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Acknowledgement

I am extremely thankful to our faculty

Professor Gautam Bhattacharya , Professor

of

National

Institute Of Technology

(Durgapur) who have guided us throughout

the project

for analyzing the consumer

behavioural pattern

using Factor and

Cluster Analysis as a Statistical tool and

helped us in all possible ways to complete

the project .

Executive Summary

Our research intends to provide an overview of the

consumer behaviour and their tastes and preferences

regarding the use of Dish TV and Set Top Box in Indian

Context. Although the launch of the DTH service and

set top box has an overwhelming impact backed with

a phenomenal response in the Western countries, the

Indian market is yet to flourish, as compared to the

First world Countries. Yet the Indian market has a huge

prospect . This report should provide an insight about

the consumer choices and their approach about the

DTH and set top box market in India.

INTRODUCTION

Background

Research

Of

The

**The direct home to home (DTH) TV sector in India continues to expand rapidly,
**

attracting large investments from new and existing players over past few years

and is showing no signs of slowing down due to economic recession. The DTH

market which began commercial operations in 2003 has been able to acquire

over 12 million subscribers during the past six years. As per “ Indian DTH market

forecast to 2012”, the number of DTH subscribers are forecasted to grow at a

CAGR of around 25% during 2009-2012. Currently , the Indian DTH market is

being served by the five private players , Dish TV, Tata Sky, Sun Direct, Big TV

and Airtel Digital TV. Given the superior quality of DTH services in terms of

viewing and interactivity, the number of DTH subscribers has been soaring.

However, the current number of DTH subscribers constitutes only a meager

population of the total number of TV households, indicating vast future growth

potential.

This research provides extensive research and rational analysis about the set top

box market in India. India is an important and growing market for set top box.

By 2012 India’s pay TV market is expected to reach 90 million subscribers.

Though imports constitute a major share of set top boxes, due to Government’s

incentives to encourage Indian Companies to manufacture them, the demand for

STB will increase considerably. It can be estimated in the range of greater than

1.0 billion US $ worth market for STB by 2012. The semi conductor Companies

actively involved in selling STB devices in Indian market are ST Microelectronics,

national Semiconductor, NXP and Broadcom. Tensilica is another fables firm with

STB device offerings.

The STM 5107 from ST Microelectronics is fully developed at ST’s India design

centre. National Semiconductor has sold geode processor based STB solutions to

some key customers in India. Just few days back Bharti Airtel has selected

Broad Com’s satellite Set Top Box system on a chip solutions to power its direct

home to home TV service. Therefore we can say that India’s TV and consumer

market is sure to present some pleasant surprise opportunities to the semi

conductor and other electronic component Companies.

As mentioned earlier repeatedly. a) Locate the section of population that may be a potential customers for this Set Top Box Service. So the aim of the research is to provide an insight to the kind of service that can be provided at a minimum cost in order to capture the more of the mediocre market. It will also help in determining the prospective customers of set top box in India. Hence there are two basic objectives of this study. Amongst the 90 million expected subscribers in 2012 more than 50% buyers will belong to a mediocre income level. Through our research we have tried to locate the specific qualities which the consumer prefer while going for a DTH and set top box service. Socio-Economic. b) Find out the causes (e. quality and durability are the three main aspects which influences a consumer while buying a product.g. Psycological causes. habits etc. Our basic aim is to gain an insight of the consumer choices.) for which customer’s interest about Set Top Box differs from individual to individual. the kind of research tool that we have utilized in order to generate the results will yield the highly correlated factors which reveals some specific consumer preferences. . Moreover. in determining the quality of service that can be provided and it provides a scope for further improvement.Need And Objective Of The Research The primary purpose of the research is to gain an insight on taste and the consumer behaviour when it comes to an installation of Set Top Box. For this purpose we have designed the questionaires in such a way so that it reflects the choices of the consumers not only in terms of the kind of service they look forward to but also taking the price factor into consideration as well. It can be said beyond any shadow of doubt that price. This in turn is helpful.

Type Of Research The research design of the project is a type of descriptive research . The descriptive research also known as statistical research. Secondary Data. Principal Component analysis. describes the data and characteristics about the population or the phenomenon being studied. . Bartlett Test of Spherecity. Standard Deviation. This research seeks to examine the perception of the consumers about DTH service in India. Communalities. Kolmogorov Test of Normality. Eigen values. Primary data. Factor loading. what. Random Sampling. Correlation. orthogonal Transformation. Research Methodology This section describes the design of the research methodology and aims to improve assurance that appropriate procedures were followed. Descriptive research answers the question who.Key words Factor Analysis. Multi-collinearity. where and how. Five Point Likert Scale. Kaiser Meyer Olkin test. this is because the research looks to identify the factors underlying consumer’s perception about Set Top Box and DTH service in India. Variance. This research looks to identify the psyche that drives the consumers to react in a certain way while buying set top box or going for a DTH service.

Sampling Techniques: Random sampling methods were used to collect the data as the questionaires are distributed. such that each individual has the same probability of being choosen at any stage during the sampling process. Secondary Data: These sources are books.Sources And Tools Of Data Collection Primary data: The data is gathered through a survey based research approach with the help of a questionnaire. articles. generally a sample of fewer than 50 observations would not factor analyze and preferably the sample size . do not require as much effort as in verbal and telephone survey and often have standardized answer to make it simple to compile data.individuals has the same probability of being choosen for the sample as any other sub set of k individuals . Questionaires have some pertinent advantage over some other types of surveys which is why it was selected as a research tool. It is also easy for the respondents to file the questionnaire rather than think extensively and answer it in depth interview questions. The respondents lie within the age of 22-51 years . Simple Random sampling is used because each individual is choosen randomly and entirely by chance. Sample Size: Regarding the sample size question. and each subset of k. various web sites and research papers. They are economical. The targeted respondents ranged from 22-51 years of age .

