FACTOR ANALYSIS:

The Kaiser-Meyer-Olkin measure of sampling adequacy value is 0.510, just above the commonly recommended value
of 0.5, and the Bartlett’s test of Sphericity value is 378.53. (Refer TABLE 1)

TABLE 1: FACTOR ANALYSIS (KMO and Bartlett’s Test)

Communalities
Initial Extraction
I find herbal body care 1.000 .583
products to be more
POPULAR than the non
herbal products.
The BRAND of the products 1.000 .558
influences my buying
decision.
The PRICE of the products is 1.000 .723
important for me.
INGREDIENTS of the 1.000 .666
products influences my
buying decision.
I only buy herbal body care 1.000 .487
products that are easily
AVAILABLE.
I like to buy the herbal body 1.000 .826
care products ONLINE.
I buy herbal body care 1.000 .558
products that are
recommended by FRIENDS.
I buy herbal body care 1.000 .761
products that are
recommended by FAMILY.
I like to buy products that 1.000 .743
have ATTRACTIVE
PACKAGING.
I like having choices in the 1.000 .599
product's PACKAGE SIZES.
FRAGRANCE of the herbal 1.000 .699
body care products is NOT
important to me.
The BRAND AMBASSADOR 1.000 .674
is important to me for buying
herbal body care products.
I like to buy products for 1.000 .585
which I have seen
ADVERTISEMENTS.
I use herbal body care 1.000 .760
products for MEDICAL
REASONS.
I use herbal body care 1.000 .753
products depending on my
SKIN TYPE.
I am WELL VERSED with 1.000 .554
the BENEFITS of using
herbal body care products.
The herbal body care 1.000 .759
products are EFFECTIVE.
I am willing to PAY MORE 1.000 .652
for herbal body care
products if they are more
effective than non-herbal
body care products.
Extraction Method: Principal Component Analysis.
TABLE 2: FACTOR ANALYSIS (Communalities)

Given these indicators, factor analysis was considered suitable with 18 items.
Principal component analysis was used because the primary purpose was to identify and compute composite
scores for the factors.
The Eigen values indicated that initial 7 variables explained 66.30% of the variance in the 7 factors extracted.
Solutions for the factors were examined using varimax rotations of the factor loading matrix. (Refer Table 3)
TABLE 3: FACTOR ANALYSIS (TOTAL VARIANCE)

The scree plot indicates the presence of 7 factors corresponding to Eigen value 1.

FIGURE 1: FACTOR ANALYSIS (Scree plot)

The rotated component matrix indicates the factor loading of each item. The absolute values of the loadings are
considered. The first factor includes the variables with factor loadings above 0.626. The second factor includes
variables with factor loadings above 0.560. The third factor includes the variables questions with factor loadings
above 0.690. The fourth factor includes the variable with factor loadings above 0.668. The fifth factor includes the
variables with factor loadings above 0.822. The sixth factor includes the variable with factor loadings above -0.665.
Thus, all items in this analysis had loadings above -0.665.

Rotated Component Matrixa

Component
1 2 3 4 5 6 7
The herbal body care .697
products are EFFECTIVE.
I find herbal body care .686
products to be more
POPULAR than the non
herbal products.
I am WELL VERSED with the .671
BENEFITS of using herbal
body care products.
INGREDIENTS of the .626
products influences my
buying decision.
I like to buy products for .737
which I have seen
ADVERTISEMENTS.
I like to buy products that .726
have ATTRACTIVE
PACKAGING.
I only buy herbal body care .649
products that are easily
AVAILABLE.
The BRAND AMBASSADOR .560
is important to me for buying
herbal body care products.
I buy herbal body care .751
products that are
recommended by FAMILY.
I buy herbal body care .693
products that are
recommended by FRIENDS.
I am willing to PAY MORE for .690
herbal body care products if
they are more effective than
non-herbal body care
products.
The PRICE of the products is .808
important for me.
The BRAND of the products .668
influences my buying
decision.
I use herbal body care .825
products for MEDICAL
REASONS.
I use herbal body care .822
products depending on my
SKIN TYPE.
FRAGRANCE of the herbal .713
body care products is NOT
important to me.
I like having choices in the -.665
product's PACKAGE SIZES.
I like to buy the herbal body .884
care products ONLINE.
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization. a
a. Rotation converged in 9 iterations.
TABLE 4: FACTOR ANALYSIS (Rotated Component Matrix)

