Question 2 (F). Analyze the data using common factor analysis and answer questions from b to e again.

Common factor analysis: First the Kaiser-Meyer-Olkin(KMO) measure of sampling adequacy value was 0.553 which is more than the recommended value of 0.5 suggesting that sample is appropriate for factor analysis .Moreover the Bartlett test of sphericity value(57.994,p<0.05) indicates that it is significant. Principle axis factoring method This was used to study the factors underlying household and shopping behavior . The Initial Eigenvalues indicate that the first factor accounts for 35.5% of the variance ,the second 26.01% and the third 19.13% i.e. a total of 80.649% of the variance. Moreover the scree plot showed a leveling off after the 3rd factor indicating that the minimum factors or components to be extracted should be 3. Using the varimax rotation procedure, it is observed that variables V3,V1 and V5 correlate highly with factor one (Homebody) , V4 and V7 correlate highly with factor (Advertising) and V2 and V6 correlate highly with factor 3 (Shopping behavior). The rotated factor matrix indicates that for factor 1 (Homebody) variables I would rather spend a quiet evening at home than go out to a party (0.853) I am a homebody(0.807) and Magazines are more interesting than movies( 0.703)has loading maximum factor loading. In case of factor 2(Advertising) variablesI would not buy products advertised on billboards(0.791) and Companies waste a lot of money advertising (0.680)shows maximum factor loading. Similarly variablesI save and cash coupons(0.858) and I check prices, even on small items (0.697) has maximum factor loading on factor 3(Shopping behavior) Factor score calculation The Component score coefficient matrix can be used to calculate the factor scores for each respondent. These are uncorrelated scores obtained by principle factor analysis. By multiplying the standardized variable values with the corresponding factor score coefficients will give the required factor score. Surrogate variable If surrogate variable is to be selected , we would go for I would rather spend a quiet evening at home than go out to party(V1) as it has maximum factor loading(0.853) on factor 1. For factor 2 , it would be V4 I would not buy products advertised on billboards(0.791)and for factor 3 , it would be V6 I save and cash coupons.(0.858) Model FitThere are 4 residual values in the Reproduced Correlation matrix greater than 0.05 indicating that it is an acceptable model fit.

Factor Analysis

Notes Output Created Comments Input Data C:\Users\Gaurav Diwakar\Desktop\RM SPSS File\Feeded Variables\610pg.sav Active Dataset Filter Weight Split File N of Rows in Working Data File Missing Value Handling Definition of Missing DataSet1 <none> <none> <none> 65 MISSING=EXCLUDE: User-defined missing values are treated as missing. Cases Used LISTWISE: Statistics are based on cases with no missing values for any variable used. Syntax FACTOR /VARIABLES VAR1 VAR2 VAR3 VAR4 VAR5 VAR6 VAR7 /MISSING LISTWISE /ANALYSIS VAR1 VAR2 VAR3 VAR4 VAR5 VAR6 VAR7 /PRINT INITIAL CORRELATION KMO REPR EXTRACTION ROTATION FSCORE /CRITERIA MINEIGEN(1) ITERATE(25) /EXTRACTION PAF /CRITERIA ITERATE(25) /ROTATION VARIMAX /SAVE REG(ALL) /METHOD=CORRELATION. 09-Nov-2011 00:55:28

Resources

Processor Time Elapsed Time Maximum Memory Required

00:00:00.093 00:00:00.058 7692 (7.512K) bytes Regression factor score 1 Regression factor score 2 Regression factor score

Variables Created

FAC1_2 FAC2_2 FAC3_2

[DataSet1] C:\Users\Gaurav Diwakar\Desktop\RM SPSS File\Feeded Variables\610pg.sav

Correlation Matrix "I would rather spend a quiet evening at home than go out to a party" Correlation "I would rather spend a quiet evening at home than go out to a party" "I always check prices, even on small items" "Magazines are more interesting than movies" -.004 1.000 .151 -.248 .048 .582 -.251 1.000 -.004 .628 .082 .675 -.100 -.338 "I always check "Magazines are "I would not buy products "I am a home body" "I save and cash coupons" "Companies waste a lot of money advertising"

prices, even on more interesting advertised on small items" than movies" billboards"

.628

.151

1.000

-.182

.480

.090

-.588

"I would not buy products advertised on billboards" "I am a home body" "I save and cash coupons" "Companies waste a lot of money advertising"

.082 .675 -.100 -.338

-.248 .048 .582 -.251

-.182 .480 .090 -.588

1.000 .272 .017 .469

.272 1.000 -.110 -.082

.017 -.110 1.000 .014

.469 -.082 .014 1.000

KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy. Bartlett's Test of Sphericity Approx. Chi-Square df Sig. .550 57.994 21 .000

Communalities Initial "I would rather spend a quiet evening at home than go out to a party" "I always check prices, even on small items" "Magazines are more interesting than movies" "I would not buy products advertised on billboards" "I am a home body" "I save and cash coupons" "Companies waste a lot of money advertising" .486 .538 .596 .740 Extraction

.622

.686

.382 .588 .464 .537

.495 .691 .743 .736

Extraction Method: Principal Axis Factoring.

