Exploratory Factor Analysis Paper
4.5. EXPLORATORY FACTOR ANALYSIS
Table 4.14 KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .896
Bartlett's Test of Sphericity Approx. Chi-Square 4.120E3 df 528 Sig. .000
Bartlett's test of sphericity indicates whether the correlation matrix is an identity matrix, which would indicate that the variables are unrelated. The significance level gives the result of the test. Very small values (less than .05) indicate that there are probably significant relationships among the variables. A value higher than about .10 or so may indicate that this data are not suitable for factor analysis. Hence, the researcher concludes the data is suitable for factor analysis since Kaiser-Meyer-Olkin Measure of Sampling Adequacy value is .896. …show more content…
Table 4.15 Total Variance Explained
Component Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings Total % of Variance Cumulative % Total % of Variance Cumulative % Total % of Variance Cumulative %
1 27.679 49.427 49.427 27.679 49.427 49.427 11.279 20.141 20.141
2 5.922 10.576 60.003 5.922 10.576 60.003 10.880 19.429 39.570
3 4.502 8.039 68.042 4.502 8.039 68.042 8.528 15.228 54.798
4 3.429 6.123 74.165 3.429 6.123 74.165 6.087 10.870 65.668
5 2.888 5.157 79.323 2.888 5.157 79.323 3.957 7.067 72.734
6 2.539 4.535 83.858 2.539 4.535 83.858 3.263 5.826 78.561
7 1.996 3.564 87.422 1.996 3.564 87.422 3.185 5.688 84.249
8 1.419 2.533 89.955 1.419 2.533 89.955 2.570 4.589 88.838
9 1.167 2.083 92.039 1.167 2.083 92.039 1.792 3.201 92.039
Extraction Method: Principal Component Analysis.
The above table gives eigenvalues, variance explained, and cumulative variance explained for the factor solution. The first panel gives values based on initial eigenvalues. For the initial solution, there are as many factors as there are variables. The "Total" column gives the amount of variance in the observed variables accounted for by each factor. The "% of Variance" column gives the percent of variance accounted for by each specific factor, relative to the total variance in all the variables. The "Cumulative %" column gives the percent of variance accounted for by all factors up to and including the current one. For instance the Cumulative % for the second factor is the sum of the % of Variance for the first and second factors. In the above table , there are a few factors that explain a lot of the variance which is a sign of good factor analysis and the rest of the factors explain relatively small amounts of variance.
The Extraction Sums of Squared Loadings group gives information regarding the extracted factors or components. In the "Rotation Sums of Squared Loadings" group, the variance accounted for by rotated factors or components may be different from those reported for the extraction, but the Cumulative % for the set of factors or components will always be the same.
Table 4.16 Rotated Component Matrixa Component 1 2 3 4 5 6 7 8 9
Excellence of quality relative to price .705
National Brands Provide More Value .647
Highstock Level To be Maintained .845
Private brands Provide Greater Value .887
Availability of Fresh Foods .585
Availability of Organic Foods .539
Labels with Nutritional Information .576
Simple and easy-to-read labeling .668
Colours and Logos-culturally Appropriate .654
Attractive Image in Labels .668
Availability of Entire Grocery Items .683
New Product Information .804
Organise Grocery List .577
Provide Location assistance to identify Grocery Items .839
Offer targeted promotions at the front door .735
Customer Stated Promotion .583
Provide Accrual Promotions and Redemption Promotion .611
Provide Discounts .816
Sending Greetings to Customers .792
Novel Technology to attract Customers .587
Provide Store Credit Cards .812
Provide Loyalty cards .504
Appealing Advertisements .571
Advertisement to build Customer Confidence .618
Frequency of Advertisement and Promotion .668
Easy entrance and exit to parking lot .654
Proximity to residence .709
Shopping Bus Schedule .727
Long Opening Hours .906
Physical Facilities of the store .775
Numerous cash counters .723
Separate checkout lines for Preferred Customers .815
Provide Durable carry Bags .814
Well-assorted rest area .731
Proper Shelf Display .823
Proper Selling Floor Layouts .814
Variety of credit cards accepted .832
Return and Exchange of goods .539
Home/Door delivery services .828
Providing web sales .809
Assistance for carrying Grocery Purchase .810
Provide Financial services/access .536
Point-of-purchase displays .574
Helpful and Friendly Sales People .508
Information Provided by salesperson .671
Affirmative action by salesperson .844 smiling, greeting and establishing eye contact .721
Temperature within the store should be refreshing .828
Exteriors of the strore kept attractive .706
Atmosphere and opportunity for a social experience .615
Allow customers to use their points-sweepstakes .739
Consistency of the store .732
Convenience of this store .732
Merchandise of this store .805
Price offered in this store .810
Store channels .544
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 27
iterations.
