Quantitative Techniques in

Business
SPSS-Factor analysis results and interpretations

Submitted To: Sir Zeeshan Arshad
Submitted by:
Wasif Ammar 11014220-093
Section-G
MBA (3.5 years) ------ 6
th
Semester
Evening Session
UOG
Descriptive Statistics

Mean Std. Deviation Analysis N
TV advertisement is an
effective means of promotion
3.2150 1.34455 200
TV advertisement is playing
a positive role in acquiring
customers
3.0350 1.42616 200
Adventuresome TV
advertisement intrigues
youth
3.0300 1.42804 200
TV advertisement has casted
out other means of
advertisement
3.0450 1.45034 200
You watch TV 3.0250 1.33540 200
Youth spend more than 1
hour watching TV
3.0450 1.45034 200
Youth generally watches TV
for general knowledge
purposes
3.0150 1.40522 200
Tv advertisement is
changing family bonding of
our youth
3.1050 1.41917 200

The mean, standard deviation and number of respondents (N) who participated in the survey are given. Looking
at the mean, one can conclude that TV advertisement is an effective means of promotion is the most important
variable. It has the highest mean of 3.2150.



















Correlation Matrix
a


TV
advertisement
is an effective
means of
promotion
TV
advertisement
is playing a
positive role in
acquiring
customers
Adventuresome
TV
advertisement
intrigues youth
TV
advertisement
has casted
out other
means of
advertisement
You
watch
TV
Youth
spend
more
than 1
hour
watching
TV
Youth
generally
watches
TV for
general
knowledge
purposes
Tv
advertisement
is changing
family bonding
of our youth
Correlation
TV
advertisement
is an effective
means of
promotion
1.000 -.759 .528 .735 .501 -.765 .802 .022
TV
advertisement
is playing a
positive role in
acquiring
customers
1.000 -.610 -.934 -.700 .971 -.850 -.141
Adventuresome
TV
advertisement
intrigues youth
1.000 .533 .843 -.564 .425 .594
TV
advertisement
has casted out
other means of
advertisement
1.000 .635 -.968 .850 .044
You watch TV 1.000 -.662 .581 .574
Youth spend
more than 1
hour watching
TV
1.000 -.866 -.058
Youth generally
watches TV for
general
knowledge
purposes
1.000 -.197
Tv
advertisement
is changing
family bonding
of our youth
1.000
a. Determinant = 4.55E-006




1% change in TV advertisement is an effective means of promotion brings 0.759% and 0.765% change in TV
advertisement is playing a positive role in acquiring customers and Youth spend more than 1 hour watching TV
respectively, but in opposite direction. 1% change in TV advertisement is an effective means of promotion
brings 0.528%, 0.735%, 0.501%, 0.802%, 0.022% change in adventuresome TV advertisement intrigues youth,
TV advertisement has casted out other means of advertisement, You watch TV, Youth generally watches TV for
general knowledge purposes and TV advertisement is changing family bonding of our youth respectively, but in
same direction.

1% change in TV advertisement is playing a positive role in acquiring customers brings 0.610%, 0.934%,
0.700%, 0.850% and 0.141% change in adventuresome TV advertisement intrigues youth, TV advertisement
has casted out other means of advertisement, You watch TV, Youth generally watches TV for general
knowledge purposes and TV advertisement is changing family bonding of our youth respectively, but in
opposite direction. 1% change in TV advertisement is playing a positive role in acquiring customers brings
0.971% change in Youth spend more than 1 hour watching TV but in same direction.

1% change in adventuresome TV advertisement intrigues youth brings 0.564% change in Youth spend more
than 1 hour watching TV but in opposite direction. 1% change in adventuresome TV advertisement intrigues
youth brings 0.533%, 0.843%, 0.425% and 0.594% change in TV advertisement has casted out other means of
advertisement, You watch TV, Youth generally watches TV for general knowledge purposes and TV
advertisement is changing family bonding of our youth respectively, but in same direction.