The FACTOR LABELS proposed are as follows:

1. Product Awareness
2. Perception
3. Sources of awareness
4. Value for Money
5. Consumer Preference
6. External Impression
7. Medium of Purchase

The residual percentage with absolute value greater than 0.05 are 45%. This is lesser than the conventionally
accepted value of 50%. This means that the original correlation matrix and reproduced matrix are similar.
Thus, the factors that were extracted represent a good fit for the original data.
Cronbach’s alpha was used to examine the internal consistency of each of the factors.
.For factors 1, 2, 3, 4, 5, 6 Cronbach’s alpha was used as the number of items were greater than 2. For factors
7, since it has only one item loaded, its reliability is 1.

The alphas for the first factor, second factor, third factor and the fifth factor are 0.65, 0.662, 0.58 and 0.64
and was higher than the individual variables deleted. (Refer Tables 5 to 8)

FACTORS ITEMS FACTOR LOADINGS RELIABILITY

products are effective 0.697
PRODUCT Herbal products are popular 0.686
FUNCTIONALITY Benefits of herbal body products 0.671
Ingredients used 0.671 0.65
PERCEPTION Advertisements 0.737 0.662
 Attractive Packaging 0.726
Easy availability 0.649
Brand Ambassador 0.56
Recommended by family 0.751
SOURCE OF
Recommended by friends 0.693
AWARENESS
Willing to pay more 0.69 0.576
VALUE FOR Price of the product 0.808
MONEY Brand of the product 0.668 0.547
CONSUMER Use for medical reasons 0.825
PREFERENCE Skin type 0.822 0.638
EXTERNAL Fragrance 0.713
0.293
IMPRESSION Package sizes -0.665
MEDIUM OF
0.884
PURCHASE Online/offline
TABLE 5: FACTOR ANALYSIS (Reliability statistics)

For factors 4 and 6 the alphas are 0.547 and 0.293. The alphas are less for these factors as the number of items in
these factors are less, there are two items in each of these factors

TEST RESULTS:
Independent Sample T-test

1. Between Gender and Product Functionality:

Result - Significance was 0.140

Inference – Since the significance value is more than 0.05, we can infer that both male and female consider
the product functionality equally before purchasing the herbal body care products.

TABLE 6: Independent sample T-test between Gender and Product functionality

2. Between Gender and Perception:

Result – Significance was 0.017

Inference - Since the significance value is less than 0.05, we can infer that both males consider perception as
a more important factor than female before purchasing the herbal body care products.

TABLE 7: Independent sample T-test between Gender and Perception

3. Between Gender and Source of Awareness

Result – Significance was 0.316

Inference - Since the significance value is more than 0.05, we can infer that both male and female consider
the source of awareness equally before purchasing the herbal body care products.

TABLE 8: Independent sample T-test between Gender and Source of Awareness

 4. Between Gender and Consumer Preference

Result – Significance was 0.483

Inference - Since the significance value is more than 0.05, we can infer that both male and female consider
the Consumer Preference equally before purchasing the herbal body care products.

TABLE 8: Independent sample T-test between Gender and Consumer Preference

CORRELATION TESTS:
CORRELATION TESTS BETWEEN INCOME AND FACTORS

1. Income with Product functionality

Significance: 0.668 (Invalid)

Observation: NO correlation

Inference: Individuals, irrespective of their income, gives same importance to product

functionality
 TABLE 9: Correlation test between Income and Product functionality

2. Income with Perception

Significance: 0.813 (Invalid)

Observation: No correlation.

Inference: Income of the respondents does not have an impact on the perception of the herbal
body care products.

TABLE 10: Correlation test between Income and Perception

3. Income with Source of Awareness

Significance: 0.001 (Valid)

Observation: Positive correlation.

Inference: With change in income, the purchasing behaviour based on sources of awareness
changes.

TABLE 11: Correlation test between Income and Source of Awareness

4. Income with Consumer Preference

Significance: 0.865 (Invalid)

Observation: NO correlation.

Inference: Irrespective of the income of an individual, the respondent will purchase the herbal
product for a particular purpose ( medicinal use)/
 TABLE 12: Correlation test between Income and Consumer Preference

CORRELATION TESTS BETWEEN AGE AND FACTORS

1. Age with Consumer Preference

Significance: 0.616(Invalid)

Observation: NO correlation.

Inference: Age of the respondent does not impact its preference for the herbal product.