Scale used in Questionnaire: 15 different questions were asked in order to know the respondents perception regarding various aspects which come into play while they think about the DTH service. which represents 61% of the total respondents. The respondents were asked to fill a questionnaire mentioning the factors measuring their perception. Data Analysis The population of this study encompassed mostly students. 40 . the purpose to involve students included to get an idea about the perception of the youth about the Set Top Box in the Indian context. In the assessment of 21 variables. which is shown in Figure 1. and the more acceptable sample size would have 10:1 ratio. The table shows that 105 questionnaire forms were entered.should be 100 and larger. They think that users of competitive services such as cable and DTH services might be potential customers. In the research respondents were intercepted and asked to participate in a survey. But the company believes that people who prefer to go out to the cinema or to the theatre are not good prospects and the customer must be urban. They think that the highest potential is among television viewers who own video recorders and rent video films. Video owners: The first step is to find out how many owners of video recorders there are in the sample by running a frequency table. 64 respondents do not own video recorders. A FIVE POINT LIKERT SCALE was used and the respondents were asked to rate where -2 represents strongly agree and 2 represents strongly disagree. which assess consumer perceptions and choices about the entertainment media were measured in a five point likert scale in which respondents were asked to indicate their perceptions. Prospective customer: The communication company has several of ideas about who are the potential customers for this service. The result of surveying this population produced an effective sample size of respondents. As a general rule the minimum is to have at least five times as many observations as the number of variables to be analyzed. For this reason we have taken 105 observations.

5 Yes 40 38. 1 (or 0.If management is right.5 100. so no data was entered.respondents own video recorders and are 38.0 Valid Missing Total Frequency Percent No 25 23.5% do not own video recorders and about 38.7 11 10.0 100.0 Total 104 99. 38.1 38. and the sample does represent the population. Figure 1: Frequency table for the video recorder ownership Cumulative Frequency Percent Valid Percent Percent No 64 61. Prospective customer surveys such as this one usually try to get some information about the respondents’ possible interest in the product or service.8 May be/It depends 69 65. Without including this 1 in the analysis of video ownership.5 105 100.9%) of the respondents did not answer the question. .1% of the respondents. Figure-2 shows the tabulation of the Interest in Set Top Box question(Question No.0 Figure 2: for interest in Set Valid Don't know/No answer Total Frequency table Top Box .0 61.5% represents a very low prospects for the company.7% of those surveyed expressed some interest.0 105 100. 12).5% do(approximately one third of the population only).5 61. It shows that 65. the column labeled Valid Percent tells us that about 61.0 System 1 1.

4% 39.3% of the population might be potential customers. Reading the table percent in that cell shows that 66.3% 9. Amazingly the table shows (by reading the row percents) that the majority or 39.0% ownership Yes Total .7% 61.9% 1.6% 26.5% Count 10 28 2 40 % of Total 9.6% 100.4% of non video owners expressed an interest. Figure 3: Cross-tabulation of video recorder ownership by interest in the Set Top Box Interested in Set Top Box video recorder No Total May be/It Don't know/No No depends answer Count 15 41 8 64 % of Total 14. It should give some additional enthusiasm to the company.4% 7.9% 38.5% Count 25 69 10 104 % of Total 24. the results of which are shown in Figure 3.The next step is to cross-tabulate video ownership with the question about interest in Set Top Box.0% 66.

450 tells us that the differences shown in the cells of the table aren’t representing real differences in the population from which the sample was drawn. which is shown in Figure 5.450 Tables like that shown in Figure 3 are easy to read for experienced researchers. (2-sided) 1.596a 2 . However. Figure 5: Bar chart for video recorder ownership and Set Top Box . The bar chart shows more dramatically that a higher proportion of population who might be interested in Set Top Box . Figure 4: Chi-square statistics Pearson Chi-Square Value df Asymp. we want to present the results in graphical form. Sig. but they ask for statistical support as well. and an entire set of cell statistics and measures of association can be requested. Therefore. So the researcher may not feel confident about reporting these results to management. have no video recorder. The fact that the significance level for the Pearson chi-square is reported as . this kind of output is not appropriate to show management.Experienced researchers learn how to read differences that are revealed in these tables. The Chi-square statistics for the table in Figure 3 are shown in Figure 4.

Two frequency questions were asked in the survey: the average number of hours per day of television viewing and the average number of days per week. Again. SPSS can multiply these variables to get some idea of the number of hours per week the respondent watches television. People who respond positively to the new service do watch television less than those who are not interested: 15 hours per week compared to 17 hours per week. One way of testing conclusions about differences is an analysis of variance test that helps support a conclusion that the difference in means of the three groups cannot be attributed only to the natural variability in the population. To check management's idea about frequent viewers. DTH or rent videos. we ask for the mean number of hours per week by the respondents' interest in Set Top Box. A researcher wants to be able to conclude that these groups come from subpopulations that actually have different viewing habits.Viewer frequency: Management also thinks that potential customers for set top box can be found among frequent television viewers. cable. regardless of whether they watch standard TV. the reported significance value of nearly one gives the conclusion that there are no such differences in the population. The results of the analysis of variance test for the table in is shown in Figure 6. which is shown in . . It also doesn’t support the assumption of management about the potential customers.

The lines (or “whiskers”) show the remaining distributions.5 box lengths are called outliers.605 .909 Within Groups 594. Figure-7 shows the box plot of weekly viewing hours by interest in set top box.388 . The Non interested group shows more weekly television watching. points beyond 1.661 82 7.200 104 A way to visualize the information in is in a box plot. However. and the dark line shows the median. We can see that there are no such differences in the distributions. Between Groups 96. and the DK/NA group shows the least.The boxes represent the middle 50% of the distribution (the 25th to the 75th percentiles). . some of which shows up for the May be/It depends category (marked with the weekly viewing hour).539 22 4. as shown in Figure8.Figure 6: Analysis of variance statistics Sum Squares of df Mean Square F Sig.252 Total 691.

Viewer frequency types: We would like to create a categorical variable that records light. medium and heavy television viewers. . The histogram in Figure 7 shows that weekly viewing is not normally distributed (the line represents a normal distribution). we ask for a histogram of weekly viewing hours to look at the entire distribution.69 hours and that the distribution is skewed to the right because of some people who view television more than 50 hours per week. It can be seen that most respondents to the survey view less than the mean of 15. First.

