Exploratory Factor Analysis is a technique used to identify underlying relationships between variables. It helps to uncover patterns or “factors” that explain how a large set of variables can be grouped together based on their correlations. The goal is to reduce the number of variables by grouping them into factors that represent similar underlying concepts.
In our 2024 Buyer Experience Research, an Exploratory Factor Analysis found that buying activities involving direct interactions with others tended to cluster together in buyers’ rankings of perceived value. These included in-person meetings with vendors, contacting vendors for information, virtual meetings, internal buying team discussions, and consultations with analysts. This category of interactions consistently emerged as the most used and preferred by buyers.
