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:

    “You factor in racism as a reality and you keep moving.”
    —Jewell Jackson McCabe (b. 1945)

    “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)