you will build a perceptual map of three online retailers, Walmart, Target, and Shopko. Using the data and the results from a survey on several attributes for each of these retailers, your main task is to identify the process of data driven concept generation of new products. Applying factor analysis, as explained in class, analyze the relevant tables given below to complete the following tasks: a) Compute the final table to determine the coordinates of each retailer on a perceptual map b) Answer the questions at the end.

The following survey questions were asked to a group of 1000 customers for three online retailers, Walmart, Target, and Shopko.

A factor analysis was performed on the data to see if there were common underlying factors to the twelve attributes. Table 2 shows the Factor Loading Matrix, that is, the correlation of the original set of attributes to their underlying factors. Using the class example you have seen before, identify how the following attributes load on relevant factors.

Table-1: Average rating attribute by each retailer:

	Walmart	Target	shopko
1. -good assortment.	5	3	2
2. - reasonable prices.	5	2	4
3. -good reputation.	1	5	3
4. -high quality products.	1	4	3
5. -free shipping.	5	1	2
6. -good value.	5	2	2
7. -fast delivery.	5	3	4
8. -good service.	1	4	2
9. -coupons available.	1	5	5
10. -effective customer service.	1	5	3

Table 2: Factor Loading Matrix

	Factor 1	Factor 2	Factor 3
1. -good assortment.	0.74	0.14	0.10
2. - reasonable prices.	0.28	0.21	0.51
3. -good reputation.	0.16	0.82	0.02
4. -high quality products.	0.70	0.10	0.20
5. -free shipping.	0.10	0.02	0.88
6. -good value.	0.20	0.20	0.60
7. -fast delivery.	0.11	0.77	0.12
8. -good service.	0.35	0.50	0.15
9. -coupons available.	0.04	0.06	0.90
10. -effective customer service.	0.08	0.61	0.31

Table 3 shows the Factor-Scores Coefficient Matrix, that is, the regression weights that relate the attribute scales to the factor scores. This table is of primary concern to estimate performance of each retailer.

Table 3: Factor-Scores Coefficient Matrix

	Factor 1	Factor 2	Factor 3
1. -good assortment.	0.15	0.07	0.05
2. - reasonable prices.	0.05	0.15	0.23
3. -good reputation.	0.14	0.05	0.03
4. -high quality products.	0.05	0.08	0.21
5. -free shipping.	0.13	0.02	0.02
6. -good value.	0.08	0.02	0.05
7. -fast delivery.	0.04	0.21	0.01
8. -good service.	0.02	0.09	0.06
9. -coupons available.	0.01	0.10	0.01
10. -effective customer service.	0.05	0.12	0.01

Calculate the final overall scores for each retailer and fill out the following table (multiplying relevant elements from table 1 and 3).

	Factor 1	Factor 2	Factor 3
Walmart
Target
Shopko

Task: Construct a perceptual map

• Name relevant factors. Complete the above table with correct calculations.
• Build a map using the results from the table shown above. Select any two of the three factors and draw a map using the pair of points as two coordinates. Using an excel to generate this graph will make your task easier. However a hand drawn graph, converted to an image and then pasting on an MS-word file could also be uploaded. Be sure to label the axes with the factor names you may propose. Also, make sure your map pasted properly on your word file with the answers.
• What conclusions do you draw from your map? Interpret each retailers position and suggest appropriate strategy for any one retailer of your choice.
• Suggest and explain any other method of analytical attribute method as an alternative to this factor analysis method.