Group 6

MARKETING RESEARCH PROJECT

Submitted By Abhishek Srivastava Abhishek Tiwari Ahmer Akhlaq Ameet Mohapatra Aniket Prakash Wagh Ankit Kapoor Pankaj Singh

Research Problem
To identify the major Factors that drives the real estate business.

Study-Scope & Objective of Research

The research will help in recognizing and understanding the various factors that drive the business in the real estate industry. Using the results of the research one can formulate a business plan to get an competitive advantage and earn profits and also gain insight into consumer behavior.

Methodologies of Research
Data collection method Questionnaire Scale used for the questionnaire Likert Scale [ 1- Completely Agree, 2- Strongly Agree, 3Agree, 4- Neutral, 5- Disagree, 6- Strongly Disagree, 7- Completely Disagree] Sample Size- data is collected from 25 respondents. Parameters/Variables (defined by management) Var 1 owning a house is a necessity Var 2 paying high price for quality is acceptable Var 3 investing in stock is risky Var 4 every parent should make investment for children Var 5 making investment in land is safe investment Var 6 friends and family are important to make major investment decisions Var 7 monthly financial obligations can be met with loan Var 8 enjoying the current situation is more important Var 9 advertisements play a major role to make decisions

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ANALYSIS
KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy. Approx. Chi-Square Bartlett's Test of Sphericity Df Sig. .826 2592.377 28 .000

Here KMO takes value between 0-1. For the application of factor analysis, the value of KMO should be greater than 0.5. Since here the KMO value is above 0.5 which indicates factor analysis could be applied. Df [degree of freedom] - Here degree of freedom is calculated by the formula [k (k-1)/2], where k=number of variables on which factor analysis is applied. Here k=9, so, putting k value we get df = 36. The significance of the correlation matrix ensures that factor analysis exercise could be carried out since assumed level of significance is 0.05. And we are getting p- value 0.00 so correlation matrix is significant.

Communalities Initial Var 1 Var 2 Var 3 Var 4 Var 5 Var 6 Var 7 Var 8 Var 9 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 Extraction .968 .862 .628 .950 .952 .944 .968 .749 .930

Extraction Method: Principal Component Analysis. It indicates how much of each variable is accounted for by the underlying factors taken together. In other words, it is a measure of the percentage of the variables variation that is explained by the factors. A relatively high communality shows that not much of the variable is leftover after whatever the factors represent is taken into consideration. The communality for each variable is computed as for e.g. .960^2+.180^2+.121^2=.968.

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Total Variance Explained8 Compone Initial Eigen values Extraction Sums of Squared Rotation Sums of Squared nt Loadings Loadings Total % of Cumulativ Total % of Cumulativ Total % of Cumula Variance e% Variance e% Variance tive % 4.783 53.142 53.142 4.783 53.142 1.953 21.699 74.841 1.953 21.699 1.214 13.490 88.331 1.214 13.490 .710 7.892 96.222 .188 2.088 98.310 .087 .968 99.278 .044 .489 99.767 .021 .233 100.000 -4.738E- -5.264E9 100.000 017 016 Extraction Method: Principal Component Analysis. 1 2 3 4 5 6 7 8 53.142 74.841 88.331 4.671 1.970 1.309 51.895 51.895 21.894 73.789 14.542 88.331

According to Kaiser Guttman method the numbers of factors to be extracted should be equal to the number of factors having an Eigen value of at least 1 therefore from the above table we have three factors whose Eigen values is greater than 1.and all those factors whose Eigen values is less than 1 are rejected. Scree Plot

Scree plot interprets the factors by pointing the point of inflexion on the curve. Here we have only 25 sample respondents data whereas scree plot is mainly used when the sample size is large to be significant [around 300 or more].
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Component Matrix 1 .960 .007 -.220 .968 .228 .959 .960 .231 .964 Component 2 -.180 .926 -.286 -.061 .937 .156 -.180 -.206 .018 3 .121 -.059 .705 .094 .149 -.006 .121 -.808 -.009

Var 1 Var 2 Var 3 Var 4 Var 5 Var 6 Var 7 Var 8 Var 9

Extraction Method: Principal Component Analysis. a. 3 components extracted. This table helps in taking out communalities, for eg.Referring to table 2 we have communality of variable 1 as 0.968 So using component matrix we get it by .960^2+.180^2+.121^2=.968.

