What is Exploratory Factor Analysis?
The Exploratory Factor Analysis method (EFA) is a technique that can be used for uncovering the underlying structure (dimensions) of a large set of variables. Therefore, EFA reduces a large set of variables to a couple of underlying factors. Example: You have set up a questionnaire about customer satisfaction in the civil aviation industry (United Airlines, Delta, Lufthansa). You have identified 30 items to describe and evaluate customer satisfaction (e.g. “convenience of buying tickets”, “convenience of checking-in”, “environment of the lounges”, “friendliness of the flight attendants”, “fulfilling special desires”, “quality of food on board”, “comfort of the seats”, “special offers such as in-flight movies”, “accuracy of arrival”). By using EFA you can reduce the set of 30 items within your analyzing process to a couple of central factors which underlay your set of items. You can consider for example that the items “convenience of buying tickets”, “convenience of checking-in”, “envir
