MARKDOWN

PRICING AND
FACTOR ANALYSIS

DR. ANU NAGPAL

CHOPRA
https://www.youtube.com/watch?v=lDWf3jAc
bP0
When to use Markdown
Price?
Factor Analysis
DR. ANU NAGPAL CHOPRA
• Factor analysis is a technique that is used to reduce a large number of
variables into fewer numbers of factors
• Such “underlying factors” are often variables that are difficult to measure
such as IQ, depression or extraversion. For measuring these, we often try to
write multiple questions that -at least partially- reflect such factors.
 TYPES OF FACTOR ANALYSIS-
• Confirmatory factor analysis

• Exploratory factor analysis

 Research questions for this analysis
are:
• how many factors are measured by our 16 questions?
• which questions measure similar factors?
• which satisfaction aspects are represented by which factors?
Running Factor Analysis in SPSS
OUTPUT 1
Factor Analysis Output II - Scree Plot
Factor Analysis Output III - Communalities
Factor Analysis Output IV - Component
Matrix
Factor Analysis Output V - Rotated
Component Matrix
• After interpreting all components in a similar fashion, we arrived at the
following descriptions:

• Component 1 - “Clarity of information”

• Component 2 - “Decency and appropriateness”
• Component 3 - “Helpfulness contact person”
• Component 4 - “Reliability of agreements”