Customers Satisfaction In Selected Beauty Salons In Davao City.docx

Chapter 1

The Problem and its Settings Background of the Study People nowadays, are highly engaged to the different kinds of fashion that may lead to their popularity when it comes to their hair, makeup and others. People are conscious with their looks and not for what fit him/her instead. Visiting salon is one of the important factors these people -do for them to look good and presentable. Because of these, beauty spa and salon business has sprouted worldwide, competing with each other through advertisements like promotions on prices and improved servicesvia media and posters. Many countries struggle to get out of a recession, those salon owners are facing many challenges and obstacles due to a tough economy and a changing and difficult business environment. Some of these challenges are rising business costs, price and commission wars, staff pirating and competition from other industries offering better benefits to name a few of the obstacles affecting the beauty profession. The poor business management skills on the part of many salon owners, excellence does start at the top, many of hairdressers are just getting by, and many are leaving the profession. Most hairdressers and salon owners do not have meaningful health insurance, retirement plans or additional benefits compares to other professions.Jon (2010) Team playing among employees is an important factor also in the success of the company and other business establishments. Hence, according to the (Catalyst, 2002) that mixed teams at all levels are important

for producing goods and services that satisfy the customer’s needs and expectations. “In consumer businesses, the more a company mirrors its markets demographically, the better positioned it is to sense and respond to evolving market needs” In Philippines, the poor customer service in every salon, as a business centered on altering people’s appearance, depend on customer satisfaction. Many salons offer a number of services, from basic haircuts and coloring to facials and manicures, which also provides a number of opportunities for customer service to break down. The normal customer service issues faced by every business, such as a staff member acting in a rude or unprofessional manner, can crop up. If a customer gets a hairstyle he didn’t ask for, the wrong color in his hair, or a bad manicure, he will almost certainly tell his friends and family about the bad experience. If a salon develops a reputation for poor customer service, it will lose customers and revenue. (Dontigney, 2014) In Davao City the salon encountered problems about compiling product and payments records and other services. The services of the salon for its ever growing demand is not quite satisfying for customers especially nowadays beauty and hair care products’ costs could not parallel for salon system to survive salon businesses. Because of its growing number of customers and the common problem of the salons currently facing, the products and services are affected thus, tangibility of services rendered by the salon employees and the establishment’s reputation is at stake as well. (Barit, 2014)

Statement of the Problem This study aimed to determine the level of customers satisfaction in selected beauty salons in Davao City. Specifically, this study sought to answer the following questions: 1. What is the customer profile of the respondents in terms of: 1.1 Age 1.2 Gender 1.3 Status 1.4 Education 1.5 Income? 2. What is the level of customer satisfaction in selected beauty salons in Davao City when analyzed by: 2.1 Reliability 2.2 Assurance 2.3 Empathy 2.4 Tangibility 2.5 Responsiveness 3. Is there a significant difference in the level of customer satisfaction in selected beauty salons in Davao City when analyzed by: 3.1 Age 3.2 Gender 3.3 Status 3.4 Education 3.5 Income?

Hypothesis The study tested the following null hypothesis: 1. There is no significant difference on the level of customer satisfaction in selected beauty salons in Davao City when analyzed by: 1.1 Age 1.2 Gender 1.3 status 1.4 Education 1.5 Income?

Review of Related Literature Written in this section are the various concepts and ideas from the different authors and reading materials that are relevant to this study. According to Young (2011) that at the social level, physical beauty is an advantage, as being beautiful gives a person much more confidence. It has even been shown that being attractive can give a person up to a tenfold increase in the chance of getting married. Thus, like any other service industry, quality of service is the most important concern for the beauty-care service industry. There has been evidence that, when customers’ perceptions of service quality are positive, the behavioral intentions are favorable, which strengthens their relationship with the organization (Zeithaml&Bitner 2003). In Spa/Salon industry, customer service and satisfaction are paramount. Not only do customers have high expectations for spa and salon services such as massage, skin treatments, nail treatments and hair coloring and cutting, but spa service tabs can quickly surpass that $100 threshold defining major purchases. And what would upset a customer more than a horrendous