Total Variance Explained Initial Eigenvalues Factor 1 2 3 4 5 6 7 Total 2.485 1.821 1.339 .508 .376 .279 .191 % of Variance 35.505 26.013 19.131 7.258 5.373 3.990 2.730 Cumulative % 35.505 61.518 80.649 87.907 93.280 97.270 100.000 Extraction Sums of Squared Loadings Total 2.190 1.451 .987 % of Variance Cumulative % 31.285 20.725 14.105 31.285 52.010 66.115 Rotation Sums of Squared Loadings Total 2.010 1.365 1.253 % of Variance Cumulative % 28.719 19.500 17.896 28.719 48.219 66.115

Total Variance Explained Initial Eigenvalues Factor 1 2 3 4 5 6 Total 2.485 1.821 1.339 .508 .376 .279 Factor Matrix
a

Extraction Sums of Squared Loadings Cumulative % 35.505 61.518 80.649 87.907 93.280 97.270 Total 2.190 1.451 .987 % of Variance Cumulative % 31.285 20.725 14.105 31.285 52.010 66.115

Rotation Sums of Squared Loadings Total 2.010 1.365 1.253 % of Variance Cumulative % 28.719 19.500 17.896 28.719 48.219 66.115

% of Variance 35.505 26.013 19.131 7.258 5.373 3.990

Factor 1 "I would rather spend a quiet evening at home than go out to a party" "I always check prices, even on small items" "Magazines are more interesting than movies" "I would not buy products advertised on billboards" "I am a home body" "I save and cash coupons" "Companies waste a lot of money advertising" .225 -.619 .323 .789 .327 .104 2 3

.825

-.062

-.035

-.159 .631 .031 -.642

.502 .438 -.607 .381

.467 .318 .611 .422

Extraction Method: Principal Axis Factoring. a. Attempted to extract 3 factors. More than 25 iterations required. (Convergence=.006). Extraction was terminated. Extraction Method: Principal Axis Factoring.

Reproduced Correlations "I would rather spend a quiet evening at home "I always check "Magazines are than go out to a prices, even on more interesting party" Reproduced Correlation "I would rather spend a quiet evening at home than go out to a party" "I always check prices, even on small items" "Magazines are more interesting than movies" "I would not buy products advertised on billboards" "I am a home body" "I save and cash coupons" "Companies waste a lot of money advertising" .009 .538
a

"I would not buy products advertised on billboards" "I am a home body" "I save and cash coupons"

"Companies waste a lot of money advertising"

small items"

than movies"

.740

.009

.627

.087

.674

-.110

-.338

.213

-.196

-.027

.580

-.244

.627

.213

.686

-.179

.482

.042

-.569

.087 .674 -.110 -.338

-.196 -.027 .580 -.244

-.179 .482 .042 -.569

.495

.268 .691
a

-.024 -.052 .743

a

.490 -.104 .007 .736

a

.268 -.024 .490

-.052 -.104

.007

Residual

"I would rather spend a quiet evening at home than go out to a party" "I always check prices, even on small items" "Magazines are more interesting than movies" "I would not buy products advertised on billboards" "I am a home body" "I save and cash coupons" "Companies waste a lot of money advertising" -.012 .001 -.005 .001 .010 2.926E-5

-.012

-.062

-.052

.075

.002

-.007

.001

-.062

-.003

-.002

.049

-.019

-.005 .001 .010 2.926E-5

-.052 .075 .002 -.007

-.003 -.002 .049 -.019 .004 .041 -.021

.004

.041 -.058

-.021 .022 .007

-.058 .022 .007

Extraction Method: Principal Axis Factoring. a. Reproduced communalities b. Residuals are computed between observed and reproduced correlations. There are 4 (19.0%) nonredundant residuals with absolute values greater than 0.05.

Rotated Factor Matrix

Factor 1 "I would rather spend a quiet evening at home than go out to a party" "I always check prices, even on small items" "Magazines are more interesting than movies" "I would not buy products advertised on billboards" "I am a home body" "I save and cash coupons" "Companies waste a lot of money advertising" .043 -.225 .697 .853 -.084 -.067 2 3

.703

-.419

.127

.164 .807 -.055 -.324

.680 .197 .068 .791

-.071 -.024 .858 -.075

Extraction Method: Principal Axis Factoring. Rotation Method: Varimax with Kaiser Normalization. a. Rotation converged in 4 iterations.

Factor Score Coefficient Matrix Factor 1 "I would rather spend a quiet evening at home than go out to a party" "I always check prices, even on small items" "Magazines are more interesting than movies" "I would not buy products advertised on billboards" "I am a home body" "I save and cash coupons" "Companies waste a lot of money advertising" -.007 -.084 .274 .420 .050 -.057 2 3

.243

-.186

.007

.094 .378 .010 -.054

.292 .239 .152 .558

-.025 .080 .701 -.013

Extraction Method: Principal Axis Factoring. Rotation Method: Varimax with Kaiser Normalization. Factor Scores Method: Regression. Factor Transformation Matrix Factor 1 2 3 1 .891 .382 .244 2 -.435 .569 .698 3 .127 -.728 .673

Extraction Method: Principal Axis Factoring. Rotation Method: Varimax with Kaiser Normalization.

Factor Score Covariance Matrix Factor 1 2 3 1 .867 -.039 -.005 2 -.039 .790 -.024 3 -.005 -.024 .798

Extraction Method: Principal Axis Factoring. Rotation Method: Varimax with Kaiser Normalization. Factor Scores Method: Regression.