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Factor Analysis

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Handbook of Market Research

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Abstract

This chapter presents an overview of factor analysis in the broad sense of the term, comprising principal components analysis as well as exploratory and confirmatory factor analysis (in the narrow sense). Each procedure is first described intuitively and then developed more formally, and important issues associated with each method are covered in some detail. With respect to principal components and exploratory factor analysis, this includes decisions about the number of factors to be retained, factor rotation, and the estimation of factor scores. With regard to confirmatory factor analysis, critical steps involve the examination of the fit of the specified model in an overall sense, model modification, and local fit assessment (including evaluating the reliability of measurement as well as discriminant validity). A brief overview of measurement invariance testing is also provided. An empirical example dealing with the measurement of organizational culture in terms of the GLOBE dimensions is used to illustrate the methods discussed in the chapter.

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Author information

Authors and Affiliations

  1. Smeal Chair Professor of Marketing, Smeal College of Business, The Pennsylvania State University, University Park, PA, USA

    Hans Baumgartner

  2. Professor of Business Administration and Marketing, Chairman of the Department of Marketing & Sales at the University of Mannheim, Mannheim, Germany

    Christian Homburg

  3. Professorial fellow at the University of Manchester, Manchester, United Kingdom

    Christian Homburg

Authors
  1. Hans Baumgartner
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  2. Christian Homburg
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Correspondence to Hans Baumgartner .

Editor information

Editors and Affiliations

  1. Universität Mannheim, Mannheim, Germany

    Christian Homburg

  2. Inst. Informations Systems and Marketing Marketing & Sales Research Group, Karlsruher Institut für Technologie, Karlsruhe, Germany

    Martin Klarmann

  3. Fakultät für Betriebswirtschaftslehre, Universität Mannheim, Mannheim, Baden-Württemberg, Germany

    Arnd Vomberg

Section Editor information

  1. University of Mannheim, Mannheim, Germany

    Christian Homburg

  2. Karlsruhe Institute of Technology, Karlsruhe, Germany

    Martin Klarmann

  3. University of Groningen, Groningen, Niederlande

    Arnd Vomberg

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Baumgartner, H., Homburg, C. (2023). Factor Analysis. In: Homburg, C., Klarmann, M., Vomberg, A. (eds) Handbook of Market Research. Springer, Cham. https://doi.org/10.1007/978-3-319-05542-8_13-1

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  • DOI: https://doi.org/10.1007/978-3-319-05542-8_13-1

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  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-319-05542-8

  • Online ISBN: 978-3-319-05542-8

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