Report on B-Segment Car

Abstract
This project report is about a survey that was conducted among 100 people
that own a B-segment cars in India. The B-segment cars are the hatchbacks
like Suzuki Swift, Volkswagen Polo, Hyundai Santro ,etc We conducted this
survey by asking people to fill an 18 questions survey online. The motive of
the research was to come up with the factors that determine the factors that
affect the decision of person to buy a particular B-Segment car in India.

BRM Group Project

Report on B-Segment Car

Introduction
Sampling unit: People driving B-segment cars in Delhi
Sampling frame: People who know driving and own a car.
Sampling size: We have collected data from 100 people
Sampling technique: Convenience sampling
This project report is about a survey that was conducted among 100 people
that own a B-segment cars in India. The B-segment cars are the hatchbacks
like Suzuki Swift, Volkswagen Polo, Hyundai Santro ,etc We conducted this
survey by asking people to fill an 18 questions survey online. The motive of
the research was to come up with the factors that determine the factors that
affect the decision of person to buy a particular B-Segment car in India. We
have collected the data from our friends and colleagues as per our
convenience.

BRM Group Project

Report on B-Segment Car

Factor Analysis
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling
.750
Adequacy.
Bartlett's Test of
Approx. Chi-Square
629.769
Sphericity
Df
Kaiser-Meyer-Olkin
test This measure of153
sampling adequacy tests whether the partial correlations among the
Sig.
.000
variables are small. Interpretive adjectives for the KMO measure of sampling are: in the .90 as marvelous, in the .

80s as meritorious, in the .70s as middling, in the .60s as mediocre, in the .50s as miserable, and below .50 as
unacceptable. The value of the KMO measure of sampling adequacy for our set of variables is .750, which would
be labeled as middling. Since the KMO measure of sampling adequacy meets the minimum criteria, we can use
Factor analysis for our data.
Bartletts Test of Sphericity Bartletts test of sphericity tests the hypothesis that the correlation matrix is an
identity matrix; i.e. all diagonal elements are 1 and al off-diagonal elements are 0, implying that all of the variables
are uncorrelated. If the Sig value for this test is less than our alpha level, we reject the null hypothesis that the
population matrix is an identity matrix. The Sig. value for this analysis leads us to reject the null hypothesis and
conclude that there are correlations in the data set that are appropriate for factor analysis. This analysis meets
the requirement.
Communalities Tells us how much of the variance in each of the original variables is explained by the
extracted factors.
Initial - By definition, the initial value of the communality in a principal components analysis is 1.
Extraction - The values in this column indicate the proportion of each variable's variance that can be explained by
the principal components. Variables with high values are well represented in the common factor space, while
variables with low values are not well represented. They are the reproduced variances from the number of
components is explained by the six extracted components. Since the values are below 50% level, these variables
will not be considered in our factors because the factor solution contains less than half of the variance in the
original variable, and the explanatory power of that variable might be better represented by the individual
variable.