Rotated Component Matrix 1 .979 -.087 -.080 .972 .162 .928 .979 .119 .945 Component 2 -.092 .919 -.264 .026 .959 .235 -.092 -.231 .099 3 .028 .097 -.743 .062 -.072 .168 .028 .825 .166

Var 1 Var 2 Var 3 Var 4 Var 5 Var 6 Var 7 Var 8 Var 9

Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization. The purpose of rotation is to have the factor loading in such a way that they are either close to zero or to -1 or +1.In order to interpret the results of rotated component matrix. A cut-off point is decided .So, a cut-off of 0.5

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Factor 1
Owning a House is Necessity

Factor 2
paying high price for quality is acceptable making investment in land is safe investment

Factor 3
investing in stock is risky

every parent should make investment for children

enjoying the current situation is more important

friends and family are important to make major investment decisions

monthly financial obligations can be met with loan advertisements play a major role to make decisions

LABELLING OR NAMING THE FACTORS

THE LABELLING OF FACTOR 1 IS INVESTMENT CRITERIA THE LABELLING OF FACTOR 2 IS PERCEIVED VALUE OF PROPERTY THE LABELLING OF FACTOR 3 IS SECURITY FACTOR

CONCLUSION
So, according to the analysis done, the major Factors that drive the real-estate business are INVESTMENT CRITERIA PERCEIVED VALUE OF PROPERTY SECURITY FACTOR.

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Limitation of Factor Analysis:-

".each orientation is equally acceptable mathematically. But different factorial theories proved to differ as much in terms of the orientations of factorial axes for a given solution as in terms of anything else, so that model fitting did not prove to be useful in distinguishing among theories." (Sternberg, 1977). This means all rotations represent different underlying processes, but all rotations are equally valid outcomes of standard factor analysis optimization. Therefore, it is impossible to pick the proper rotation using factor analysis alone.

Factor analysis can be only as good as the data allows. In psychology, where researchers often have to rely on less valid and reliable measures such as self-reports, this can be problematic.

Interpreting factor analysis is based on using a "heuristic", which is a solution that is "convenient even if not absolutely true".[9] More than one interpretation can be made of the same data factored the same way, and factor analysis cannot identify causality.

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APPENDIX
DATA COLLECTED

Var 1 2 6 1 5 3 2 2 1 3 6 6 3 2 2 2 2 3 1 3 3 2 3 1 3 3

Var 2 4 1 4 2 6 4 3 7 5 2 2 3 3 1 1 1 6 1 2 2 1 6 1 2 2

Var 3 7 2 2 4 3 1 5 2 2 1 4 3 2 1 5 2 3 5 7 2 2 3 5 7 2

Var 4 2 6 1 4 3 2 2 1 4 6 7 3 1 2 2 2 4 1 3 3 2 4 1 3 3

Var 5 4 4 4 3 5 4 2 6 5 3 3 3 2 1 1 3 5 2 2 1 3 5 2 2 1

Var 6 1 5 2 4 3 1 2 2 3 5 6 4 2 1 1 2 4 1 2 2 2 4 1 2 2

Var 7 2 6 1 5 3 2 2 1 3 6 6 3 2 2 2 2 3 1 3 3 2 3 1 3 3

Var 8 1 1 5 3 3 1 3 2 2 2 6 3 2 3 3 2 3 2 1 6 2 3 2 1 6

Var 9 1 5 2 3 3 1 2 1 3 5 6 4 2 1 1 2 3 1 2 2 2 3 1 2 2
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