RELATIONSHIP BETWEEN QUALITY SERVICE AND CUSTOMER

LOYALTY IN A BEAUTY SALON

A Thesis Proposal Presented to

the Faculty of the Senior High School Department
Tibag High School
Tarlac City

In Partial Fulfilment
of the Requirements for the Subject
Practical Research 2

By
BAUN, JAMAICA MAE M.
OCHEA, DIANA MAE R.
RIVERA, VERONICA M.
TABERNA, DANAYA NICOLE

MIDTERM PERFORMANCE TASK

 THE PROBLEM AND ITS BACKGROUND

Introduction

Improving service quality in a beauty salon extends beyond day-to-day

operations; it is a strategic objective with significant implications for business success.

Many people today are interested in new hair, cosmetics, and overall trends. Visiting a

salon has become an essential step for those embracing current fashions, offering a

professional appearance. Beauty salons, serving both men and women, provide services

for hair, nails, and skin, including cutting, styling, coloring, manicures, pedicures, facials,

and makeup. The artistry of service delivery plays a central role in keeping clients

engaged and satisfied in the evolving world of beauty salons.

Beauty salons play a crucial role in people's lives, providing not just services but

also contributing to a sense of well-being and confidence. Understanding the strong

relationship between service quality and client loyalty is critical. According to

Mohammad and Alhamdani's (2014) study, service quality is a key factor impacting

customer satisfaction, shaping how clients evaluate beauty services. These findings align

with Chambers' (2023) emphasis on customer loyalty's essential role in influencing

critical business metrics.

Daysmart Salon's (2020) Consumer Survey Report expands on this basis,

providing evidence linking customer satisfaction to referral behavior. Specifically, 42%

of regular customers state they will only refer a friend if consistently satisfied. However,

76% of customers place a higher value on individual employee performance than the total

organization, highlighting the importance of high service quality. Introducing salon

incentive programs is emphasized as a simple yet effective strategy for increasing

customer loyalty and establishing a loyal customer base.

According to Claybaugh (2017), an industry expert emphasizes the dynamic

nature of the salon business, involving a continuous pursuit of innovation. Staying current

with industry trends, embracing new technologies, and refining business processes are

essential for competitiveness and appealing to customers with high expectations. The

overarching theme is clear cultivating long-term relationships and remaining responsive

to market trends positions a salon not only as a beauty treatment provider but also as a

preferred location for a personalized and delightful experience.

Despite these strategic considerations, Sena (2014) adds a note of caution,

underlining a fundamental difficulty faced by certain beauty salons insufficient awareness

of their customer base. This knowledge gap creates a barrier to smoothly recruiting and

retaining customers, highlighting various aspects of issues in the beauty salon industry.

Mandarin and Gonzaga's (2021) study in Davao del Norte, Philippines,

investigates the impact of service quality on customer satisfaction in beauty salons to

help us better understand this complex relationship. Using a quantitative, non-

experimental, descriptive-correlational method, the study investigates all aspects of

service quality with the greatest impact on customer satisfaction. The findings show a

weak positive relationship between service quality and customer satisfaction, with only

physical factors having significant effects. This demonstrates the critical necessity for

service quality changes to achieve a higher level of client satisfaction.

Considering this, the purpose of this study is to clarify the complex connections

between service quality and customer loyalty in beauty salon operations. This study aims
to provide a thorough understanding that can inform strategies for success in an

increasingly competitive and dynamic market by analyzing findings from multiple studies

and addressing gaps identified by industry experts.

Statement of the Problem

This study aims to determine the relationship between quality service and

customer loyalty in a beauty salon, addressing the following questions:

1. How can the level of quality of customer service be described in terms of:

1.1 Tangibility;

1.2 Responsiveness;

1.3 Assurance;

1.4 Reliability;

1.5 Empathy?

2. What is the repeat purchase rate of the customers?

3. Is there a significant relationship between the quality of service in a beauty salon and

customer loyalty?

