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Market research – Special Topics in Data analysis

Factor Analysis

Factor Analysis After editing and coding, the first data analysis step is usually to tabulate each question. Thus, the interest might be to tabulate the responses to the HMO enrollment intentions question, obtaining the average response or the frequency distribution. The next step is usually to repeat this tabulation for various subgroups of the...
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Factor Analysis – Basic Concepts of Factor Analysis

Factor Analysis – Basic Concepts of Factor Analysis Function of Factor Analysis Factor analysis can be used by researchers to do a variety of tasks, including cluster analysis and multidimensional scaling; however, it has two primary functions in data analysis. One function is to identify underlying constructs in the data. Thus, the variables “impersonal”...
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Factor Analysis – Why Perform Factor Analysis on Data?

Factor Analysis – Why Perform Factor Analysis on Data? One reason is to obtain insights from the groupings of variables that emerge. In particular, it often is possible to identify underlying constructs, constructs that might have practical and theoretical significance. Another reason is to reduce the number of questions or scales to a manageable...
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Factor Analysis – Factor Rotation

Factor Analysis – Factor Rotation Factor analysis is complicated somewhat (or made more interesting, depending on your perspective) by the fact that it is possible to generate several factor analysis solutions (loadings and factor scores) for any data set. Each solution is termed a particular factor rotation and is generated by a factor rotation...
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Factor Analysis – How Many Factors?

Factor Analysis – How Many Factors? Since factor analysis is designed to reduce many variables to a smaller number of underlying factors or constructs, a central question is: hc-”= many factors are involved in the model? It is always possible to keep generating factors until there are as many factors as original variables, but...
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