Data Driven Marketing Assignment

Mahnum Tahir 20110338

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .662

Bartlett's Test of Sphericity Approx. Chi-Square 263.225

df 45

Sig. .000

As per the KMO test, the value is greater than .6 and the significance value is less than .05 hence the
results are significant. We accept the alternative hypothesis and reject the null hypothesis.

Communalities

Initial Extraction

I will take risk for High Return 1.000 .528

I would take Rs 100 instead of buying a Rs 10 lottery ticket of
1.000 .434
Rs 1000 price
I Like to take a chance 1.000 .608
I like to fool around with new ideas even if they turn out to be
1.000 .714
a total waste of time
I am confident I can learn technology-related skills 1.000 .615
I am able to keep up with important technological advances 1.000 .738
I have avoided technology because it is unfamiliar to me 1.000 .655
When given the oppourtunity to use technology, I fear I might
1.000 .710
damage it in some way
When I see a new brand on the shelf, Ioften buy it just to see
1.000 .734
what it is like
When given an oppourtunity to use technology, I fear I might
1.000 .680
damage it in some way

Extraction Method: Principal Component Analysis.

Total Variance Explained

Component Initial Eigenvalues Extraction Sums of Squared Rotation Sums of Squared

Loadings Loadings
 % of Cumulative % of Cumulative % of Cumulative
Total Variance % Total Variance % Total Variance %

1 3.752 37.515 37.515 3.752 37.515 37.515 3.064 30.642 30.642

2 1.565 15.655 53.170 1.565 15.655 53.170 1.778 17.781 48.422
3 1.099 10.992 64.162 1.099 10.992 64.162 1.574 15.740 64.162
4 .996 9.961 74.124
5 .806 8.061 82.184
6 .606 6.065 88.249
7 .452 4.517 92.766
8 .315 3.152 95.918
9 .230 2.301 98.218
10 .178 1.782 100.000

Extraction Method: Principal Component Analysis.

As per the total variance table, 64.162% of the variance can be explained by the first
3 factors. These factors are chosen because they have an eigenvalue greater than 1 and will
be useful for further analysis. The rotated components matrix has come up with a 3 factor
solution for our problem. You can see which variables form part of which dimension in this
table. For example, factor 1 has 5 interdependent variables. You can see the variable names
in the table.

Component Matrixa

Component

1 2 3

I like to fool around with new ideas even if they

.833
turn out to be a total waste of time
When given the oppourtunity to use technology, I
.826
fear I might damage it in some way
I am able to keep up with important technological
.780
advances
I Like to take a chance .751
When I see a new brand on the shelf, Ioften buy it
.734
just to see what it is like
I have avoided technology because it is unfamiliar
.793
to me
When given an oppourtunity to use technology, I
.748
fear I might damage it in some way
I would take Rs 100 instead of buying a Rs 10
.434 .430
lottery ticket of Rs 1000 price
I am confident I can learn technology-related skills .516 .567
I will take risk for High Return .481 -.538

Extraction Method: Principal Component Analysis.

a. 3 components extracted.

Rotated Component Matrixa

Component

1 2 3

I am able to keep up with important

.845
technological advances
I like to fool around with new ideas even if they
.747
turn out to be a total waste of time
I am confident I can learn technology-related
.745
skills
When given the oppourtunity to use
technology, I fear I might damage it in some .706 .454
way
I Like to take a chance .642

I will take risk for High Return .712

When I see a new brand on the shelf, Ioften
.505 .647
buy it just to see what it is like
I would take Rs 100 instead of buying a Rs 10
-.538
lottery ticket of Rs 1000 price
I have avoided technology because it is
.805
unfamiliar to me
When given an oppourtunity to use
technology, I fear I might damage it in some .787
way

Extraction Method: Principal Component Analysis.

Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 6 iterations.

Those is red are factor 1

Blue is factor 2
Green is factor 3
The rotated components matrix shows a 3 factor solution for the problem. The
table shows the interdependence of the variables with one another. Factor 1
has 5 interdependent variables. Factor 2 has 3 interdependent variables. Factor
3 has 2 interdependent variables.

Factor 1 may be a consumer who is an early adopter in consumer buying and is highly willing to
buy and try new technology and products. Would be willing to learn more about new products
immediately and would take less marketing investment to convert their behavior.
Factor 2 is an experimental consumer who is willing to take on more risk in return for high
return but is generally still not a risk taker. These consumers will be hesitant to try new
technology and need to be convinced that a high return or benefit will be provided either
through advertising campaigns or marketing.
Factor 3 is a consumer who is not comfortable with using unfamiliar technology. These
consumers will be late adopters and are generally the last ones to adopt to any new changes in
type or categories in product. It will take the most investment to change their thoughts or
buying behavior.