BRM Group Project

Report on B-Segment Car

Communalities
Initial
Extraction
How important is the onCommunalities Tells us how much of the variance in each
road price of a car to
1.000
.603
of the original variables is explained by the extracted factors.
you?
Initial - By definition, the initial value of the communality in a
How important is the
principal components analysis is 1.
brand name to you while
1.000
.839
Extraction - The values in this column indicate the proportion
making a purchase
of each variable's variance that can be explained by the
decision?
principal components. Variables with high values are well
What is your view about
represented in the common factor space, while variables with
the engine capacity of
1.000
.539
low values are not well represented. They are the reproduced
car?
variances from the number of components is explained by the
Do the looks and design
six extracted components. Since the values are below 50%
(interior and exterior)
1.000
.613
level, these variables will not be considered in our factors
matter to you?
because the factor solution contains less that half of the
How important is fuel
1.000
.788
variance in the original variable, and the explanatory power of
efficiency of a car?
that variable might be better represented by the individual
How important are the
variable.
discount schemes at the
1.000
.798
time of car purchase?
What is the significance
1.000
.688
of a car's resale value?
What is your view about
the after-sales services
1.000
.472
of your car?
What is your view about
the running and
1.000
.647
maintenance cost of your
car?
How about convenience
features (power steering,
1.000
.614
power windows, etc.) of
your car?
How relevant is the
purpose of purchase
1.000
.586
while buying a car?
PCA aims to summarize the information in a correlation matrix. The total amount of variance in the
How important is the
correlation matrix can be calculated by adding the values on the diagonal: as each element on the
performance information
diagonal has a value
of 1, the
total amount of variance also corresponds to the number of observed
1.000
.639
available when buying a
variables. In our dataset, the total amount of variance is 20. This total amount of variance can be
car?
partitioned into different parts where each part represents the variance of each component. The
How important is driving
eigenvalues in above
the amount of variance associated with each component. If the
1.000table represent
.650
pleasure to you?
Eigen values are added, the resulting total should be the total variance in the correlation matrix (i.e.,
Importance of image of a
the addition 5.402+1.748+1.551----+0.154 should be equal to 18). The percentage of explained
brand when buying a
1.000
.766
variance of each component can be easily computed as the corresponding eigenvalue divided by the
car?
total variance: for example, the percentage of variance explained by the first component is 5.402/
Should the car be
18 = 0.30014 (or 1.000
in terms of.671
percentage 30.01%). The first component also counts for 30.014% of
economical to use?
the variance. When the percentage of explained variance is reported for a particular dataset, the
How important is the
value that is actually
reported
is the addition of the percentages of the explained variance for each
variety in colors of car
1.000
.806
of the components retained (i.e., the accumulated percentage of explained variance). Table 3 shows
available?
thatdoes
if the
How much
the aim were to explain 100% of the variance in the correlation matrix, then we would need to
retain and
as many components as observed variables (which would make no sense at all). However, the
advertisement
1.000
idea
is your
to select an
optimal.815
number of components. The optimal number of components can be
marketing
affect
defined
as the minimum number of components that accounts for the maximum possible variance.
decision
to buy a car?
Are the safety features of
1.000
.669
car important?
BRM Group Project
Extraction Method: Principal Component
Analysis.

Report on B-Segment Car

Total Variance Explained
Component

Initial Eigenvalues
Total

Extraction Sums of Squared Loadings

% of
Cumulative
Variance
%
30.014
30.014
9.710
39.724

Total

1
2

5.402
1.748

1.551

8.619

48.343

1.551

8.619

1.377

7.648

55.991

1.377

1.120

6.223

62.214

1.003

5.570

67.784

.910

5.053

72.837

.806

4.478

77.315

.685

3.807

81.122

10

.595

3.307

84.430

11

.568

3.158

87.587

12

.477

2.651

90.239

13

.408

2.265

92.504

14

.362

2.011

94.514

15

.347

1.930

96.444

16

.246

1.367

97.812

17

.240

1.333

99.145

18

.154

.855

100.000

Extraction Method: Principal Component Analysis.

BRM Group Project

5.402
1.748

% of
Cumulative
Variance
%
30.014
30.014
9.710
39.724

Rotation Sums of Squared Loadings

% of
Cumulative
Total
Variance
%
2.603

14.460

14.460

2.580

14.334

28.794

48.343

2.547

14.147

42.941

7.648

55.991

1.575

8.748

51.689

1.120

6.223

62.214

1.543

8.571

60.260

1.003

5.570

67.784

1.354

7.524

67.784

Report on B-Segment Car

The screen plot graphs the eigenvalue against the component number. We can see these values in the first
six columns of the table immediately above. From the seventh component on, it can be seen that the line is
almost flat, meaning the each successive component is accounting for smaller and smaller amounts of the
total variance. In general, we are interested in keeping only those principal components whose eigenvalues
are greater than 1. Components with an eigenvalue of less than 1 account for less variance than did the
original variable (which had a variance of 1), and so are of little use. Hence, you can see that the point of
principal components analysis is to redistribute the variance in the correlation matrix (using the method of
eigenvalue decomposition) to redistribute the variance to first components extracted.

