Key words: Beautification, Market segments, Targets, Service providers, Service consumption.

Transcription

1 Volume 119 No , ISSN: (on-line version) url: BEAUTIFICATION: A EMPIRICAL STUDY ON MARKET SEGMENTS AND TARGET GROUPS 1 Dr.P.Nalini, 2 Dr.R.Gokilavani, 3 Dr.J.Cynthia, 1 Assistant Professor Department of Management, Kumaraguru College of Technology, Coimbatore, Tamil Nadu, India, 2 Assistant Professor Department of Management, Kumaraguru College of Technology, Coimbatore, Tamil Nadu, India, 3 Professor, Department of Computer Science and EngineeringKumaraguru College of Technology, Coimbatore,Tamil Nadu, India, 1 nalini@kctbs.ac.in, 2 gokilavani.r@gmail.com, ABSTRACT Health and beauty salon Industry is growing exponentially in Indian market especially in last decade which is equal to U.S and European markets. KPMG Wellness Sector report released in April 2017 projected that the size of India s beauty and wellness market would nearly double to Rs 80,370 cr by from Rs 41,224 cr in The raising affluence of various segments, the change in needs, smart phone revolution, social media pressures and also the peer influence has changed the consumption pattern of beauty services. The market is big enough for many players, in recent years the industry is witnessing many changes Unisex salons, franchising models, private equity, venture capital investments, and so on. In this growing scene of beatification its prime time to understand the customer groups, the services they prefer and also the determinates of choosing a service selection of service providers. The study includes samples of 270 respondents using purposive sampling methods. The instrument used was highly reliable with Cronbach alpha value of (0.806). The study results have categorised the respondents based on their service consumption patters. And also the important factors which influence in their decision making. Key words: Beautification, Market segments, Targets, Service providers, Service consumption

2 1. Introduction Health and beauty salon Industry is growing exponentially in Indian market especially in last decade which is equal to U.S and European markets. KPMG Wellness Sector report released in April 2017 projected that the size of India s beauty and wellness market would nearly double to Rs 80,370 cr by from Rs 41,224 cr in The market is big enough for many players, in recent years the industry is witnessing many changes Unisex salons, franchising models, private equity, venture capital investments, and so on. All of them want to be beauty. Beauty can be can be enriched with proper nourishment, treatment, and care (Sharmin Sultana, et al, 2016). The raising affluence of various segments, the change in needs, smart phone revolution, social media pressures and also the peer influence has changed the consumption pattern of beauty services. Every female is concerned about theirbeauty (Parisa Islam Khan et al, 2013). The beauty treatment methods and equipment s have now been modified and modernized in the developing times even then machines cannot give the high customer value.in this growing scene of beatification its prime time to understand the customer groups, the services they prefer and also the determinates of choosing a service selection of service providers which will help the growing companies to tareget their market in a profitable way.by understanding the customer s demographic profile, service consumption and spending pattern, we can assess the important attributes that the customer considers while choosing a salon. The factors that influence the customers in selecting the beauty salons are more important for the further growth in the business.consumers give importance to quality of services, service provider s behaviour, variety of services, service provider s skill and environment and physical facilities. The other factors are such as location, price, brand name, advertisement and promotion etc. Customer satisfaction is the positive experience after taking any service (Sharminet al, 2016). 2. Methodology The research design is descriptive in nature. The primary data for study was collected from 270 respondents through questionnaire. (Irfan Ahmed Mohammed Saleem, Dr. S. Jaisankar 2018). The total universe for the study is Chennai, Tamil Nadu. Purposive sampling method was used because the study concentrated on people visit beauty salons. The objectives of the study were framed with sufficient precision to ensure that the data collected are relevant for the study. Cronbach s alpha coefficient is 0.806, which was greater than the threshold level of It has provided a good estimate of internal consistency reliability and