7 percentile values) as shown in Figure 8.Figure 7: Histogram of weekly television viewing hours The distribution shown in Figure 7 looks like it might be divided into three groups. To divide the sample into three equal parts.3 8 66. The first group seems to divide somewhere around 8 hours.3 and 66. we can ask SPSS to give us the dividing values (33. Figure 8: Percentile values for weekly viewing hours Observation s Valid 105 Missing 0 33. and the second group seems to divide somewhere around 21 hours..7 21 Percentiles .

we can see that there really isn't much of a difference between them. A pie chart of this new variable is shown in Figure 9. However. it is easy to divide whole sample into three viewer categories: light (up to 8 hours). medium (between 8 and 21hours). Figure 9: Pie chart of television viewer type A bar chart showing the viewer frequency type by the Set Top Box interest question is shown in Figure 10. .Using the variable recoding facility in SPSS. The results seem to indicate that people who are heavy viewers are not interested in Set Top Box. if we look at the bars for medium & Low viewers. and heavy (over 21 hours).

we can produce the cross-tabulation shown in figure-13. The row percentages show that Heavy viewers seem to be different from medium and Light viewers. Figure 11: Cross-tabulation of viewer type by interest in . The Pearson chi-square significance indicates that there is probably no real differences. but these last two categories are not very different from each other.Figure 10: Bar chart of interest by television viewer type To confirm our visual conclusion from the bar chart in Figure 10.

0% Chi-Square Tests Valu df e Asymp. DTH Service and cable ownership .7% 10.7% 7.Interest in Set Top Box No May be/It depends Total Don't know/ No Type of Viewer answer Light Medium Heavy Total 7 28 3 38 18.445 a Square Market research tables: We can report results to management using a compact table that contains a great deal of information such as that shown in Figure 12.8% 65. 92. we can see a moralless same result for DTH subscribers (28. (2sided) Pearson 3.1% among heavy viewers).5% 100. 39.7% of light viewers.9% 4.72 Chi- 5 4 . For example.This may be a target population for the management.5% among heavy viewers). Continuing across.8% 100.9% of medium viewers and 92. if we look across the rows for possible interest in Set Top Box.0% 11 28 7 46 23.9% 100.1% of medium viewers and 23.9% 15. Figure 12: Table of viewer type by Set Top Box interest and video.3% among heavy viewers). Every kind of viewers who express some interest in Set Top Box are cable subscribers (85. 7.2% 100.9% 60.0% 7 13 1 21 33. we can see a notable result that a small proportion of respondents are ‘video owners’ (32. Sig.0% 25 69 11 105 23.4% 73.1% of light viewers.3% of medium viewers and 61.3% 61.6% of light viewers.

standards deviation of one) 100 % . the discussion here is limited to Principal Axis Factor Analysis and the factor solutions in which the common factors are uncorrelated to each other. describe the data in a much smaller number of concepts than the original individual.7 % % 1 71.1 % 1 % Factor Analysis The general purpose of Factor Analytic techniques is to find a way to condense the information contained in a number of original variables into a smaller set of new.9 32.3 6 85.6 7 100 0 0% 1 14.9 4 % 0 0% 0 0% 57.4 26 92.1% 5 % 4 % 2 28.1 19 67. In summarizing the data.9 % % Medi 85.5 % % % know/ No your Row y Don't to Tv Cou % Medi your Row be/It depen of Cou y May any service? um Heav Are connected % Medi video 14. There are a number of different varieties of factor analysis.5 20 .1 1 7.1% 1 9.7 1 50% .3 0 0% 2 100 % 1 % 0 92.Type of Viewer Interest in Set Top Box No Light Do you have recorder ? No Light Yes ds um Heav Light a DTH No Are any television of Connected to a cable network? Yes No Yes Cou Row Co Row Co Row Cou Row nt % nt % nt % unt % unt % nt % 5 71. composite dimensions with a minimum loss of information.9 50% % 26 3 23.3 24 % 2 7.9 17 60.7 6 54.6 14.7% 12 % answe um r Heav y 6 85.1 11 39.0% 9.4 2 28.1% % 10 71.3 5 61.7 3 38.5 9 100 42.0% 92. It is also assumed that the observed variables are standardized ( mean zero.4 % % 10 90.9 % % % % 2 10 % % 5 45.1% 76. factor analysis derives underlying dimensions when interpreted and understood.3 7 % 1 100 100 0 0% 3 % 1 % 100 42.6 2 % 8 28.9 % % % 0 1 % % 8 90.6 7.4 71.5 % 5 % 4 57.9 2 28.

Secondly the standard deviations are fairly high as well. and yet providing a meaningful result. The TV is always on in my household.376 . It is also possible that factor analysis will allow us to test theories involving variables which are hard to measure directly. This study demonstrates the role of a Principal component analysis in conducting an analysis to determine the factors underlying consumer perceptions about DTH services and installation of set top boxes. I do not agree with having to pay TV licenses.e. The choice of films on TV is limited. Why carry out a factor analysis? In the first place. Tabulating. the number of significant correlations per variable finds a range from . My leisure activities are mainly out of the home. Factor Analytics methods seek to provide a solution to this difficulty in interpretation by condensing the number of variables without loosing too much information. . I would rather watch a TV than go out for a video. (refer to the table). the correlation is fairly high among the variables. it becomes difficult for a researcher to interpret the results.01 level and . I like a wide range of choice in the video shop. Secondly.and the factor analysis is based on the correlation matrix of the observed variables. Inspection of the correlation matrix reveals that the variables are significantly correlated at . in order to achieve the economy of interpretation the factor analysis group those variables having high correlation. we have some economy of description. which is one of the goals of scientific investigation. A descriptive statistical analysis of our data set clearly indicates that there exists multicollinearity among the variables i. Satellite and cable offer wider choices of films. A set of 21 items measuring consumer perceptions are constructed .231 to .Although no limits are placed on what is high or what is too low. variables that have no significant correlations may not be a part of any factor and if the variables have high correlations may be a part of many factors. If the data is highly inconsistent.05 level which provides an adequate basis for proceeding to an empirical examination of adequacy of factor analysis. The Name of the 21 variables are 1) 2) 3) 4) 5) 6) 7) 8) In enjoy going to cinema. if we can summarize a multitude of measurements with a smaller number of factors without loosing too much information.

