Factor Analysis: Airlines

Case

The domestic Airline industry has been witnessing intense competition in recent
years. As a result, all carriers have reduced their passenger fares. About 11 months ago,
the price of ATF shot up considerably. This compelled most Carriers to increase their
fares. Air-India did not increase their ticket prices. Given the fact that the average
domestic flier is very price sensitive, this move by Air-India was expected to increase
their market share considerably. However, this did not happen and Jet Airways continued
to be the market leader in the full service air carrier segment. Hence, Air-India desired to
understand the major Factors influencing consumer preferences for Airlines.
To determine this, they have conducted a suitable research. A part of the
Questionnaire used for this research is provided below for your analysis. An Excel data
file is also provided.

Questionnaire
1. They (Jet Airways) are always on time.
2. Their seats are very comfortable.
3. I love their food.
4. The air hostesses are beautiful.
5. My boss / friends prefer to fly on Jet Airways.
6. They have younger aircraft.
7. They have a frequent flier program.
8. Their flight timings suit my schedule.
9. My mother/ family feel safe when I fly Jet.
10. Flying Jet complements my lifestyle & social standing.
 Factor Analysis: Airlines

Case Questions
1. Identify the number of major Factors influencing Consumer preferences for
motorcycles.
2. State the % of total Variance in the data that is cumulatively explained by the
extracted Factors.
3. Determine the major constituent Attributes of each Factor.
4. Label each Factor based on their dominant characteristics.
5. Draw Perceptual Maps with the Factors as the Axes. Plot the relevant Attributes
on these maps as Vectors based on their Correlations with each Factor.
Justify your answers.

________________________________________________________________________