Factor Analysis - Factor Analysis in Marketing

Factor Analysis in Marketing

The basic steps are:

  • Identify the salient attributes consumers use to evaluate products in this category.
  • Use quantitative marketing research techniques (such as surveys) to collect data from a sample of potential customers concerning their ratings of all the product attributes.
  • Input the data into a statistical program and run the factor analysis procedure. The computer will yield a set of underlying attributes (or factors).
  • Use these factors to construct perceptual maps and other product positioning devices.

Read more about this topic:  Factor Analysis

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