Factor Analysis

When considering multiple variables, it might get difficult to summarize data, factor analysis is done
to group these variables into lesser combined variables.

Communalities

Communalities range from 0-1 and are a measure of variance. The extracted components or factors
after factor analysis would cause for a certain loss of data and communalities show whether the
extracted variables explain the input variables well. We can observe in this case that all factors
except for ‘Awareness’ and ‘Peer Pressure’ have extraction communalities of above 0.6 showing high
that the extracted variables represent them well (Refer Table 2)

Sample Size

Using KMO or Kaiser-Meyer-Olkin Measure of Sampling Adequacy, we can judge the adequacy of the
sample size. In this case, KMO Value is 0.561 which is greater than 0.5 and therefore we can say
sample size is adequate but still not on the higher end (Refer Table 1)

Scale

Considering that the responses are in a rating system where each individual variable is considered
separately, we can say that an interval scale is valid.

Total Variance

Factor Analysis should be conducted after looking at Total Variance since it helps identify whether
factor analysis provides us with a good tradeoff in summarizing the data. In this case, total variance
is 68.49% which is greater than 60 and therefore a good tradeoff in summarizing the data. (Refer
Table 3)

Component vs Rotated Matrix

In our particular case, looking at the factor analysis conducted (Refer Table 4&5) we can see that the
Rotated Component matrix using Varimax (Refer Table 5) shows a better structure and better
division of variables since Ban would fit better into the second component, we will consider the
rotated factor analysis.

Interpretation

Looking at the factor analysis conducted (Refer Table 4&5) we can see that 4 factors can be
extracted. These factors are named, ‘Social Influence’, ‘Caution of Health’, ‘Availability’ and ‘Personal
Preference’ based on the variables that have been considered in the components. Further analysis
can be conducted since total explained variance as well as KMO value are sufficient.