women entrepreneurs in beauty clinic industry in tamilnadu

International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 –

6510(Online), Volume 3, Issue 3, September- December (2012)

131

WOMEN ENTREPRENEURS IN BEAUTY CLINIC INDUSTRY IN

TAMILNADU

Mrs.M.Chitra , Assistant Professor, School of Management,

SRM University, Kattankulathur, Chennai, India.

E-mail: [email protected],[email protected]

Dr. Kalpana, Assistant Professor, School of Public Health,

SRM University, Kattankulathur, Chennai, Tamilnadu, India.

E-mail: [email protected]

ABSTRACT

This paper aims to identify the problems faced by women entrepreneurs in beauty parlors and

also analyze the customer satisfaction level. The study was conducted in Tamilnadu with a

sample size of 350 beauty parlor for women and about 450 customers. The factors included are

qualities for success, general management of parlor, stress, pricing, hygiene, qualities of service

etc. Multiple regression, rotated component matrix and factor analysis were used. The study is

focused on women owned parlours.

Key words: hygiene, pricing, customer satisfaction, facilities, quality service.

1.0 INTRODUCTION

Changing cultural environment and increasing educational trends leads the women to explore

their personal skills. In rural areas female participation to generate income was not viewed in

right angle. (Dube & Pariwala, 1990).But, the success of entrepreneur depends mainly upon her

imagination, vision, innovativeness and risk-taking ability. Current entrepreneurship is mainly

focused on creative thinking and the development of new ideas. Garland J.W., Hoy, Boulton and

GarlandJ.A.C(1984), and Stewart, Watson, CarlandJ.C and CarlandJ.W (1998) have made it very

clear that small business women are mainly concerned with securing an income to meet their

needs than to lineup with innovative strategies. A liking for people of all ages, a friendly,

confident approach, tact, courtesy an attractive, well groomed appearance , good skin, cool dry

hands, good health , a sense of cleanliness and hygiene business sense and the ability to express

oneself easily is most required for women entrepreneurs. Beauty and health care professional can

INTERNATIONAL JOURNAL OF MANAGEMENT (IJM) ISSN 0976 – 6502(Print) ISSN 0976 – 6510(Online) Volume 3, Issue 3, September- December (2012), pp. 131-138 © IAEME: www.iaeme.com/ijm.asp Journal Impact Factor (2012): 3.5420 (Calculated by GISI) www.jifactor.com

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find employment in salon or beauty parlor, a cosmetic manufacturing company, a health club or

gym, television or film and also self-employment. Beauty parlor is also called as aunty shop.

There is a wide scope for beauty industry in India. In country like India, the beauty industry has

significantly developed in terms of manufacture, promotion and marketing of different beauty

products.

2.0 Objectives of study

1. To identify the obstacles in the conduct of Beauty clinics.

2. To analyze the customer satisfaction level in beauty clinics.

3.0 Methods of Data Collection

The data was collected both primary and secondary data. The primary data was collected by

using 2 types of questionnaire. First questionnaire was framed exclusively for the beauticians and

the second questionnaire was focused on the customers of the parlors. Information from

secondary sources. The study was conducted in Tamilnadu with a sample size of 350 women

owned beauty parlor and about 450 customers. Tools used to study are Chi-square test, weighted

average method, factor analysis and multiple regression analysis.

4.0 RESULTS AND DISCUSSION

Factor Analysis:

In order to identify the factors which determine the success of entrepreneurs in beauty clinics,

factor analysis was performed. Table 1 contains the result regarding the sample adequacy and

sphericity of the sample.

To identify the factors which influence the success of entrepreneurship in beauty clinics, 10

factors were selected from the questionnaire and used in the Factor analysis. The results

revealed that the first three components alone explain more than 72% of the variance. This

Table : 1 KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .582

Bartlett's Test of

Sphericity

Approx. Chi-Square 200.515

Df 45

Sig. .000



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implies the three components consist of a number of factors which have to be concentrated on to

improve the success of the beauty clinics. For this purpose the varimax rotated component

matrix is studied.

