Chapter 1

The Problem and Its Background

Introduction

Service is a transaction in which no physical goods are transferred from the seller to the

buyer. The benefits of such a service are held to be demonstrated by the buyer's willingness to

make the exchange. Public services are those that society (nation state, fiscal union, region) as a

whole pays for. Using resources, skill, ingenuity, and experience, service providers benefit

service consumers. Both inputs and outputs to the processes involved providing services are

highly variable, as are the relationships between these processes, making it difficult to maintain

consistent service quality. Many services involve variable human activity, rather than a precisely

determined process; exceptions include utilities. The human factor is often the key success factor

in service provision. Demand can vary by season, time of day, business cycle, etc. Consistency is

necessary to create enduring business relationships.

Business services are a recognizable subset of economic services, and share their

characteristics. The essential difference is that businesses are concerned about the building of

service systems in order to deliver value to their customers and to act in the roles of service

provider and service consumer. Salon is the type of business that provides services to customers

rather than producing a product jobs in the service industries. A business service is general term

that describes work that supports a business but does not produce a tangible commodity. A

commercial enterprise that provides work performed in an expert manner by an individual or

team for the benefit of its customers.

 Marketing is the study of management and exchange relationship. Marketing is used to

create, keep, and satisfy the customers. With the customer as the focus of its activities, it can be

concluded that the marketing is the one of the premier of the components of Business

Management. Marketing practice tended to be seen as a creative industry in the past, which

included advertising, distribution, and selling.

Strategy is a high plan to achieve one or more goals under conditions of uncertainly. In

the sense of the art of the general, included several subsets of skills including tactics, siege craft,

logistics and etc. It’s important because of the resources available to achieve these goals are

usually limited. Strategy generally involved setting goals, determining actions to achieve the

goals, and mobilizing resources to execute the resources. A strategy described how the ends

goals will be achieve by the means of resources. It can be intended or can emerge as a pattern of

activity as the organization adapts to its environment or competes.

Marketing strategy is the long term, forward looking approach to planning with the

fundamental goal achieving a sustainable competitive advantage. Strategic planning involves an

analysis of the strategic initial situation of a company and the formulation, evaluation and

selection of market oriented strategies that contribute to the goals of the company and its

marketing objectives.

Good personal hygiene is one of the most effective ways to prevent the development and

spread of infections. Maintaining good personal hygiene in the healthcare environment includes

skin care, hair care, hand and nail care, dental care, and keeping clothes clean and neat at all

times. While personal appearance is very important and helps improve your self-confidence and

self-esteem, personal hygiene protects yourself and others by keeping the body clean.
 Beauty is one of the prime concerns for the modern women and they are very much

sensitive and caring about it. Almost every woman/man who has little affordability goes to

nearby beauty parlors for their beautification. Among them who are affluent, they go to some

renowned beauty shops. Some of the beauty conscious women travel a long way to go to their

desired and proffered beauty shops.

Background of the study

People nowadays, are engaged to the different kinds of fashion that lead to their

popularity when it comes to their hair and nail styles. They might conscious to themselves for

what fit him/her instead. Visiting salon is one of the important factors to improve their hair and

nail styles.

Atimonan is composed of 42 barangay's and the number of licensed salon as of Local

Government Unit census 2017 reflected the 12 registered salon owners. In 12 salons owners the

researcher choose 5 popular licensed salons to be my respondents. Salon is full service and

dedicated to consistently providing high customer satisfaction by rendering excellent service,

quality product and giving an enjoyable atmosphere and acceptable price or value. Also maintain

a friendly, fair, and creative work, which respect diversity, ideas, and hard work.

As a beauty salon they can offer haircut and style, color and highlights, styling, waxing,

hot oil, keratin treatment, rebond, nail manicure and pedicure, foot spa, and other services. They

can also have a special service like home service if it has an occasion. The Salon's in Atimonan

served from 8'oclock in the morning to 9'oclock in the evening. But it depends in the customers

or if there has an occasion. Most of the salon here in Atimonan has 3 to 4 beautician that giving
their best to fulfill the need and want of their customers. To supply services and product that

enhances their customers in physical appearance and also mental relaxation.

