Chapter 5: Factor Analysis: 5.1 KMO & Bartlett's Test

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Chapter 5: Factor Analysis 

5.1 KMO & Bartlett’s test 

Factor analysis is used to see how closely the respondents are linked to the questionnaires. This
analysis assists us in obtaining more accurate and detailed data from respondents, as well as
removing the remainder of the unnecessary and unwanted conflicts. It clarifies the questionable
components even more, and the results following factor analysis is more accurate. The research
is problematic and imprecise without factor analysis. We analyzed our dataset of 221
respondents using Kaiser-Meyer Olkin Measure of Sampling Adequacy and Bartlett's test of
Sphericity (KMO & Bartlett's test), Communalities, Total Variance Explained, and Rotated
Component Matrix. In this study, the results of each test are reported in detail.

KMO and Bartlett's Test


Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .849
Bartlett's Test of Sphericity Approx. Chi-Square 1040.166
df 171
Sig. .000

The sampling adequacy in the KMO test was 0.849, indicating that the sample size for our
survey was acceptable. The Chi-Square in Bartlett's test of Sphericity was 1040.166.
Additionally, the significance level was less than 0.05. The null hypothesis is thereby rejected.
This also demonstrates that our sample size was adequate.
Total Variance Explained
C Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings
o
m
p
o
n
e
n
t Total % of Variance Cumulative % Total % of Variance Cumulative % Total % of Variance Cumulative %
1 5.006 26.345 26.345 5.006 26.345 26.345 3.052 16.063 16.063
2 1.672 8.801 35.146 1.672 8.801 35.146 2.548 13.412 29.475
3 1.423 7.490 42.636 1.423 7.490 42.636 2.021 10.634 40.109
4 1.300 6.844 49.480 1.300 6.844 49.480 1.582 8.325 48.435
5 1.169 6.154 55.634 1.169 6.154 55.634 1.368 7.199 55.634
6 .991 5.215 60.848
7 .884 4.653 65.501
8 .790 4.160 69.661
9 .689 3.627 73.289
1 .669 3.521 76.810
0
1 .650 3.420 80.230
1
1 .624 3.284 83.513
2
1 .605 3.182 86.695
3
1 .492 2.590 89.285
4
1 .470 2.473 91.758
5
1 .453 2.386 94.144
6
1 .399 2.099 96.243
7
1 .364 1.915 98.157
8
1 .350 1.843 100.000
9
Extraction Method: Principal Component Analysis.

We examine how many groups are constructed from the components given in the questionnaire
in the table of Total Variance Explained, and we further verify the items using this table. We can
determine how many groups the respondents detected from the set questionnaire in the table by
looking at the Initial Eigenvalues, which we consider a total factor if the Initial Eigenvalues are
more than or equal to 1. And variables are significant if the cumulative percentage of Rotation
Sums of Squared Loadings is greater than 60%.

5.2 Rotated Component Matrix

Rotated Component Matrixa


Component
1 2 3 4 5
COO1 .750
COO2 .682
COO3 .785
COO4 .427
COO5 .557
PQ1 .738
PQ2 .672
PQ3 .739
PQ4 .746
PQ5 .598
SMI2 .619
SMI3 .714
SMI4 .617
SMI5 .682
BI1 .743
BI2 .803
BI3 .793
BI4 .734
BI5 .621
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 6 iterations.

For the first factor analysis, we combined our four independent variables into a single dependent
variable. In the choosing of foreign brands in skin care products, four independent variables were
used: data in the country of origin (COO), product quality (PQ), and social media influence
(SMI). We were able to implement this without compromising any value. Our second variable
was split into two clusters in this factor analysis. PQ1, PQ2, and PQ5 were assigned to
component 4; PQ3, PQ4 were assigned to component 5.

5.3 Factor Analysis with small Coefficient Suppression

KMO and Bartlett's Test


Kaiser-Meyer-Olkin Measure of Sampling .843
Adequacy.
Bartlett's Test of Approx. Chi-Square 764.792
Sphericity df 78
Sig. .000

Extraction Method: Principal Component


Total Variance Explained
Initial Eigenvalues Extraction Sums of Squared Loadings
Component Total % of Variance Cumulative % Total % of Variance Cumulative % Tota
1 4.248 32.675 32.675 4.248 32.675 32.675 2
2 1.603 12.329 45.004 1.603 12.329 45.004 2
3 1.246 9.586 54.590 1.246 9.586 54.590 1
4 .906 6.972 61.562
5 .815 6.270 67.831
6 .703 5.405 73.237
7 .649 4.995 78.231
8 .628 4.828 83.059
9 .518 3.981 87.040
10 .498 3.834 90.874
11 .432 3.326 94.200
12 .383 2.947 97.147
13 .371 2.853 100.000
Extraction Method: Principal Component Analysis.
Rotated Component Matrixa
Component
1 2 3
COO1 .783
COO2 .700
COO3 .765
COO4 .495
COO5 .585
SMI2 .653
SMI3 .695
SMI4 .645
SMI5 .659
BI1 .769
BI2 .808
BI3 .797
BI4 .743
Extraction Method: Principal Component
Analysis.
Rotation Method: Varimax with Kaiser
Normalization.
a. Rotation converged in 4 iterations.

We deleted PQ1,PQ2,PQ3,PQ4, and PQ5 because the minimum condition for creating a cluster
is three factors. PQ1, PQ2, PQ3, PQ4, and PQ5 have redundancy, according to the response. We
got three clusters from three variables after the second factor analysis. The KMO score decreased
to .843. In the second factor analysis, which is still higher than the benchmark. This suggests that
the number of respondents is sufficient.

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