21) TV is a last resort in entertainment. 19) Videos are an excellent form of entertainment. 11) I often forget to return a rented video film. 20) I don’t mind paying more for TV programmes. 17) I prefer the cinema over watching videos. 14) Commercial channels offer enough choices. 12) I rarely have time to sit down and watch TV. 10) Satellite dishes are a blot on the environment. . 15) I get annoyed if the video I want is out. 16) Ads in the middle of the programme annoy me. 13) I prefer films over weekly serials.9) I am tele addict. 18) Satellite and cable need more film selections.

05).70or above mediocre. .622. Kaiser (1974) recommended accepting values greater than 0. Furthermore values .e. The KMO statistic varies between 0 and 1. For factor Analysis to be appropriate we need some relationships between the variables and if the original matrix is an identity matrix then all the correlation coefficients would be zero. factor analysis is appropriate). . A value of 0 indicates that the sum of the partial correlations are large relative to the sum of the correlations indicating diffusion in the pattern of correlations( hence. there are some relationship between the variables we hope to include in the analysis.000 which indicates that the Rmatrix is not an identity matrix. .5 as acceptable (value below this should either lead to collection of more data or rethink which variable to include). Chi-Square 461. For this data the value is .622 Bartlett's Test of Sphericity Approx. here.Interpreting From SPSS The Result Preliminary Analysis KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy. A value close to 1 indicates that patterns of correlations are relatively compact and so factor analysis should yield distinct and reliable factors. Bartlett’s measure tests the null hypothesis that the original correlation matrix is an identity matrix. Therefore.260 df 210 Sig. The Kaiser Meyer Olkin measure of sampling adequacy and Barlett Test Of Spherecity. so we should be confident that factor analysis is appropriate for this data.80 or above are considered meritorious. the significance level is . For this data Bartlett Test is highly significant and therefore the analysis is appropriate. having a significant value of less than . .50 is unacceptable. which falls into the range of being satisfactory.000 Table-1 shows several very important parts of the output. therefore. and below . we want this test to be significant (i.

000 .000 .000 .665 Q.000 .01 1.653 Q.6.000 . Table-2 shows communalities before and after extraction.480 Q.6.6.03 1.06 1.000 .669 Q.656 Q.11 1.583 Q. how much variance is accounted for by the factor solution.13 1.6.000 .6.000 .474 Q.05 1.6.000 .529 Q.6.000 .675 Q. Communalities basically indicates the amount of variance explained in a variable that is accounted for by the factors taken together.673 Q. The size of the communality is an useful index for assessing the.6.07 1.6.6.14 1.6.6. we can say that 47. therefore before extraction the communalities are all 1.10 1.15 1.000 .18 1.000 .575 Q.6.000 . So for example.000 .6.20 1.713 Q.6.6.000 .000 .6.6.04 1.589 Q.000 .4% of variance associated with question 1 is shared or common variance.000 .759 Q. Principal Component analysis works on the assumption that all variance are common.691 Extraction Method: Principal Component Analysis.000 .467 Q.6.530 Q.21 1.6.000 .19 1.Communalities Analysis Communalities Initial Extraction Q.02 1.000 .620 Q.17 1.598 Q. The communalities in the column extraction reflect the common variance in the data structure.16 1. Higher the communalities values it indicates that a larger amount of variance in the variable has been extracted by .634 Q.12 1.6.08 1.633 Q.09 1.

only the factors having latent root greater than 1 are considered significant. Factor Extraction How do we decide on the number of factors to extract? The factor analysis methods are interested in the best linear combination of variables. accounting for smaller and smaller amounts of variance until all the variance is explained. Therefore as we proceed with further analysis it will yield a more meaningful result. However. Latent Root Criterion The rationale of the latent root criterion is that any individual factor should account for the variance of atleast single variable if it is to be retained for interpretation. . the Principal Component analysis method actually extracts n factors.50 in the analysis. all factors with latent root less than 1 are disregarded. the most commonly used criteria for the number of factors to extract is the Latent Root Criterion. The second best linear combination of the variables.best in the sense that the particular combination of original variables accounts for more of the variance in the data as a whole than any other linear combination of variables. With p.g.e. In our analysis the variables which are retained for for further analysis are very well explained and infact none of the variables are dropped after extraction. 5 and 7. The process continues extracting factors.a. each variable contributes a value of 1 to the total eigen value. Although no statistical guidelines indicate exactly what is large or small.the second factor must be derived from the variance remaining after the first factor is extracted. For e.759 which is fairly high and all the other variables have communality values of more than . Therefore. To be orthogonal to the first factor. i. After the extraction some of the factors are discarded and some information is lost. So the question is how many factors to extract or retain? An exact qualitative basis for deciding the number of factors to extract has not been developed.the factor solution and vice versa. practical considerations dictate a lower level of . However considering the relevance of these variables we retain them in our data set. Thus. the first factor may be viewed as the single best summary of linear relationships exhibited in the data. subject to the constraint that it is orthogonal to the first factor. question no 9 shows an explained variance of .c. the second factor may be defined as the linear combination of variables that accounts for the most variance that is still unexplained for the after the effect of first factor being removed from the data.50 except question no 1. For example. Thus. where n is the number of variables in the analysis.

