Database Reference
In-Depth Information
Table 3.5
The rotated component matrix.
Rotated component matrix
Components
1
2
3
4
5
PRC VOICE OUT CALLS
−
0.970
PRC SMS OUT CALLS
0.968
SMS OUT CALLS
0.850
VOICE OUT CALLS
0.954
VOICE OUT MINS
0.946
PRC OUT CALLS ROAMING
0.918
OUT CALLS ROAMING
0.900
PRC MMS OUT CALLS
0.897
MMS OUT CALLS
0.866
PRC INTERNET CALLS
0.880
GPRS TRAFFIC
0.865
In this particular example, component 1 is strongly associated with SMS
usage. Both the number (SMS OUT CALLS) and the ratio of SMS calls (PRC SMS
OUT CALLS) load heavily on this component. Consequently, customers with high
SMS usage will also have high positive values in component 1. The negative sign
in the loading of the voice usage ratio (PRC VOICE OUT CALLS) indicates a
strong negative correlation with component 1 and the aforementioned SMS fields.
It suggests a contrast between voice and SMS calls, in terms of usage ratio: as SMS
usage increases, the voice usage ratio tends to decrease. We can safely label this
component as ''SMS usage'' as it seems to measure the intensity of use of that
service.
Similarly, the number and minutes of voice calls (VOICE OUT CALLS
and VOICE OUT MINS) seem to covary and are combined to form the second
component, which can be labeled as ''Voice usage.'' Component 3 measures
''Roaming usage'' and component 4 ''MMS usage.'' Finally, the fifth component
denotes ''Internet usage'' since it presents high positive correlations with both
Internet calls (PRC INTERNET CALLS) and GPRS traffic (GPRS TRAFFIC).
Ideally, each field will load heavily on a single component and original inputs
will be clearly separated into distinct groups. This is not always the case, though.
Fields that do not load on any of the extracted components or fields not clearly
separated are indications of a solution that fails to explain all the original fields.
In these cases, the situation may be improved by requesting a richer solution with
more extracted components.
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