A systematic review of exploratory factor analysis in marketing: providing recommended guidelines and evaluating current practices

Abstract

ABSTRACT We systematically review applications of exploratory factor analysis (EFA) in marketing since 2000. We show that most authors do not report EFAs in sufficient detail to determine whether appropriate practices were applied. When reported, most EFAs were conducted with practices that have been outdated for decades, resulting in inaccurate assessments of constructs. For instance, authors regularly utilize sample sizes too small to produce reliable estimates, apply inappropriate rotations, and use retention methods known to misidentify the number of factors. Our discussion highlights practices most in need of improvement, and we provide a checklist to ensure appropriate applications of EFA.