930 2 2. Therefore. ( hence the table is blank after the seventh factor). The eigen values associated with these factors are again displayed( and the percentage of variance explained) in the columns labeled extraction sums of squared loadings.695 6 1.798 1.568 5 1.965 9 .718 8. except that the values for the discarded factors are ignored.960 20.583 7.903 4.797 74. In the final part of the table (labeled rotation sums of squared loadings). It should be noted that the first factor explained relatively large amount of variance whereas subsequent factors explain only small amounts of variance.174 15. which leaves us with 7 factors.901 1.092 5.445 25.901 1.300 70.186 15.707 8.469 29.778 3.034 53.Table-3 lists the eigen values associated with each linear component before extraction.696 65. Before extraction SPSS has identified 21 linear components within the data set.767 .897 49.890 3 1.540 61.174 15.719 1.724 8.182 42.897 49.359 4 1.618 1.986 4.193 10.448 6.269 1. This is because factor rotation simplifies the factor structure. In most cases rotation of the factor improves the interpretation by reducing some of the ambiguities that often accompany initial unrotated factor solutions.729 7 1. rotation are displayed.317 6.174 3.174 2.201 61.265 10 .193 10.798 1.068 1.068 1.269 8 . a rotational method should be applied to achieve simpler and theoretically more meaningful factor solutions.092 5. SPSS then extracts all factors with eigen values greater than 1.448 6. So factor -1 explains 15.445 25.618 2.201 61.778 8.719 1.270 56.911 9. The values in this part of the table are the same as the values before extraction.062 11 .208 37. after extraction and after rotation. The eigen values associated with each factor represents the variance explained by the particular linear component and SPSs also displays the eigen values in terms of the percentage of variance explained.101 34.269 1. Total Variance Explained Com Initial Eigenvalues Extraction pone nt Sums of Squared Loadings Total % of Cumulativ Variance e% Total Rotation Sums of Squared of Cumulativ Loadings % of Cumulativ Variance e% Total % Variance e% 1 3.127 45.930 11.797 3.270 56.101 34.182 42.705 77.718 8.505 11.911 9.174% of the total variance and factor -2 explains 10. Rotation has the effect of optimizing the factor structure and one consequence for these data is that the relative importance of these seven factors are equalized.445% of the total variance and so on.186 15.687 8.317 6.882 8.

499 2. and the shape of the resulting curve is used to evaluate the cutoff point. The scree test is derived by plotting the latent roots against the number of factors in their order of extraction.507 98.453 2.232 91.966 84.623 2.261 100.739 21 .265 1.12 .637 97.910 95.346 14 .156 93.595 19 .401 1. In figure-1 .376 89.379 13 .344 1.528 17 .920 15 .574 86.759 3.685 18 .000 Extraction Method: Principal Component Analysis.296 16 .469 2.541 2.612 81.316 1.232 20 .

In this instance. The point at which the curve begins to straighten out is considered to indicate the maximum number of factors to extract. the line becomes horizontal after the extraction of the 7 th factor is over. Starting with the first factor. and the debris( error) begin. So the scree test proposes to stop analysis at the point where the mountain end. the plot slopes steeply downward initially and slowly becomes an approximate horizontal line. i. the point coincides with eigen value criterion. Another rule of thumb is to plot all the eigen values in their descending order.The first 21 variables are extracted in the study. The plot looks like the side of a mountain and the scree refers to the debris fallen from a mountain and lying at its base. Rotated vs Unrotated Factor Matrix .e.

many times through rotation of the factor matrix. none of the variables are loaded in this factor which is kind of unusual.The fourth and sixth factor has only 1 loading . particularly if they are used in ways that requires characterization as to the substantive . a notable point is that although the seventh factor accounts for 5. Therefore we can proceed to rotate the factor matrix to redistribute the variance from earlier factors to later factors. before proceeding with the rotation process. However.e. represents the degree of association of each variable with each factor.(i. The third factor has only two loadings . we must examine the communalities to see whether any variables have communalities so low that they should be eliminated.40). in either the unrotated or rotated factor matrices. Table-4 represents the unrotated component analysis factor matrix. Seven columns of numbers are shown. As discussed earlier. The objective of the factor analysis in these instances is to maximize the association of each variable with the single factor. The loadings take on a key role in interpretation of the factors. It indicates the result of the seven factors that are extracted.Examine the factor matrix loadings for the unrotated factor matrix Factor loadings. To begin the analysis. the factor loadings allow for the description of each factor and structure in the set of variables. with factor -1 accounting for the most variance. As anticipated. In our research we will first explain the unrotated factor matrix and determine wheather the use of rotated solution is necessary.201% of variance as per table-3.(high loadings are defined as greater than. the first factor accounts for the largest amount of variance in the table-3. let us explain the numbers included in the table. The second factor is somewhat of a general factor with all of the variables having high loadings. Based on this factor loading pattern with a relatively large number of loadings on factor -1 and 2 and no loadings in factor -7. . let us examine the factor loading patterns. factor loading of each variable on each of the factor) As expected the factor solution extracts the factors in order of their importance. meaning of the factors. Rotation should result in a simpler and theoretically more meaningful factor pattern. Having defined the various elements of the unrotated factor matrix. interpretation becomes difficult and theoretically less meaningful. factor-2 slightly less and so on.

04 .09 Q.6.01 Q. .16 Q.6.6.13 Q.593 Q.652 Q.19 .6.6.20 Q.514 Q.511 .21 Extraction Method: Principal Component Analysis.588 Q.621 Q.6.6.6.6.565 Q.501 Q.18 .614 Q.05 .6.15 Q.06 Q.6.17 .03 .6.12 -.02 Q.503 7 .565 .6.11 .08 . 7 components extracted.770 Q.6.614 . a.07 Q.6.6.6.534 Q.6.6.10 .14 .626 Q.6.6.Component 1 2 3 4 5 6 Q.

For e. still share more than 40% of their variance with the 7 factors. Rotated Component Matrixa .759.467 for variable(1) indicates that it has less in common with the other variables included in the analysis than does variable(9) which has a communality figure of . a rotation technique can be applied to hopefully improve the interpretation.g the communality figure of . Applying An Orthogonal (Varimax) Rotation Given the unrotated factor matrix did not have a completely clean set of factor loadings. The varimax rotated component analysis factor matrix is shown in table-5.Assess The Communalities Of The Variables In The unrotated Factor Matrix The row sum squared factor loadings. shows the amount of variance in a variable that is accounted for by the 7 factors taken together. Please note that the total amount of variance extracted is the same in the rotated solution as it was in the unrotated one.Both the variables. The communalities in table-2 are shown in the third column of the table. In this case the VARIMAX rotation is used and its impact on the overall factor solution and factor loadings are described in the next section. Therefore we can conclude that all of the communalities are sufficiently high to proceed with the rotation of the factor matrix. known as communalities.

