RESERCH PROJECT

:

COMPARISON OF CONSUMER SATISFACTION

PRESENTED TO: MR SAJID JAVAID PRESENTED BY: ORIGINALS DATED: MARCH 01, 2008

SUBJECT:

COMPARISON OF

LET’S MAKE UP & ANEE BEAUTY PARLOR

ORIGNALS
SARAH NAEEM RABIA RASHEED HASEENA LIAQUAT SADIA GONDAL ZAINAB EJAZ FATIMA ILYAS 27 28 26 32 30 15

Hailey College of Commerce, Punjab University, Lahore. February 12, 2008

Mr. Sajid Javaid, Research sponsor, Hailey College of Commerce . Punjab university Lahore, Pakistan Respected Mr. S. Javaid: We are writing this cover letter today to ask your formal permission to conduct the research on comparison of satisfaction levels of the consumers of two beauty parlors namely Anne beauty parlor & lets Make Up which was requested by you. We have already talked to the owners of two beauty parlors and gotten their consent to conduct the research. May we meet in person to talk about this project and what you are specifically looking for? Please feel free to contact us at any time so we can arrange a date that suits your time frame. We look forward to meeting you and thank you for considering us for conducting this research. Yours Sincerely,

Group: Originals Fifth Semester Hailey College of Commerce, Punjab University, Lahore.

Hailey College of Commerce, Punjab University, Lahore. February 13, 2008 Group: Originals Fifth Semester Hailey College of Commerce, Punjab University, Lahore.

Dear Madams, Greetings! I hereby authorize you to conduct the research on comparison of consumer’s satisfaction of the two beauty parlors. You have to submit the report of your research after fifteen days of commencement of the study. I, hereby, would also like to mention that you will be liable to answers any questions that might be asked after the submission of report. However, you should feel free to ask any questions or help you require in conducting the research. Thank you. Very truly yours, Mr. Sajid Javaid, Research sponsor, Hailey College of Commerce . Punjab University Lahore, Pakistan

Hailey College of Commerce, Punjab University, Lahore.

February 12, 2008

Mr. Sajid Javaid, Research sponsor, Hailey College of Commerce . Punjab University Lahore, Pakistan Respected Mr. S. Javaid: we are writing this letter as our confirmation of the accuracy of the report enclosed with it. All information provided in the attached report is accurate. All the requirements of the sponsor have been fulfilled. All the results & recommendations are supported by the calculations. .If you have any further enquiries concerning this report, please do not hesitate to contact our team leader Sarah Naeem on sareems@hotmail.com. Yours Sincerely,

Group: Originals Fifth Semester Hailey College of Commerce, Punjab University, Lahore.

RESEARCH PROPOSAL
TO STUDY:
Comparison of Customer Satisfaction of Anne beauty parlor & Let’s Make Up

Purpose of study:
To find how Lets Make Up can increase its customer satisfaction and then in turn boost its sales. More specifically the study is conducted to evaluate, • Consumer satisfaction regarding services. • Consumer satisfaction regarding the staff. • Consumer satisfaction regarding the availability of services.

Details of study: Sample:
Forty individuals, all women, twenty from each beauty parlor will constitute the sample. All of these forty individuals will be chosen through a simple systematic sampling. Every third customer who enters in the shop will be approached for the study. This will ensure the accuracy & precision of results. Survey instruments: Personally administrated questionnaires will be used for conducting the survey. One of our team members will be present in each of the beauty parlor to administrate the filling of the questionnaires. The questionnaire can be found in Appendix A to this proposal. Data Collection: The customers will be approached as they enter in the parlor. Then they could fill them as they wait for or during the service. Our team member will always there to help them understand the questionnaire. Also in some cases where the women are not able to fill the questionnaire themselves our team member will help them. Data Analysis: Once the data is collected, the information will be coded and appropriate data analytic techniques used to determine the satisfaction level of the customers. Report: A written report will be submitted within 15 days of the commencement of study. The members of our team will be happy to help the sponsor to clear any ambiguity that rise regarding the report.