Statement of the problem

This study aims to know the competency level of service in selected salon in Atimonan,

Quezon

Specifically, this study sought to answer the following:

1. Demographic Profile of the respondents in terms of:

 Age

 Gender

 Civil Status

 Educational Attainment

2. What is the intellection of the customer about service marketing strategies in terms of?

 Beautician’s behavior

 Price

 Promotion

 Place

3. What is the propose service marketing plan for a salon in Atimonan, Quezon.
Theoretical Framework

SWOT analysis (alternatively SWOT matrix) is an acronym for strengths, weaknesses,

opportunities, and threats and is a structured planning method that evaluates those four elements

of an organization, project or business venture. A SWOT analysis can be carried out for a

company, product, place, industry, or person. It involves specifying the objectives of the business

venture or project and identifying the internal and external factors that are favorable and

unfavorable to achieve that objective.

Some authors credit SWOT to Albert Humphrey, who led a convention at the Stanford

Research Institute (now SRI International) in the 1960s and 1970s using data from Fortune 500

companies.
 Strenght Weaknesses

Weaknesses
Strengths characteristics characteristics of the
of the business or business that place the
project that give it an business or project at a
advantage over others disadvantage relative to
others

Threats elements in the

environment that could
Opportunities elements cause trouble for the
in the environment that business or project
the business or project Identification of SWOTs
could exploit to its is important because
advantage they can inform later
steps in planning to
Opportunities achieve the objective
Threats

A SWOT analysis, is a process where by an organization or team undertakes examination

of its Strengths, Weaknesses, Opportunities and Threats. The purpose of the exercise, is to enable

a more detailed understanding of what is working well, what can be improved, what

opportunities are available and what threats there may be to a business .

It's also sometimes referred to as an Internal-External Analysis. This is because the

Strengths and Weaknesses elements largely apply to the internal factors of a team or business,

whilst the Opportunities and Threats elements are more related to external factors .
 Strengths people are asked to think about what they feel is working well and what

strengths lie within the team and business. This may include positive characteristics of individual

staff members as well as how they work together as a team. While weaknesses will include thing

that can be done better, that customers may perceive as area that are lacking. While opportunities

are just that, local resources, such as opportunities for advertising, are available. New technology

or processes, strengths and weaknesses should feed into examination of companies.

Conceptual Framework
Process

Output
Input

Service practices in
terms of: Analysis of the survey Marketing Stratiegies on
through questionaire the selected salon in
Beautician's Behavior and interview Atimonan, Quezon
Price
Promotion
Place

Conceptual Paradigm

The paradigm present the input is the service practices in terms of beautician's behavior,

price, promotion, and place. The process will be survey through questionnaire and interview and

on the other hand output will be the marketing strategies of service which has a vital role in the

success of the salons in Atimonan, Quezon.

 The researcher will emphasize the marketing strategies of service in selected salon in

Atimonan Quezon.

Significance of the Study

The study helped the researcher greatly in providing information in different business of

salon in Atimonan, Quezon.

It can encourage other researcher who will be interested in this type of business.

Hopefully, it served as a reference material for others entrepreneur and students pursuing relate

study. The business will play a significant role in the municipality especially to the organization

an institution. Finally, it will give a clear vision to the researcher on how the service needed of

the customers will be improved among selected salon business.

Scope and Limitations

The study will used limited to the marketing strategies in selected salon in Atimonan,

Quezon in terms of beauticians behavior , price, promotion, and place

The research will be use structured questionnaire using Likert Scale. The total population

of customer as a respondent will be chosen through simple random sampling

Definition of Terms

Business is an organization entity involved in the provision of goods and services to consumers

Customer refers to those who avail service on salon

Beautician is a person whose job is to do hair stylist, manicures, and other beauty treatment.

Place refers to the location of the salon

Pricing refers to the amount that is equivalent to the source rendered to the customer.

Promotion refers to the trolls used in promoting their service and the items they are willing to

give to customers.

Salon is an establishment where a hairdresser, beautician, or couturier conducts business

Entrepreneur a person who organizes, operates and assumes the risk in creating a business

Haircut refers to all haircuts consists of three basic cuts it just depends on the application of

these cuts to get the desired.

