Exploratory Factor Analysis is used to determine if a series of consumer responses are correlated and can be reduced to a single score for an individual.
This is a useful tool in market research when devising a smaller set of predictors (e.g. consumer attitudes, beliefs, needs) when implementing a regression analysis.
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Tutorial by Kathryn M. Sharpe, Assistant Professor of Business Administration at the Darden Graduate School of Business. Kathryn’s research is centered on subtle contextual effects at fast food restaurants and luxury goods markets. She teaches courses on Marketing Intelligence and is an expert in Bayesian Estimation, Quantitative Marketing Methods, and Marketing & Public Policy.