Consumer Behavior Research Methods

Factor Analysis

1. Number of Factors: Eigenvalue > 1 & Scree test

  • Visual exploration of a graphical representation of the eigenvalues.

  • In this method, the eigenvalues are presented in descending order and linked with a line.

  • Afterwards, the graph is examined to determine the point at which the last significant drop or break takes place—in other words, where the line levels off.

 
 
  • The scree plot is a graph that reports the percentage of variance explained by each factor

  • This is a third tool that can help in choosing the number of factors: it is recommendable to stop to the number of components that corresponds on the graph with a significant reduction of the slope of the line
 
 

In the example, the number of components to consider is 3 or 4
 

Diskussion