This table contains component loadings, which are the correlations between the variable and the component. Because these are correlations,
Component
Matrixa
possible values range from -1 to
+1.

How important is the onroad price of a car to

you?
How important is the
brand name to you while
making a purchase
decision?
What is your view about
BRM Group Project

1
.545

2
-.118

Component
3
4
-.131
.325

.276

-.384

-.033

.451

-.220

.246

5
.261

6
-.317

.059

.758

.193

.079

-.156

.443

Report on B-Segment Car

Rotated Component Matrixa
Component
1
2
3
4
.048
-.051
.617
.453
.499
.197
.132
.462

5
-.137
-.188

.048
-.220

-.275

.034

.638

.898
-.348

.058
.315

.111
.074

.104
.088

.104
.090

.042
.067

.185
-.069

-.003
.223

-.141
-.580

.143
.018

-.022
.136

.007
.825

.049
.195

.862
-.212

.005
.125

-.108

.582

.022

.386
-.039

.131
.077

-.112
.066

.217
-.020

-.181
-.005

.025
.116

-.067
-.140

-.089

.228

.184
-.116

.225
.123

-.504
.046

.003
.072

-.532
.283

-.226
-.163

.527
-.014

.021
-.325

.296

-.219

.146

.302

-.102

.147

-.007

-.277

the engine capacity of

car?
Do the
looks and
design
How
important
is the
on(interior
and
road
price
of exterior)
a car to
matter to you?
you?
fuel
.298
.240
-.396
How important is the
efficiency
of a
brand
name
tocar?
you while
-.062
-.037
.112
How important
are the
.191
.491
.542
making
a purchase
discount schemes at the
decision?
time ofiscar
purchase?
What
your
view about
What
is thecapacity
significance
.356
.707
.194
the
engine
of
-.076
.096
.710
of a car's resale value?
car?
What
your and
viewdesign
about
.430
.441
-.198
Do
theislooks
the after-sales
services
(interior
and exterior)
-.047
-.195
.426
of yourto
car?
matter
you?
Whatimportant
is your view
about
.520
.444
-.398
How
is fuel
.143
-.021
.259
the running
efficiency
of and
a car ?
maintenance
your
How
importantcost
areof
the
car?
discount
schemes at the
.049
.218
-.046
How of
about
convenience
.690
-.194
.033
time
car purchase?
features
(power
steering,
What
is the
significance
.574
-.004
.088
power
windows,
etc.) of
of
a car's
resale value?
your car?
What
is your view about
Howafter-sales
relevant isservices
the
.553
.266
.176
the
.671
.090
.049
purpose
of purchase
of
your car?
while buying
car?about
What
is your a
view
Howrunning
important
.708
.046
.102
the
andis the
.730
.085
.122
performance information
maintenance
cost of your
available when buying a
car?
car? about convenience
How
How important is
driving
.736
-.300
-.044
features(power
steering,
.273
.278
.654
pleasure
to you?etc) of
power
windows,
Importance
.740
-.346
.162
your
car? of image of a
brandrelevant
when buying
How
is the a
car?
purpose
of purchase
.586
.060
.300
Should
the car
be
.641
.002
-.445
while
buying
a car?
economical
to use?
How
important
is the
How important
is the
.682
-.055
.281
performance
information
.387
.197
.665
variety in when
colorsbuying
of car a
available
available?
car?
much doesis the
.601
.015
.177
How important
driving
.203
.410
.571
advertisement
and
pleasure
to you?
marketing affect
your of a
Importance
of image
decision
to buy
a car?
brand
when
buying
a
.132
.558
.384
Are the safety features of
.711
-.150
-.162
car?
car important
Should
the car?be
.499
.450
.056
economical
to use? Principal Component Analysis.
Extraction Method:
How
important is extracted.
the
a. 6 components
variety in colors of car
.035
.780
.280
available?
How much does the
advertisement and
.109
.869
.131
marketing affect your
decision to buy a car?
Are the safety features of
.345
.515
.452
car important ?
BRM
Group
Project
Extraction
Method:
Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 12 iterations.