Styling the way in which someone is designed.

Manicure a cosmetic treatment to improve the appearance and health of hands and fingernails.

Pedicure a treatment to improve the appearance and health of feet or toenails.

Highlights refer to changing a person hair using lightener or hair color.

Make Up is cosmetics such as lipstick or powder applied to the face used to enhance the

appearance.

Treatment is used between shampooing and conditioning to put protein back into the hair.

Hot Oil Treatment a process to help condition and treat damages hair by heating up oil an

applying directly to the hair.

Rebonding is a chemical treatment that makes your hair straight, sleek, and skinny.
 Chapter 2

REVIEW OF RELATED LITERATURE AND RELATED STUDIES

Related Literature

Services marketing strategy focuses on delivering processes, experiences, and intangibles

to customers rather than physical goods and transactions. It involves integrating a focus on the

customer throughout the firm and across all functions. All company functions – marketing,

selling, human resources, operations, and R&D – must work together to create effective services

marketing strategy. Rather than the traditional goods marketing focus on transactions and

exchange, services marketing strategy is centered on the customer, usage, and relationships

(Vargo and Lusch, 2004a).

Services, which can be defined as deeds, processes, and performances, fall into several

categories. Many services, such as hotels, transportation, and health care, are offerings in and of

themselves and are the primary revenue-producing activities of the firms. Another category of

service is customer service, which includes the service provided in support of a company’s core

products. Typically, customer service does not directly produce revenue but rather addresses

customer requests, questions, and complaints, besides providing answers and solutions. Service

can also be a value-add for manufactured products – many companies provide training,

installation, and repair services for the goods they produce – often for a fee. Finally, many

services are derived from or are provided by manufactured products such as cell phones,

computers, software, and mobile phones. In early writings on services, scholars distinguished

services from goods by noting that they were intangible, perishable, variable, and that the
producer and consumer were inseparable. Recently, it has been suggested that these distinctive

characteristics should not be viewed as unique to services but that they are also relevant to

goods, that ‘‘all products are services,’’ and that ‘‘economic exchange is fundamentally about

service provision’’ (Vargo and Lusch, 2004b).

This paper reviews the literature on customer satisfaction and customer loyalty, giving emphasis

on service marketing strategies specially service quality in the salon. The purpose of this paper is to

reveal available literature related to service strategies on customer satisfaction and customer loyalty using

research papers, online databases, conference articles, masters or doctoral dissertations and other related

published information which are directly relevant to the said relationship. Further, it provides a

comprehensive idea developed on service strategies on customer satisfaction and customer loyalty from

its populated period (1980) to the date (2015). It was found that how service strategies influence to

customer satisfaction and in turn to customer loyalty. Accordingly, the review results indicate that

customer satisfaction significantly influence as the intervening variable in between the service strategies

and customer loyalty. Also, it shows that both service quality strategies and service scape strategies are

significantly influencing to determine the customer satisfaction.

Related Studies

Strategy is the fundamental pattern of present and planned objectives, resources,

developments and intractions of an organizations with markets, competitors and other

environmental factors.(Mullins,Walker,Beyd and Larreche, 2002 ) 72 for this reason , a good

strategy should always specify;

 1. What is to be accomplished

2. Where the product, market, or industries that are to be focused.

3. How resources and activities that will be allocated to eachmarket/ product to gain

sustainable competitive advantage.

Marketing is a process for analyzing, planning and managing the organization‟s

resources while identifying and serving current and potential client group and their needs

profitability. Reason for developing marketing strategy Dirks & Danniel(1991) 73 mention that

company managers choose to introduced and / or reemphasize marketing strategy for a number

of reasons, which may range from personal interests to corporate policies. However the reason

usually centers around an opportunities or an identified problem that the company management

needs to explore. For example :

1. Introducing new products or services

2. Expanding into new markets.

3. Differentiating products or services.

4. Revitalizing products, services or markets.

5. Deleting or „demarketing‟ product or service

6. Responding to a drop in sales or profits.

7. Evaluating financial or legal risks of opportunities.

8. Enhancing company image, brand or reputation.

According Armstrong74, kotler, Cunningham & Mitchell(2004) strategic marketing

planning are documents that outline in detail the marketing strategies which will help a company,

product or brand accomplish its overall business objectives. The article published by vargo and
lusch (2004) in the journal of marketing comes up with a proactive “ new dominant logic “ for

the field of marketing. It questions the differences between the marketing of goods and services.