haircut, botched fingernails, or losing half an eyebrow during a wax (Williams, 2010). Beauty Salon In many developed countries, beauty salon are mostly owned and targeted for people from middle to upper class and seen as high prestige service business. According to Molaro (2001) beauty salon has always been associated with women, but in the recent days, the industry demand has enlarged its target market to both men and women. Beauty salon is mostly related with satisfaction, image and loyalty, where ‘’satisfaction is the consumer fulfillment response’’. (Zeithmal and Bitner, 2003). It is a judgment that a product or service feature, or the product or service itself, a pleasurable level of consumption-related fulfillment. Beauty salon is an establishment dealing with cosmetic treatments for men and women. Beauty salons provide generalized services related to skin health, facial aesthetic, foot care, aromatherapy (i.e., massage, facial, manicure, pedicure, waxing etc.). (Schwe&Daneshvary, 2000) Thousands of beauty-care service providers or beauty parlors/salons have sprung up all over the country in the last decade (Akter 2008, Akter 2009), as the significance of being beautiful is increasing. At the social level, physical beauty is an advantage, as being beautiful gives a person much more confidence (Young 2011). It has even shown that being attractive can give a person up to a tenfold increase in the act of getting married (Young 2011). Physically attractive job candidates whose qualifications are similar to those of less attractive candidates are more likely to be hired for the same job

(Gilmore, Beehr& Love 1986). Further, the beautiful are more likely to get promoted to higher positions and to be paid more (Young 2011) In China, a few regular customers come during a week, but there are seldom new customers. Most of the time, they just sit there waiting for customers. Even though majority of these beauty salons are located in a large community in Tianjin city, the geographic condition brings no great achievements for this beauty salons. Worse is that there are also several beauty salons operating of different types in this community. The lack of space, employees, equipment and unique features makes beauty small-sized salon less competitive with other large sized beauty salons. A customer satisfaction survey was done six months ago, the result is satisfying though, and as well as with service quality is quite satisfying. It is the initial thing that how to develop their market and create their service items so that it will be more competitive. (Yan Li, 2012). Now mothers, housewives, students, professionals and brides – all kinds of women from the age group of 18-40 – visit beauty salons and spas for beauty and health care services (Pritom 2009).

Customer Satisfaction Is a high quality of service can result in high customer satisfaction and increases customer loyalty (Kumar, Kee and Manshor, 2009). It is essential to any business survival due to its substantial bottom line of financial implications as well as quality and service considerations (Chi, 2005). Customer satisfaction depends on the product’s perceives performance relative to a buyer’s expectations. According to Kotler (2005), if the product’s performance falls short of expectations, the customer is dissatisfied. If

performance matches expectations, the customer is satisfied. If performance exceeds expectations, the customer is highly satisfied and delighted. Luo and Homburg (2007) concluded that customer satisfaction positively affects business profitability. Directly influenced by the price factor indicating that unreasonable and unreliable prices impact on customer satisfaction negatively. In the view of Herman (2007) cited by Malik (2012) ‘’the price fairness effect the customer satisfaction in a positive way but the perceived price fairness can be negatively affected by the customer’s vulnerability. The customer perceives the price in accordance with the quality whose result end up in satisfaction or dissatisfaction.” According to Tsukatos and Rand (2006), to protect market shares, organizations need to outperform competitors by offering high quality product or service to ensure satisfaction of customers. With better understanding of customers’ perceptions, companies can determine the actions required to meet the customers’ needs. They can identify their own strengths and weaknesses, where they stand in comparison to their competitors, chart out paths for future progress and improvement (Magesh, 2010).

But overall, image can generate value in terms of helping customer to process information, differentiating the brand, generating reasons to buy and give positive feelings. Therefore, the above statement identifies the brand (which will be discussed in more detail later in this chapter) as another factor that can impact on customer satisfaction.The descriptions provided for each of the SERVQUAL (Service Quality) dimensions are as follows:

