPKD1] Introduction to business analytics and simulation
 
Unit 1 pptx.pptx
Unit 1 pptx.pptxUnit 1 pptx.pptx
Unit 1 pptx.pptx
 
Business Analyst Training - Gain America
Business Analyst Training - Gain AmericaBusiness Analyst Training - Gain America
Business Analyst Training - Gain America
 
The Customer Success Metrics That Matter
The Customer Success Metrics That MatterThe Customer Success Metrics That Matter
The Customer Success Metrics That Matter
 
The Insider's Guide to Workforce Analytics
The Insider's Guide to Workforce AnalyticsThe Insider's Guide to Workforce Analytics
The Insider's Guide to Workforce Analytics
 
Competitive Intelligence 2.0 – Incisive Intelligence, Collaborative Innovatio...
Competitive Intelligence 2.0 – Incisive Intelligence, Collaborative Innovatio...Competitive Intelligence 2.0 – Incisive Intelligence, Collaborative Innovatio...
Competitive Intelligence 2.0 – Incisive Intelligence, Collaborative Innovatio...
 
Expert Judgement Credit Rating for SME & Commercial Customers
Expert Judgement Credit Rating for SME & Commercial CustomersExpert Judgement Credit Rating for SME & Commercial Customers
Expert Judgement Credit Rating for SME & Commercial Customers
 
Munyaradzi Nyikavaranda- Assessing the intersect between UX, AI, Big Data: Cr...
Munyaradzi Nyikavaranda- Assessing the intersect between UX, AI, Big Data: Cr...Munyaradzi Nyikavaranda- Assessing the intersect between UX, AI, Big Data: Cr...
Munyaradzi Nyikavaranda- Assessing the intersect between UX, AI, Big Data: Cr...
 
Data analysis (Seminar for MR) (1).pptx
Data analysis (Seminar for MR) (1).pptxData analysis (Seminar for MR) (1).pptx
Data analysis (Seminar for MR) (1).pptx
 
HR / Talent Analytics
HR / Talent AnalyticsHR / Talent Analytics
HR / Talent Analytics
 
Survey analytics conjointanalysis_1
Survey analytics conjointanalysis_1Survey analytics conjointanalysis_1
Survey analytics conjointanalysis_1
 
Business Analyst Course
Business Analyst CourseBusiness Analyst Course
Business Analyst Course
 
Business Analyst Course
Business Analyst CourseBusiness Analyst Course
Business Analyst Course
 

Recently uploaded

MULTIDISCIPLINRY NATURE OF THE ENVIRONMENTAL STUDIES.pptx
MULTIDISCIPLINRY NATURE OF THE ENVIRONMENTAL STUDIES.pptxMULTIDISCIPLINRY NATURE OF THE ENVIRONMENTAL STUDIES.pptx
MULTIDISCIPLINRY NATURE OF THE ENVIRONMENTAL STUDIES.pptxAnupkumar Sharma
 
Mental Health Awareness - a toolkit for supporting young minds
Mental Health Awareness - a toolkit for supporting young mindsMental Health Awareness - a toolkit for supporting young minds
Mental Health Awareness - a toolkit for supporting young mindsPooky Knightsmith
 
Grade 9 Quarter 4 Dll Grade 9 Quarter 4 DLL.pdf
Grade 9 Quarter 4 Dll Grade 9 Quarter 4 DLL.pdfGrade 9 Quarter 4 Dll Grade 9 Quarter 4 DLL.pdf
Grade 9 Quarter 4 Dll Grade 9 Quarter 4 DLL.pdfJemuel Francisco
 
Narcotic and Non Narcotic Analgesic..pdf
Narcotic and Non Narcotic Analgesic..pdfNarcotic and Non Narcotic Analgesic..pdf
Narcotic and Non Narcotic Analgesic..pdfPrerana Jadhav
 
How to Manage Engineering to Order in Odoo 17
How to Manage Engineering to Order in Odoo 17How to Manage Engineering to Order in Odoo 17
How to Manage Engineering to Order in Odoo 17Celine George
 