3 it is indicating that the scale used in this study were reliable. Further analysis was done using SPSS 17.The results of the study is presented below 3. Objectives of the Study To understand the demographic profile of customers opting for beauty services. To explore the spending pattern for beauty care services. To understand various factors which influence customers in selecting a beauty salon 4. Results and Discussions Table1: Profession and Age group of the respondents Profession * Age group of the respondents Particulars Age(in yrs) Total Profession Student of the Homemaker Respondent Professional Women entrepreneur Others Total The age groups from 20 years to 45 years visit the beauty salons very often and this age groups normally are outside home for their profession. As mentioned earlier,there is a compulsion to keep them confident. (David, R Navaneethakrishnan 2017) Beautification helps them a lot for becoming confident and presentthemselves. Theresults in table 1 shows that the age group falling above 20 yrs and below 30 yrs is a huge segment. The parlours should have very attractive strategies to tap this market and also they are not price sensitive segments. A higher margin can set for this age groups because they are highly concerned on their external looks. And also the promotions for this age groups should be triggered using social media or any internet based since majority of the tome they are present here. Thepearson chi square value ( a) at df 16 with Asymp sig value which is less than proves than the two groups are associated with each other s

4 Table 2: Income* Amount spent on Beauty Service Monthly Particulars Income Amount spent on Beauty service Income ` Pearson Correlation ** Sig (2-tailed) N Amount spent on Beauty Pearson Correlation 0.477** 1 service Sig (2-tailed) N From stable 2, we can infer that the significance value is And also the Pearson correlation value is 0.477, which indicates the variables are weakly positively correlated. Hence, there is a positive correlation between the income and amount spent on beauty services. Factor anlysis was performed for data reduction and it is found that there are 4 major factors which influence customers in choosing a beauty salon. Table 2: KMO and Bartlett s test for factors influence while choosing a beauty salon Kaiser-Meyer-Olkin Measure of Sampling Adequacy Bartlett s Test of Sphericity: Approx. Chi-square 136 Sig 0.000** S/NS S **P<0.01 Kaiser-Meyer-Olkin Measure of Sampling Adequacy (KMO) and Bartlett s Test of Sphericity(table 2) have been applied to test whether the relation among the variables has been significant or not. The Kaiser-Meyer-Olkin Measure of Sampling Adequacy shows the value of test statistics is 0.707, which means the factor analysis for the selected variable is found to be appropriate or good to the data. Bartlett s Test of Sphericity is used to test whether the data are statistically significant or not with the value of test statistics and the associated significance level. It shows that there exists a high relationship among variables. Table 3: Eigen values and proportion of total variance of each underlying factors related to level of influence while choosing a beauty salon Factors Initial Eigen values Extraction Sums of Squared Rotated Sums of Squared Loadings Loadings Total % of Cumulative Total % of Cumulative Total % of Cumulative

5 Variance % of Variance Variance % of Variance Variance % of Variance Extraction Method: Principal Component Analysis The results of the factor analysis presented in the table 3 regarding factors related to level of influence while choosing a beauty salon, have revealed that there are four factors that had Eigen values exceeding one. The first four factors are the final factor solution and together represent 74.63% of the total variance in the scale items measuring the factors related in choosing a beauty salon of respondents. Hence, from the above results, it is inferred that all the above statements are related to test the level of influence while choosing a beauty salon among the respondents. Table 4: Rotated component matrix for factor related to level of influence while choosing a beauty salon Component Variable I II III IV Communality code X X X X X X X X X X X X X X X

