Correspondence analysis (AC) is rather similar with factor analysis or cluster analysis but simplier. Actually, AC helps manufacturers / enterprises to categorize all important factors in fewer sets of factor as well as analyze relationship among variables based on two-dimensional approach.
Applications
1. Perceptual mapping
Perceptual mapping is extremely important for manufacturers / enteprises as it can help them to have an overview about themselves as well as their competitors. Thus, AC is one of essential research techniques to illustrate this map as it can figure out what images / adjectives are associate with one brand.
2. Categorize important factors
Larger sample means that there are many important factors collected from one survey which leads to be difficult for manufacturers / enterprises to make decision. To solve this issue, correspondence analysis, cluster analysis and factor analysis are recommended, but correspondence analysis seems to be more suitable as it can reduce number of sets created.