How to Make a Duplicate of Your Odoo 17 Database
How to Make a Duplicate of Your Odoo 17 DatabaseHow to Make a Duplicate of Your Odoo 17 Database
How to Make a Duplicate of Your Odoo 17 DatabaseCeline George
 
Q4-PPT-Music9_Lesson-1-Romantic-Opera.pptx
Q4-PPT-Music9_Lesson-1-Romantic-Opera.pptxQ4-PPT-Music9_Lesson-1-Romantic-Opera.pptx
Q4-PPT-Music9_Lesson-1-Romantic-Opera.pptxlancelewisportillo
 
Expanded definition: technical and operational
Expanded definition: technical and operationalExpanded definition: technical and operational
Expanded definition: technical and operationalssuser3e220a
 
Daily Lesson Plan in Mathematics Quarter 4
Daily Lesson Plan in Mathematics Quarter 4Daily Lesson Plan in Mathematics Quarter 4
Daily Lesson Plan in Mathematics Quarter 4JOYLYNSAMANIEGO
 
Team Lead Succeed – Helping you and your team achieve high-performance teamwo...
Team Lead Succeed – Helping you and your team achieve high-performance teamwo...Team Lead Succeed – Helping you and your team achieve high-performance teamwo...
Team Lead Succeed – Helping you and your team achieve high-performance teamwo...Association for Project Management
 
4.16.24 21st Century Movements for Black Lives.pptx
4.16.24 21st Century Movements for Black Lives.pptx4.16.24 21st Century Movements for Black Lives.pptx
4.16.24 21st Century Movements for Black Lives.pptxmary850239
 
IPCRF/RPMS 2024 Classroom Observation tool is your access to the new performa...
IPCRF/RPMS 2024 Classroom Observation tool is your access to the new performa...IPCRF/RPMS 2024 Classroom Observation tool is your access to the new performa...
IPCRF/RPMS 2024 Classroom Observation tool is your access to the new performa...MerlizValdezGeronimo
 
Choosing the Right CBSE School A Comprehensive Guide for Parents
Choosing the Right CBSE School A Comprehensive Guide for ParentsChoosing the Right CBSE School A Comprehensive Guide for Parents
Choosing the Right CBSE School A Comprehensive Guide for Parentsnavabharathschool99
 
Measures of Position DECILES for ungrouped data
Measures of Position DECILES for ungrouped dataMeasures of Position DECILES for ungrouped data
Measures of Position DECILES for ungrouped dataBabyAnnMotar
 
Congestive Cardiac Failure..presentation
Congestive Cardiac Failure..presentationCongestive Cardiac Failure..presentation
Congestive Cardiac Failure..presentationdeepaannamalai16
 
Q-Factor HISPOL Quiz-6th April 2024, Quiz Club NITW
Q-Factor HISPOL Quiz-6th April 2024, Quiz Club NITWQ-Factor HISPOL Quiz-6th April 2024, Quiz Club NITW
Q-Factor HISPOL Quiz-6th April 2024, Quiz Club NITWQuiz Club NITW
 
31 ĐỀ THI THỬ VÀO LỚP 10 - TIẾNG ANH - FORM MỚI 2025 - 40 CÂU HỎI - BÙI VĂN V...
31 ĐỀ THI THỬ VÀO LỚP 10 - TIẾNG ANH - FORM MỚI 2025 - 40 CÂU HỎI - BÙI VĂN V...31 ĐỀ THI THỬ VÀO LỚP 10 - TIẾNG ANH - FORM MỚI 2025 - 40 CÂU HỎI - BÙI VĂN V...
31 ĐỀ THI THỬ VÀO LỚP 10 - TIẾNG ANH - FORM MỚI 2025 - 40 CÂU HỎI - BÙI VĂN V...Nguyen Thanh Tu Collection
 
How to Fix XML SyntaxError in Odoo the 17
How to Fix XML SyntaxError in Odoo the 17How to Fix XML SyntaxError in Odoo the 17
How to Fix XML SyntaxError in Odoo the 17Celine George
 
