Can you share an example of a market research project where you used factor analysis or structural equation modeling?

Sample interview questions: Can you share an example of a market research project where you used factor analysis or structural equation modeling?

Sample answer:

Example of Factor Analysis Project:

In a market research project for a consumer electronics company, I employed factor analysis to identify latent dimensions underlying customer perceptions of smartphone features. I collected data through a survey that measured attitudes toward various features, such as display size, battery life, camera capabilities, and ease of use. Factor analysis revealed three distinct factors: “Performance,” “Usability,” and “Entertainment.” This information guided product development by highlighting the features that most influenced customer satisfaction and willingness to purchase.

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