The above table reports the factor loadings for each variable on the factors after rotation. For example, each number represents the partial correlation between the item- Availability of organic foods (.539) and the rotated factor (Factor 1). These correlations can help the researcher to formulate an interpretation of the factors. This is done by looking for a common thread among the variables that have large loadings for a particular factor. This exercise can be well depicted by the below table.
Table 4.17 Factors, Variable loadings and percentage of variance.
Factors Loaded Variables Factor Loading values % of variance of factors Factor 1(Basic Services) Availability of Organic Foods .539 Offer targeted promotions at the front door .735 Novel Technology to attract Customers .587 Provide Store Credit Cards .812 Easy entrance and exit to parking lot .654 Shopping Bus Schedule .727 Long Opening Hours .906 Physical Facilities of the store .775 20.141 Numerous cash counters .723 Return and Exchange of goods .539 Assistance for carrying Grocery Purchase .810 Provide Financial services/access .536 Point-of-purchase displays .574 Allow customers to use their points-sweepstakes .739 Consistency of the store .732
Factor 2(Value Added Service ) Availability of Fresh Foods .585 Labels with Nutritional Information .576 Attractive Image in Labels .668 Sending Greetings to Customers .792 Advertisement to build Customer Confidence .618 Provide Durable carry Bags .814 Well-assorted rest area .731 19.429 Proper Shelf Display .823 Proper Selling Floor Layouts .814 Variety of credit cards accepted .832 Home/Door delivery services .828 Providing web sales .809 Affirmative action by salesperson .844
Factor 3(Point Of Purchase) Excellence of quality relative to price .705 Availability of Entire Grocery Items .683 New Product Information .804 Provide Location assistance to identify Grocery Items .839 15.228 Customer Stated Promotion .583 Proximity to residence .709 Information Provided by salesperson .671 smiling, greeting and establishing eye contact .721 Temperature within the store should be refreshing .828 Exteriors of the strore kept attractive .706
Factor 4 (sales Area Information & Store Environment ) National Brands Provide More Value .647 Highstock Level To be Maintained .845 Colours and Logos-culturally Appropriate .654 Organise Grocery List .577 Provide Accrual Promotions and Redemption Promotion .611 10.870 Frequency of Advertisement and Promotion .688 Separate checkout lines for Preferred Customers .815 Atmosphere and opportunity for a social experience .615
Factor-5(Choice) Convenience of this store .732 Merchandise of this store .805 7.067 Price offered in this store .810
Factor-6(Customer service) Provide Discounts .816 Helpful and Friendly Sales People .508 5.826
Factor-7(Store Specialty) Private brands Provide Greater Value .887 5.688 Appealing Advertisements .577
Factor-8
(Customer Convenience & Loyalty) Simple and easy-to-read labeling .668 4.589 Provide Loyalty cards .504
Factor-9(Information) Store channels .544 3.201
The above table reflects the factors and the respective variable loadings ,the "% of Variance" column gives the percent of variance accounted for by each specific factor, relative to the total variance in all the variables, through which the researcher can prioritize the significance of each factor i.e. the factor with higher variance stands prominent ,followed by the next highest variance value.