4. How can the study's results guide beauty salon owners in improving service quality to

enhance customer loyalty and business sustainability?

Hypothesis

Null Hypothesis

There is no significant relationship between quality service and customer loyalty

in a beauty salon.

Alternative Hypothesis
 There is a significant relationship between quality service and customer loyalty in

a beauty salon.

Significance of the Study

This research is significant for investigating the relationship between service

quality and customer loyalty in beauty salons. It fills a crucial gap in existing knowledge

and offers practical insights for salon stakeholders. By comprehending how service

quality impacts loyalty, the study seeks to guide strategic decisions, improve industry

practices, and contribute to the enduring success of beauty salons. This study is

conducted to benefit the following:

Salon Owners. This study enables salon owners to make informed decisions

about staff training, product selection, and overall service improvement. Salon owners

can strengthen customer relationships by utilizing these insights to improve service

quality, resulting in repeat business, great word-of-mouth, and long-term profitability.

Furthermore, the study provides a practical approach for increasing customer satisfaction

and loyalty, which contributes to salon businesses' long-term success.

Salon Staff. This study may encourage salon employees to do well by

emphasizing the significance of continuous training and skill development in meeting

customer expectations. The study empowers employees by recognizing their role in

moulding customer pleasure, creating a happy work atmosphere, and potentially

increasing tips, client retention, and professional development opportunities.

Customer. This study's significance for customers lies in highlighting the link

between service quality and loyalty at beauty salons. This awareness empowers

customers to choose salons based on a reputation for consistent high-quality services. The
study also enables customers to communicate their expectations effectively, enhancing

their overall salon experience. Ultimately, it allows customers to make informed

decisions aligned with their preferences, contributing to a positive and satisfying beauty

salon experience.

School Administration. The results of this study may also enlighten the

management of the school, encouraging them to design and implement initiatives that

centre on offering quality services. The school administration could put in place

programs that address the value of providing quality service to businesses, such as

workshops, trainings, and orientations.

Current Researcher. For researchers currently engaged in the field, this study

offers valuable insights and practical strategies applicable to their exploration of

customer loyalty, service quality, and innovation. Utilizing the study's foundation,

methodologies, and industry understanding can enhance the current researchers'

contributions to ongoing studies in business management and service industries.

Future Researchers. This research study may be utilized by future researchers

who would like to study similar subjects or fields of study. They could get ideas from the

processes and results this study will provide.

Scope and Delimitation

The study will be conducted to determine the level of quality service and

customer loyalty and the relationship between these two variables.

The study will involve thirty-five (35) participants from different beauty salons in

the city of Tarlac; furthermore, the study will be limited to customers as participants and

their experience with the service they will receive at the particular salons they will visit.
 The researchers will adapt and use Servqual Questionnaire created by Andrew

Folkes (nd). It is used to measure service quality by capturing respondents' expectations

and perceptions along five dimensions of service quality. To the variable ‘customer

loyalty,’ the questionnaire will be formulated and created by the researchers.

Definition of Terms

Assurance. Assurance is a positive declaration intended to give confidence; a

promise. (Oxford English Dictionary).

In this study, assurance measures the ability of service providers to relay trust to

their customers, which is paramount in getting confidence in customers to stick with the

organization as opposed to the competition.

Customer Loyalty. The customer loyalty construct was defined as frequent

purchasing, but the literature has since evolved to consider multiple dimensions,

including behavioral, attitudinal, and composite (Yoo and Bai, 2013).

In this study, customer loyalty will serve as the dependent variable and will be

identified based on the repeat purchase rate.

Empathy. Empathy is the ability to understand and share the feelings of others.

(Oxford English Dictionary).

In this study, empathy is the ability to see things from the customer's perspective.

Empathy in customer service means that you can put yourself in buyers' shoes and

understand their pain points. As a business, it is the ability to understand what consumers

experience when they use your products or services.

 Quality Service. It is an important aspect of business since a company’s growth

is largely dependent on how well it maintains its customers through service and how well

it keeps its customers satisfied, this is according to Edward and Sahadev (2011).