Oppenheimer Film Discussion for Philosophy and Film
Oppenheimer Film Discussion for Philosophy and FilmOppenheimer Film Discussion for Philosophy and Film
Oppenheimer Film Discussion for Philosophy and FilmStan Meyer
 

Recently uploaded (20)

MULTIDISCIPLINRY NATURE OF THE ENVIRONMENTAL STUDIES.pptx
MULTIDISCIPLINRY NATURE OF THE ENVIRONMENTAL STUDIES.pptxMULTIDISCIPLINRY NATURE OF THE ENVIRONMENTAL STUDIES.pptx
MULTIDISCIPLINRY NATURE OF THE ENVIRONMENTAL STUDIES.pptx
 
Mental Health Awareness - a toolkit for supporting young minds
Mental Health Awareness - a toolkit for supporting young mindsMental Health Awareness - a toolkit for supporting young minds
Mental Health Awareness - a toolkit for supporting young minds
 
Grade 9 Quarter 4 Dll Grade 9 Quarter 4 DLL.pdf
Grade 9 Quarter 4 Dll Grade 9 Quarter 4 DLL.pdfGrade 9 Quarter 4 Dll Grade 9 Quarter 4 DLL.pdf
Grade 9 Quarter 4 Dll Grade 9 Quarter 4 DLL.pdf
 
Narcotic and Non Narcotic Analgesic..pdf
Narcotic and Non Narcotic Analgesic..pdfNarcotic and Non Narcotic Analgesic..pdf
Narcotic and Non Narcotic Analgesic..pdf
 
Faculty Profile prashantha K EEE dept Sri Sairam college of Engineering
Faculty Profile prashantha K EEE dept Sri Sairam college of EngineeringFaculty Profile prashantha K EEE dept Sri Sairam college of Engineering
Faculty Profile prashantha K EEE dept Sri Sairam college of Engineering
 
How to Manage Engineering to Order in Odoo 17
How to Manage Engineering to Order in Odoo 17How to Manage Engineering to Order in Odoo 17
How to Manage Engineering to Order in Odoo 17
 
How to Make a Duplicate of Your Odoo 17 Database
How to Make a Duplicate of Your Odoo 17 DatabaseHow to Make a Duplicate of Your Odoo 17 Database
How to Make a Duplicate of Your Odoo 17 Database
 
Q4-PPT-Music9_Lesson-1-Romantic-Opera.pptx
Q4-PPT-Music9_Lesson-1-Romantic-Opera.pptxQ4-PPT-Music9_Lesson-1-Romantic-Opera.pptx
Q4-PPT-Music9_Lesson-1-Romantic-Opera.pptx
 
Expanded definition: technical and operational
Expanded definition: technical and operationalExpanded definition: technical and operational
Expanded definition: technical and operational
 
Daily Lesson Plan in Mathematics Quarter 4
Daily Lesson Plan in Mathematics Quarter 4Daily Lesson Plan in Mathematics Quarter 4
Daily Lesson Plan in Mathematics Quarter 4
 
Team Lead Succeed – Helping you and your team achieve high-performance teamwo...
Team Lead Succeed – Helping you and your team achieve high-performance teamwo...Team Lead Succeed – Helping you and your team achieve high-performance teamwo...
Team Lead Succeed – Helping you and your team achieve high-performance teamwo...
 
4.16.24 21st Century Movements for Black Lives.pptx
4.16.24 21st Century Movements for Black Lives.pptx4.16.24 21st Century Movements for Black Lives.pptx
4.16.24 21st Century Movements for Black Lives.pptx
 
IPCRF/RPMS 2024 Classroom Observation tool is your access to the new performa...
IPCRF/RPMS 2024 Classroom Observation tool is your access to the new performa...IPCRF/RPMS 2024 Classroom Observation tool is your access to the new performa...
IPCRF/RPMS 2024 Classroom Observation tool is your access to the new performa...
 
