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Chapter_19 Factor Analysis. Naresh K. Malhotra Marketing Research-an applied orientation , 4 th ed. Factor Analysis. Factor Analysis is a general name denoting a class of procedures primarily used for data reduction and summarization.
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Chapter_19 Factor Analysis Naresh K. Malhotra Marketing Research-an applied orientation, 4th ed.
Factor Analysis Factor Analysis is a general name denoting a class of procedures primarily used for data reduction and summarization. It is an interdependence technique in that an entire set of interdependent relationships is examined. Area of Factor Analysis: • To identify underlying dimensions or factors. • To identify a new, smaller set of uncorrelated variables. • To identify a smaller set of salient variables from a larger set.
Factor Analysis Model: Where, Where,
Conducting Factor Analysis It is a eight-step process: Formulate the problem Construct the correlation matrix Determine the method of factor Analysis Rotate the factors Interpret the factors Calculate the factor scores Select the surrogate variables Determine the model fit