TABLE OF CONTENTS

SYNOPSIS:
Let’s Make Up Vs Anee Beauty Parlor Study Introduction & Relevant Details:
On the request of the sponsor a survey was conducted on both beauty parlors to assess the customer satisfaction level of two beauty parlors. The sample comprise of 40 customers (20 from each beauty parlor) who were administrated a short questionnaire during a period of three days from 17th February, 2008 to 20th February, 2008. Every third customer was approached & requested to respond to a short questionnaire provided by the member of our team. They were usually requested to fill out the questionnaire during the waiting time. The questionnaire was personally administrated so they were complete. The questionnaire asked respondents to give information on their age & to indicate on a Yes/No scale their satisfaction regarding a) staff services b) staff behavior. Two open ended questions were also asked from them to offer any kind of additional comments they might desire to make. A member of our team was always there to answer any question the respondent might ask & also to ensure the reliability of questionnaire completed.

Results of Data Analysis:
All of the respondents were women.70% in case of Lets Make Up & 60% in case of Anee Beauty parlor were young clients, below the age of 30.customers of Anee Beauty Parlor are completely satisfied by the services of staff. They however want the staff to be more courteous with them. Another major problem regarding the parlor was identified thought the open ended questions. Customers are highly dissatisfied by the area of parlor. They want to area of parlor to be increased. However in case of Lets Make Up the customers are neither satisfied with the services nor with the behavior. However customers are happy by the time the staff put in to complete the service. They also need to decrease prices.

Conclusion and Recommendations:
These results indicate that the customers of Anee Beauty Parlor are much more satisfied then the customers of Lets Make Up. Customers of Anee Beauty Parlor are satisfied by the service provided by them. Anee has more loyal customers then Lets. However customers of Lets are satisfied by the services provided to the. To lets we would like to recommend the decrees in prices and a better trained staff. While to Anee would recommend them to change the interior of premises in such a way that the area will look wider. We would also like to recommend to the both beauty parlors to mange their staff in such a way that they would be much more courteous to the clients in future. A short training program & a close supervision will be able to solve the problem.

RESEARCH REPORT

Introduction:
The business of beauty shops has flourished a lot in past fifteen years. Now there is a beauty parlor at every square. Almost 88% of the female population of Lahore city goes to the beauty parlors. A study on market indicated that a large portion of women population is going to the beauty parlors at regular basis. 90% college student & 70% housewives (the Nation- Tuesday, June 26, 2007) This large target market has resulted in the huge success of the beautician’s businesses. There is a fierce competition in market for attracting the customers. The business of these parlors is hugely dependent of the satisfaction of consumers. If they satisfy the customer they will be able to boost there sales. But the management, training & coordination of staff and availability of services are the major factors that effect the consumer satisfaction. The study done below is to take account of all the above mention factors are able to check how these factors effect the customer satisfaction.

Research Question:
Do the assistance of staff, their behavior & completion of services increase the satisfaction of the customers of the beauty parlor?

Theoretical Framework:
In this research we are taking “Customer Satisfaction” as a dependent variable it is explained by the three independent variables: assistance from staff, behavior of staff & completion of services. Most beauty parlors are almost always suffering from one or another kind of employee problem. The major problem is training the new staff & then retains the trained staff. Most of the parlors loose there customers due to lack or incompetence of staff. As both beauty parlors included in this study cater to women clients, the staff is required to have an extremely courteous behavior. They have to answer the quarries & direct the customers in such a way that the customer will feel relaxed & satisfied enough to come again. As the business is extremely dynamic in nature & there is always some new beauty product or service in market the beauty parlor should make sure that they have the latest services available. This will enable them to satisfy there customers at a maximum level. Thus, all three independent variables are extremely important to explain the change in customer satisfaction regarding the beauty parlor. As the beauty parlor expert, courteous staff & provide the required services to customers it will surely enhance the satisfaction level of there customers.

Hypothesis
H01 H02 If well trained staff is employed the customer satisfaction will increase If well behaved, courteous staff is employed the customer satisfaction will increase H03 Above independent variables will explain the variance in customer satisfaction regarding the beauty parlor.