01 4 6 .6.6.270% and 5.03 .13 Q.930% of variance compared to 15.09 .512 Q. the communalities for each variable do not change when a rotation is applied. the explanatory powers shifted to a more even distribution because of rotation. Thus. Rotation Method: Varimax with Kaiser Normalization.662 .127%.04 . 8. the largest change being the factor 5.630 Q.07 . the variance is redistributed so that he factor loading pattern and the percentage of variance for each of the factors are slightly different. two differences emerge.504 Q.540% respectively.6. Secondly.6.6.603 Q.704 Q.696 Q. Findings Of The Study . Initially the variance explained by these factors were 6.6.6.6.643 Q.709 Extraction Method: Principal Component Analysis.6.Still.201%.16 7 . Likewise.6.Component 1 2 3 Q.6.6.6.12 -.643 Q.699 Q.6.14 .721 . Specifically.06 .17 .6. 6 and 7 .15 Q.21 .02 Q. a.6.551 Q.6.627 Q.696 Q.19 .650 Q.20 . with the application of orthogonal transformation the amount of variance explained by each of these factors increased to 8. the other factors also changed. in the varimax rotated factor solution the first factor accounts for 11.6.the interpretation of the factor matrix is simplified as now we have now two considerably high factor loadings in factor-7.742 Q.6.516 Q.174% in the unrotated solution.6. Rotation converged in 13 iterations.664 .736 Q.18 . First. Also.6.05 .034% and 7.10 -.11 .08 5 -.601 Q.897% 6.

seems to capture the consumers perception about the performance of the electronic media when it is a question of offering wide range of choices to the consumers.Factor -1. It also reveals the consumers preference of watching TV over video. . Hence this factor can be named as CONSUMERS PERCEPTION ABOUT THE PERFORMANCE OF COMMERCIAL CHANNELS.

So this can be named as consumer’s views about CINEMA AND SATELLITE DISHES.Factor-2.is a representation of the consumer’s perception about videos and it also indicates the consumers perception about paying more money for watching variety of programmes. So this factor can be termed as consumer’s views about VARIETY OF FILMS SHOWN IN TV CHANNELS.So this can be termed as consumer’s choice of TV VS VIDEO.mainly reflects the consumers preference pattern about various films that are shown in various Tv channels and it also some what indicates their own perceptions about the range or choices of films that they want to watch. Factor-6 and 7. Factor-4. Factor-3. So this factor can be termed as consumer’s own PERCEPTION OF ENTERTAINMENT. .describes how the consumers reveals their choices of watching TV over videos . represents consumers choices about going to cinema and also reveals their thinkings about the satellite and cable channels.

81078 .29718 -3.82031 .10955 -1. to segmentation analyses of markets. The four cluster solution is chosen among the possibilities because it clearly shows that there are four groups in the sample: Cluster 1 has highest mean score for the video factor.Cluster Analysis Now using the same data we shall try to perform a cluster analysis and check the results to provider an insight about the set top box market in India. It can then be interpreted that Cluster 1 are people who enjoy completely video kinds of entertainment .45372 3 2. and Cluster 4 has all positive mean for all factors . Cluster 3 has highest mean for DTH and Cable factor. and Cluster 4 are people who enjoy all types of entertainment.37314 . to psychological classifications based on personality and other personal traits.15380 . Cluster 3 are DTH and Cable fans.68988 2 . Cluster 2 has the highest mean score for the films/theatre factor. Cluster analysis is a group of multivariate techniques whose primary purpose is to group objects based on the charactaristics they possess. Cluster 2 are flims/theatre fans.71745 -2. Ranging form the derivation of the taxonomies in biology for grouping all living organisms .41151 . Now using the three factors that we have generated with the factor analyses we can classify the respondents according to their viewing preferences. One way to classify the respondents is to use cluster analysis to see how the respondents cluster into groups according to their responses to these three factors. cluster analysis has always had a strong tradition of grouping individuals. Four respondent clusters by viewer factors Cluster DTH and cable Video Films/ Theatre 1 -.16609 -. The results of a four-cluster solution tabulated by the factors is shown in figure 21.29140 4 . which is a better method than using ownership or subscriber information.

cluster 3 consists only 1 respondent (.000 Valid 105.000 Missing .000 From figure 22 we can say that 48(45. we can cross-tabulate the cluster variable by Set Top Box interest as shown in 23. This result shows the danger in using DTH and CABLE ownership as measure of interest. 26 respondents (24. We can see that those who are satisfied with DTH and CABLE fan are also not interested in SET TOP BOX (100% not interested).95%) and cluster 4 consists 30 respondents(28.71%) respondents are belongs to cluster 1.57%) To see if there are differences among these four clusters with regard to their interest in Set Top Box.76%) are belongs to cluster 2.000 3 1.000 2 26.000 4 30.Cluster 1 48. .

