An exploratory survey was carried out on a sample of 30 people to examine the varying opinions they hold regarding discount and department stores. The study aimed to compare the attitudes towards Dollar Stores, which are typically known for low levels of service, versus Target and other department stores that offer higher levels of customer service.

The survey aimed to gather insights into the participants' opinions on the different types of stores, and how they compare in terms of various aspects. The participants were asked to rate their level of agreement on a 0-9 scale, where 0 indicated a strong disagreement and 9 signified a strong agreement, in response to a series of questions related to these topics.

I never go back to a store that had treated me with disrespect.

I find salespeople who fawn over me irritating; I just expect them to be courteous.

I have a lot of questions when I shop; I greatly appreciate a sales person who is willing to spend time answering my questions.

I care little for the fancy displays in departmental stores.

Discount stores are much more of a bargain than departmental stores.

I like shopping at stores that offer high-quality customer service and a positive shopping experience.

I prioritize finding the best deals and discounts when shopping, even if it means sacrificing the shopping experience.

Assg 2 data.csv Download Assg 2 data.csv

The results of the survey could provide valuable information on consumers' preferences and perceptions towards discount and department stores, which could help retailers to better understand their target audience and make informed decisions about their business strategy.

Using methods used during class exercises and with the help of Zero Code Learning, answer the following questions.

Suppose you were looking to reduce the 7-variable dataset into 2 factors. Based on the correlation matrix of the variables, which variables, do you expect to be associated with Factor 1 and Factor 2. (Note the labels factor1 and factor 2 are arbitrary.)

Do a factor analysis of the data. How many factors would you keep? 1 factor? 2 factors? 3 factors? (Explain on what rationales you are basing your choice.) How much variance is explained by the number of factors you wish to keep?

Do a factor analysis of the data without any rotations keeping 2 factors. Show the Factor Loading Plot. Can you find interpretable factors? Based on the factor loading results can you explain, why you can interpret the factors or why not?

Do a factor analysis of the data with varimax rotation keeping 2 factors. (Select Varimax in the left panel under Optional: select factor rotation for interpretation). Show the revised loading plot.

Interpret the two factors you discovered with varimax rotation. Does the rotation make the factors more interpretable?

Based on the Factor Scores Plot how many segments of consumers do you see in the data? On the factor scores plot, draw circles or ovals around the segments to indicate your description of these segments. Describe the characteristics of these segments.

Assuming the data is representative, what is the share of the segments in the market?