FA: - is a general name denoting a class of procedures primariy used for data reduction and summarization.
* is a collection of methods used to examine how underlying constracts influence the responses on a number of measured variables. * In marketing research, there may be a large number of variables, most of which are correlated and which must be reduced to managable level. Relationhip among sets of many interrelated variables are examined and represented in terms of a few underlying factors. * A genetic term that used to describe a number of methodes designed to analyze interrelationships within a set of variables or objects resulting in the constraction of a few hypothetical variables or objects,called factors (are supposed to contain the essential information in a larger set of observed variables). Basically there are two types of factor analysis;
1. Exploratory Factor Analysis; Attempts to discover the nature of the constracts influencing a set of responses and the strength of the relationship between each factor and each observed measure. 2. Confirmatory Factor Analysis; tests whether a specified set of constracts is influencing responses in a predicted way. Confirmatory FA
* In confirmatory factor analysis, the researcher first develops a hypothesis about what factors s/he believes are underlying the measures s/he has used and may impose constraints on the model based on these a priori hypotheses. By imposing these constraints, the researcher is forcing the model to be consistent with his/her theory. * İs the more theoretically important and should be the much widely used of the two major factor analytic approaches. * İs a theory testing model as opposed to theory generating method like exploratory FA. The objective of Confirmatory Fctor Analysis- determine the ability of predefined factor medel fit an observed set of data. Some common uses of CFA
* Establish the validity of a single factor model