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.
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