Reliability.Bitner (2010) stated that on the five dimensions, reliability has been consistently shown to be most important determinant of perceptions of service quality among customers. It is defined as the ability to perform the promised service dependably and accurately. In its broadest sense, reliability means that the company delivers on its promises about delivery, service provision, problem resolution, and pricing. Customers want to do business with companies that keep their promises, particularly their promises about the service outcomes and core service attributes. Mahapatra (2013) defined reliability as ability to perform the promised service dependably and accurately. It also refers to how company are performing and completing their promised service, quality and accuracy within the given set requirements between the company and the customer. Reliability is just important as a goof first hand impression, because every customer want to know if their supplier is reliable and fulfill the set requirements with satisfaction (Downwinz, 2010). According to Pham (2007), reliability is the probability of success or the probability that the system will perform its intended function under specified design limits. More specific, reliability is the probability that a product or part will operate properly for a specified period of time (design life) under the design operating conditions (such as temperature, volt, etc.) without failure. In other words, reliability may be used as a measure of the system’s success in providing its function properly. Reliability is one of the quality characteristics that consumers require from the manufacturer of products. Reliability is something that every scientist, especially in social sciences and biology, must be aware of. In science, the definition is the same, but

needs a much narrower and unequivocal definition. Another way of looking at this is as maximizing the inherent repeatability or consistency in an experiment. For maintaining reliability internally, a researcher will use as many repeat sample groups as possible, to reduce the chance of an abnormal sample group skewing the results. Reliability is also extremely important externally, and another researcher should be able to perform exactly the same experiment, with similar equipment, under similar conditions, and achieve exactly the same results. If they cannot, then the design is unreliable. Reliability is an essential component of validity but, on its own, is not a sufficient measure of validity. A test can be reliable but not valid, whereas a test cannot be valid yet unreliable. Reliability, in simple terms, describes the repeatability and consistency of a test. Validity defines the strength of the final results and whether they can be regarded as accurately describing the real world (Martyn Shuttleworth, 2009). In a more explicit way, Bowling (2009) views reliability in quantitative research as synonymous to dependability, consistency, reproducibility or reliability over time, over instruments and over groups of respondents. Indeed, for a research to be reliable, it must demonstrate that if it were to be carried out on a similar group of respondents in a similar context, similar results would be obtained. Reliability has to do with the quality of measurement. In its everyday sense, reliability is the "consistency" or "repeatability" of your measures. Before we can define reliability precisely we have to lay the groundwork. First, you have to learn about the foundation of reliability, the true score theory of measurement. Along with that, you need to understand the different types of

measurement error because errors in measures play a key role in degrading reliability. With this foundation, you can consider the basic theory of reliability, including a precise definition of reliability. There you will find out that we cannot calculate reliability -- we can only estimate it. Because of this, there a variety of different types of reliability that each has multiple ways to estimate reliability for that type. In the end, it's important to integrate the idea of reliability with the other major criteria for the quality of measurement -- validity -- and develop an understanding of the relationships between reliability and validity in measurement (William, 2006). Yang (2004) supported Parasuraman that reliability also consist of accurate order fulfillment; accurate record; accurate quote; accurate in billing; accurate calculation of commissions; keep services promise. He also mentioned reliability is the most important factor in banking services.

Assurance .Berry (2011) notes that contractors are expected to be the service they are delivering. It is given some research showed its important to communicate that expertise to customers. Assurance is employees’ knowledge & courtesy and their ability to inspire trust and confidence (Mahapatra, 2013). It refers to the willingness of the company to help its customers in providing them with a good, quality and fast service.

Rouse (2007) stated that in developing products and services, quality assurance is any systematic process of checking to see whether a product or service being developed is meeting specified requirements. Many companies have a separate department devoted to quality assurance. A quality

assurance system is said to increase customer confidence and a company’s credibility, to improve work processes and efficiency, and to enable a company to better compete with others. Quality assurance was initially introduced on World War II when munitions were inspected and tested for defects after they were made. Sadek (2010) assurance means the polite and friendly staff, provision of financial advice, interior comfort and knowledgeable in heart and understand customer’s specific needs. According to Downwindz (2010), assurance refers to the company’s employees. Are the employees skilled workers which are able to gain the trust and confidence of the customers? If the customers are not return to do further business with the company. Empathy. Gremler (2010) defined empathy as the caring, individualized attention that the firm provides its customers. The essence of empathy is conveying, through personalized or customized service, that customers are unique and special and that their needs are understood. Customers want to feel understood by and important to firms that provide service to them. According to Steve (2011) Empathy is the intellectual identification with or vicarious experiencing of the feelings, thoughts, or attitudes of another. Many companies are spending substantial time, effort, and budget trying to figure out how to market and sell to their customers. If they take a decent proportion of resources and dedicated it to understanding their customer, having real empathy, they will likely see greater success in their business objectives.