Choosing the Right CBSE School A Comprehensive Guide for Parents
Choosing the Right CBSE School A Comprehensive Guide for ParentsChoosing the Right CBSE School A Comprehensive Guide for Parents
Choosing the Right CBSE School A Comprehensive Guide for Parents
 
Measures of Position DECILES for ungrouped data
Measures of Position DECILES for ungrouped dataMeasures of Position DECILES for ungrouped data
Measures of Position DECILES for ungrouped data
 
Congestive Cardiac Failure..presentation
Congestive Cardiac Failure..presentationCongestive Cardiac Failure..presentation
Congestive Cardiac Failure..presentation
 
Q-Factor HISPOL Quiz-6th April 2024, Quiz Club NITW
Q-Factor HISPOL Quiz-6th April 2024, Quiz Club NITWQ-Factor HISPOL Quiz-6th April 2024, Quiz Club NITW
Q-Factor HISPOL Quiz-6th April 2024, Quiz Club NITW
 
31 ĐỀ THI THỬ VÀO LỚP 10 - TIẾNG ANH - FORM MỚI 2025 - 40 CÂU HỎI - BÙI VĂN V...
31 ĐỀ THI THỬ VÀO LỚP 10 - TIẾNG ANH - FORM MỚI 2025 - 40 CÂU HỎI - BÙI VĂN V...31 ĐỀ THI THỬ VÀO LỚP 10 - TIẾNG ANH - FORM MỚI 2025 - 40 CÂU HỎI - BÙI VĂN V...
31 ĐỀ THI THỬ VÀO LỚP 10 - TIẾNG ANH - FORM MỚI 2025 - 40 CÂU HỎI - BÙI VĂN V...
 
How to Fix XML SyntaxError in Odoo the 17
How to Fix XML SyntaxError in Odoo the 17How to Fix XML SyntaxError in Odoo the 17
How to Fix XML SyntaxError in Odoo the 17
 
Oppenheimer Film Discussion for Philosophy and Film
Oppenheimer Film Discussion for Philosophy and FilmOppenheimer Film Discussion for Philosophy and Film
Oppenheimer Film Discussion for Philosophy and Film
 

Factor Analysis: A Data Reduction Technique

  • 1. Factor Analysis By: Vineet Jogalekar Vinayak Potadar Sucheta S. Sirsikar
  • 2. FACTOR ANALYSIS A data reduction technique designed to represent a wide range of attributes on a smaller number of dimensions.
  • 3. FACTOR ANALYSIS For example, suppose that a bank asked a large number of questions about a given branch. Consider how the following characteristics might be represented by just a few constructs (factors).
  • 5.  BENEFITS A more concise representation of the market situation. Fewer questions may be required on future surveys. Identification of groups of interrelated variables to see how they are related to each other. Factor analyses can be used to identify hidden dimensions or constructs which may not be apparent from direct analysis. It is easy and inexpensive to do.
  • 6. CONDUCTING FACTOR ANALYSIS Formulate the problem Determine the method of factor analysis Determine the number of factors Rotate the factors Interpret the factors
  • 7.
  • 10. WHAT SHALL THESE COMPONENTS BE CALLED?
  • 11. THESE COMPONENTS MAY BE CALLED AS ATTRACTIVENESS TRUSTWORTHINESS EXPERTISE
  • 12. CALCULATE COMPONENT SCORES TRUSTWORTHINESS = (Dependable + Honest + Reliable + Trustworthy + Sincere)/5 (0.6874) ATTRACTIVENESS = (Attractiveness + Classy + Beautiful + Elegant + Sexy)/5 (0.9) EXPERTISE = (Knowledgeable + Qualified)/2 (0.756)
  • 13. APPLICATIONS IN MARKET RESEARCH Used in market segmentation for identifying the underlying variables to group the customers. Identify the brand attributes that influence consumer choice Identify the characteristics of a certain type of customers (eg. price sensitive)

Editor's Notes

  1. 5. PSPP, SAS,stata, statistica, spss,
  2. 1 authentic, Reliable , credible, Honesty , principled, responsible, righteousness, true-blue, trustable2 appeal, charisma, charm, fascination ,glamour, magnetism,3 ability, cleverness , competence, ingeniousness, skillfulness