In this research study, quality service will serve as the independent variable and

will be measured by its level depending on its dimensions including tangibility,

responsiveness, assurance, reliability, and empathy.

Reliability. Reliability is consistently good in quality or performance; it can be

trusted (Oxford English Dictionary).

In this study, reliability means performing the promised service dependably and

accurately.

Responsiveness. Responsiveness is the quality of reacting quickly and positively

(Oxford English Dictionary).

In this study, responsiveness is the willingness of the service provider to be

helpful, prompt in providing services, and to respond to customers' requests, problems, or

complaints.

Tangibility. Tangibility refers to being capable of being perceived, especially by

the sense of touch (Merriam Webster).

In this study, tangibility is a service quality characteristic that assesses how well a

company communicates the quality of its services to clients. Service tangibles include

things like employee clothing and behavior.

Literature Review and Related Studies

Quality Service

Parisa Khan and Ayesha Tabassum (2010) explored the thriving beauty-care

service industry in Dhaka, Bangladesh. They found that the increasing number of beauty-

conscious women contributes to the industry's growth. Their study aimed to measure the

service quality and customer satisfaction in high-end women's parlors in Dhaka. They

also sought to understand customer preferences, evaluate service quality, and identify

factors influencing customer satisfaction.

The research involved in-depth interviews with beauticians and executives, along

with a survey of 260 customers from high-end beauty parlors in Dhaka. The results

revealed that customers prioritize service providers' behavior, knowledge,

environment, counseling system, and affordability. High-end parlor customers expressed

high satisfaction with the environment, executive politeness, complaint

handling, trustworthiness, and materials. Service providers' politeness, executives'

knowledge, and safety and hygiene were also satisfactory. Through Factor Analysis, they

identified four key service quality factors: Support & Facility, Employee Performance,

Customer Relation, and Communication.

Since the 1980s, Churchill and Surprenant (1982) and Asubonteng et al. (1996)

have defined the concept of service. They did this by popularizing the customer

satisfaction theory, which measures a firm’s actual service delivery in conformity with

customers’ expectations, as defined by the attainment of perceived quality, which is

defined as meeting the needs and wants of the customers beyond their expectations.

Armstrong et al. (1997) developed the five aspects of service quality—tangibles,

assurance, responsiveness, and empathy—based on this premise and later broadened the

definition of service.

The existing body of literature on service delivery (Mechinda and Patterson,

2011; Han et al., 2021) emphasizes the traditional importance of the interaction between

the client and the service provider. The layout of the space and the actions of the service

provider determine the quality in these conventional settings. Online service centers have

emerged more lately as a result of the internet’s widespread use. In these situations, face-

to-face and virtual contact is crucial to the caliber of the services provided. It implies that

service quality in hybrid contexts depends on quality of communications on social media

as well as the behavioral interactions between the client and the service provider (Doucet,

2004; Palese & Usai, 2018).

Serving as a frontline service provider that is both accessible and of high quality

in order to meet the demands of our clients is one of the main goals of Philippine

universities. Additionally, it discusses how lean management influences how services and

workflows are implemented and how they can be improved.

Customers Loyalty

In today's business landscape, companies are shifting from just focusing on sales

to building lasting relationships with customers. Terry Njagi's (2017) study explores

how relationship marketing strategies impact customer loyalty.

For beauty salons, this means prioritizing effective communication, offering top-

notch services, and having trustworthy staff. These strategies go beyond pricing and

are crucial for cultivating strong connections with clients, leading to increased

customer loyalty.
 Njagi discusses two key theories—Relationship Marketing Theory and

Commitment Trust Theory—to understand these strategies better. The study used a

descriptive research design due to time constraints, analyzing data with SPSS through

regression analysis. the importance of relationship marketing in service industries like

beauty salons, emphasizing communication, service quality, and trust as key drivers

for customer loyalty.

