Factor Analysis using SPSS

Presented By
Gaurang Rami
Department of
Economics
Veer Narmad South
Gujarat
University, Surat

Factor analysis is a technique of

simplifying data complexity by
reducing the number of variables
being studied

Two-wheeler manufacturer is interested in

determining which variables his potential
consumers think about when they consider
his product?

Twenty two-wheeler owners were surveyed

by this manufacturer. They were asked to
indicate
on
a
seven
point
scale
(1=completely agree, 7=completely
disagree),
their
agreement
of
disagreement with a set of ten statements
relating to their perceptions and some
attributes of the two-wheelers.

The ten statements were as follows:

1)
2)
3)
4)
5)
6)
7)
8)
9)
10)

I use two wheeler because it is comfortable

It gives me a sense of freedom to own a two
wheeler
Low maintenance cost makes a two wheeler very
economical in the long run
A two wheeler is essentially a mans vehicle
I feel very powerful when I am on my two wheeler
Some of my friends who dont have their own
vehicle are jealous of me
I feel good whenever I see the ad for my two
wheeler on TV, in a magazine or on a hoarding
My vehicle gives me a comfortable ride
I think two wheelers are safe way of travel
Three people should be legally allowed to travel on
a two wheeler

Factor 1
1)
2)

3)

4)

A two wheeler is essentially a mans vehicle

I feel very powerful when I am on my two
wheeler
Some of my friends who dont have their
own vehicle are jealous of me
I feel good whenever I see the ad for my
two wheeler on TV, in a magazine or on a
hoarding

Male Ego / Pride of ownership

Factor 2
1)
2)
3)

Low maintenance cost makes a two wheeler

very economical in the long run
My vehicle gives me a comfortable ride
I think two wheelers are safe way of travel

Utility / Functional features

Factor 3
1)
2)

I use two wheeler because it is comfortable

Three people should be legally allowed to
travel on a two wheeler

Economy / low cost

Which Airlines will you prefer ?

Private domestic airline operators raised

their airfare in December 2000. Indian
Airlines, the government owned carrier,
was the only domestic airline which did
not follow suit. Information available
showed that people still prefer to fly Jet
Airways.
Source : Economic Times

Why ?

Twenty respondents were surveyed who

recently took the Jet Airways flight. They
were asked to indicate on a seven point
scale
(1=completely
agree,
7=completely
disagree),
their
agreement of disagreement with a set of
ten statements relating to their perceptions
and attributes of the Jet Airlines.

The ten statements were as follows:

1)
2)
3)
4)
5)
6)
7)
8)
9)
10)

They (Jet Airways) are always on time

The seats are very comfortable
I love the food they offer
Their air-hostesses are very beautiful
My boss/friend flies with the same airline
The airlines have younger aircrafts
I get the advantage of a frequent flyer program
It (the flight timing) suits my schedule
My mom feels safe when I fly Jet
Flying
Jet
compliments
my
lifestyle
Jet
compliments my lifestyle and social standing in
the society

Factor 1
The airlines have younger aircrafts
I love the food they offer
They (Jet Airways) are always on time
Customer Service
Factor 2
I get the advantage of a frequent fl yer program

I get the advantage of a frequent flyer program

Their air-hostesses are very beautiful
Flying Jet compliments my lifestyle and social standing in the
society
Flyer Incentive
Factor 3
The seats are very comfortable
It (the flight timing) suits my schedule
Convenience

Why people prefer smoking?

A cigarette manufacturer is interested in determining

which variables his potential customers think about
when they consider his product.
To get an answer to above, a set of 10 statements were
prepared by the manufacturer with the help of a
market research agency.

Twenty respondent were surveyed the following

questions and were requested to them on a seven
point scale
(1= completely agree and 7 =
completely disagree). The answer given by the
respondents were related to their perceptions and
some attributes of the cigarettes.

Note: The sample comprised male smokers only

The statements are as follows

1)
2)
3)

4)
5)
6)
7)

8)
9)
10)

It makes me feel very manly

I feel women get attracted to me when I smoke
When I am in a group, it makes me feel superior with a
cigarette in my hands, if others in the group are non-smokers
I support the ban of cigarette advertisements
I prefer lighter cigarettes, which cause less harm to the body
Tension is relieved/ relaxation when I smoke
I endorse the view that all cigarette boxes should carry the
statutory warning Cigarette smoking is injurious to health
I tend to smoke more when tension prevails in my mind
I smoke because I like the smell of tobacco
A cigarette enhances my overall personality

Factor 1
It makes me feel very manly
I feel women get attracted to me when I smoke
When I am in a group, it makes me feel superior with a
cigarette in my hands, if others in the group are non-smokers
A cigarette enhances my overall personality

1)
2)
3)
4)

Male glorification
Factor 2
1)
2)

Tension is relieved/ relaxation when I smoke

I tend to smoke more when tension prevails in my mind

Smoking pattern and Effect under tension

Factor 3
1)
2)

I support the ban of cigarette advertisements

I endorse the view that all cigarette boxes should carry
the statutory warning Cigarette smoking is injurious to
health

Sweet Poison