What is the concept of ‘Factor Analysis’? Explain its applications in consumer behaviour studies.
Answers
This concept includes a section identifying where factor analysis has been used in MCHP research, and provides links to this additional information. This includes specific concepts where factor analysis is described in the methodology (e.g.: development of the composite health indices) and to MCHP deliverables that describe how factor analysis was used in the research.
Factor analysis is used to identify "factors" that explain a variety of results on different tests. For example, intelligence research found that people who get a high score on a test of verbal ability are also good on other tests that require verbal abilities. Researchers explained this by using factor analysis to isolate one factor, often called crystallized intelligence or verbal intelligence, which represents the degree to which someone is able to solve problems involving verbal skills