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Based on the data that has been provided, measurement of service value dimension was done
on 5 parameters – Efficiency, Quality, Social Value, Play, Aesthetics and Altruistic value. The
efficiency was judged based on the rating obtained on 5 questions, similarly Social value has
3 while Play, Quality, Aesthetics and Altruistic value each has 4 questions.
This in all amounts to 24 questions wherein respondents were asked to give their response
based on a 5 point likert scale, ranging from 5 being “strongly agree” and 1 being “strongly
disagree.”
To do an effective analysis among these 24 observed variable, method such as factor analysis
can help to explain the observed variance in these large number of variables by producing
reduced factors and loading variables in to it.
Descriptive statistics for the variables has been shown alongside. By looking at the mean it
can be said that all the 5 measurement parameters are influencing the service dimensions
more or less equally.
KMO that is (Kaiser Meyer and Olkin) and Bartlett’s test has been shown below this tells us
about the strength of relationship among the variables. The KMO test measures the sampling
adequacy that is whether the responses provided by sample are adequate or not .
Kaiser recommends 0.5 as the bare minimum and values above 0.9 as superb. From the
above table it can be seen that that the value is greater than 0.9 which accounts for excellent
adequacy of sample.
Bartlett’s test is also another test for relationship among variables and if the significance value
is below 0.05, then in this case null hypothesis is rejected that is correlation matrix is an identity
matrix is rejected. In the result obtained above the significance value is 0. This shows that the
data obtained are suitable for factor analysis.
From the above table, it can be seen that eigenvalues reflects the number of extracted factors
sum of which should be equal to total number of items that are subjected to factor analysis.
Here, Factor 1 accounts for 36% of total variance similarly 2 nd factor 45.7%, 3rd factor 53.2%,
4th factor 58.7%, 5th and 6th accounts for 63.5% and 67.6% of total variance. The remaining
factors are not significant.
The graph above is known as scree plot and it shows the graph of eigenvalues against all
the factors which are there. This is helpful for identifying how many factors to retain in the
analysis. In the graph shown above 6 factors are above eigenvalue of 1. So, these are the
factors to retain.