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

Famous quotes containing the words factor and/or analysis:

    Weapons are an important factor in war, but not the decisive factor; it is people, not things, that are decisive. The contest of strength is not only a contest of military and economic power, but also a contest of human power and morale. Military and economic power is necessarily wielded by people.
    Mao Zedong (1893–1976)

    Cubism had been an analysis of the object and an attempt to put it before us in its totality; both as analysis and as synthesis, it was a criticism of appearance. Surrealism transmuted the object, and suddenly a canvas became an apparition: a new figuration, a real transfiguration.
    Octavio Paz (b. 1914)