A well-known retailer recently conducted a customer satisfaction survey, with n = 200 respondents, to determine satisfaction levels across the following attributes:
-price satisfaction -product quality satisfaction -product range satisfaction -packaging satisfaction -customer service satisfaction
Each attribute was scored on a 5-point Likert, scale, ranging from 1 = strongly negative to 5 = strongly positive. The retailer wants to identify the underlying dimensions which explain the correlations among responses to the above five attributes, so decided to undertake a factor analysis.
Figure 2 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:
1) Explain how you determine the number of factors and interpret the extracted factor(s).
2) Comment on the suitability of the 5-point Likert scale for performing factor analysis.
3) Explain whether you recommend the use of any surrogate variables instead of an extracted factor.
A well-known retailer recently conducted atome wory with 200 respondents to determine satisfaction level stw following attributes price satisfaction product quality satisfaction product range satisfaction packaging satisfaction customer service satisfaction. Each attribute was scored on a 5-point Likert scale, ranging from 1 = strongly negative to 5 = strongly positive. The retailer wants to identify the underlying dimensions which explain the correlations among responses to the above five attributes, se decided to undertake a factor analysis. Figure 2 (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: Explain how you determine the number of factors and interpret the extracted factor(s). Comment on the suitability of the 5-point Likert scale for performing a factor analysis. Explain whether you recommend the use of any surrogate variables instead of an extracted factor. Figure 2 KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy Bartlett's Test of Approx Chi-square Sphericity of 659 179,863 10 Sig 001 Communalities Initial Extraction 861 1.000 1.000 653 Component 1 Total 2133 1.000 723 2 1.038 Price satisfaction Product quality satisfaction Product range satisfaction Packaging satisfaction Customer service satisfaction Initial Eigenvalues % of Variance Cumulative % 42.665 42.665 20.763 63.427 18.717 82.144 10.487 92.631 7 369 100.000 3 936 249 1.000 1.000 4 .686 524 368 Dendrogram using Ward Linkage Resealed Dintince Cluster Combine 10 15 20 25 4 24 14 23 10 22 12 19 21 20 15 19 XRN & OO? 3 18 22 17 8 16 25 15 17 14 9 - 13 7 12 23 11 6 7 10 9 9 18 8 21 7 51 6 11 5 16 4 21 3 20 CAR 8 12 2 4 24 21 28 5 310 Number of clusters 20 A well-known retailer recently conducted atome wory with 200 respondents to determine satisfaction level stw following attributes price satisfaction product quality satisfaction product range satisfaction packaging satisfaction customer service satisfaction. Each attribute was scored on a 5-point Likert scale, ranging from 1 = strongly negative to 5 = strongly positive. The retailer wants to identify the underlying dimensions which explain the correlations among responses to the above five attributes, se decided to undertake a factor analysis. Figure 2 (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: Explain how you determine the number of factors and interpret the extracted factor(s). Comment on the suitability of the 5-point Likert scale for performing a factor analysis. Explain whether you recommend the use of any surrogate variables instead of an extracted factor. Figure 2 KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy Bartlett's Test of Approx Chi-square Sphericity of 659 179,863 10 Sig 001 Communalities Initial Extraction 861 1.000 1.000 653 Component 1 Total 2133 1.000 723 2 1.038 Price satisfaction Product quality satisfaction Product range satisfaction Packaging satisfaction Customer service satisfaction Initial Eigenvalues % of Variance Cumulative % 42.665 42.665 20.763 63.427 18.717 82.144 10.487 92.631 7 369 100.000 3 936 249 1.000 1.000 4 .686 524 368 Dendrogram using Ward Linkage Resealed Dintince Cluster Combine 10 15 20 25 4 24 14 23 10 22 12 19 21 20 15 19 XRN & OO? 3 18 22 17 8 16 25 15 17 14 9 - 13 7 12 23 11 6 7 10 9 9 18 8 21 7 51 6 11 5 16 4 21 3 20 CAR 8 12 2 4 24 21 28 5 310 Number of clusters 20