1% change in TV advertisement has casted out other means of advertisement brings 0.968% change in Youth
spend more than 1 hour watching TV but in opposite direction. 1% change in TV advertisement has casted out
other means of advertisement brings 0.635%, 0.850% and 0.044% change in You watch TV, Youth generally
watches TV for general knowledge purposes and TV advertisement is changing family bonding of our youth
respectively, but in same direction.

1% change in You watch TV brings 0.662% change in Youth spend more than 1 hour watching TV but in
opposite direction. 1% change in You watch TV brings 0.581% and 0.574% change in Youth generally watches
TV for general knowledge purposes and TV advertisement is changing family bonding of our youth
respectively, but in same direction.

1% change in Youth spend more than 1 hour watching TV brings 0.866% and 0.058% change in Youth
generally watches TV for general knowledge purposes and TV advertisement is changing family bonding of our
youth respectively, but in opposite direction.
1% change in Youth generally watches TV for general knowledge purposes brings 0.197% change in TV
advertisement is changing family bonding of our youth but in opposite direction.

KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .701
Bartlett's Test of Sphericity Approx. Chi-Square 2.405E3
df 28
Sig. .000
KMO test measures the strength of relationship between variables. If the value is above 0.5 than it is a
satisfactory and reliable factor analysis. The value of KMO test is 0.7 which shows the results are satisfactory.
Bartlett's test is another indication of the strength of the relationship among variables. Its significance is 0.000%
which means the results are 100% significant.

Communalities

Initial Extraction
TV advertisement is an
effective means of promotion
1.000 .732
TV advertisement is playing
a positive role in acquiring
customers
1.000 .932
Adventuresome TV
advertisement intrigues
youth
1.000 .854
TV advertisement has casted
out other means of
advertisement
1.000 .908
You watch TV 1.000 .884
Youth spend more than 1
hour watching TV
1.000 .945
Youth generally watches TV
for general knowledge
purposes
1.000 .921
Tv advertisement is
changing family bonding of
our youth
1.000 .910
Extraction Method: Principal Component Analysis.

Table of communalities shows how much of the variance in the variables has been accounted for. For instance
over 94% of the variance in youth spend more than 1 hour watching TV is accounted for while 73.2% of the
variance in TV advertisement is an effective means of promotion is accounted for.



Total Variance Explained
Component
Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings
Total % of Variance Cumulative % Total % of Variance Cumulative % Total % of Variance Cumulative %
1 5.394 67.431 67.431 5.394 67.431 67.431 4.776 59.703 59.703
2 1.691 21.143 88.574 1.691 21.143 88.574 2.310 28.871 88.574
3 .367 4.589 93.163

4 .272 3.397 96.560

5 .166 2.073 98.633

6 .061 .762 99.395

7 .034 .422 99.817

8 .015 .183 100.000

Extraction Method: Principal Component Analysis.



Notice that the first factor accounts for 67.431% of the variance and the second 21.143%. All the
remaining factors are not significant.


The scree plot is a graph of the eigen values against all the factors. The graph is useful for
determining how many factors to retain. It can be seen that the curve begins to flatten between
factors 2 and 3. Note also that factor 3 has an eigen value of less than 1, so only 2 factors have been
retained.




Component Matrix
a


Component

1 2
TV advertisement is an
effective means of promotion
.828

TV advertisement is playing
a positive role in acquiring
customers
-.959

Adventuresome TV
advertisement intrigues
youth
.738 .556
TV advertisement has casted
out other means of
advertisement
.930

You watch TV .811

Youth spend more than 1
hour watching TV
-.953

Youth generally watches TV
for general knowledge
purposes
.873

Tv advertisement is
changing family bonding of
our youth

.928
Extraction Method: Principal Component Analysis.
a. 2 components extracted.


The table shows the loadings of the eight variables on the two factors extracted. The higher the
absolute value of the loading, the more the factor contributes to the variable. The gap on the table
represent loadings that are less than 0.5, this makes reading the table easier. We suppressed all
loadings less than 0.5.