The definition of empathy is the ability to be aware of, understanding of, and sensitive to another person’s feelings and thoughts without having had the same experience. As human-centered designers, we consciously work to understand the experience of our clients and their customers. These insights inform and inspire our designs (Brown, 2009).

Mahapatra (2013) supported Brown that empathy is caring individualized attention given to customers.

Adam Helweh (2012) stated that instilling empathy into your business is about clearly understanding your customer. It’s about aligning the entire customer experience with the path of least friction. A motivation oriented towards the other. (Batson, 2013) Understanding the others feelings and the ability to take their perspective, the second element to empathy is the affective component. This is an observer’s appropriate emotional response to another person's emotional state Simon Baron-Cohen (2003).

Subscribing to a trait-based approach, though, oversimplifies data and risks research limitation by this “fixed mindset” (Dweck, 2006). If the level of oneʼ empathy, let alone its very presence, is tied to some uncontrollable and mysterious congenital condition, then efforts around empathy are either pointless or constrained by a ceiling effect. Empathy is the ability to experience and relate to the thoughts, emotions, or experience of others. Empathy is more than simple sympathy, which is being able to understand and support others with compassion or sensitivity. Empathy is a construct that is fundamental to leadership. Many leadership

theories suggest the ability to have and display empathy is an important part of leadership. Authentic leaders also need to have empathy in order to be aware of others (Walumbwa, Avolio, Gardner, Wernsing, & Peterson, 2008). Cited by Med (2013),

Empathy enables designers to gain intimate

insights and understanding into human experiences. As individuals have grown more discerning regarding products and services, they use them to satisfy personal and functional as well as emotional needs. Designing in the scientific mode (research conducted at a distance from participant) fails to generate holistic outcomes. Empathy becomes a critical component in human-centered research. According to Ekman (2014) the term “empathy” is used to describe a wide range of experiences. Emotion researchers generally define empathy as the ability to sense other people’s emotions, coupled with the ability to imagine what someone else might be thinking or feeling. Meyer M. (2008) supported Ekman, that empathy is a sense of similarity in feelings experienced by the self and the other, without confusion between the two individuals. Anath et al (2011) referred to empathy as giving individual attention; convenient operating hours; giving personal attention; best interest in heart and understand customer’s specific needs. Empathy is how company cares and gives individualized attention to their customers, to make the customers feeling extra valued and special (Downwindz, 2010).

Tangibility.Tangibility refers to the product’s physical properties and the extent to which it can be seen, felt, heard, tasted or smelt” (Rowley 2006).Tangibles are very important to customers of public organizations (Ilhaamie, 2010). Because service is intangible, users rate the service by its tangible elements. Kheng, Mahamad, Ramaya, and Mosahab (2010) mentioned that it is the physical facilities, equipment and appearance of personnel. Wright, Hines and Hyde (2011) cited that it also refers to the communication materials services are using. Government entities find it necessary to modernize their administrative process (Saha, 2008) and this is clearly visible with the physical elements for Business Licensing and Permit Department.

The

use

of

technologies,

computer-based

inputs

and

computations, along with other processes such as downloadable forms for applying Mayor’s permit for business operations. Despite these changes, customer satisfaction does not end with all these characteristics mentioned. Ananth et al (2011) referred tangibility as physical facility. Employees are well dressed and materials are visually appealing. Tangibility refers to the appearance of the physical sorroundings and facilities, equipment, personnel and the way of communication. In other words, tangible dimension is about creating first hand impressions. A business should want all their customers to get a unique positive and never forgetting first hand impression, this would make them more likely to return in the future (Downwindz, 2010). Responsiveness. According to Zeithaml (2010) responsiveness is a willingness to help customers and to provide prompt service. This dimension

emphasizes attentiveness and promptness in dealing with customer’s requests,

questions,

complaints,

and

problems.