6 X X The Rotated component Matrix,(table 4) which is an important output of principal component analysis. The coefficients presented above are the factor loadings which represent the correlation between the factors and the seventeen variables (X 1 to X 17). From the above factor matrix, it is found that coefficients for factor-i have high absolute correlations with variable X 2 (Huge Variety of services should be provided), X 8 (Advertisement and promotion should be high), X 13 (Value of the service should exceed the pricing), X 9 (Stronger Brand image should be maintained), X 1 (Salon you visit should be near to your location), X 14 (Best Offers/Package have to be available) that is, 0.772, 0.760, 0.741, 0.725, 0.699, respectively. Similarly, factor-ii has high absolute correlation with variable X 6 (Behavior of service provider must be positive), X 5 (Quality of service should be high), X 7 (Environment &physical facility of salons should be good), X 11 (Accurate service should be provided), X 10 (Understanding customer s need is more important) that is, 0.872, 0.814, 0.804, 0.727, respectively. Next, factor-iii has high absolute correlation with variable X 16 (Cleanliness should be maintained), X 15 (Hygiene should be high), X 17 (Counselling or advice for future should be given), X 12 (Quality of product should be high) that is, 0.909, 0.894, 0.665, respectively. Factor-IV has high absolute correlation with variable X 4 (Skill of service provider must be high), X 3 (Price for the service should be affordable) that is 0.882, respectively. Table 5: Clustering of the factor related for the level of influence while choosing a beauty salon Variable code Particulars Factor X 2 X 8 X 13 X 9 X 1 X 14 X 6 Huge Variety of services should be provided Advertisement and promotion should be high Value of the service should exceed the pricing Marketing inputs Stronger Brand image should be maintained Salon you visit should be near to your location Best Offers/Package have to be available Behavior of service provider must be

7 X 5 X 7 X 11 X 10 X 16 X 15 X 17 X 12 X 4 X 3 positive Quality of service should be high Environment & physical facility of salons should be good Accurate service should be provided Understanding customer s need is more important Cleanliness should be maintained Hygiene should be high Counselling or advice for future should be given Quality of product should be high Skill of service provider must be high Price for the service should be affordable Service inputs Perceived values Customer value From the above table 10 the four factors were identified as being maximum percentage variance accounted from this four factors. The six statements X 2,X 8,X 13,X 9,X 1, and X 14 were grouped together as factor I and account percentage of the total variance. The five statements X 6, X 5, X 7, X 11, X 10 constituted factor II and accounts percentage of the total variance. The four statements X 16, X 15, X 17, X 12 constituted factor III and accounts percentage of total variance. The two statements X 4, X 3 constituted factor IV and accounts percentage of total variance. Thus the factor analysis condensed and simplified the seventeen statements and grouped into four factors explaining percentage of the variability of all the seventeen factors. 5. Conclusion and Future research Beautification is no more a want it is becoming need of the customers. The growing importance of beautification has given way for many organised sectors and also the most dominating beauty product sector growth. Increased disposable income and growing concern of being good looking, the expenditure of the customers in this sector significantly increased. To stand out in the competition increasing value proposition is important. As above mentioned factors like marketing and service inputs, perceived values and customer value should be more than the expected levels in any beauty parlours. All the above factors can be further tested on any demographics and accordingly the company can frame their strategies. This research was done in Chennai, further research can be done on other geographical areas

8 to identify the cross-cultural dimensions. Now-a-days beauty care services is not only a luxury or occasional factor, it is a regular necessity. So, it is really important to explore this sector in terms of identifying the customer groups, service consumption pattern and important factors influence while choosing a salon. 6. References [1]Sharmin Sultana, Tasnim Islam, ShimulDas,Measuring Customer Satisfaction through SERVQUAL Model: A Study on Beauty Parlors in Chittagong,Vol 8, No 35 (2016) [2]Ayesha Tabassum and Parisa Islam Khan,Beautification for Female in Bangladesh: Exploring the Service Gap Through SERVQUAL Model, Journal of Business and Policy Research, Vol. 8, No. 2, (2013), [3] Khan, P. I., &Tabassum, A. Beautification for Male in Dhaka: Exploring the Customer Groups, Services and Selection of Service Providers. World Review of Business Research,Vol 2. No 4, 71-85(2011). [4]S David, R Navaneethakrishnan, ENERGY CONSUMPTION AND LOAD,IJPAM(International Journal of Pure and Applied Mathematics),Volume 116 No. 12, ,(2017). [5] Irfan Ahmed Mohammed Saleem, Dr. S. Jaisankar,, A Study On Kaizen Based Soft- Computing In Electric Vehicle Manufacturing Processes, International Journal Of Innovations In Scientific And Engineering Research, Vol. 5, no.5, (2018). [6] Goldman, W & Lewis, P, Beautiful is good: Evidence that the physically attractive are more socially skillful, Journal of Experimental Social Psychology, vol. 13, pp (1977)

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