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Effect of Packaging on Consumer

Buying Behaviour
WHY FACTOR ANALYSIS?

 Factor analysis is a statistical data reduction and analysis technique that strives to explain correlations among
multiple outcomes as the result of one or more underlying explanations, or factors. The technique involves data
reduction, as it attempts to represent a set of variables by a smaller number.
 It allows researchers to investigate concepts that are not easily measured directly by collapsing a large number
of variables into a few interpretable underlying factors.
 The key concept of factor analysis is that multiple observed variables have similar patterns of responses
because they are all associated with a latent (i.e. not directly measured) variable.
 For example in our case, people may respond similarly to questions about local language, background colour,
packaging material, font style, printed information,etc which are all associated with the buying behavior of
consumers.
 In every factor analysis, there are the some number of factors. Each factor captures a certain amount of the
overall variance in the observed variables, and the factors are always listed in order of how much variation they
explain.
 The eigenvalue is a measure of how much of the variance of the observed variables a factor explains. Any
factor with an eigenvalue ≥1 explains more variance than a single observed variable.
Kaiser’s Measure of Sampling Adequacy

F
A
C
T
O
R

A
N
 Overall Kaiser’s measure is 0.70712306 which is greater than 0.5.
A
L
 Individual Kaiser’s measures are also more than 0.5. Y
S
I
 Data is adequate.
S
Analysing the Factor Pattern
 Variance Explained by Each Factor

 Final Communality Estimates


Rotation Method: Orthogonal Varimax

 Orthogonal Transformation Matrix

 Rotated Factor Pattern


 Variance Explained by Each Factor in Rotated Matrix

 Final Communality Estimates in Rotated Matrix

Final communality
estimates have
not changed since
the factors were
rotated
Conclusion

 Six factors which influence the consumer buying behaviour are :-

 Colour of the packaging.


 Background.
 Packaging material.
 Style of the font.
 Printed information.
 Packaging design.
 Innovation.

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