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Operations Strategy Case Study

Case Title:

Consumer’s Perception on Inverters in India: A Factor Analysis Case

Publication Month and Year : December 2009

Authors: R. Muthukumar

Industry: General Business

Region: India

Case Code: BRM0012

Teaching Note: Available

Structured Assignment: Not Available


JK Company management observed that the Indian market is more favourable for the inverters as the market for Direct Current (DC) generators is already saturated. The company has found that a few local companies are competing heavily for market share. Even the number of players is less. The company decides to carry out a survey to understand the perceptions of the owners about the inverters. To do this assignment, the company hires Perfect Marketing Agency (PMA). PMA decides to conduct a survey among the owners of different generators/inverters in India. Factor Analysis technique was selected to handle the problem as it is different from Regression Analysis. The case study describes about various steps involved in Factor Analysis and also provides the meaning of rotation matrix. The marketing agency has surveyed 20 consumers to know their perception by asking ten questions. Ultimately, the marketing agency chose four important common factors using Factor Analysis Technique.

Pedagogical Objectives:

  • To understand the meaning of the latent variable, which the analysis gives at the end of the factor analysis
  • Different steps involved in factor analysis

Keywords : Statistical Technique, Factor Analysis, Consumer Perception, Rotated Matrix, Eigen Value, Latent Variable

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