From table 3, it is clear that the first component has totally 4 factors are heavily loaded, viz.,

handling stress, commitment, optimizing entrepreneurial skills and performance. This means the

entrepreneurs have to develop methods for managing stress in their day to day activities. They

should ensure that the workers in the clinics are well trained in every aspect of the trade and

motivate them in different ways [monetary and non-monetary ways] to improve their

commitment. As regards performance, the entrepreneurs should realize that the service rendered

is highly personal and customized. So what is offered to one customer is not relevant or

applicable to others. In such a case, they have to understand the customer’s requirements well

and translate it appropriately and design the package of service which would enhance the

customer satisfaction. As these four factors are heavily loaded every positive improvement in

these four factors would improve customer satisfaction and also business success.

The second component has four more factors heavily loaded, viz., years in the field, better in

problem solving, general management skills and managing others. It could be noted that the

second, third and fourth factors are completely dependent on the first one. As is often said

‘practice makes a person perfect’ the entrepreneurs have to learn from their experience and also

carefully understand the experience of the others in the field. Added to this is the necessity to

retain the employees who are trained and oriented and this call for the ability to manage others.

Years in the field and calculated risks are heavily loaded factors in the third component. This

means, apart from the experience in the business, the entrepreneurs need to understand the risks

posing challenges to their business. These could be business related, customer related or other

external factor related.



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Table : 2 Total Variance Explained

Component

Initial Eigenvalues

Extraction Sums of Squared

Loadings

Rotation Sums of Squared

Loadings

Total

% of

Variance

Cumul

ative % Total

% of

Variance

Cumulative

% Total

% of

Variance

Cumulative

%

dimension

1 3.520 35.203 35.203 3.520 35.203 35.203 3.29732.973 32.973

2 2.400 23.998 59.201 2.400 23.998 59.201 2.42824.282 57.254

3 1.332 13.324 72.525 1.332 13.324 72.525 1.52715.271 72.525

4 .928 9.282 81.807

5 .773 7.732 89.539

6 .361 3.605 93.144

7 .272 2.721 95.866

8 .228 2.279 98.144

9 .110 1.104 99.248

10 .075 .752 100.000

Extraction Method: Principal Component Analysis

Multiple Regression analysis

In order to examine the factors influencing the customer satisfaction, a number of variables were

selected and a multiple regression analysis was performed. The general form of linear regression is :

Y = [ X1, X2, X3, X4, X5……….Xn ] Where X1 – Xn are the independent variables. The

independent variables included are : X1 location of the beauty clinic, X2 frequency of visit, X3

pricing strategy, X4 punctuality of clinic employees, X5 quality of work, X6 quality of service in

treatment, X7 internal facility and X8 parking facility., Y = satisfaction index



135

Table : 3 Rotated Component Matrixa

Component

1 2 3

Years in this field .319 .596 .587

Qualities for success .265 .305 .115

Calculated risk .076 -.083 .963

Better in problem solving .204 -.628 -.276

handling stress -.806 .313 -.032

General management skills .383 .843 -.191

Commitment .860 .290 .210

Optimizing entrepreneurial skills .876 -.186 -.098

Performance -.804 -.258 -.212

Managing .359 -.765 .168

Extraction Method: Principal Component Analysis, Rotation Method : Varimax with Kaiser

Normalization ,a. Rotation converged in 5 iterations

The result indicated a very high R2 value of 0.900, implying that the factors included for the

analysis together explain 90% of the fluctuations in the Customer satisfaction. A statistically

high F value [31.499] implied that the regression equation is fit for both interpretation as well as

prediction.

Table : 4 ANOVAb

Model Sum of Squares df Mean Square F Sig.

Regression 953.028 8 119.129 31.499 .000a

Residual 105.895 28 3.782

Total 1058.923 36



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Table : 5 Coefficients a

Model Unstandardized

Coefficients

Standardized

Coefficients

t B Std. Error Beta

1 (Constant) 108.874 2.175 50.048

Location of the parlor .061 .362 .014 .169 .867

Frequency of visit .250 .439 .044 .570 .573

Pricing strategies -2.830 .862 -.370 -3.283 .003

Punctuality of clinic Members

2.752

.600 .308 4.585

.000

Quality of work 1.376 .527 .229 2.612 .014

Quality of service in treatment

3.145

.827 .329 3.804

.001

Internal facility 1.931 .545 .286 3.543 .001

parking facility 1.140 .295 .297 3.866 .001

a. Dependent Variable: Satisfaction index

The regression equation developed is given below:

