Susie Mikado had emigrated to Canada from Hong Kong about five years earlier. Being a hard worker and how ing worked in a clothing factory in Hong Kong, she got a job immediately at a dress manufacturing factory. After three and a half years, she had accumulated some funds and decided to start her own small business making selected clothing primarily for the large Asian population in the Vancouver area. Susie has an obvious talent for selecting fabrics and designing garments and through her family and friends, has developed a reputation as a skilled seamstress Susle located her business in the Chinatown district of Vancouver in a teased space of about 1200 square feet The location is for from ideal as she is on the third floor of a hair salon and she constantly hears that people do not know her business exists. To make renovations, buy equipment, and pay other initial expenses, she borrowed $15,000 and put $5000 of her own funds into the venture. She hired two part-time employees, paying them $16 per hour to assist in sewing the clothing items. The production process is simple each employee and Susie make a garment from beginning to end Darren Richards visits Susie’s Fashions to assess the situation and determine what can be done to solve the cash flow problem. He is impressed with the product line, which exhibits gooty work Susie’s produces primarily two garments. The first is a Chinese-style dress retailing at $100, and the second is a kimono-like robe retailing at $90. Sales are based almost entirely on word-of-mouth, as Susie spends no money advertising, in examining the production process, Darren notices numerous interruptions occut as family and friends of the workers frequently come by to visit He estimates, however, thot on average the dresses take four hours to make and the robes take three hours. The average dress takes about three yards of material, and the robes average four yards. The fabric for both items cost Susie about $6 per yord. Darren is concerned about the management of the firm Although Susie hired two employees, she often hires family or friends to help for a few days at a time when they as she puts it need some money”He is most con cerned, however, with the financial procedures Susto es lo owing, Because there is no record keeping system, he has difficulty determining paid and unpaid bin from the assortment of receipts, scraps of paper, invoices, and notes

Build a perceptual gap map using Factor Analysis (FA) based on attribute ratings from a survey.

In this part of the exam, you will build a perceptual map of three online retailers, Walmart, Target, and Shopko. Using the data and the results from a survey on several attributes for each of these retailers, your main task is to identify the process of data driven concept generation of new products. Applying factor analysis, as explained in class, analyze the relevant tables given below to complete the following tasks:
a) Compute the final table to determine the coordinates of each retailer on a perceptual map
b) Answer the questions at the end.

The following survey questions were asked to a group of 1000 customers for three online retailers, Walmart, Target, and Shopko.

[Please indicate how much you agree or disagree with each of the following statements.

1 = Strongly disagree 2 = Disagree 3 = Neutral 4 = Agree 5 = Strongly agree

1. This retailer has good variety.	1 … 2 … 3…. 4 .5
2. This retailer charges reasonable prices.	1 … 2 … 3 …. 4 …. 5
3. This retailer has good reputation.	1 … 2 … 3 …. 4 …. 5
4. This retailer has high quality products.	1 … 2 … 3 …. 4 …. 5
5. This retailer has free shipping.	1 … 2 … 3 …. 4 …. 5
6. This retailer provides good value.	1 … 2 … 3 …. 4 …. 5
7. This retailer provides fast delivery.	1 … 2 … 3 …. 4 …. 5
8. This retailer has good service.	1 … 2 … 3 …. 4 …. 5
9. This retailer has coupons available.	1 … 2 … 3 …. 4 …. 5
10. This retailer has effective customer service.	1 … 2 … 3 …. 4 …. 5

Table-1: Average rating attribute by each retailer:

	Walmart	Target	shopko
1. -good assortment.	5	3	2
2. – reasonable prices.	5	2	4
3. -good reputation.	1	5	3
4. -high quality products.	1	4	3
5. -free shipping.	5	1	2
6. -good value.	5	2	2
7. -fast delivery.	5	3	4
8. -good service.	1	4	2
9. -coupons available.	1	5	5
10. -effective customer service.	1	5	3

A “factor analysis” was performed on the data to see if there were common underlying factors to the ten attributes. The table shown below should be completed for determining the positions of each retailer on a perceptual map. Use this table to draw a graph of three retailers on a perceptual map.

	Factor 1	Factor 2	Factor 3
Walmart
Target
Shopko

Task: Construct a perceptual map

• Name relevant factors. Complete the above table with correct calculations.
• Build a map using the results from the table shown above. Select any two of the three factors and draw a map using the pair of points as two coordinates. Using an excel to generate this graph will make your task easier. However a hand drawn graph, converted to an image and then pasting on an MS-word file could also be uploaded. Be sure to label the axes with the factor names you may propose. Also, make sure your map pasted properly on your word file with the answers.
• What conclusions do you draw from your map? Interpret each retailer’s position and suggest appropriate strategy for any one retailer of your choice.
• Suggest and explain any other method of analytical attribute method as an alternative to this factor analysis method.