Table 4.14 KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .896
Bartlett's Test of Sphericity Approx. Chi-Square 4.120E3 df 528 Sig. .000
Bartlett's test of sphericity indicates whether the correlation matrix is an identity matrix, which would indicate that the variables are unrelated. The significance level gives the result of the test. Very small values (less than .05) indicate that there are probably significant relationships among the variables. A value higher than about .10 or so may indicate that this data are not suitable for factor analysis. Hence, the researcher concludes the data is suitable for factor analysis since Kaiser-Meyer-Olkin Measure of Sampling Adequacy value is .896. …show more content…
Table 4.15 Total Variance Explained
Component Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings Total % of Variance Cumulative % Total % of Variance Cumulative % Total % of Variance Cumulative %
1 27.679 49.427 49.427 27.679 49.427 49.427 11.279 20.141 20.141
2 5.922 10.576 60.003 5.922 10.576 60.003 10.880 19.429 39.570
3 4.502 8.039 68.042 4.502 8.039 68.042 8.528 15.228 54.798
4 3.429 6.123 74.165 3.429 6.123 74.165 6.087 10.870 65.668
5 2.888 5.157 79.323 2.888 5.157 79.323 3.957 7.067 72.734
6 2.539 4.535 83.858 2.539 4.535 83.858 3.263 5.826 78.561
7 1.996 3.564 87.422 1.996 3.564 87.422 3.185 5.688 84.249
8 1.419 2.533 89.955 1.419 2.533 89.955 2.570 4.589 88.838
9 1.167 2.083 92.039 1.167 2.083 92.039 1.792 3.201 92.039
Extraction Method: Principal Component Analysis.
The above table gives eigenvalues, variance explained, and cumulative variance explained for the factor solution. The first panel gives values based on initial eigenvalues. For the initial solution, there are as many factors as there are variables. The "Total" column gives the amount of variance in the observed variables accounted for by each factor. The "% of Variance" column gives the percent of variance accounted for by each specific factor, relative to the total variance in all the variables. The "Cumulative %" column gives the percent of variance accounted for by all factors up to and including the current one. For instance the Cumulative % for the second factor is the sum of the % of Variance for the first and second factors. In the above table , there are a few factors that explain a lot of the variance which is a sign of good factor analysis and the rest of the factors explain relatively small amounts of variance.
The Extraction Sums of Squared Loadings group gives information regarding the extracted factors or components. In the "Rotation Sums of Squared Loadings" group, the variance accounted for by rotated factors or components may be different from those reported for the extraction, but the Cumulative % for the set of factors or components will always be the same.
Table 4.16 Rotated Component Matrixa Component 1 2 3 4 5 6 7 8 9
Excellence of quality relative to price .705
National Brands Provide More Value .647
Highstock Level To be Maintained .845
Private brands Provide Greater Value .887
Availability of Fresh Foods .585
Availability of Organic Foods .539
Labels with Nutritional Information .576
Simple and easy-to-read labeling .668
Colours and Logos-culturally Appropriate .654
Attractive Image in Labels .668
Availability of Entire Grocery Items .683
New Product Information .804
Organise Grocery List .577
Provide Location assistance to identify Grocery Items .839
Offer targeted promotions at the front door .735
Customer Stated Promotion .583
Provide Accrual Promotions and Redemption Promotion .611
Provide Discounts .816
Sending Greetings to Customers .792
Novel Technology to attract Customers .587
Provide Store Credit Cards .812
Provide Loyalty cards .504
Appealing Advertisements .571
Advertisement to build Customer Confidence .618
Frequency of Advertisement and Promotion .668
Easy entrance and exit to parking lot .654
Proximity to residence .709
Shopping Bus Schedule .727
Long Opening Hours .906
Physical Facilities of the store .775
Numerous cash counters .723
Separate checkout lines for Preferred Customers .815
Provide Durable carry Bags .814
Well-assorted rest area .731
Proper Shelf Display .823
Proper Selling Floor Layouts .814
Variety of credit cards accepted .832
Return and Exchange of goods .539
Home/Door delivery services .828
Providing web sales .809
Assistance for carrying Grocery Purchase .810
Provide Financial services/access .536
Point-of-purchase displays .574
Helpful and Friendly Sales People .508
Information Provided by salesperson .671
Affirmative action by salesperson .844 smiling, greeting and establishing eye contact .721
Temperature within the store should be refreshing .828
Exteriors of the strore kept attractive .706
Atmosphere and opportunity for a social experience .615
Allow customers to use their points-sweepstakes .739
Consistency of the store .732
Convenience of this store .732
Merchandise of this store .805
Price offered in this store .810
Store channels .544
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 27
iterations.