Methods Section:
Study Design:
In this cross sectional co-relational field study data on three independent variables & dependent variables is collected fro the women of different ages & vocations. The data is heterogeneous in nature & was collected through personally administrated questionnaires. Data is collected from the two beauty parlors.

Population & Sample:
The study was the comparison between the satisfaction level of customers of two beauty parlors the population size was fairly large consisting of all those women who live din the locality and patronize any of the two beauty parlors. Area sampling design was first use to select the two beauty parlors (they exists in the same locality) later systematic sampling was used to gather information from every third customer that entered in they beauty parlor. Total sample size was 40 customers (20 from each beauty parlor). Data was collected in the presence of our team member. 100% responses were obtained due to the presence of our team member who was there to clear ambiguities and to fill the questionnaires for those respondents who were unable the fill questionnaires by themselves. The unit of analysis was the individuals who responded to the survey. All the respondents were women who frequently or at least after some regular interval visit the beauty parlor. Their ages ranges from 16 to 55. About 70% of the women were below the age of 30. The average visiting interval was after a month. Ablaut 77% women always go to the same beauty parlor. Almost 68% of them were students by vocation.

Variables & Measures:
All demographic questions like age, interval between visits, visits to same parlor & vocation were asked by a single direct question.

Customer satisfaction:
This dependent variable indicates the extent to which customers are satisfied by the beauty parlors using a 2 optioned question, a sample item being: How satisfied are you with the service you get?

Well trained staff:
This independent variable was measured Chi-square 2-item measure. An example item is how often are you satisfied by the service you get?

Availability of service: This was asked by 2-item measures through Chi-square, which asked customers wither they are satisfied by the selection of services provided by the parlor. Two open ended questions (one regarding improvement suggestions & other related to the best feature of the parlor) were asked.

Data Collection Method:
As the survey was confined to a local area personally administrated questionnaires were used to gather the data. We were able to get all 40 questionnaires completed within a period of 3 days. This method enabled us to collect complete information, remove the doubts of the respondent, clear ant ambiguities that raised & get fast results. The questions asked in the survey were kept short, simple & easy to understand to ensure the understanding of the respondents. The questionnaires were not left on the counters of the beauty parlors due to the following reasons: Competed questionnaires were desired by us. We wanted to remove ambiguities of respondents. Many respondents were unable to understand & answer the questionnaires themselves. Therefore the member of our team assists them in filling the questionnaires.

RESULTS & RECOMMENDATIONS
Simple frequency distribution method was used to extract the data from the questionnaires. The data was then divided into three parts a) questions regarding services & behavior on which Chi-square was applied b) demographic questions was separated and there analysis was done on proportion method. c) Open ended questions were categorized then statically comparison analysis was done on them. Each hypothesis was then tested. The correlation analysis was then applied on hypotheses. The first hypothesis stated that the customer satisfaction will increase with the increase in expertise of the staff. The correlation of 3.84>0.8481 (Lets Make Up) & correlation 14.3481>3.84 (Anee Beauty Parlor) was found. Which indicate that the increased services in Lets Make Up will increase the customer satisfaction? However opposite result was derived from the Anee Beauty Parlor. The second hypothesis stated that the customer satisfaction will increase with the better behavior of the staff. Here the correlation signifies the need of better behavior by the staff members of both beauty parlors.

Discussion of results:
The result of this study confirms that the variables considered in the theoretical framework are impotent. By focusing solely on the quality of service provided while ignoring the quality of products used is perhaps not a right way to judge. It would be highly beneficial if the trained staff is employed. And they use the maximum skill to satisfy a client that will of course increase the customer satisfaction level. If the staff will help the management by behaving more courtesy that will also make the customers much more relaxed which in turn increases the satisfaction of the service received. Now the sponsor knows that the customers want decrease of price or increased area. It will give a better perspective of understanding there need & increasing the contentment of the customers.