Again all entertainment fans are possibly interested for service(70%) and undecided(10%).8% 6.7% 19.0% .Cross-tabulation of cluster groups by interest in the SET TOP BOX service Set Top Box interest May Cluster Number of Case Video Fan Cinema and Theatre Fan DTH and Cable Fan All Entertainment Fan be/It Don't know/No No depends answer 12 33 3 25. To decide where to advertise the service.0% .2% 1 0 0 100. Marketing Decisions For Locating prospects Even after gaining an understanding of who are the best prospects for SET TOP BOX.0% 68. One important decision is how to promote SET TOP BOX to potential subscribers.0% The surprise for management is that those who are interested in cinema and Theatre are possibly interested in SET TOP BOX(57.0% 10. The first step is to tabulate the four clusters by the questions about favourite programmes. Similarly who are interested in video are possibly interested in the new service (68.3%). as shown in Figure 23.3% 6 15 5 23. SET TOP BOX management had previously thought that this was a secondary market.0% 6 21 3 20.1% 57. If this more in-depth analysis had not been done. SET TOP BOX management needs to know what kinds of television programmes prospective customers watch.8%) and are undecided (6. management must also make a number of marketing decision.7%%) and are undecided (19. The final conclusion is that all entertainment fans are the group most interested in SET TOP BOX (70%).2%).0% 70. decision-makers at SET TOP BOX might have missed this undecided possible market. There are actually three questions in the .

films and musical program dramas in that order. quiz show. The table in figure 24 shows how all three can be treated as a multiple-response variable so that they can be combined into a single variable . . we see that all entertainment fans who we have found might be interested in set top box prefer serials.SET TOP BOX survey about first. films and music. films and music. Cinema viewers who also might be good prospects for set top box also prefer serials .In the table in 24. second and third preferred television programmes. Video fans who might be good prospect for set top box also prefer sports.

0% 3.3% .7% 33.1% 9 9 0 8 34.6% 32.0% 13.Favourite television programmes by cluster groups Cluster Number of Case All Cinema What are your favourite News types of and DTH and Cable Entertaintment Video Fan Theatre Fan Fan Fan 8 4 0 5 47.3% television programmes? Third Serials Films Music programmes Quiz Shows Sports .6% 34.0% 29.0% 10 3 0 2 66.3% .7% 20.0% 30.0% 11 7 1 9 39.6% .8% 8 1 0 3 66.7% 8.1% 23.0% 50.0% 25.0% .5% .3% 25.4% 1 2 0 3 16.

hence it can reveal similar results. The responses of the respondents may have been biased to some extent due to their busy schedule or some other reasons.Limitation Of The Study 1) The first limitation is due to geographical constraints the sample size was restricted to Kolkata city. 2) The next limitation was the time availability to conduct the research was limited. Assize of 105 was considered for the research which cannot be generalized to a larger population very effectively. where covering larger geographical area would have given better results. Secondly majority of the respondents have the age ranging from22-30 years . Hence the findings of the research could not be evaluated in a detailed manner. . 3) The third limitation is the sample size.

similar researches should be conducted separately for different product categories to examine whether the perception of consumer regarding choices of films. Secondly. and videos have different patterns in other context. similar research could be conducted for diverse geographical area. Thirdly. further research should be carried on to examine the impact of the demographics on the perception of the consumers about films and entertainment.Scope Of Further Research The limitations discussed above suggest several areas for future research. . Firstly. This could increase credibility and generalization in the findings. watching TV.

2. Do you have a video recorder? Yes 1 No 0 3.(a) Are any of your televisions connected to a DTH Service? Yes 1 No 0 3(b) DTH Service provided by (1) Tata Sky (2) Reliance Big (3) Sun (4) Dish (5) Fun (6) Others 4. How many television sets are there in your home? [Circle code] No TVs 0 1 TV 1 2 TVs 2 3 TVs 3 4 TVs 4 If no TV. continue.Annexure Installation of Set top Box by Cable operator 1. go to Q6. Are any of your televisions connected to a cable network? . Otherwise.

What are your favourite types of television programs? [Show card #1] News 1 Serials 2 Films 3 Music Programmes 4 Quiz Shows 5 Sports 6 First Secon d Third .Yes 1 No 0 5.

1 5 2 3 4 6.0 6 The choice of films on TV is limited. 1 5 2 3 4 6.0 5 The TV is always on in my household. 1 5 2 3 4 6. Please rate each question according to whether you agree or disagree with the statement using the following scale.0 8 Satellite and cable offer wider choices of films. 1 5 2 3 4 .6.0 9 I am a Tele-addict.1 0 Satellite dishes are a blot on the environment.0 2 I like a wide range of choice in the video shop. The next question lists several statements about your views on various subjects. [Show scale] Strongly Strongly Disagre e Disagre e Neutral Agree Agree 1 2 3 4 5 6.0 7 I do not agree with having to pay TV licenses.0 4 I would rather watch TV than go out for a video. 1 5 2 3 4 6. 1 5 2 3 4 6. 1 5 2 3 4 6. 1 5 2 3 4 6. 1 5 2 3 4 6. 1 5 2 3 4 6.0 3 My leisure activities are mainly out of the home.0 1 I enjoy going to the cinema.

1 7 I prefer the cinema over watching videos.1 8 Satellite and cable need more film selections.1 3 I prefer films over weekly serials.1 4 Commercial channels offer enough choices. 1 5 2 3 4 6.1 6 Ads in the middle of programme annoy me. 1 5 2 3 4 6. 1 5 2 3 4 .2 1 TV is a last resort in entertainment. 1 5 2 3 4 6. 1 5 2 3 4 6.1 2 I rarely have time to sit down and watch TV. 1 5 2 3 4 6. 1 5 2 3 4 6. 1 5 2 3 4 6.2 0 I don't mind paying for more TV programmes.6. 1 5 2 3 4 6. 1 5 2 3 4 6. 1 5 2 3 4 6.1 5 I get annoyed if the video I want is out.1 1 I often forget to return a rented video film.1 9 Videos are an excellent form of entertainment.

How often do you rent videos for home viewing? Never 0 Less than once a week 1 Once a week 2 . How many hours per day do you watch television? Up to 1 hour 1 Up to 2 hours 2 Up to 3 hours 3 Up to 4 hours 4 Up to 5 hours 5 Up to 6 hours 6 Up to 7 hours 7 8 or more hours 8 9. You should exclude viewing of pre-recorded video tapes. How many days per week do you watch television? 1 day or less 1 2 days 2 3 days 3 4 days 4 5 days 5 6 days 6 7 days 7 8.For the next two questions. your viewing should include all viewing of television programmes and personal video recordings of television programmes. 7.

