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Factor Analysis

KMO and Bartlett's Test


Kaiser-Meyer-Olkin Measure of Sampling
.799
Adequacy.
Bartlett's Test of
Approx. Chi245.70
Sphericity
Square
4
df
36
Sig.
.000
Kaiser suggested that anything in the .90s was marvelous, in the .80s meritorious, in the .70s
middling, in the .60s mediocre, in the .50s miserable and below .5 unacceptable.
The value of KMO Sampling Adequacy is very high 0.799, suggesting that the sample is very
close to meritorious.
Rotated Component Matrixa
Component
1
2
3
Brand
.053
.748
.255
Price
-.051
.101
.820
ProdDesig .116
.813
.030
n
CmprtvPe .344
.136
.596
rf
FinPayof
.598
.027
.382
AttnEnrgy .581
.490
-.068
Ef
CostSavin .785
.004
.103
gs
ProdPerf
.829
.098
-.003
OvrlXprnc .755
.218
.129
e
Extraction Method: Principal
Component Analysis.
Rotation Method: Varimax with
Kaiser Normalization.
a. Rotation converged in 5 iterations.
There are 3 factors that can be identified by looking at the Rotated Component Matrix. The factor
identification is done as follows.

Factor Identification

The following factors are identified

Factor 1 FinPayof(.598), AttnEnrgyEf(.581), CostSavings(.785), ProdPerf(.829),


OvrlXprnce(.755)
Factor name The Penny Pincher

Factor 2 Brand(.748), ProdDesign(.813)

Factor name The Gadget Savvy

Factor 3 Price(.820),CmprtvPerf(.596)
Factor name The Price Conscious

K-Means Cluster
Number of Cases in each Cluster
Cluster

54.000

30.000

36.000

Valid

120.000

Missing

.000

Distances between Final


Cluster Centers
Clust
1
2
3
er
1
1.558
2.636
2
1.558
2.486
3
2.636
2.486

Discriminant analysis
Wilks' Lambda
Test of
Wilks'
Function(s)
Lambda
1 through 2
.150
2
.506

Chisquare
214.083
76.944

df

Sig.

18
8

.000
.000

Inference:
Wilks lambda is the indicator of the significance of the discriminant function. Here function 1 is
significant with a low Wilks Lambda value and with a very high Chi-square value with very high
significance of 0.000

Structure Matrix
Function
1
2
AttnEnrgy .633*
-.057
Ef
CostSavin .524*
-.115
gs

ProdPerf
OvrlXprnc
e
FinPayof
CmprtvPe
rf
Price
Brand
ProdDesig
n

.462*
.368*

-.211
.005

.357*
.307*

.052
.306

.040
.227
.252

.553*
.490*
.396*

Structure matrix shows the relative importance of the discriminating variable in the analysis. It is
seen from above table that AttnEnrgyEf (0.633) has the most discriminating power among all
the variables. The second most discriminating variable is Price (0.533).

Inference:
The Attention paid to Energy Efciency by the customers is the most important in explaining
consumer behavior.
The Price of the durable is the second most important variable in explaining consumer behavior.

Standardized Canonical Discriminant Function Coefficients


Function
1
Brand
.127
Price
-.127
ProdDesign
.153
CmprtvPerf
.288
FinPayof
.193
AttnEnrgyEf
.638
CostSavings
.520
ProdPerf
.258
OvrlXprnce
-.042

2
.501
.686
.454
.333
-.013
-.211
-.095
-.336
-.039

Inference:
We pick the higher magnitudes of these coefcients, signifying how strongly the discriminating
variables afect the function.
Function
1

Associations
AttnEnrgyEf

CostSavings

FinPayof

OvrlXprnce

Brand

Price

ProdDesign

CmprtvPerf

ProdPerf

Functions at Group Centroids


Cluster Number of Function
1
2
Case
1
1.386
-.608
2
.131
1.687
3
-2.189 -.494

Inference:
We pick the higher magnitudes of these coefcients, which refers to how much the groups are
diferentiating on each function.
Clust
er
1

Emphasis
Function 1

Function 2

Function 1

Clust
er
1

Emphasis
AttnEnrgyEf

CostSavings

FinPayof

Brand

Price

AttnEnrgyEf

CostSavings

ProdDesi
gn
FinPayof

OvrlXprn
ce
CmprtvP
erf
OvrlXprn
ce

ProdPe
rf

Since, it is already found that:


Number of Cases in each Cluster
Cluster

54.000

30.000

36.000

Valid

120.000

Missing

Numb
er of
cases
90

30

.000

Emphasis

Cluster
Name

AttnEnrgyE
f

CostSavin
gs

FinPayof

OvrlXprn
ce

Brand

Price

ProdDesi
gn

CmprtvP
erf

ProdPe
rf

Value
Conscious
Shopper
Quality
Conscious
Shopper

Overall
Inference:

The clusters 1 and 2 can be clubbed together in regards to the discriminating function.
Thus there are 2 types of clusters available.

Value Conscious Shopper


Quality Conscious Shopper