Recommendations:
To Lets Make Up:
1. They should hire some new well trained staff or send their own staff to some training programs. 2. To improve the staff behavior the need to keep a close supervision of staff they can also offer some kind of bonus or perk to the most wanted staff member. That will increase the general morale. 3. As most of the clients are young they should try to keep the environment lively & chic. 4. They should try to decrease there prices as well.

To Anee Beauty parlor
1. there should try to improve the staff behavior as well 2. they need to increase the area or at least change the interior of the premises 3. They should try to give more time to the clients.

Limitations of the study:
• • The size of sample was small. We think the research would have been more reliable is a greater size of sample was used. Some independent variables like price, cleanliness & quality of products are not taken in account in this research. If future researchers will take these variables in analysis the results would be more reliable.

APPENDANT

Customer Satisfaction Questionnaire
Specimen of the questionnaire

1) Approximately how often do you visit the beauty parlor? Once in fifteen days More than 15 days

2) Do you always go to the same parlor always? Yes No

2) Do you often get assistance from the staff? Yes No

3) The beautician is always able to fully answer your questions? Yes No

5) Overall, you are satisfied with the services provided by the staff? Yes No

6) Do You often use the suggestions offered by the beautician? Yes No

7) Are You often satisfied by the service you get? Yes No

8) Overall, you feel easy to visit the beauty parlor you patronize? Yes No

9) You are always satisfied with the length of time it takes to receive requested service from the staff? Yes No

10) What do you do? _______________

11) Are you satisfied with the availability of services you want? Yes No

12) Do you often get fair value of your money? Yes No

13) You are satisfied with the selection of services available to you? Yes No

Detailed Calculations:
Hypothesis H0= If well trained staff is employed the satisfaction of the customers will increase. A= well trained staff B= customers satisfaction Table of observed frequencies ------ Lets Make UP Trained Staff satisfied Not satisfied Yes 40 16 No 25 15 Total 65 31 Table of expected frequencies ------- Lets Make UP Trained staff satisfied Not satisfied Yes 37.92 18.08 No 60.94 12.92 Total 65 31 total 56 40 96 Total 56 40 96

χ2 test = ε (o-e)/e
Table of Chi-Square analysis ------ Lets Make UP(lets star) Cell o e o-e (o-e)2/e

AB Aβ
αB aβ

40 16 25 15 96

37.92 18.08 21.08 12.92

2.08 2.08 2.08 2.08

0.1141 0.2393 0.1598 0.3349 0.8481

Critical value:

χ2
v= (r-1) (c-1) = (2-1) (2-1) =1

χ2 = 3.84
If the calculated value is greater than tabulated value than we reject the H0 (null hypothesis). Since, 3.84>0.8481 The tabulated value is greater than the calculated value so we do not reject the null hypothesis ANALYSIS: This means Lets Make Up needs to acquire some new well trained staff so that the customer satisfaction of the parlor regarding the quality of work done by the staff will increase.

H0 If well trained staff is employed the satisfaction of the customers will increase. A= well trained staff B= customers satisfaction Table of observed frequencies ------ Anee Beauty Parlor Trained Staff Satisfied (B) Not satisfied (β) Yes (A) 50 18 No (α) 9 19 Total 59 37 Table of expected frequencies ------- Anee Beauty Parlor Trained staff satisfied Not satisfied Yes 41.79 26.21 No 17.21 10.79

total 68 28 96 Total 68 28

Total

59

31

96

χ2 test = ε (o-e)/e
Table of Chi-Square analysis ------ Anee Beauty Parlor Cell O e o-e (o-e)2/e AB 50 41.79 8.21 1.6127 Aβ 18 26.21 8.21 2.571 αB 9 17.21 8.21 3.916 aβ 19 10.79 8.21 26.2 96 14.348 Calculated value of χ2 = 14.348 Critical value:

χ2
v= (r-1) (c-1) = (2-1) (2-1) =1

χ2 = 3.84 (from the table)
so, 14.3481>3.84 If, the calculated value is greater than tabulated value than we reject the H0 (null hypothesis). ANALYSIS: This means the Anee Beauty Parlor do not needs to acquire new, trained staff because its customers are satisfied from the parlor regarding the quality of work done by the staff. H1= If well behaved staff is employed the customer satisfaction will increase.

