How do we ensure that the results from our consumer surveys are as accurate as possible? We employ tactics like factor analysis to get the best results.

Factor analysis is the basic principle of expressing two or more variables by a single factor.

For example, let's say you wanted to measure people's satisfaction levels in their lives.

We'll design a questionnaire that asks several probing questions to determine how satisfied they are. Suppose we ask them how satisfied they are with their hobbies. And suppose we also ask them how intensely they're pursuing a hobby.

Most likely, the responses to those two questions would correlate quite highly. We'd therefore be able to conclude that the two questions are redundant, and we can combine the two questions into a single factor.

We'd then be able to use the new factor in future data analyses. It's a tactic that leads to better research-and better business intelligence for your company.