Case Study 2 on Factor Analysis

Problem

Alpha Car manufacturers want to release a small car into the market. For this purpose
they have surveyed twenty respondents about their perceptions and image attributes of
small cars. Ten questions were asked to each of them, all answered on a scale of 1 to 7
(1 = completely agree, 7 = completely disagree).

1. The price of the car should be reasonable.

2. Fuel mileage of the car should be at least 17 km/hr.
3. A small car should be easy to maintain and to be serviced.
4. Seating should be comfortable for four adults.
5. A small car should have adequate leg space and headroom.
6. Brakes are the most critical part of a small car.
7. Collapsible steering column should be standard equipment in all the new cars.
8. Power steering is a must.
9. Interior accessories of a small car should be attractive.
10. Adequate space for luggage.

Methodology

Data is self-generated.
A sample of 20 respondents is taken.
Factor analysis technique is used to determine the variables, which are to be
considered.
Quartimax rotation is performed.
Input Data

Table 1.1

S.No VAR VAR VAR VAR VAR VAR VAR VAR VAR VAR
0000 0000 0000 0000 0000 0000 0000 0000 0000 0001
1 2 3 4 5 6 7 8 9 0
1 2.00 1.00 2.00 4.00 4.00 1.00 1.00 4.00 2.00 1.00
2 6.00 5.00 6.00 1.00 4.00 2.00 1.00 3.00 2.00 5.00
3 1.00 2.00 1.00 4.00 4.00 2.00 5.00 2.00 5.00 2.00
4 4.00 4.00 5.00 2.00 3.00 4.00 3.00 4.00 3.00 3.00
5 3.00 3.00 3.00 6.00 5.00 3.00 3.00 2.00 3.00 3.00
6 5.00 4.00 4.00 1.00 1.00 1.00 2.00 2.00 2.00 4.00
7 2.00 2.00 2.00 3.00 2.00 5.00 3.00 1.00 4.00 2.00
8 1.00 2.00 1.00 7.00 6.00 2.00 2.00 4.00 3.00 1.00
9 4.00 3.00 3.00 5.00 5.00 2.00 2.00 3.00 2.00 3.00
10 6.00 5.00 6.00 2.00 3.00 1.00 2.00 4.00 1.00 5.00
11 7.00 6.00 6.00 2.00 3.00 4.00 6.00 3.00 2.00 6.00
12 3.00 4.00 3.00 3.00 3.00 3.00 3.00 3.00 2.00 4.00
13 1.00 2.00 2.00 3.00 2.00 2.00 2.00 3.00 1.00 2.00
14 2.00 1.00 2.00 1.00 1.00 1.00 3.00 4.00 2.00 1.00
15 2.00 1.00 2.00 1.00 1.00 5.00 3.00 6.00 3.00 1.00
16 2.00 2.00 2.00 1.00 3.00 2.00 2.00 2.00 2.00 2.00
17 4.00 4.00 3.00 6.00 5.00 3.00 3.00 1.00 4.00 3.00
18 1.00 1.00 1.00 1.00 2.00 1.00 2.00 6.00 1.00 1.00
19 3.00 2.00 3.00 2.00 2.00 1.00 1.00 5.00 1.00 2.00
20 3.00 2.00 3.00 2.00 1.00 2.00 6.00 5.00 1.00 2.00