Multivariate Data Analysis Factor Analysis - Essay Example

Multivariate Data Analysis - Factor Analysis  Introduction: Factor analysis is defined as a preview of the relationship between different variables in a statistical study. The factor analysis helps to filter the different variables into simple factors. This factor analysis is a statistical phenomenon which determines the variable’s effect on one another. Factor analysis has developed in psychometrics and is related with factors dealing with large data’s. There are different variables that affect the marketing and productivity. These informative data analysis will reveal the company’s outline. Factor analysis marketing: Factor analysis in marketing will show how the products affect customer’s purchase options to buy or not. 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 predominates the others which makes the customers more satisfied. The important factor coming under this category will always be dealing with the product quality and safety. Some of them will have a negative impact. These results will help to improve the relationship with the customer. According to these results of analysis, they should change their tactics and try for an increased market space. These factor analyses will have some limitations also. It is not easy to carry out all the factors for analysis and sometimes there will not be any positive responses. The article begins with stating that different strategies should be adopted for acquiring new customers and for retaining the existing customers. This is perfectly true because the factors that we should consider in order to acquire new customers and to retain the existing customers are different. The article states customer loyalty as an important factor that needs retention of customers because it not only provides a permanent customer base, but also decreases the marketing expenditure. The article lays emphasis on customer loyalty which can be used for existing customers and can be developed among new customers. When the customer retention rate of a firm reduces, then it affects the net earnings of the firm negatively. The article does not state that the factor of customer loyalty is highly dependent on the factor of customer satisfaction. The factor of customer loyalty is also dependent on the brand name of the firm as well as the product. Turkish Foods Retailing should concentrate on the factor of customer satisfaction in order to generate customer loyalty and should enhance its own brand name. The conduction of survey and rating of the participants in the scale of 1-5 helps in understanding the factors affecting customer loyalty. 29 numbers of attributes were taken into consideration for analysis and these 29 factors were classified into five factor variables for conducting factor analysis in marketing. On reviewing the article it is found that the first factor taken for consideration is the generation of customer satisfaction through the sales process. The second factor which has been given importance is the quality of service that is delivered to customers. The third factor taken into consideration is relationship of the customer with the product that the company is manufacturing. The fourth factor which has been given importance is the demand for differentiation of varieties of products sleeked by the customers. The fifth and the final factor is the customer profile and this includes the profile or the image of the company in the minds of the customers. On reviewing the article it is revealed that the customers in the age group of 15 – 24 measure a firm’s marketing abilities through the process of sales satisfaction and the quality of service delivered by the firm to its customers. Customers in the age group of 25 – 34 weigh the marketing abilities of the firm through the factors like the amount of satisfaction generated form the firm’s product and the image of the firm in the market. Consumers in this age group also considered factors like brand loyalty and the image of the store in the minds of consumers. Through the survey it is revealed that customers give more importance to satisfaction derived from the product rather than the satisfaction derived from the service. The survey also revealed that women customers play a more influential role in purchasing. The buying attitude of the customers is highly dependent on the demographic status of the place of the consumer, his income, and cultural values apart from the product and firm’s characteristics. Thus, marketing is highly dependent on a number of factor variables. Factor analysis Productivity: Factor analysis is one of the methods that are employed to diminish a huge figure of variable into fewer figures of factors. Productivity is a determination of result by means of production procedures, as per unit of effort. Productivity is a proportion to compute how fit a business (or human being, business, state) exchanges input assets into commodities and services. Factor analysis tries to recognize fundamental variables, or features, that clarify the outline of correlations inside a collection of experimental variables. Factor examination is frequently used in information decrease to recognize a small figure of features that explain mainly the inconsistency that is viewed in a much superior numerals of apparent variables. Productivity analysis means the procedure of distinguishing the real information in excess of the predictable information of result and input dimension and appearance. Productivity analysis in factor analysis may be observed as an evaluative action of the presentation of a thing. The main aim of it being engaged is to offer the most suitable resolution to a difficulty that obstructs the achievement of production objectives in the current and prospect of the corporation. The result from productivity examination is certainly of enormous help in offering an entity