Case Study 1 on Factor Analysis

The Problem

Private domestic airline operators raised their airfare in December 2000. Indian Airlines, the government-owned carrier, was the only domestic airline which did not follow suit. Information available (source-Economic Times) showed that people still prefer to fly Jet Airways. Our group set out to ascertain the reasons for the above preference, as according to Indian Airlines officials domestic flyers are price-conscious customers.

Our study consisted of 20 respondents who had recently flown with Jet Airways. They were asked to indicate on a seven point scale (1 = completely agree, 7 = completely disagree), their agreement or disagreement with the set of 10 statements relating to their perceptions and attributes of the airline.

The 10 statements were as follows:

1. They (Jet Airways) are always on time.

2. The seats are very comfortable.

3. I love the food they provide.

4. Their air-hostesses are very beautiful.

5. My boss/friend flies with the same airline.

6. The airlines have younger aircrafts.

7. I get the advantage of a frequent flyer program.

8. It (the flight timing) suits my schedule.

9. My mom feels safe when I fly Jet.

10. Flying Jet compliments my lifestyle and social standing in the society.

Methodology

We tabulated data from the above study and analysed it using the SPSS package.

Input data are in Table 1.

Table 1Input DataS.No.OntimeComfortFoodHostessBossAiryoungFreqflyScheduleMomLifestyle

1122311.0022.0012

2212252.0021.0022

3131462.0032.0053

4342243.0024.0013

5424324.0032.0033

6534265.0022.0012

7212152.0011.0041

8121422.0042.0024

9111231.0022.0052

10251311.0025.0032

11242632.0055.0025

12212452.0041.0014

13323763.0062.0026

14222521.0052.0035

15211222.0021.0012

16111341.0031.0023

17414264.0021.0052

18122222.0021.0072

19232122.0023.0073

20212312.0031.0053