Some of the main arguments made by these authors are the following;

1. Material goods are only distribution mechanisms for service distribution.

2. Knowledge is the fundamental source of competetive advantage.

3. All economies are service economies.

4. The customer is always a co-producer.

According to Nagasimha kanagal (2006), relationships as a focus on marketing aids in the

understanding of consumer needs and wants, which is useful to implement profitable exchanges.

Relationship marketing helps customising solutions to important customers, more efficiently

than otherwise, knowledge and application of relationship marketing helps in achieving customer

satisfaction ,customer retention and customer acquisition. Relationship marketing a tool of

furthering the customer understanding and interactive processes. Relationship marketing outputs

can thus be usefully used, as inputs in product design and development, want identification,

improving selling systems, pricing strategies. It is one of the supports to systematic action setting

in competitive marketing strategy.

 Chapter 3

Research Methodology

Research Design

The researcher used the descriptive type of study. The descriptive research determined

and reports the ways things are. The study survey and gathering data from the respondent came

from the salon to know about their service marketing strategies. Also from the customer s to

know what strategies can affect their decisions marketing strategies of salon here in Atimonan,

Quezon.

Research Locale

The study will focus in the five salon; First is Lorie's Salon which is located at Rizal St.

Zone II Poblacion, the owner of Lorie's Salon is Ms. Alexa Acuna. Second in my respondent is

Salon d'Rhea,it is also located at Rizal St. Zone II Poblacion but have a few blocks away from

Lorie's Salon. The owner is Ella Alpapara. Third in my respondent salon is Cut and Glitz . It is

located at Osmena St.Zone II Poblacion, the owner is Abel Vallesteros. Fourth in my respondent

is Maja's Haircutter, it is located at Aguinaldo St. Zone II Poblacion, the owner is Maja

Villanueva. Last in my respondent salon is Marie's Salon, the owner is Marie Lita. It is located

at D'gracia St. Zone II Poblacion. The purposed of this study is to know the Service marketing

service affecting customer decision of a salon.

The respondents that provide the necessary data and information of this study were the

manager and beautician.

Sources of Data

The primary data for this study will be obtained from the answers of the respondent in the

salon like manager and beautician on the given sets of questionnaire.

Sampling Design and Procedure

Before the study is conducted, a cover letter will be attached to the survey to explain the

purpose of this research and its relevance. The researcher will ask the permission from the

management of the establishment through an approval of Research Adviser to allow conducting

the study. The researcher through letter explain to the respondent in the salon that the researcher

really need their help through cooperation with the researcher and giving a necessary information

and data that will serves as a primary data for the study.

Research Instrument

The researcher constructed a questionnaire as an instrument for gathering data. The

respondents will fill up a personal information on a data sheet and answer the by examining their

choice of answer. The questionnaire was aimed at eliciting relevant information about salons in

Atimonan Quezon. Questions related to the business in term of service marketing strategies

affecting customer’s decision.

Statistical Treatment

The researcher analyzes and interpr ets the responses of the respondents to the

questionnaire through the statistical treatment in order to arrive at a definite interpretation of

result for each of the variable.

All of the data will be measured by computing the frequency distribution and percentage.

By using the percentage scale, the total frequency of the respondent was computed.

P=n/N*100

Where:

P= Percentage

n= Number of respondents

N= Total number of respondent

The weight mean of the responses will be used in determining the level of competency of

salons in Atimonan, Quezon. The formula was:

WM=( 5f+4f+3f+2f+1f)/TF

Where:

W= Weighted mean

f= Frequency

TF= Total Frequency

SCALE

Range Code Meaning

4.21-5.00 SA Strongly Agree

3.41-4.20 A Agree

2.61-3.40 U Undecided

1.81-2.60 DA Disagree

1.00-1.80 SDA Strongly Disagree