Quarry regarding factor analysis

[Vandana Sharma]

Dear Neeraj Sir, and Group members,

Greetings!!

 Sir I have done exploratory factor analysis with principal component analysis , varimax rotation supress value 0.5 and ittiriation 50. 7 factor has been extracted but  croanbach alpha value of all the factors  are less tha .5  does it means the factor extracted are not reliable. Should i consider different method. However croan bach alpha value for scale was greater than 0.7. Please give me solution.

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Thanks & Regards

Vandana Sharma 

Junior Research Fellow

Faculty of Management Studies- WISDOM

Banasthali Vidyapith

Rajasthan

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[Priti Sharma]

Hi Vandana,

According to my knowledge there are certain condition which must be satisfied before applying PCA like

• Appropriate sample size (KMO should be more than 0.5)
• Each variable correlates perfectly with itself (r = 1), but has no correlation with the other variables (r = 0).
• Reliability Statistics (α) should be more than 0.7.
• In Bartlett’s Test of Sphericity p<.05

And the model fit for PCA (which is your question) is determined through residual value. Residual value is the difference between the observed correlations (given in the input correlation matrix), which is gievn in the upper triangle of Reproduced Correlation Matrix  If there are many large residuals, i.e. greater than 0.05 value are more thn 15%, means the factor model doesn’t provide a good fit to the data and the model should be reconstructed. For complete assurance, I suggest you to wait for more comments from other members too.

Regards

Priti

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[Vandana Sharma]

Thanks Priti..

Thanks & Regards
Vandana Sharma
Junior Research Fellow

Faculty of Management Studies-Wisdom
Banasthali Vidyapith
Rajasthan

[Priti Sharma]

For reference you may read Naresh Malhotra and Satyabhushan DaSh' s Marketing Research.

Dr. Priti Sharma
Assistant Professor
Department of Commerce,
Maharishi Dayanand University,  Rohtak -124001, Haryana.

[pooja makkar]

Dear Vandana,

Sometimes cronbach alpha of factors is less than 0.5 due to low sample size.increase the sample size and then see the results.

Regards,

Pooja Makkar

[Vandana Sharma]

Thanks Pooja..

Thanks & Regards
Vandana Sharma
Junior Research Fellow

Faculty of Management Studies-Wisdom
Banasthali Vidyapith
Rajasthan