INTERPRETATION OF FACTOR

ANALYSIS
1. KMO and Bartletts Test

KMO basically measures sampling adequacy i.e. appropriateness of factor

analysis. Its value should be greater than .05 to proceed since in this case the value
of KMO is:
KMO = 0.634 > .05
Thus, Factor analysis is appropriate and we can proceed further.
Bartletts test indicates the strength of relationship among variables. It tests the null
hypothesis that the variables are uncorrelated. Since in this case,
Significant value = 0.000(approx) < 0.05
Thus it is statistically significant; i.e. the null hypothesis can be rejected and there
is a correlation between them.
The variables are as follows:
V1: Maggi is the first brand that comes to your mind when you
think about noodles.
V2: Maggi noodles is good for health.
V4: we will prefer similar products of other brands rather than
maggi.
V5: Maggi noodles is preffered only by childrens.
V6: Maggi is perceived as a junk food.
V8: Taste
V9: Brand image
V10 : Price

V11: health ingridents

V12: Variety

2. Communalities
It shows how much of the variance in a variable has been accounted for by the
extracted factors thus, it shows the percentage of variances in a variable that is
captured by the common underlying factor. In this case, the value is highest for
variable 8( highest value 0.837) i.e 83.7% of variance is captured by underlying
factor and is lowest for variable 10 (lowest value 0.490) i.e. 49% is captured by
factor.
3. Total Variance Explained
Eigen values represents the percentage of total variance explained by each factor.
Its value should be greater than 1.Thus in this case only 4factors have been found
whose eigen values greater than 1.These factors cumulatively explained 68.609%.
So, around 31% variation we are not able to capture it, but still we are able to
deduct factors from 10 to 4.

4. Component matrix
It shows loading of the 10 variables on the 4 factor extracted. The higher the
absolute value of loading the more the factor contribute to variable. In the
component matrix the factor whose absolute value is greater than 0.05 that factor
will be loaded on the variables subsequently. From the table we found out that the
variable 1 is loaded on factor 1.V2 is loaded on factor 4. V4 is loaded on factor
3.V5 is loaded on factor 3. V6 is loaded on factor 2. V8 is loaded on factor 1.V9 is
loaded on factor 1. V10 is loaded on factor 1. V12 is loaded on factor 2.
As V8 is loaded on factor 1 & 2 both, so we have to find out from rotated
comparison matrix the final findings.

In Rotated comparison matrix, we have find out that the variable 1 is loaded on
factor1, V2 is loaded on factor 4, V4 is loaded on factor 3, V5 is loaded on factor
4, V6 is loaded on factor 1, V8 is loaded on factor 1, V9 is loaded on factor 3, V10
is loaded on factor 2, V11 is loaded on factor 2, V12 is loaded on factor 2.
Factor 1: 0.376v1-.194v2+ 0.105v4+ 0.123v5+ 0.458v6+ 0.264v8+ 0.053v90.022v10-0.017v11-0.012v12
Factor 2: -0.04v1+ 0.029v2+ 0.136v4- 0.176v5-0.014v6+0.084v80.032v9+0.29v10 +0.424v11+ 0.517v12
Factor 3: 0.024v1+0.099v2-0.553v4-0.153v5-0.226v6+0.24v8+0.43v9 +0.174v10
0.061v11- 0.265v12
Factor 4: -0.007v1+0.649v2+ 0.171v4+ 0.544v5-0.163v6-0.001v8+ 0.213v90.063v10+0.034v11-0.171v12

Conclusion:
Variables

Factors

V1,v6,v8

V10,v11,v12

V4,v9

V2,v5

Name
Recognition

brand loyalty