Page 296 - DMGT404 RESEARCH_METHODOLOGY

Research Methodology

Notes Self Assessment

Fill in the blanks:
6. ....................... analysis is concerned with the measurement of the joint effect of two or more
attributes.

7. For ....................... selection, the market researcher can conduct interview with the customers
directly.
8. The ....................... is a part-worth or utility for each level of each attribute.

13.4 Factor Analysis

The main purpose of Factor Analysis is to group large set of variable factors into fewer factors.
Each factor will account for one or more component. Each factor a combination of many variables.
There are two most commonly employed factor analysis procedures or methods. They are:
1. Principle component analysis
2. Common factor analysis.

When the objective is to summarise information from a large set of variables into fewer factors,
principle component factor analysis is used. On the other hand, if the researcher wants to analyse
the components of the main factor, common factor analysis is used.

Example: Common factor – Inconvenience inside a car. The components may be:
1. Leg room
2. Seat arrangement
3. Entering the rare seat
4. Inadequate dickey space

5. Door locking mechanism.

13.4.1 Principle Component Factor Analysis

Purposes: Customer feedback about a two-wheeler manufactured by a company.
Method: The MR manager prepares a questionnaire to study the customer feedback. The researcher
has identified six variables or factors for this purpose. They are as follows:

1. Fuel efficiency (A)
2. Durability (Life) (B)
3. Comfort (C)

4. Spare parts availability (D)
5. Breakdown frequency (E)
6. Price (F)
The questionnaire may be administered to 5,000 respondents. The opinion of the customer is
gathered. Let us allot points 1 to 10 for the variables factors A to F. 1 is the lowest and 10 is the
highest. Let us assume that application of factor analysis has led to grouping the variables as
follows:

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