PGP07124 | Gaurav Sharma

1. Find out how many dimensions the consumers seem to be considering, when they think
of the above mentioned 8 car brands.

Ans:

2 dimensions (as per stress plot)

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 PGP07124 | Gaurav Sharma

2. Position the brands on those dimensions found in previous question.

Ans:

Rotated Component Matrixa

Component

1 2

V10 .970
V1 .969
V3 .963
V2 .952
V4 .810
V9 .806
V5 .741
V8 -.611
V6
V7

Extraction Method: Principal

Component Analysis.
Rotation Method: Varimax with
Kaiser Normalization.
a. Rotation converged in 3
iterations.

Hence, the two factors are:

I. Economy 4 variables
a. Adequate space for luggage (V10).
b. The price of the car should be reasonable (V1).
c. Fuel mileage of the car should be at least 17 km/hr (V2).
d. A small car should be easy to maintain and to be serviced (V3).
II. Comfort 4 variables
a. Seating should be comfortable for four adults (V4).
b. A small car should have adequate leg space and headroom (V5).
c. Power steering is a must (V8).
d. Interior accessories of a small car should be attractive (V9).
 PGP07124 | Gaurav Sharma

Hence, Dimension one = Value for money and thus the scale for economy

Dimension Two = Comfort

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3. Your managerial implications of the results.

Ans: The positioning of the brand is close to that of WagonR and Alto. Hence currently
EMOZ is well positioned as an economy car. The company should focus on changing the
position to comfort for improving sales and profits.