AMR Project

Determining the factors that students consider important while deciding which restaurant to dine in (Factor Analysis)

Submitted By: Pradeep Kumar (70) Vinayak Pant (102) Yashi Srivastava (106)

1. Objective Determine the factors that students consider important while deciding which restaurant to dine in. 2. Selection of Variable It was based on past researches and secondary data/literature review.
Variables: V1: Less waiting time V2: High cleanliness V3: Good personnel behavior V4: Good food taste V5: Optimal food temperature V6: Optimal freshness V7: Nice ambience V8: Large menu variety

3. Sampling Sampling technique used was convenience sampling and sample size was five times the number of variables i.e. 40. 4. Research Methodology
Research design- Exploratory Data measurement- Metric (Interval type) Scale- Noncomparative rating scale (Likert scale)

Data collection- Questionnaire Method of administration- Personal interview Population- Current FIIB students Sampling technique- Convenience Sample size- 40

5. Questionnaire

Performance Evaluation
(College canteen)
Gender- M/F How frequently do you purchase from canteen? Less than once a week Three to four times a week One to two times a week Five or more times a week

What do you purchase from canteen (Please check all that apply): Beverages Breakfast Snack Lunch

Parameter Importance Least Less Important More Most (Y/N) Important Important Important Important
Less waiting time High cleanliness Good personnel behavior Good food taste Optimal food temperature Optimal freshness Nice ambience Large menu variety

6. Data Analysis Hypothesis: Null hypothesis, H0: Variables are uncorrelated in the population. Alternate hypothesis, H1: Variables are correlated in the population. Level of significance: 0.05 Test statistic: chi square transformation of the determinant of the correlation matrix. Decision Criteria: Significant value of test statistic will favor the rejection of null hypothesis. SPSS output

KMO and Bartle tt's Te s t Kais er-Mey er-Olkin Meas ure of Sampling A dequacy. Bartlett's Test of Sphericity A pprox. Chi-Square df Sig. .659 68.153 28 .000

Value of test statistic is 68.153 at 0.000 significance, therefore null hypothesis is rejected; hence the factor analysis is appropriate. Value of KMO is 0.659 which is greater than 0.5 therefore factor analysis is appropriate i.e. the correlations between pairs of variables can be explained by other variables.

Total Variance Explaine d Initial Eigenvalues Total % of Varianc e Cumulativ e % 2.601 32.507 32.507 1.611 20.140 52.647 1.177 14.713 67.360 .754 9.428 76.787 .661 8.263 85.050 .513 6.412 91.462 .361 4.509 95.971 .322 4.029 100.000 Ex traction Sums of Squared Loadings Total % of Varianc e Cumulativ e % 2.601 32.507 32.507 1.611 20.140 52.647 1.177 14.713 67.360 Rotation Sums of Squared Loadings Total % of Varianc e Cumulativ e % 1.881 23.518 23.518 1.852 23.152 46.670 1.655 20.690 67.360

Component 1 2 3 4 5 6 7 8

Ex traction Method: Princ ipal Component Analy sis.

Determination of number of factors: Based on eigenvalues method, eigenvalue greater than 1results in 3 factors being extracted.
a Rotated Com pone nt M atrix

Time Clean Personnel taste temp Freshnes s Ambienc e Menu

1 .237 .654 .125 .855 -.011 .806 .011 .046

Component 2 .215 .143 .815 .060 -.030 .034 .861 .613

3 .631 .550 .157 -.073 .824 .169 .200 -.420

Ex traction Method: Principal Component Analys is. Rotation Method: Varimax w ith Kais er Normalization. a. Rotation converged in 4 iterations.

Interpreting factors In the rotated factor matrix, factor1 has high coefficients for variables Clean, taste and Freshness. This factor may be labeled as Prime characteristics which denotes people for whom cleanliness of the restaurant, food taste and freshness are important criterion for judging the suitability of any restaurant.

Factor 2 has high coefficients for variables Personnel, Ambience and Menu. This factor may be labeled as Ambience which denotes people for whom behavior of the staff, ambience of the place and large menu variety are important criterion for judging the suitability of any restaurant. Factor 3 has high coefficients for Time & temp. This factor may be labeled as Perks which denotes people for whom less waiting time, cleanliness of the place, and optimal food temperature is important criterion for judging the suitability of any restaurant. For them large menu variety is not significant.

Reproduce d Corre lations Reproduc ed Correlation Time Clean Personnel taste temp Freshnes s A mbienc e Menu Time Clean Personnel taste temp Freshnes s A mbienc e Menu Time .500 b .532 .304 .169 .511 .305 .313 -.123 -.105 -.098 -.035 -.219 -.017 -.092 .103 Clean .532 .750 b .285 .527 .442 .625 .240 -.113 -.105 -.029 -.055 -.059 -.111 .009 .013 Personnel .304 .285 .705 b .145 .104 .155 .734 .439 -.098 -.029 .005 -.043 .014 -.107 -.204 taste .169 .527 .145 .739 b -.072 .678 .046 .107 -.035 -.055 .005 .072 -.217 .066 -.083 temp Freshnes s A mbienc e .511 .305 .313 .442 .625 .240 .104 .155 .734 -.072 .678 .046 .681 b .129 .139 .129 .679 b .072 .139 .072 .780 b -.365 -.013 .444 -.219 -.017 -.092 -.059 -.111 .009 -.043 .014 -.107 .072 -.217 .066 .036 -.028 .036 -.028 -.028 -.028 .194 .059 -.142 Menu -.123 -.113 .439 .107 -.365 -.013 .444 .554 b .103 .013 -.204 -.083 .194 .059 -.142

Residual a

Ex traction Method: Princ ipal Component A naly sis. a. Residuals are computed betw een observ ed and reproduced correlations. There are 17 (60.0%) nonredundant res iduals w ith abs olute values greater than 0.05. b. Reproduc ed c ommunalities

Determining the model fit: In the upper right triangle of reproduced correlation matrix 17 residuals are larger than 0.05, indicating an acceptable model fit. The factor model does provide a good fit to the data.

7. Shortcomings Sampling technique was convenience based More clarity on waiting time as it was time between ordering and delivery or it was time between coming to a restaurant and getting a table. 8. Areas for further research Take price levels as one of the variable Waiting Time for getting a table in the restaurant