Responsiveness

is

communicated to customers by the length of time they have to wait for assistance, answers to questions, or attention to problems. To excel on the dimension of responsive, a company of responsive, a company must view the process of service delivery and handling of requests from customer’s point of view rather than from the company’s point of view. Standards for speed and promptness that reflect the company’s view of internal process requirements may be very different from the customer’s requirements for speed and promptness. That is why delivering superior service quality is a prerequisite for success and survival in today’s competitive business environment (Gilbert & Wong 2006) as it can ensure increased customer satisfaction. So it can be certainly ascertained that, in the beauty care industry, customer satisfaction and loyalty can be secured through high quality services. According to Malik (2015) level of responsiveness in serving your customers can be evaluated from three perspectives: speed of service, sensitivity to customer concerns and awareness of changes in the general needs of your target customer. Successful businesses will continually search for ways to improve in all three of these areas. However, you will find that employing a few direct strategies may provide marked and ongoing improvement if you commit to their regular implementation. The Customer responsiveness is the ability of a business to recognize and respond to changing customer needs. According to Forrester Research, knowledge of and engagement with customers are the only sustainable

competitive advantages a business can have. A responsive company uses technology to learn more about customer needs and trains its people to deliver the highest standards of customer service (Linton, 2014). It is also involves understanding needs and wants of the customers, convenient operating hours, individual attention given by the staff, attention to problems and customers’ safety in their service (Kumar et al, 2009). According to Downwindz (2010), responsiveness refers to the willingness of the company to help its customers in providing them with a good, quality and fast service. This is also a very important dimension, because every customer feels more valued if they get the best possible quality in the service. Theoretical and Conceptual Framework The theories below relates to the entirety of our study since it highlights the important matters that are being tackled and most especially it provides a greater understanding on how, we as Marketing students and future Marketing practitioners, to fully grasp the essence of customer satisfaction, how to handle our employees in providing products and good customer service skills to the fulfillment of customers, and it also acts as our guideline to help us improve in our chosen profession. This study anchored on the viewpoints of Zeithaml and Bitner (2003) states that customer satisfaction increases customer loyalty, influences repurchase intentions and leads to positive word of mouth. Given the vital role of customer satisfaction, it is not surprising that a variety of research has been devoted to investigating the determinants of satisfaction. It affects to service quality by the providing performance and the five dimensions: reliability, responsiveness, assurance, empathy and tangibility. The creation of customer

satisfaction can provide several benefits, including the relationship between companies and consumers, providing a good basis for the purchase and recreation of customer loyalty. As shown in the conceptual paradigm of the study in figure 1 the main variable is customer satisfaction. It is indicated by reliability the ability of an organization to accurately achieve its services in the proper time and according to the promises it has made to its clients. Responsiveness the tendency and willingness of service providers to help clients and satisfy their needs, immediately reply to their inquiries, and solve their problems as quickly as possible. Assurance is a feeling of trust and confidence in dealing with the organization. This reflects the workers' knowledge and experience and their ability to build self-confidence as well as confidence in the customers themselves. Empathy refers understanding the customers' personal needs, taking care of them individually and showing them all sorts of sympathy and affection, looking at them as close friends and distinguished clients. The moderating variable is the customer profile which is the age, gender, status, education and income.

Main Variable

Customer Satisfaction •

Tangibility



Reliability



Responsiveness



Empathy



Assurance

Moderating Variable

Customer Profile 

Age



Gender



Status



Education



Income

Figure 1. Conceptual Framework of the study

Significance of the Study It is important to study this matter because it enables the organization and the people inside the organization to analyze the capacities and strengths of their workforce which may be helpful in providing products and good customer service skills of employees. The result of the study provides insights, development and contributions to the following. Salon Management – the result of this research will serve as a foundation that will enlighten the management to possess a good communication and customer service skills. Thus, it will help the management of salon to be responsible to give customers good services and customer satisfaction which is very essential in the business world. Employees – this study will serve as a guide to all employees rendering customer services that most importantly, customer satisfaction always counts. Future researchers – this study is significant to future researchers as a reference and guide in conducting a similar study interest.

Definitions of Term The key terms in this study are defined for clarity and easy understanding to the readers. Customer satisfaction - is influenced by the availability of customer services, the provision of quality customer service has become a major concern of all businesses. Customer satisfaction is typically defined as a post consumption evaluative judgment concerning a specific product or service. It is the result of an evaluative process that contrasts repurchase expectations with

perceptions of performance during and after the consumption experience. (Berry and Parasuraman, 1991). Customer Service - is the service provided to customers before, during and after purchasing and using goods and services.

Chapter 2

Methodology

This chapter details the research design, subjects, instruments, statistical treatment of data and the procedure that was used in the study.