.212
From the above table we can make
.303
our components by setting up a cut
off point for the explained variance
of a variable in a component. On
.102 setting the cutoff point at .6, we
-.026
can form the components as shown
-.111 in the next table:1. Component 1:- The
significance of a car's resale
-.253
value, The after-sales
-.182
services of your car, The
running and maintenance
cost of car, The purpose of
-.074
.020
purchase while buying a car,
Economical to use
2. Component 2.Importance of
-.297
image of a brand when
.084
buying a car, The
advertisement and marketing
-.102
at buying decission,Safety
features
-.093
3. Component 3:-Engine
.286
capacity of car,
Features(power steering,
power windows, etc.) of Car,
.079
Importance driving pleasure
to you, The performance
information available when
buying a car, The
.014
performance information
available when buying a car,
The performance information
available when buying a car,
.067
The performance information
available when buying a car,
4. Component 4:-Importance
of the brand name to you

Report on B-Segment Car

Component Score Coefficient Matrix

How important is the

on-road price of a car
to you?
How important is the
brand name to you
while making a
purchase decision?
BRM Group Project

Component
3
4

.241

.006

-.136

.280

-.143

-.238

-.098

-.165

-.032

.693

.125

.115

Report on B-Segment Car

What is your view
about the engine
-.191
-.124
.440
capacity of car?
Do the looks and
design (interior and
-.031
-.164
.294
exterior) matter to you?
How important is fuel
-.061
-.174
.212
efficiency of a car ?
How important are the
discount schemes at
-.051
.091
-.091
the time of car
purchase?
What is the
significance of a car's
.255
-.102
-.020
resale value?
What is your view
about the after-sales
.330
-.035
-.094
services of your car?
What is your view
about the running and
.330
-.082
-.041
maintenance cost of
your car?
How about
convenience
features(power
.010
-.022
.287
steering, power
windows, etc) of your
car?
How relevant is the
purpose of purchase
.259
-.109
.031
while buying a car?
How important is the
performance
.061
-.092
.309
information available
when buying a car?
How important is
driving pleasure to
-.044
.056
.198
you?
Importance of image of
a brand when buying a
-.068
.177
.005
car?
Should the car be
.182
.153
-.180
economical to use?
How important is the
variety in colors of car
-.149
.364
-.025
available?
How much does the
advertisement and
-.067
.489
-.124
marketing affect your
decision to buy a car?
Are the safety features
.062
.175
.113
of car important ?
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
Component Scores.
BRM Group Project

-.038

.077

.114

-.077

.128

-.385

-.011

.131

.661

.086

.569

.023

-.071

.345

-.004

-.067

.003

-.018

-.070

-.041

.164

-.063

-.114

-.028

.085

.112

-.227

-.096

.022

.016

.065

-.111

.047

.280

.018

-.108

.132

-.162

.126

.000

.181

.028

-.197

.043

-.061

-.171

-.227

-.008

Report on B-Segment Car

Conclusion
We have found that there are 6 factors that the buyers of B-segment cars in India consider while making a purchase decision.
We categorize variables into a particular factor if it has an eigen value greater that 1. The total cumulative percentages of factors/
variables are greater than 50%. We have selected the below 6 factors based upon the analysis:
1. Component 1:- The significance of a car's resale value, The after-sales services of your car, The running and
maintenance cost of car, The purpose of purchase while buying a car, Economical to use.
2. Component 2.Importance of image of a brand when buying a car, The advertisement and marketing at buying
decission,Safety features
3. Component 3:-Engine capacity of car, Features(power steering, power windows, etc.) of Car, Importance
driving pleasure to you, The performance information available when buying a car, The performance information
available when buying a car, The performance information available when buying a car, The performance
information available when buying a car,
4. Component 4:-Importance of the brand name to you
5. Component 5:-The discount schemes at the time of car purchase
6. Component 6 :-Fuel efficiency of a car
These are the factors that majorly determine the decision of people to buy a particular car.

BRM Group Project