Factor Analysis - Factor Analysis in Marketing

Factor Analysis in Marketing

The basic steps are:

  • Identify the salient attributes consumers use to evaluate products in this category.
  • Use quantitative marketing research techniques (such as surveys) to collect data from a sample of potential customers concerning their ratings of all the product attributes.
  • Input the data into a statistical program and run the factor analysis procedure. The computer will yield a set of underlying attributes (or factors).
  • Use these factors to construct perceptual maps and other product positioning devices.

Read more about this topic:  Factor Analysis

Famous quotes containing the words factor and/or analysis:

    “It is change, continuing change, inevitable change, that is the dominant factor in society today. No sensible decision can be made any longer without taking into account not only the world as it is, but the world as it will be.... This, in turn, means that our statesmen, our businessmen, our everyman must take on a science fictional way of thinking.”
    —Isaac Asimov (1920–1992)

    “Ask anyone committed to Marxist analysis how many angels on the head of a pin, and you will be asked in return to never mind the angels, tell me who controls the production of pins.”
    —Joan Didion (b. 1934)