Factors influencing lifestyle characteristic of investor based on Interest

There are many factors influence the characteristics of individual investors based upon their
interest.Taking all13 variables for further analysis is not necessary because respondents might
have similar perception for one or two variables. To reduce 13 variables into minimum
manageable number of variables factor analysis is used. The variables are grouped by exploring
common dimensions available among the variables.
Table 4.3.11KMO and Bartletts Test
Kaiser-Meyer-lkin Measure of !ampling
"de#uacy.
.$%&
'artlett(s Test of
!phericity
"pprox. )hi-!#uare *+%.%$&
,f -%
!ig. .&&&
'efore going for factor analysis suitability of data for the purpose of factor analysis has
to be tested. KM test and 'artlett.s test are two such tests. /alue of KM of &.$%& indicates
that a factor analysis is useful for the present data. 'artlett.s test of !phericity indicates whether
the correlation matrix is an identity matrix0 which would indicate that the variables are unrelated.
The significance level gives the result of the test. 1ere0 the significant value is &.&&& which
indicates that there exist significant relationships among the variables. The resultant value of
KM test and 'artlett.s test indicate that the present data is useful for factor analysis.
The next step in the process is to decide about the number of factors to be derived. The
thumb rule is factors which are having 23igen values. greater than unity can be taken. 4or the
purpose of extraction 5rincipal )omponent "nalysis method is used. The )omponent matrix so
formed is further rotated orthogonally using /arimax rotation algorithm for convenience factors
are reduced to three. "fter the rotation all the statements are loaded on the three factors. The
results so obtained have been given in the tables separately along with factor loadings.
Table 4.3.1 Total !ariance "#$lained on Interest
)ompo
nent
6nitial 3igenvalues 7otation !ums of !#uared 8oadings
Total 9 of /ariance )umulative 9 Total 9 of /ariance )umulative 9
1 *.-1* *&.%+1 *&.%+1 *.1%& 1+.--& 1+.--&
* 1.:&& 1;.+1+ 3$.;-- 1.:++ 1$.1** 31.%:*
3 1.3+- 1&.$1% ;$.::+ 1.%3; 1;.1&; ;$.::+
; 1.*3- :.$1- $$.$13
$ 1.1*; %.+;% +;.1+1
+ .:-$ -.$&& -1.++1
- .-:* +.&%: --.-$&
% .+$$ $.&3% %*.-%%
: .+1+ ;.-3$ %-.$*3
1& .;%1 3.+:- :1.**&
11 .;$+ 3.$11 :;.-31
1* .;1; 3.1%1 :-.:13
13 .*-1 *.&%- 1&&.&&&
4rom the 13 statements only $ statements have 3igen values more than 1. This means that
these $ statements can be used to explain maximum variance in the characteristics of people. The
total variance accounted by all the three factors is ;$.::+ percent. This means that significant
amount of variance is explained by the reduced three factors alone. Therefore it is better to take
three variables alone for further analysis. "mong the three factors0 the first factor accounts for
around 1- percent of variance.
Table 4.3.13 %otated co&$onent &atri#
6<T373!T )omponent
1 * 3
6t.s very important to me to feel 6 am
a part of a group.
.-$;
verall0 6.d say 6.m very happy. .-$*
6<T373!T )omponent
My social status is an important part
of my life.
.+:%
6 prefer to buy well-known designer
labels rather than take a chance.
.$$1
6 think 6 have more self- confidence
than most people.
.-&*
'efore trying a new product or
service0 6 seldom seek the advice of
others.
.++&
4inancial security is very important
to me
.+&:
6 shop for status and style and not for
price.
.;&3
My family is the single most
important thing to me
6n general0 it.s more important to
understand my inner self than to be
famous0 powerful0 or wealthy.
.-1%
My greatest achievements are ahead
of me.
.+&3
6 prefer making a purchase from
local offices0 malls0 or stores.
.$+;
6 am certainly more conventional
than experimental.
-.;3- .$$3
4rom the rotated component matrix it is clear that the first factor is having four
statements0 second factor is having four statements and third factor is having four statements.
'ased on the statements included into the factors can be named. The reduced three factors can be
shown below
4ashion )onscious
!elf )onfidence
8eadership 4actor