Do you think you would be interested in subscribing to this service? Maybe/It depends 1 No 0 Don't know/No answer 9 If no or don’t know. Otherwise. Do you buy video films? [If necessary.Twice a week 3 More than twice a week 4 10. continue. go to Q14 (page 4). How often do you visit a cinema? Never 0 Less than once a month 1 Once or twice a month 2 More than twice a month 3 12. . use these codes] Yes 1 Don’t know 7 No 0 Refused to answer 8 11. There is a new product soon to be available called Set top Box This revolutionary product allows you to watch a recent film of your choice by selecting the number on a special remote control connected via your telephone.

from 5 to 10. And there are two final choices: Including Indian films or not. 140 film. and the same time as the video release. per There are three quantity choices: Up to 5 films per month. Please consider the following four features of the Set top Box service: Price range The number of new films each month The release date of the films Inclusion of Indian films There are three price choices: Under Rs.120 and Rs. one month following the theatre release. Rs.13. The same time as the theatre release in India . There are also three release date choices.. . 80 . and over 10.

What is your working status? Full time 1 Part time 2 Self-employed 3 Home 4 Unemployed 5 Retired 6 . Card 1 Card 2 Card 3 Card 4 Card 5 Card 6 Card 7 Card 8 Card 9 14. your second choice next. What is the year of your birth? 15.Please rank the combinations on the nine cards I'm giving you by returning them to meet with your first choice on top. and so forth.

16. Sex of respondent: Female 0 Male 1 .

go to Q6. Do you have a video recorder? Yes 1 No 0 3.Appendix Questionaire Installation of Set top Box by Cable operator 1.(a) Are any of your televisions connected to a DTH Service? Yes 1 No 0 . 2. How many television sets are there in your home? [Circle code] No TVs 0 1 TV 1 2 TVs 2 3 TVs 3 4 TVs 4 If no TV. continue. Otherwise.

3(b) DTH Service provided by (1) Tata Sky (2) Reliance Big (3) Sun (4) Dish (5) Fun (6) Others 4. What are your favourite types of television programs? [Show card #1] News 1 Serials 2 Films 3 Music Programmes 4 Quiz Shows 5 Sports 6 First Secon d Third . Are any of your televisions connected to a cable network? Yes 1 No 0 5.

1 5 2 3 4 6. 1 5 2 3 4 6. 1 5 2 3 4 6.0 8 Satellite and cable offer wider choices of films. The next question lists several statements about your views on various subjects. 1 5 2 3 4 6. 1 5 2 3 4 6. 1 5 2 3 4 6. 1 5 2 3 4 6. 1 5 2 3 4 6.0 5 The TV is always on in my household.0 9 I am a Tele-addict.0 4 I would rather watch TV than go out for a video.1 0 Satellite dishes are a blot on the environment.0 7 I do not agree with having to pay TV licenses.0 6 The choice of films on TV is limited. Please rate each question according to whether you agree or disagree with the statement using the following scale.0 1 I enjoy going to the cinema.0 3 My leisure activities are mainly out of the home. 1 5 2 3 4 . 1 5 2 3 4 6.0 2 I like a wide range of choice in the video shop. [Show scale] Strongly Strongly Disagre e Disagre e Neutral Agree Agree 1 2 3 4 5 6.6.

6.1 7 I prefer the cinema over watching videos. 1 5 2 3 4 6. 1 5 2 3 4 6. 1 5 2 3 4 . 1 5 2 3 4 6. 1 5 2 3 4 6.1 4 Commercial channels offer enough choices.1 5 I get annoyed if the video I want is out. 1 5 2 3 4 6.2 1 TV is a last resort in entertainment.1 1 I often forget to return a rented video film. 1 5 2 3 4 6.1 8 Satellite and cable need more film selections. 1 5 2 3 4 6.1 6 Ads in the middle of programme annoy me. 1 5 2 3 4 6.1 9 Videos are an excellent form of entertainment.1 3 I prefer films over weekly serials. 1 5 2 3 4 6. 1 5 2 3 4 6.1 2 I rarely have time to sit down and watch TV.2 0 I don't mind paying for more TV programmes.

your viewing should include all viewing of television programmes and personal video recordings of television programmes. How many hours per day do you watch television? Up to 1 hour 1 Up to 2 hours 2 Up to 3 hours 3 Up to 4 hours 4 Up to 5 hours 5 Up to 6 hours 6 Up to 7 hours 7 8 or more hours 8 9. 7. How many days per week do you watch television? 1 day or less 1 2 days 2 3 days 3 4 days 4 5 days 5 6 days 6 7 days 7 8. How often do you rent videos for home viewing? Never 0 Less than once a week 1 Once a week 2 .For the next two questions. You should exclude viewing of pre-recorded video tapes.

continue. Otherwise. use these codes] Yes 1 Don’t know 7 No 0 Refused to answer 8 11. Do you buy video films? [If necessary. Do you think you would be interested in subscribing to this service? Maybe/It depends 1 No 0 Don't know/No answer 9 If no or don’t know. There is a new product soon to be available called Set top Box This revolutionary product allows you to watch a recent film of your choice by selecting the number on a special remote control connected via your telephone.Twice a week 3 More than twice a week 4 10. How often do you visit a cinema? Never 0 Less than once a month 1 Once or twice a month 2 More than twice a month 3 12. . go to Q14 (page 4).

your second choice next.. from 5 to 10. 80 . one month following the theatre release. And there are two final choices: Including Indian films or not. Rs. 140 film. There are also three release date choices. and the same time as the video release.120 and Rs. Card 1 Card 2 Card 3 Card 4 Card 5 . Please consider the following four features of the Set top Box service: Price range The number of new films each month The release date of the films Inclusion of Indian films There are three price choices: Under Rs. and over 10. per There are three quantity choices: Up to 5 films per month.13. and so forth. The same time as the theatre release in India . Please rank the combinations on the nine cards I'm giving you by returning them to meet with your first choice on top.

Card 6 Card 7 Card 8 Card 9 14. What is the year of your birth? 15. What is your working status? Full time 1 Part time 2 Self-employed 3 Home 4 Unemployed 5 Retired 6 .

.16. Sex of respondent: Female 0 Male 1 .

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