Research Design The descriptive method of research was used in this study. According to Aquino (2005), this method determines the relationships among two or more variables and seeks to investigate the extent to which one or more relationships or some type exists. The approach required no manipulation or intervention on the part of the researcher other than to administer the instruments necessary to collect the data. The researchers of this study deemed the mentioned method as appropriate in determining the level of customer satisfaction in selected beauty salons in Davao City. Information or data provided in this study, data collection and analysis are critical to the outcome of this research study and its focus dominates this chapter.

Research Subjects The respondents of the study were the customer of selected beauty salons in Davao City. The researchers made an appointment with the manager to conduct a study through giving survey questionnaires to their customers. The desired sample size was determined by using the maximum sample in Slovin’s Formula which is 400 at 0.05 margin of error.

Distribution of Respondents Presented in Table 1 are the respondents of the study, the 400 respondents which are the customers of selected beauty salons in Davao City. Table 1 Distribution of Respondents

Beauty Salon

Heads Up Salon

No. of Respondents

200

Hair Studio Beauty Salon & J.P Laurel Ave. Bajada Davao City

Pinky’s Parlor

50

C. Bangoy Street, Poblacion District, Davao City

Salon de Rozek Bonifacio Street, Poblacion District, Davao City

50

Noordzij Beauty Salon

50

Door 3 Venancia Building, Matina Aplaya Rd, Davao City

Nagtalon Beauty Salon Ma-a Davao City

50

Research Instruments The researchers wrote a letter request to the manager to allow the researchers to conduct survey to selected customers in selected beauty salons in Davao City. A survey-questionnaire developed by the researchers was utilized in collecting responses from four hundred (200) customersrespondents. There were apparently no available instruments for gathering the data of this study, so the researcher purposely constructed original instruments collected from the available literature on the variables studied. The survey questionnaire had two sections. The introductory section of the survey drew out the demographic profile of the respondents. CustomersRespondents were asked to indicate their age bracket, gender, status, education and income. The item statements in the survey were intended to

determine the perception of the customers-respondents inside the beauty salons. As shown in the table 2, the questionnaire is composed of 20 items. There were 6 indicators in this study. The following scales were used in determining the study on the level of customer satisfaction in selected beauty salons in Davao City. Table 2 Indicators

Item numbers

Reliability

1, 2, 3

Assurance

4,5,6,7

Empathy

8, 9. 10, 11

Tangibility

12, 13, 14, 15, 16, 17

Responsiveness

18, 19, 20

For the scale on the level of Customer Satisfaction perceived by the respondents the following scale is used: Scaling 4.50 – 5.00

Descriptive Equivalent Very high

Interpretation This means that this customer is very much agreed with the stated idea.

3.50 – 4.49

High

This means that this customer is very agreed with the stated idea.

2.50 – 3.49

Moderate

This means that this customer is somehow agreed with the stated idea.

1.50 – 2.49

Low

This means that this customer is does not agreed with the stated idea.

1.00 – 1.49

Very Low

This means that this customer is very much doesn’t agreed with the stated idea.

Data-Gathering Procedure The study started with the conceptualization of the problem and identification of the variables as drawn in the research paradigm from the following procedures stated below in the gathering of data: 1. Seeking Permission to Conduct the Study. The researchers sent a letter seeking permission to the manager of the salon to conduct a survey about the level of customer satisfaction in selected beauty salons in Davao City. 2. Construction of Questionnaires. The researchers then constructed the questionnaires and to be verify by the panel for its validation.

3. Distribution of Questionnaires. The researchers administered the questionnaires to the respondents of the study and they were requested to answer the questions honestly so that valid and reliable data were elicited. 4. Retrieval of Questionnaires. The responses were checked and interpreted statistically. 5. Analysis and Interpretation. The results were analyzed and interpreted based on the purpose of the study.

Statistical Treatment of the Data Frequency. An arrangement of the values that one or more variables take in a sample. Each entry in the table contains the frequency or count of the occurrences of values within a particular group or interval, and in this way, the table Used to determine the significant difference in the level of customer satisfaction in selected beauty salons summarizes the distribution of values in the sample. Mean. This was used to determine the level of the customer satisfaction in selected Beauty salons. Annova. And selected beauty salons when grouped according to age, gender, status, education and income