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Factor Analysis<br />By:<br />	Vineet Jogalekar<br />Vinayak Potadar<br />	 Sucheta S. Sirsikar<br />
FACTOR ANALYSIS<br />		A data reduction technique designed to represent a wide range of attributes on a smaller number of ...
FACTOR ANALYSIS<br />		For example, suppose that a bank asked a large number of questions about a given branch.  Consider ...
FACTOR ANALYSIS<br />
 BENEFITS <br />A more concise representation of the market situation.<br />Fewer questions may be required on future surv...
CONDUCTING FACTOR ANALYSIS<br />Formulate the problem<br />Determine the method of factor analysis<br />Determine the numb...
SPSS DATA<br />
COMPONENT MATRIX OBTAINED FROM SPSS<br />
WHAT SHALL THESE COMPONENTS BE CALLED?<br />
THESE COMPONENTS MAY  BE CALLED AS<br />ATTRACTIVENESS<br />TRUSTWORTHINESS<br />EXPERTISE<br />
CALCULATE COMPONENT SCORES<br />TRUSTWORTHINESS<br />= (Dependable + Honest + Reliable + Trustworthy + Sincere)/5      (0....
APPLICATIONS IN MARKET RESEARCH<br />Used in market segmentation for identifying the underlying variables to group the cus...
THAN<br />ueries????<br />"Q"<br />THAN<br />
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factor analysis

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factor analysis

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

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