Using Factor Analysis in Relationship Marketing

The purpose of the paper is to present a detailed application of the factor analysis technique within the domain of relationship marketing. A comprehensive literature review is undertaken regarding the concept of customer loyalty – an important variable of relationship marketing. Loyalty is defined by its two dimensions – behavioral and attitudinal; the second dimension is understood through the three components of the human psyche: affective, cognitive and conative. Conative Loyalty is measured through four items which are statistically and semantically reduced to two items without a heavy loss of information.