Which of the following applications is appropriate for using factor analysis?
A)to understand the media consumption habits of the target market
B)to determine if variation in market share can be accounted for by the size of the sales force and advertising expenditures
C)to identify the characteristics of price-sensitive consumers
D)Both A and C are correct.

Question

Quizplus · Accepted Answer

A) Factor analysis can be used to identify underlying factors or patterns in media consumption habits of the target market.

B) Factor analysis is not appropriate for determining if variation in market share can be accounted for by the size of the sales force and advertising expenditures as the analysis is not concerned with causal relationships.

C) Factor analysis can be used to identify the characteristics of price-sensitive consumers.

D) Both A and C are correct as factor analysis can be used to identify patterns in media consumption habits and consumer characteristics.

Which of the Following Applications Is Appropriate for Using Factor