the essential alterations to be executed for the comprehension of its achieving of goals. “The process of productivity analysis involves conducting detailed comparisons on production reports and the checking of each source used in the creation of the report. In other words, the process does not only occur from distinguishing the items found on the report, but also determining the data and documents which are relative to the items and elements of production report.” (Miller). Multivariate Data Analysis submits to whichever statistical method used to examine information that happens from in excess of one variable. Customer faithfulness to the seller is of tremendous attention to merchants, for the reason that high consumer acquisition expenses are hard to improve or recover with no repeat acquiring. Due to enlarged contest and minimal consumer switching expenses, it has turn out to be increasingly complex to hold consumers. Labor productivity is the common term of consideration, in the organization. The labor productivity is the quantity of the output obtained by spending adequate time and resources on a certain task which depends on per unit of input. The labor productivity can be measured as the ratio of the output to the input in the task. The main constraints of the productivity are the efficiency, profitability, and effectiveness. The job site management is found as an important aspect of the labor productivity and various studies have been conducted and the wide belief was that the productivity can be improved by the job site management. As the result of the job site management, various studies have been conducted by the Bocherding and Garner in 1981, mainly to identify the factors and also to make them to extreme priority by improving the productivity. The craft workers were found to have much impact on the implementing of the construction process. According to Maloney, the craft workers had a prominent position in productivity and they know the various kinds of gains and losses that are incurred in the organization. The main purpose is the examining of various factors that affect the construction and the productivity by the craft workers perspective. The study was conducted by the workers and the immediate supervisors in the work site, with 18 focus groups in 9 industries. As a result of the study, various factors were identified and the factors are much useful in analyzing the productivity in site management. If any arousal of the issues within the work site and regarding the productivity can be corrected, by researching on these factors, it shall be done accordingly. The wide area of study is conducted to understand the different factors which have its impact on productivity. The first organization to conduct the study on productivity is the United Nation in 1965. According to the study, the main idea was to improve the labor productivity in the site operations which can be achieved through repetitive site operations. The study on the same was conducted by the various eminent elements in consecutive years which mainly investigated the effects of the craft motivation in the constructions and in the labor productivity. The study was also based on the various losses inherited in the constructional productivity. Multiple studies have made, which mainly had to explain the interaction, productivity and the effect of them which further were analyzed by experts like the Kellogg, Maloney and Sanvido in three years. The methodology used in the identification was by measuring them on the frequency basis and the measurement is done on the Linkert scale. The scales of the measurement were used as the number of respondents were high and was from 9 industries as a whole. The various analyzing methods like the factor analysis and the regression analysis were conducted to obtain specific analysis. The factor analysis is a useful statistical tool for identifying the variability and observation. It also includes various other factors like the observable and unobservable variables which are known as the factors. The main advantage of using the factor analysis is that it helps in reducing the variables by making the two or three factors into a single variable, the identification of the variable is also at an ease. The result of the factor analysis depends on the frequency and they agree with the certain factors, as there are different rating scales they are rated differently on the frequency and the factor analysis was done on the product as a whole. The latent factors and the five factors which show the impact of the total variance of frequency factors were also identified. The latent tools identified are mainly on the availability, quality, tools, various policies and the consumables. The factor scores were also used in the coefficient of matrix and the maximum, the minimum factors in the score varies and they are composed of various variables, and the observed factors are composed of the variables and are of various weights and the scores. Each factor score had to compare with the latent factors. The factor scores range from 0.0 to 0.1. The score ranges are the indicators for performance and non-performance. The demographic factors are the main variables, which are the ones that mainly effects the differences in the latent factors as the populations are classified according to the states, trade etc. The regression analysis was also used to identify the differences between the labor’s perception and the effect of the labor productivity and performance of the employees. It is mainly the technique of identifying and analyzing certain variables. The above discussion mainly states the differences in the productivity, efficiency and the workers perception which has its own significant place in the entire process of analyzing. Work Cited Miller, Sam. Productivity and Productivity Analysis. Ezine Articles. 2010. Web. 25 Jun. 2010. . Read More