Reproduced Correlations

TV
advertisement
is an effective
means of
promotion
TV
advertisement
is playing a
positive role in
acquiring
customers
Adventuresome
TV
advertisement
intrigues youth
TV
advertisement
has casted
out other
means of
advertisement
You
watch
TV
Youth
spend
more
than 1
hour
watching
TV
Youth
generally
watches
TV for
general
knowledge
purposes
Tv
advertisement
is changing
family
bonding of
our youth
Reproduced
Correlation
TV
advertisement
is an effective
means of
promotion
.732
a
-.818 .493 .815 .571 -.830 .808 -.013
TV
advertisement
is playing a
positive role in
acquiring
customers
-.818 .932
a
-.647 -.915 -.726 .935 -.881 -.112
Adventuresome
TV
advertisement
intrigues youth
.493 -.647 .854
a
.571 .863 -.597 .423 .681
TV
advertisement
has casted out
other means of
advertisement
.815 -.915 .571 .908
a
.656 -.926 .894 .016
You watch TV .571 -.726 .863 .656 .884
a
-.682 .519 .622
Youth spend
more than 1
hour watching
TV
-.830 .935 -.597 -.926 -.682 .945
a
-.908 -.036
Youth generally
watches TV for
general
knowledge
purposes
.808 -.881 .423 .894 .519 -.908 .921
a
-.174
Tv
advertisement
is changing
family bonding
of our youth
-.013 -.112 .681 .016 .622 -.036 -.174 .910
a

Residual
b
TV
advertisement
is an effective
means of
promotion

.059 .035 -.080 -.070 .065 -.007 .035
TV
advertisement
is playing a
positive role in
acquiring
customers
.059

.037 -.019 .026 .036 .031 -.028
Adventuresome
TV
advertisement
intrigues youth
.035 .037

-.038 -.021 .034 .003 -.087
TV
advertisement
has casted out
other means of
advertisement
-.080 -.019 -.038

-.021 -.043 -.044 .028
You watch TV -.070 .026 -.021 -.021

.020 .062 -.048
Youth spend
more than 1
hour watching
TV
.065 .036 .034 -.043 .020

.042 -.023
Youth generally
watches TV for
general
knowledge
purposes
-.007 .031 .003 -.044 .062 .042

-.023
Tv
advertisement
is changing
family bonding
of our youth
.035 -.028 -.087 .028 -.048 -.023 -.023

Extraction Method: Principal Component
Analysis.

a. Reproduced
communalities

b. Residuals are computed between observed and reproduced correlations. There are 6 (21.0%) nonredundant
residuals with absolute values greater than 0.05.


Rotated Component Matrix
a


Component

1 2
TV advertisement is an
effective means of promotion
.843

TV advertisement is playing
a positive role in acquiring
customers
-.920

Adventuresome TV
advertisement intrigues
youth

.809
TV advertisement has casted
out other means of
advertisement
.933

You watch TV .546 .766
Youth spend more than 1
hour watching TV
-.948

Youth generally watches TV
for general knowledge
purposes
.960

Tv advertisement is
changing family bonding of
our youth

.938
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 3 iterations.

The idea of rotation is to reduce the number factors on which the variables under investigation have high
loadings. Rotation does not actually change anything but makes the interpretation of the analysis easier.
Looking at the table, we can see that TV advertisement is an effective means of promotion, TV advertisement is
playing a positive role in acquiring customers are substantially loaded on Factor (Component) 1 while
Adventuresome TV advertisement intrigues youth, You watch TV and TV advertisement is changing family
bonding of our youth are substantially loaded on Factor 2. All the remaining variables are substantially loaded
on Factor 1. These factors can be used as variables for further analysis.


Component Transformation
Matrix

Compo
nent 1 2
1 .913 .409
2 -.409 .913
Extraction Method: Principal
Component Analysis.
Rotation Method: Varimax with
Kaiser Normalization.

















The end