The above table reports the factor loadings for each variable on the factors after rotation. For example, each number represents the partial correlation between the item- Availability of organic foods (.539) and the rotated factor (Factor 1). These correlations can help the researcher to formulate an interpretation of the factors. This is done by looking for a common thread among the variables that have large loadings for a particular factor. This exercise can be well depicted by the below table.
Table 4.17 Factors, Variable loadings and percentage of variance.
Factors Loaded Variables Factor Loading values % of variance of factors Factor 1(Basic Services) Availability of Organic Foods .539 Offer targeted promotions at the front door .735 Novel Technology to attract Customers .587 Provide Store Credit Cards .812 Easy entrance and exit to parking lot .654 Shopping Bus Schedule .727 Long Opening Hours .906 Physical Facilities of the store .775 20.141 Numerous cash counters .723 Return and Exchange of goods .539 Assistance for carrying Grocery Purchase .810 Provide Financial services/access .536 Point-of-purchase displays .574 Allow customers to use their points-sweepstakes .739 Consistency of the store .732
Factor 2(Value Added Service ) Availability of Fresh Foods .585 Labels with Nutritional Information .576 Attractive Image in Labels .668 Sending Greetings to Customers .792 Advertisement to build Customer Confidence .618 Provide Durable carry Bags .814 Well-assorted rest area .731 19.429 Proper Shelf Display .823 Proper Selling Floor Layouts .814 Variety of credit cards accepted .832 Home/Door delivery services .828 Providing web sales .809 Affirmative action by salesperson .844
Factor 3(Point Of Purchase) Excellence of quality relative to price .705 Availability of Entire Grocery Items .683 New Product Information .804 Provide Location assistance to identify Grocery Items .839 15.228 Customer Stated Promotion .583 Proximity to residence .709 Information Provided by salesperson .671 smiling, greeting and establishing eye contact .721 Temperature within the store should be refreshing .828 Exteriors of the strore kept attractive .706
Factor 4 (sales Area Information & Store Environment ) National Brands Provide More Value .647 Highstock Level To be Maintained .845 Colours and Logos-culturally Appropriate .654 Organise Grocery List .577 Provide Accrual Promotions and Redemption Promotion .611 10.870 Frequency of Advertisement and Promotion .688 Separate checkout lines for Preferred Customers .815 Atmosphere and opportunity for a social experience .615
Factor-5(Choice) Convenience of this store .732 Merchandise of this store .805 7.067 Price offered in this store .810
Factor-6(Customer service) Provide Discounts .816 Helpful and Friendly Sales People .508 5.826
Factor-7(Store Specialty) Private brands Provide Greater Value .887 5.688 Appealing Advertisements .577
Factor-8
(Customer Convenience & Loyalty) Simple and easy-to-read labeling .668 4.589 Provide Loyalty cards .504
Factor-9(Information) Store channels .544 3.201
The above table reflects the factors and the respective variable loadings ,the "% of Variance" column gives the percent of variance accounted for by each specific factor, relative to the total variance in all the variables, through which the researcher can prioritize the significance of each factor i.e. the factor with higher variance stands prominent ,followed by the next highest variance value.