a) Applicants for a position in a firm were asked to score themselves, from 0 to

10, through a questionnaire on the following ten characteristics:

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Ambition

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Appearance

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Drive

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Experience

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Honesty

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Likeability

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Potential

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Salesmanship

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Self-confidence

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Suitability.

When reviewing the questionnaire, because many correlations between the

variables are high, it was felt that some of the variables might be confusing,

and/or some variables might be redundant. Therefore, a factor analysis was

conducted to determine if any underlying factors could be extracted.

Figure 3 (spread over the next two pages) presents selected SPSS output from

a factor analysis with principal components extraction, using the varimax

rotation procedure. Interpret the output. In your analysis, be sure to address

at least the following:

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Explain how you determine the number of factors and interpret the

extracted factors.

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Explain qualitatively and quantitatively how the fit of the factor analysis

model should be examined.

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Briefly discuss for what modelling purpose(s) any extracted factors could

be used.

(20 marks)

(b) How may 'operational data' held by organisations help them to build up an

understanding of customer behaviour? Support your answer with examples.

(10 marks)

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