Customer satisfaction index [Y] = 108.874 +0.61ns X1 + 0.250ns X2 – 2.83* X3 [t=3.283] +

2.752 * X4 [t=4.585] + 1.376* X5 [t=0.14] + 3.145* X6 [t=3.804] + 1.931 *X7 [t=3.543] +

1.140 * X8 [t=3.866]

From the above equation it is clear, that X3, X4, X5, X6, X7 and X8 are statistically significant

which means customer satisfaction index in a significant manner. As pricing strategy of the

beauty clinic holds the key for improving customer satisfaction. Any price difference between

clinics for any service is bound to affect the customer response and customer satisfaction. With

very 1 unit reduction in price, the satisfaction would go up by 2.83 units. The presence of

negative sign with the coefficient clearly implies that by suitably developing a pricing strategy,

the satisfaction of the customer can be improved. Appointment is given to a customer by the

clinic; it should be honored without fail. So this adherence to the appointment can improve

customer satisfaction. Every one point improvement in punctuality among the employees can

improve the customer satisfaction by nearly 2.752 points. For this to happen, the employees



137

should be stress free, well supported and motivated by the entrepreneur. Another statistically

significant factor is the quality of work. That is, every work done by the employee in the clinic

should be of high quality. As is clear from the equation every unit improvement in the quality of

work turned out the customer satisfaction would go up by 1.376 units. The next factor is quality

of service in treatment. The equation points out that every unit increase in the quality of service

adds to the customer satisfaction by 3.145 units. A very important expectation among the

customers is a good internal environment. By addressing this in a professional manner, the

customer satisfaction is bound to increase as shown by this equation. To be specific every unit

improvement in the internal facility would increase the customer satisfaction by 1.931 units.

Similarly, customers who come to the clinic by their own conveyance would expect hassle free

parking facility. This is an external factor which has nothing to do with the way the customer

service is rendered. But this is equally important as no customer would leave the vehicle on road

unprotected. So the beauty clinics can provide some reserved parking facility for customer

satisfaction. Every unit support in providing parking facility would improve the satisfaction by

1.14 units.

5.0 CONCLUSIONS

Key for achieving a higher customer satisfaction lies with the entrepreneur. Every satisfied

customer will not only visit again, but also would spread the message among others. When the

constituent of demographic profile of the respondents was studied with customer satisfaction, it

was found only age has a significant relationship with customer satisfaction. A very important

lesson from this, the entrepreneurs should give very high priority while dealing with each

customer depending upon the age. Always the youngsters come to the clinics only to fine tune

their beauty and the clinic should rise up to their expectations. Similarly middle aged and elderly

women visit the clinic with specific requirements and expectations. The clinic should address

this on a case to case basis so that each customer is satisfied.

6.0 REFERENCES

1. Aaker, D.A & Day, G.S, (1990) Marketing research, 4th

edition, New York: John Wiley

and Sons.

2. Akter, S (2008). The Business of Beauty. The Daily Star.



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3. Bebko,C.P (2000). Service Intangibility and its Impact on Consumer Expectations of

Service Quality: Journal of Service Marketing, 14(1), 9-26

4. Carman, J, (1990) Customer Perceptions of Service Quality: An Assessment of

SERVQUAL Dimensions. Journal of Retailing, 66(Spring),33-55.

5. Garvin, D. (1982). Quality on Line. Harvard Business Review, 61 (September –

October0, 65 - 73

7. Goldman, W.& Lewis , P. (1977). Beautiful Is Good: Evidence that the physically

attractive are more socially; skillful. Journal of Experimental Social Psychology, 13, 125-

130.

8. Grons, C. (1984). A service Quality Model and its Marketing Implications. European

Journal of Marketing, 18(4), 36-44

9. Service marketing ,The Indian context,R Srinivasan, Prentice-hall of India Private ltd,

New Delhi ,2004 pp -202.

women entrepreneurs in beauty clinic industry in tamilnadu

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