This type of analysis shares both of the objectives of factor analysis viz., to extract latent factors and express relationship of observed (manifest) variables with these factors as their indicators and to classify a population of respondents into pure types. This type of analysis is appropriate when the variables involved in a study do not possess dependency relationship and happen to be non-metric.
In addition to the above stated multivariate techniques, we may also describe the salient features of what is known as ―Path analysis‖, a technique useful for decomposing the total correlation between any two variables in a causal system.