# Market Research Paper

Topics: Factor analysis, Principal component analysis, Multivariate statistics Pages: 19 (3801 words) Published: March 1, 2013
MODEL PAPER-I
SRI BALAJI SOCIETY
PGDM - SECOND SEMESTER EXAMINATION
BATCH: 2011 – 2013
Marketing Research
Time : 3Hrs
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Marks: 100
Note: 1. Solve any four questions
a) How do we decide that the statements/variables selected for Factor analysis are appropriate? (5) b) Following statements were considered to find the image of IBM in customers’ mind. Researcher conducted Factor analysis on these statements and obtained following output. What conclusion can he draw? (15)

Statements:
Highly ethical company|
Innovative company|
Company has strong capable senior leaders|
Financially sound company|
Company I can trust|
Known for treating its employees well|
Company does its fair share to help society|

Output:

KMO and Bartlett's Test|
Kaiser-Meyer-Olkin Measure of Sampling Adequacy.| .899|
Bartlett's Test of Sphericity| Approx. Chi-Square| 2312.178| | df| 36|
| Sig.| .000|

Communalities|
| Initial| Extraction|
Company cares about the society| 1.000| .778|
Highly ethical company| 1.000| .749|
Leader in the IT industry| 1.000| .712|
Innovative company| 1.000| .608|
Company has strong capable senior leaders| 1.000| .694|
Financially sound company| 1.000| .696|
Company I can trust| 1.000| .596|
Known for treating its employees well| 1.000| .594|
Company does its fair share to help society| 1.000| .647| Extraction Method: Principal Component Analysis.|
Rotated Component Matrixa|
| Component|
| 1| 2|
Highly ethical company| .858| .118|
Company cares about the society| .844| .256|
Company does its fair share to help society| .731| .336| Known for treating its employees well| .678| .367|
Company I can trust| .653| .411|
Leader in the IT industry| .204| .818|
Financially sound company| .174| .816|
Company has strong capable senior leaders| .424| .717|
Innovative company| .464| .627|
Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization.| |
Que. 2:
In a survey conducted by IBM, respondents were asked whether they will purchase IBM products in future. Researcher used Discriminant Analysis and obtained following output. Interpret the output. (20) Eigenvalues|

Function| Eigenvalue| % of Variance| Cumulative %| Canonical Correlation| dimension0| 1| .465a| 100.0| 100.0| .577|
a. First 1 canonical discriminant functions were used in the analysis.|

Wilks' Lambda|
Test of Function(s)| Wilks' Lambda| Chi-square| df| Sig.| dimension0| 1| .858| 70.180| 9| .000|

Tests of Equality of Group Means|
| Wilks' Lambda| F| df1| df2| Sig.|
Company cares about the society| .956| 21.111| 1| 463| .000| Highly ethical company| .968| 15.412| 1| 463| .000|
Leader in the IT industry| .905| 48.676| 1| 463| .000| Innovative company| .917| 41.824| 1| 463| .000|
Company has strong capable senior leaders| .916| 42.497| 1| 463| .000| Financially sound company| .895| 54.099| 1| 463| .000| Company I can trust| .938| 30.676| 1| 463| .000|
Known for treating its employees well| .949| 24.656| 1| 463| .000| Company does its fair share to help society| .954| 22.486| 1| 463| .000|

Classification Resultsa|
| | purchase| Predicted Group Membership| Total|
| | | No| Yes| |
Original| Count| No| 47| 25| 72|
| | Yes| 94| 299| 393|
| | Ungrouped cases| 11| 10| 21|
| %| No| 65.3| 34.7| 100.0|
| | Yes| 23.9| 76.1| 100.0|
| | Ungrouped cases| 52.4| 47.6| 100.0|
a. 74.4% of original grouped cases correctly...