Conceptual Framework

Figure 1 shows the conceptual paradigm for this study titled “Relationship

between Quality Service and Customer Loyalty in a Beauty Salon” The objective of this

study is to determine the relationship between quality service and customer loyalty in a

beauty salon.

A conceptual framework is a support that the researcher believes best explains the

natural course of the subject under investigation (Camp, 2001). A conceptual framework

therefore is linked to the concepts, empirical research, and important theories employed

in advancing and systemizing the researcher's knowledge. The independent variable in

this study is ‘quality service,’ and the dependent variable is ‘customer loyalty.’ As for the

basis for the participants, the study involved thirty-five (35) participants from the beauty

salons in the City of Tarlac; furthermore, the study will be limited to customers as

participants and their experience with the service they will receive at the particular salons

they will visit.

 Quality Service
*Questionnaire for Is there a significant
1. How can the quality Quality Service relationship between the
of customer service be
(Will be conducted by quality of service in a
described in terms of:
researchers) beauty salon and
1.1 Tangibility;
customer loyalty?
1.2 Responsiveness;
1.3 Assurance;
How can the study's
1.4 Reliability; *Questionnaire for
results guide beauty
1.5Empathy? Customer Loyalty
salon owners in
(Will be conducted by improving service
Customer Loyalty
researchers) quality to enhance
customer loyalty and
2. What is the repeat *Data Analysis business sustainability?
purchase rate of the
customer?

Figure 1: Paradigm of the Study

The independent and dependent variables were placed inside the first box, giving

them highlights and sole focus. The same shape was used for the process. The arrows

show a direct relationship or connection to each variable. In the left part, the researchers

put the independent and dependent variables. In the center rectangle were the processes,

and the single rectangle in the right part is the expected outcome and the implication.

This study is concerned with determining the relationship between quality service

and customer loyalty in a beauty salon through conducting questionnaires to get the

response of the customers in terms of the quality service being provided to them and as

well as the repeat rate.

 METHODS OF STUDY AND SOURCES OF DATA

In this chapter, the methods employed to address the research question are

discussed. This section presents the research design, population and sampling techniques,

data gathering instruments, procedure, and statistical treatment that will be utilized to

analyze the data.

Research Design

In this study, the researchers will utilize correlational research as the design

because this study aims to identify the relationship between quality service (Tangibility,

Responsiveness, Assurance, Reliability, and Empathy) and customer loyalty in a salon.

Correlational research, according to Fraenkel & Wallen (2009), is a study aimed at

determining the cause-and-effect link between two or more variables. Furthermore,

according to Creswell (2012), "a correlation is a statistical test that determines the

tendency or trend for two (or more) variables or two sets of data to fluctuate

consistently." According to Ary, et. al (2010), correlational research seeks out the

relationship or correlation between variables in positive or negative correlation, with the

coefficient of correlation determining the level of correlation. It can be said that the

detection of correlation among variables is based on its correlation coefficient. From the

descriptions above, this study constitutes correlational research, which is included in non-

experimental quantitative research, because it consists of numerical data, no variable

manipulation, and its purpose is to identify the correlation between variables, namely

quality service and customer loyalty in a salon.

 Furthermore, the participants' data will be collected using a quantitative manner in

this study. The researchers will focus on objective measurements and statistical,

mathematical, or numerical analysis of data that will be gathered through questionnaires

and surveys using this strategy (Babbie, 2010).

Locale of the Study

This study will be conducted at the different salons in Tarlac City, focusing on the

random customers on the visit day. The municipality of Tarlac City offers a diverse

landscape for understanding the dynamics of customer loyalty in beauty salons.

Sample and Sampling Techniques

According to Fraenkel & Wallen (2009), the minimum acceptable sample size for

a correlational study is not less than thirty (30). They also claimed that if the data which

is obtained from a sample is smaller than 30, it may provide inaccurate results of the

degree of correlation. Due to this reason, the researchers will select thirty-five (35)

participants. In selecting the participants, the researchers will use convenience sampling.

