Factor Analysis

Case

A 2 wheeler producer desires to understand the major Factors influencing Consumer

preferences for Motorcycles. For this purpose, they have conducted a suitable research. Initially,
a preliminary research was conducted and a detailed set of variables that could influence
Consumer preferences were identified. These parameters were then converted into a
Questionnaire in the form of statements. Respondents were asked to provide their responses to
each statement on a 7 point Likert Scale (1= Strongly Agree; 7 = Strongly Disagree). A part of
the Questionnaire along with a data extract is provided in the Excel file for your analysis.

Case Questions

1. Identify the number of major Factors influencing Consumer preferences for motorcycles.

2. State the % of total Variance in the data that is cumulatively explained by the extracted
Factors.

3. Determine the major constituent Attributes of each Factor.

4. Label each Factor based on their dominant characteristics.

5. Draw Perceptual Maps with the Factors as the Axes. Plot the relevant Attributes on these
maps as Vectors based on their Correlations with each Factor.

Justify your answers.

 Factor Analysis

Questionnaire

Q1. I use a 2W because it is affordable

Q2. It gives me a sense of freedom to own a 2W

Q3. Low maintenance cost makes it economical in the long run

Q4. 2W is man’s vehicle essentially

Q5. I feel powerful on my 2W

Q6. Some of my friends who don’t have a 2W are jealous of me

Q7. I feel good when I see ads for my 2W

Q8. My 2W gives me comfortable ride

Q9. I think 2W are a safe way to travel

Q10. 3 people should be legally allowed to travel on a 2W

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