Lets Make UP
A= well behaved staff B= customers satisfaction

Table of observed frequencies ------ Lets Make UP Well Behaved Staff Satisfied (B) Not satisfied (β) Yes (A) 29 9 No (α) 29 13 Total 58 22 Table of expected frequencies ------- Lets Make UP Well Behaved Staff satisfied Not satisfied Yes 27.55 10.45 No 30.45 11.55 Total 58 22

Total 38 42 80 Total 38 42 80

χ2 test = ε (o-e)/e
Table of Chi-Square analysis ------ Lets Make UP(lets star) Cell O e o-e (o-e)2/e AB 29 27.55 1.45 0.763 Aβ 9 10.45 1.45 0.2012 αB 29 30.45 1.45 0.0690 aβ 13 11.55 1.45 0.182 80 80 0.5285 Calculated value of χ2 = 0.5285 Critical value:

χ2
v= (r-1) (c-1) = (2-1) (2-1) =1

χ2 = 3.84 (from the table)
So,

0.5285<3.84
If, the calculated value is greater than tabulated value than we reject the H0 (null hypothesis).

ANALYSIS: This means the parlor one needs to acquire some new well behaved staff so that the customer satisfaction of the parlor regarding the quality of services provided by the staff will increase.

H1= If well behaved staff is employed the customer satisfaction will increase.

A= well behaved staff B= customers satisfaction

Table of observed frequencies ------ Anee Beauty Parlor Well Behaved Staff Satisfied (B) Not satisfied (β) Yes (A) 28 8 No (α) 28 16 Total 56 24 Table of expected frequencies ------- Anee Beauty Parlor Well Behaved Staff Yes No Total satisfied 25.2 30.8 56 Not satisfied 10.8 13.2 24

total 36 44 80

Total 36 44 80

χ2 test = ε (o-e)/e
Table of Chi-Square analysis ------ Anee Beauty Parlor Cell AB Aβ O e 28 25.2 8 10.8 αB 28 30.8 aβ 16 13.2 80 80 Calculated value of χ2 = 1.8854 o-e 2.8 2.8 2.8 2.8 (o-e)2/e 0.3111 0.7259 0.2545 0.5939 1.8854

Critical value:

χ2
v= (r-1) (c-1) = (2-1) (2-1) =1

χ2 = 3.84 (from the table)
So,

1.8854<3.84
If, the calculated value is greater than tabulated value than we reject the H0 (null hypothesis). ANALYSIS: This means the Anne Beauty Parlor needs to acquire some new well behaved staff so that the customer satisfaction of the parlor regarding the quality of services provided by the staff will increase.

Demographic Data Analysis on age:
Lets Make UP
Age 16-30 30-45 45- onward total no. of women 14 4 2 20

Lets Make Up 45onward 10%

30-45 20% age 1630 70%

1 2 3

Anee Beauty Parlor
age 16-30 30-45 45- onward total no. of women 12 5 3 20

Anee Beauty Parlor
, onward-45 15%

30-45 25%

,16-30 60%

Demographic Data Analysis on Intervals Between visits
Lets Make UP within 15 days more than 15 days total 2 18 20 Anee Beauty Parlor 8 12 20

Intervals between Visits
25 20 15 10 5 0 within 15 days more than 15 days total parlor b parlor a parlor a parlor a parlor b parlor b parlorparlor b a

Analysis of Open Ended Questions
There were two open ended questions asked in the survey: • Best quality of the parlor • Improvement suggestions

Best quality of the parlor
BEST QUALITY OF LETS MAKE UP
Time Service Price Behavior Total 10 8 1 1 20

