How to Conduct Factor Analysis

Factor analysis is an approach used for reducing a large number of variables measured on a questionnaire to a fewer number of factors. It is commonly used for determining construct validity in survey research. SPSS software is widely used to conduct this analysis.

Instructions

    • 1

      Start SPSS and navigate to the data file. If the file format is different from the native format of SPSS, import the data into SPSS.

    • 2

      Click on Analyze in the menu. Then select Dimension Reduction and click on Factor.

    • 3

      Select the measured variables that you want to analyze and move them to the Variables box.

    • 4

      Click the Descriptives button and check the boxes next to Univariate descriptives and KMO and Bartlett's test of sphericity. Then click on the Continue button in the Descriptives Window.

    • 5

      Click on the Extraction button and choose the extraction method as Principal Components. In the Display box, check Scree plot. In the Extract box, select Based on Eigenvalue and specify Eigenvalues greater than 1. Then click on the Continue button in the Extraction Window.

    • 6

      Click on the Rotation button and choose the Varimax method. Then click on the Continue button in the Rotation Window.

    • 7

      Click on the Scores button and in the Factors Scores Window, put a check next to Save as variables and click Continue. Factor scores are each case's score on the extracted factors weighted by the factor loadings.

    • 8

      Click on the Options button and for the Coefficient Display Format, put a check next to Sorted by size. Then click Continue in the Options Window.

    • 9

      Click on the OK button to run the factor analysis.

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