Varun Supermarket Retail (P) Ltd.’s Marketing Research (A): Analysing Store Image through Factor Analysis
Although Varun Supermarket Retail (P) Ltd. (VSRPL) is positioned in the prime area in the city where many educational institutions (colleges and schools), shopping complexes, independent shops, chain stores, restaurants, etc., are located, it witnessed a decreasing sales trend for the past year. Moreover, the Founder, Varun Kumar (Varun), observed a decrease in repeat customers in the last few months. When Varun approached his mentor and uncle for a solution, he was suggested that he should get a market research done. He could take help of students/interns to take this project as their internship project. After discussing with their Professor, the interns designed a feedback questionnaire and collected data. The interns wanted to identify the underlying factors that influence a customer purchase from a super market with the help of factor analysis.
Prerequisite Conceptual Understanding
- Naresh K. Malhotra and Satyabushan Dash, “Factor Analysis”, Marketing Research An Applied Orientation, 6th Edition, Pearson Education, 2010 – To understand the concept of factor analysis
Case Positioning and Setting
This caselet can be used in MBA Program – Marketing Research Course – To introduce the participants/students to the concept of factor analysis
- I. What is factor analysis? According to you, how is it different from other related techniques – ANOVA, multiple regression and discriminant analysis?
- II. What are the steps involved in conducting factor analysis? Would factor analysis prove to be helpful to VSPRL?
Preamble to this Caselet Analysis
This caselet’s purpose is to introduce the students/participants to the concept and process of Factor Analysis. Building on from the previous chapters (of defining an appropriate Marketing Research Problem), this caselet provides scope to recommend a solution to the marketing research problem. Accordingly, this caselet in the light of VSRPL’ sales problem orchestrated the classroom analysis and discussion as shown in Exhibit (TN)-I..........