According to Kassiani Nikolopoulou (2023), convenience sampling is a non-probability

sampling method where units are selected for inclusion in the sample because they are the

easiest for the researcher to access. This can be due to geographical proximity,

availability at a given time, or willingness to participate in the research.

To do this method, the researchers will go to different salons in Tarlac City where

they will be permitted. Then, they will give the research questionnaires to thirty-five (35)

customers/participants during the salon visit.

Instrumentation

A research instrument allows the researchers to gather significant data that can help

ascertain the relationship between quality service and loyalty in salons. In this study, the

researchers will utilize survey questionnaires. Aligned to the variable ‘quality service’,

the researchers will adapt and use Servqual Questionnaire created by Andrew Folkes

(nd). To the variable ‘customer loyalty,’ the questionnaire will be formulated and created

by the researchers. For credibility purposes, all the questionnaires will be content

validated by an expert.

Data Gathering Procedure

The researchers will ask permission from both salon owners and the customer

before conducting any procedures. The data are the important thing that the researcher

should get in conducting research. Fraenkel & Wallen (2009) state that “data refers to the

kinds of information researchers obtain on the subjects of their research.” Hence, data are

considered as the important thing that should be collected before being analyzed. With

this type of research, which is quantitative research, the data which will be used are

numerical. Thereby, the data in this study will be the average scores which will be based

on the scale that indicates how satisfied they are with the service and the repeat purchase

rate. Furthermore, the procedures to collect the data that will be performed by the

researchers are as follows. The researchers will provide a compiled survey questionnaire

to the customer after receiving the service; Then, the researchers will instruct the

participant; The researchers will give enough time for the participant to answer the

survey questionnaire for the quality service and customer loyalty; The researchers will

get the average satisfactory rate per participant, then the whole mean for the quality
service; Finally, the researchers will obtain the repeat frequency rate per participant, then

the total mean for the customer loyalty. After the process, the data gathered will be

subjected to an analysis.

Data Analysis

This section consists of the formula and computation analysis that the researchers

will use in calculating the data that will be collected for addressing the research

questions.

In analyzing the data for quality service, the four-point Likert Scale and the mean

will be utilized. For convenience and interpretation, the following will be used to

describe the satisfaction of the customers to the service in a salon:

Description Equivalent
Score
Strongly Disagree (1) 1
Disagree (2) 2
Agree (3) 3
Strongly Disagree (4) 4

To analyze the data for customer loyalty, the four-point Likert Scale and the mean

will also be used. For convenience and interpretation, the following will be used to

describe the loyalty of the customer through repeat purchase rate:

Description Equivalent
Score
Not Likely (1) 1
Somewhat Likely (2) 2
Likely (3) 3
Very Likely (4) 4
 To identify if the variables are related to each other, the researchers will use

Pearson’s correlation. According to Ary et. Al. (2011), the Pearson correlation is a very

useful statistic showing the correlation between two variables. Correlation is measured by

the correlation coefficient. It is very easy to calculate the correlation coefficient in

Statistical Package in Social Sciences (SPSS) (Arkkelin, 2017). Therefore, the

researchers will utilize Pearson correlation through the use of this software.

According to McLeod (2019), if the p-value is less than the set alpha coefficient

of 5% (.05), the Ho (null hypothesis) is rejected. In contrast, if the p-value is greater than

the set alpha coefficient of 5% (.05), the Ho (null hypothesis) is retained or accepted.

Ethical Considerations

In this research study, participants will be assured that any information they

provide will be kept confidential, protected, and used solely for this study, which is to

determine if quality service has a significant relationship with customer loyalty in salons.

Before the conduct of the study, the researchers will receive ethical approval. The

researchers made certain that data privacy is rigorously adhered to. Furthermore, to

preserve privacy, develop a lasting relationship, and provide excellent results, the

researchers will save all the data that will be collected from the participants in a secure

database.

If the participants would like to pull out from participating in the study, they have

the option to do so. The researchers will explain the research instruments properly to the
participants and the researchers will not alter their purpose. Moreover, the researchers

would also share the time frame for the data gathering with the participants.