Factor analysis was the concept on which we worked for the two sessions today. From what I understood is that – Factor analysis is a method used to statistically describe the variability and correlation amongst variables in a sample set, which we describe as factors. The variances are studied on the basis of their linear combination. The factors which are inter-connected form a group, from which a commonality is derived to reach a decision.
An interesting concept was the Eigen values. It is a scale where the variables/factors change its own characteristics/values based on the change between different decision variables. The use of the Eigen values, which are also known as the ‘own’ values was interesting.
This was used in understanding the decision variables on the various Mercedes Benz models and how a step can be taken accordingly to come up to a decision.
Marketing Group 6