On the Interpretation of Factor Analysis

Psychological Bulletin, Vol. 70, No. 5, pp. 361-364, 1968

5 Pages Posted: 25 Jan 2005 Last revised: 1 Jan 2012

See all articles by J. Scott Armstrong

J. Scott Armstrong

University of Pennsylvania - Marketing Department

Peer Soelberg

affiliation not provided to SSRN

Abstract

The importance of the researcher's interpretation of factor analysis is illustrated by means of an example. The results from this example appear to be meaningful and easily interpreted. The example omits any measure of reliability or validity. If a measure of reliability had been included, it would have indicated the worthlessness of the results. A survey of 46 recent papers from 6 journals supported the claim that the example is typical, two-thirds of the papers provide no measure of reliability. In fact, some papers did not even provide sufficient information to allow for replication. To improve the current situation some measure of factor reliability should accompany applied studiesthat utilize factor analysis. Three operational approaches are suggested for obtaining measures of factor reliability: use of split samples, Monte Carlo simulation, and a priori models.

Keywords: marketing research, factor analysis, data analysis

Suggested Citation

Armstrong, J. Scott and Soelberg, Peer, On the Interpretation of Factor Analysis. Psychological Bulletin, Vol. 70, No. 5, pp. 361-364, 1968. Available at SSRN: https://ssrn.com/abstract=654023

J. Scott Armstrong (Contact Author)

University of Pennsylvania - Marketing Department ( email )

700 Jon M. Huntsman Hall
3730 Walnut Street
Philadelphia, PA 19104-6340
United States
215-898-5087 (Phone)
215-898-2534 (Fax)

HOME PAGE: http://marketing.wharton.upenn.edu/people/faculty/armstrong.cfm

Peer Soelberg

affiliation not provided to SSRN

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