Best qualities ofLets Make Up
price behavior 5% 5%

1 2 3 4

time , 50% service, 40%

Qualities behavior service price time area total

BEST QUALITY OF ANEE BEAUTY PARLOR Women
2 8 4 3 1 20

BEST QUALITY OF Anee Beauty Parlor area behavior 6% 11%

time 17%

1 2 3

price 22%

service 44%

4 5

Suggestions of improvements to the parlors
Lets Make Up improvement suggestions 5 10 4 1 20

time price service area total

Improvement Suggestions for Lets Make Up
Service 20% Area 5% time 25%

Price 50%

area service time

Anee Beauty Parlor improvement suggestions 12 5 2

price total

1 20

time 10%

Price 5%
1 2

Servicw 25%

AREA4 60%

3

Analysis on customer loyalty
Customer loyalty same parlor Lets Make UP Anee Beauty parlor 15 17 Different Parlor 5 3

customer loyalty
20 15 10 5 0 anee lets make beauty up parlor Lets Make Up UP Anee Beauty parlor 2 2

APPENDEX
Beauty parlours playing havoc with customers lives YASIR HABIB KHAN – the Nation- Tuesday, June 26, 2007 LAHORE - Sub-standard cosmetics, unhygienic equipments and untrained staff at most of the beauty parlours, which have mushroomed in every nook and cranny of the City in recent past, are playing havoc with the lives of customers with impunity. These beauty parlours have become a source of contagious diseases such as Hepatitis A and B besides a number of skin diseases like allergies, pimples, blushes, hair damage and loss, face swelling and irritation. The number of patients with the dermatologists has increased manifold in recent past. It is matter of great concern that neither the health department nor the city district government has bothered so far to make any legislation to put some check on these parlours which are working without proper regularisation. Most of the home-based saloons are being operated by women who have simply done some short courses and have no knowledge of safety measures.

A number of these parlours do not display an advertisement boards to avoid any inconvenience at the hands of CDGL officials as building bylaws disallow commercial use of residential areas. A survey of these beauty parlours revealed that the charges for the same service are varying despite that fact that all saloon owners claim using the best material available in the market. Some parlours charge Rs 400 for a haircut, Rs 3,000 for perming, Rs 2,000 for blow dry, Rs 65 for plucking, Rs 250 for waxing, Rs 5,000 for party makeup and Rs 15,000 to 20,000 for bridal make-up. While some parlours charge Rs 80 for haircut, Rs 30 for plucking, Rs 100 for waxing, Rs 2,000 for party make-up and Rs 5,000 for bridal make up. Nazi Yasir, a schoolteacher in Bhaghbanpura area, told this scribe that she visits a parlour twice a month for facial and waxing. “Visiting a parlour has become part of our routine life,” she said adding even lower-middle class girls go to parlours these days. “If you don’t go to parlour, you friends will call you paindo,” she remarked. She was of the view that 90 per cent of college girls and working women in her locality and 70 per cent of domestic women regularly visit parlours. Farzana Yasmeen, a beautician running a parlour in Ichra, said the number of parlours is increasing day by day due to demand in society. She said the home-based parlours had facilitated the middle-class women who could not afford going to costly saloons. She said the customers should make sure that the saloons were using standard cosmetics material. Fiaz Hameed, an owner of beauty parlour in Gulberg III, said unchecked growth of the parlour business was a dangerous thing as mostly untrained people were coming into the business. He said such parlours use cheap material just to make money ignoring the health hazards. Zarpari Hameed, the owner of Khiyal Beauty Parlour,

said inexperienced girls open beauty parlours and provide insufficient services to the customers. “They usually don’t know what kind of product is suitable for a certain skin, or how to use it. Such girls usually take one-week crash course and become beauticians,” se lamented. Mrs Shazia Chaudhry, another beautician, said: “The job of a beautician is not different from that of a surgeon.”

BIBLOGRAPHY BUSINESS REASEARCH METHOD BY UMA SEKRAN DAWN NEWS THE NATION AN INTRODUCTION TO STATICSTICS BY DR.M. AFZAL BAIG METHODS OF STATICSTICS BY MIRAJ DIN MIRZA WWW.ANSWERS.COM WWW.WEKIPEDIA.COM WWW.SURVEYPRO.COM WWW.BUSINESSLETTERS.COM WWW.MSOFFICE.COM

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