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Multivariate Data Analysis - Factor Analysis - Assignment Example

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The factor analysis helps to filter the different variables into simple factors. This factor analysis is a statistical phenomenon which determines the variable’s…
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Multivariate Data Analysis - Factor Analysis
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Multivariate Data Analysis - Factor Analysis

Download file to see previous pages... There are different variables affecting the marketing studies like product price, product size, product weight, product composition, color, etc. These variables will make the customers to buy the products. The information for factor analysis in marketing studies is collected through the market surveys or by focusing a group. By these surveys, the company can know about their product variability. They can understand about their products in the market and they can discuss what are the factors affecting the customer’s product purchase.
The increased competition in the market makes the companies hire new strategies that will please the customers. The companies like to retain their existing customers as they will be loyal to them. They know it is easy to handle the loyal customers than the new ones, who are ready to pay high amount also. But the profit will decline if the existing customers go for other options. If they are not satisfied they will really wish to change their existing brands and go for new ones.
The surveys, observation and focus group are some of the methods used in marketing analysis. The variables used in these surveys will include the companies’ full services to the customers. They are not only dealing with the product that they buy, but also with the location of the store, parking availability, etc. There will be different type of customers and they are classified into different categories like younger ones, older peoples, ladies, etc. These customers have different type of options to select their product and the company has to focus on the needs of these peoples. The customer mainly relies on the factor of satisfaction; both with the quality and service. This makes better sales happen and it provides a loyal customer to the company.
These factor analysis results will show the importance of relationship between different factors. Some factors ...Download file to see next pagesRead More
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