Reproduced Correlations

I
woul
d
take I like
Rs to fool
100 aroun When
inste d with I see
ad of new When a new When
buyin ideas given the brand given an
ga even oppourtu on the oppourtu
Rs if they I am I have nity to shelf, nity to
I will 10 turn confident I am able avoided use Ioften use
take lotter I Like out to I can to keep up technolo technolog buy it technolog
risk y to be a learn with gy y, I fear I just to y, I fear I
for ticket take total technolo important because might see might
High of Rs a waste gy- technologi it is damage it what damage it
Retur 1000 chan of related cal unfamili in some it is in some
n price ce time skills advances ar to me way like way
Reproduc I will take
ed risk for
.528a -.388 .342 .379 -.072 .180 .018 .417 .520 -.157
Correlatio High
n Return

I would
take Rs
100
instead of
buying a
-.388 .434a -.243 -.138 .187 -.033 .274 -.164 -.220 .353
Rs 10
lottery
ticket of
Rs 1000
price

I Like to
take a .342 -.243 .608a .599 .393 .607 -.165 .586 .475 -.400
chance

I like to
fool
around
with new
ideas
even if .379 -.138 .599 .714a .462 .658 .113 .709 .643 -.167
they turn
out to be
a total
waste of
time

I am -.072 .187 .393 .462 .615a .608 .042 .416 .221 -.113
confident I
can learn
technolog
y-related
skills
I am able
to keep up
with
important .180 -.033 .607 .658 .608 .738a -.043 .624 .449 -.286
technologi
cal
advances

I have
avoided
technolog
y because .018 .274 -.165 .113 .042 -.043 .655a .136 .269 .612
it is
unfamiliar
to me

When
given the
oppourtun
ity to use
technolog
.417 -.164 .586 .709 .416 .624 .136 .710a .669 -.145
y, I fear I
might
damage it
in some
way

When I .520 -.220 .475 .643 .221 .449 .269 .669 .734a .002
see a new
brand on
the shelf,
Ioften buy
it just to
see what
it is like
 When
given an
oppourtun
ity to use
technolog
-.157 .353 -.400 -.167 -.113 -.286 .612 -.145 .002 .680a
y, I fear I
might
damage it
in some
way
b
Residual I will take
risk for
.162 -.063 -.167 .232 .055 -.078 -.106 -.078 .057
High
Return

I would
take Rs
100
instead of
buying a
.162 .020 .045 -.195 -.127 -.266 .126 .122 -.053
Rs 10
lottery
ticket of
Rs 1000
price

I Like to
take a -.063 .020 -.018 -.065 -.141 -.022 .032 -.103 .159
chance

I like to -.167 .045 -.018 -.187 -.043 -.058 -.004 4.098 .001
fool E-5
around
with new
ideas
even if
they turn
out to be
a total
waste of
time
I am
confident I
can learn
.232 -.195 -.065 -.187 -.009 .100 -.156 -.022 .007
technolog
y-related
skills

I am able
to keep up
with
important .055 -.127 -.141 -.043 -.009 .030 -.099 -.027 .046
technologi
cal
advances

I have
avoided
technolog
y because -.078 -.266 -.022 -.058 .100 .030 -.032 -.104 -.195
it is
unfamiliar
to me

When
given the
oppourtun
ity to use
technolog
-.106 .126 .032 -.004 -.156 -.099 -.032 -.050 -.049
y, I fear I
might
damage it
in some
way

When I -.078 .122 -.103 4.098 -.022 -.027 -.104 -.050 -.075
see a new E-5
brand on
the shelf,
Ioften buy
it just to
see what
it is like
 When
given an
oppourtun
ity to use
technolog
.057 -.053 .159 .001 .007 .046 -.195 -.049 -.075
y, I fear I
might
damage it
in some
way

Extraction Method: Principal Component Analysis.

a. Reproduced communalities
b. Residuals are computed between observed and reproduced correlations. There are 28 (62.0%) nonredundant
residuals with absolute values greater than 0.05

Rotated Component Matrixa

Component

1 2 3

I am able to keep up with important technological

.845
advances
I like to fool around with new ideas even if they
.747
turn out to be a total waste of time
I am confident I can learn technology-related skills .745
When given the oppourtunity to use technology, I
.706 .454
fear I might damage it in some way
I Like to take a chance .642
I will take risk for High Return .712
When I see a new brand on the shelf, Ioften buy it
.505 .647
just to see what it is like
I would take Rs 100 instead of buying a Rs 10
-.538
lottery ticket of Rs 1000 price
I have avoided technology because it is unfamiliar
.805
to me
When given an oppourtunity to use technology, I
.787
fear I might damage it in some way

Extraction Method: Principal Component Analysis.

Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 6 iterations.

Component Transformation Matrix

Component 1 2 3

1 .858 .504 -.103

2 .177 -.102 .979
3 .483 -.858 -.177

Extraction Method: Principal Component Analysis.

Rotation Method: Varimax with Kaiser
Normalization.