Assignment Research Methods

Step 1: Check the reliability of the variables (ratio or interval level)

The value of Cronbachs alpha should be greater than 0.6 to consider the test as reliable. But in the
given question the Cronbachs alpha is 0.422. The Cronbachs alpha value wont improve beyond 0.436
even if we exclude some variables as can be seen in below Tables 1,2 and 3.

Case Processing Summary

N %
Cases Valid 186 100.0
Excludeda 0 .0
Total 186 100.0
Table 1. Listwise deletion based on all
variables in the procedure.

Reliability Statistics
Cronbach's
Alpha N of Items
.422 20

Table 2. Reliability Statistics

Item-Total Statistics
Scale Variance Corrected Cronbach's
Scale Mean if if Item Item-Total Alpha if Item
Item Deleted Deleted Correlation Deleted
1.activation formalities 62.32 45.722 .028 .431
are complicated
2.network range is not 62.58 43.694 .120 .410
good
3.local call rates are 61.46 46.466 .005 .433
economical
4.std call rates are high 61.84 46.608 -.031 .446
5.isd call rates are 62.27 45.117 .089 .416
economical
6.roaming charges are 61.95 43.398 .162 .399
high
7.sms charges are 61.84 44.500 .108 .412
economical
8.plan option (schemes) 62.15 47.314 -.045 .441
are inadequate
9.value added services 61.70 44.404 .157 .402
like internet, hello tunes
are costly
10.i have to wait for long 61.83 44.410 .057 .428
when i call to customer
care
11.customer care 61.86 43.072 .223 .387
executives are willing
and enthusiastic to
respond to customer
request
12.customer care 62.00 42.551 .266 .377
executives are able to
handle customer
complaints directly and
immediately
13.if other company 62.02 44.129 .116 .410
comes with a new and
cheaper scheme,i will
switch over
14.customer care 62.27 41.800 .298 .368
executives provide
personal attention to the
customer
15.customer care 61.92 42.675 .242 .382
executives provide
complete information
16.promotional calls and 61.85 43.307 .192 .393
messages are quite
frequent and often
disturbing
17.there are sufficient 61.76 45.082 .073 .420
customer care shops of
my service provider
company
18.provide services at 61.73 42.557 .286 .375
promise
time(e.g.activation of
gprs etc.)
19.sometimes extra 62.00 45.957 .008 .436
charges are cut without
information
20.sim cards and 60.91 45.024 .134 .407
recharge coupons are
easily available

Table 3

Step 2: Proceed with the factor analysis

OUTPUT

1. KMO-Bartlett Test of Sphericity

KMO and Bartletts test of sphericity measures the sampling adequacy. Sampling adequacy or the KMO
value should be greater than 0.6 and the Bartletts Test should have a p value less than 0.05 to consider
it as significant sphericity. The null hypothesis is that the correlation matrix is an identity matrix and in
this case it is rejected. As can be seen in Table 4, both the requirements are met and the sample is both
adequate and significant.

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling .656
Adequacy.
Bartlett's Test of Approx. Chi-Square 672.130
Sphericity df 210
Sig. .000
Table 4: KMO and Bartletts Test Outcomes

2. Communalities

Communalities explains the variance in the variables that has been used for by the extracted factors. It
is better if values are greater than 0.5. We can see that all the values are greater than 0.5 except for one
which is near to 0.5 (0.490) and hence it is acceptable.

Table 5: Extraction Method: Principal Component Analysis.

3. Total Variance Explained

The Eigenvalue table has been divided into three sub-sections, i.e. Initial Eigen Values, Extracted Sums
of Squared Loadings and Rotation of Sums of Squared Loadings. From table 6 we can understand that
there are total 8 number of factors that are significant. The first factor accounts for 15.475% of the total
variance.
Total Variance Explained
Extraction Sums of Squared Rotation Sums of Squared
Initial Eigenvalues Loadings Loadings
Compo % of Cumulati % of Cumulati % of Cumulati
nent Total Variance ve % Total Variance ve % Total Variance ve %
1 3.250 15.475 15.475 3.250 15.475 15.475 2.707 12.893 12.893
2 1.910 9.095 24.569 1.910 9.095 24.569 2.027 9.652 22.544
3 1.768 8.419 32.988 1.768 8.419 32.988 1.697 8.081 30.625
4 1.730 8.240 41.228 1.730 8.240 41.228 1.645 7.834 38.459
5 1.224 5.830 47.058 1.224 5.830 47.058 1.374 6.541 45.000
6 1.146 5.458 52.515 1.146 5.458 52.515 1.318 6.274 51.274
7 1.051 5.006 57.521 1.051 5.006 57.521 1.162 5.536 56.810
8 1.006 4.789 62.309 1.006 4.789 62.309 1.155 5.499 62.309
9 .974 4.636 66.946
10 .869 4.140 71.086
11 .793 3.774 74.860
12 .770 3.666 78.526
13 .665 3.169 81.694
14 .636 3.030 84.724
15 .628 2.992 87.716
16 .522 2.485 90.200
17 .508 2.417 92.618
18 .434 2.065 94.682
19 .430 2.048 96.730
20 .350 1.667 98.398
21 .336 1.602 100.000
Table 6: Total Variance Explained
4. Scree Plot

This is a plot of the eigenvalues against all the factors. Only those factors having eigenvalues greater than
1 should be considered significant. From figure 1, we can see that from the factor 8 eigen value falls above
1 which should be considered significant.

Fig 1. Scree plot

5. Component Matrix

From this matrix we can understand that if absolute value of the loading is higher, then the factor contributes
more to the variable. We can see in below table that factor 6 contributes the most to variable 5 with an
absolute value of 0.697.
Table 7: Component Matrix

6. Rotated Component Matrix

We can see from this matrix that there is a weak correlation between variable 3 and factor 1 which is -.016.
A correlation of less than 0.3 is regarded as non-significant. We can see that the first factor states that
there is a strong chance that customer care executives are able to handle customer complaints directly and
immediately.
Table 8: Rotated Component Matrix