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Multivariate Analysis · Market ResearchAcademic work

Dimensionality Reduction & Factor Analysis in SPSS

Application of PCA and exploratory factor analysis to identify latent dimensions and interpret patterns in business datasets.

Type

Academic work

Area

Multivariate Analysis · Market Research

Tools

SPSS

Techniques

PCA · Exploratory factor analysis · KMO · Bartlett test · Communalities · Factor rotation

Output

Interpreted multivariate analysis

Value

Academic work where I applied PCA and exploratory factor analysis in SPSS to identify latent dimensions, reduce variables, and interpret useful patterns for market research and business analysis.

Executive summary

Methodological case useful for market research: turning many observed variables into interpretable dimensions without losing business reading.

Business context

Surveys and business studies often include many correlated variables. Dimensionality reduction helps synthesise information, build scales, and detect latent patterns.

My role

Individual academic work. I ran the analysis in SPSS, reviewed factor adequacy, and interpreted components/factors with a market-research orientation.

Data & methods

  • SPSS and .spv outputs.
  • Principal component analysis and exploratory factor analysis.
  • Evaluation through KMO, Bartlett, communalities, and rotation.

Process

  1. 01Review the correlation matrix.
  2. 02Evaluate suitability for factor analysis.
  3. 03Extract components/factors.
  4. 04Apply rotation and interpret loadings.
  5. 05Translate dimensions into business reading.

Key findings

  • The technique condenses information and detects latent dimensions.
  • Interpretation depends on variable quality and correlation structure.

Business implications

  • Transferable to segmentation, market research, perception scales, and customer insights.
  • Complements consumer-insight projects with many attitudinal variables.

Limitations

  • Academic work with practice data.
  • Not presented as a real business-impact case.

What I would do next

  • Apply it to primary surveys with segmentation goals.
  • Connect factors with predictive models or customer profiles.

Assets

View summaryComing soonMethodological summary available on request.

Suggested visuals

Factor loading table.

Scree plot.

Latent dimensions map.

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