Service quality and customer satisfaction of beauty service at the beauty salon in the city hanoi

Therefore, maintaining high levels of service quality and developing new methods for improving service quality in the beauty care industry are noteworthy topics for discussion, so the au

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LÊ THỊ THANH DUNG

SERVICE QUALITY AND CUSTOMER SATISFACTION

OF BEAUTY SERVICE AT THE BEAUTY SALON

IN THE CITY HA NOI

CHẤT LƯỢNG DỊCH VỤ VÀ SỰ HÀI LÒNG

CỦA KHÁCH HÀNG VỚI DỊCH VỤ THẨM MỸ TẠI CÁC CƠ SỞ THẨM MỸ TẠI HÀ NỘI

LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH

HÀ NỘI - 2019

ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH

-

LÊ THỊ THANH DUNG

SERVICE QUALITY AND CUSTOMER SATISFACTION

OF BEAUTY SERVICE AT THE BEAUTY SALON

IN THE CITY HA NOI

CHẤT LƯỢNG DỊCH VỤ VÀ SỰ HÀI LÒNG

CỦA KHÁCH HÀNG VỚI DỊCH VỤ THẨM MỸ TẠI CÁC CƠ SỞ THẨM MỸ TẠI HÀ NỘI

Chuyên ngành: Quản trị kinh doanh

Mã số: 60 34 01 02 LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH

NGƯỜI HƯỚNG DẪN KHOA HỌC: TS TRẦN HUY PHƯƠNG

HÀ NỘI - 2019

DECLARATION

The author confirms that the research outcome in the thesis is the result of author 's independent work during study and research period and it is not yet published in other‟s research and article

The other‟s research result and documentation ( extraction, table, figure, formula, and other document ) used in the thesis are cited properly and the permission ( if required ) is given

The author is responsible in front of the Thesis Assessment Committee , Hanoi School of Business and Management , and the laws for above - mentioned declaration

Hanoi , date of / /

LE THI THANH DUNG

a higher degree to any other University or Institution

In order to finish this project successfully , I have received many helps , supports and guidance from many people who I would like to thank sincerely First of all, I would like to thank all the professors of MBA program, especially Dr Tran Huy Phuong - my supervisor Then I would like to thank deeply

to class assistant team of HCC center, respondents and interviewees who allowed

me to gather enough data for this research

Thank you to Mr.Duong, Miss Xuyen and Mr Thanh from Mediworld CO., LTD which has helped allow study done at this company and have a lot of help during the interview session with very useful information

Finally, I also want to dedicate my love and special thanks to my beloved family, my colleges and my fellow friends who always stand by me during the past two years and encourages to keep moving from the beginning of my study

Hanoi , date of / /

Le Thi Thanh Dung

TABLE OF CONTENTS

ABBREVIATION i

LIST OF FIGURES ii

LIST OF TABLES iii

INTRODUCTION 1

1 Rationale 1

2 Literature review 2

3 Aims of research 5

4 Objects of research 5

5 Scope of research 5

6 Research methodology 6

7 Thesis structure 9

CHAPTER 1: THEORETICAL BACKGROUND ON CUSTOMER SATISFACTION WITH BEAUTY SERVICE QUALITY 10

1.1: Basic concepts 10

1.1.1: Beauty service 10

1.1.2: Service quality 12

1.1.3: Customer satisfaction 13

1.2: Service quality and customer satisfaction 14

1.3: Service quality assessment models 16

1.3.1: Service Quality Grap Model 16

1.3.2: Service quality 10 components model 18

1.3.3: SERVQUAL and SERVPERF models 19

1.3.4: Theorical framework and Hypothesis 21

1.3.5: Designing Scales and Questionnaires and Sample 22

1.3.6: Data collection method 25

CHAPTER II: ASSESSING THE SITUATION OF CUSTOMER SATISFACTION WITH BEAUTY SERVICE AT BEAUTY SALON IN HANOI 27

2.1: Introduction of Beauty salon in Hanoi 27

2.1.1: Introduction of beauty industry 27

2.1.2: Introduction of beauty salon in Hanoi 32

2.2: The situation of customer satisfaction with beauty service at beauty salon in Hanoi 34

2.2.1: The type of beauty service 35

2.2.2: Equipment 39

2.3: Survey results on customer satisfaction with beauty service at beauty salon in Hanoi 40

2.3.1: Research sample description 40

2.3.2: Reliability and validity of the scales 41

2.3.3: Survey results 48

CHAPTER III: PROPOSAL ON SOLUTIONS TO ENHANCE CUSTOMER SATISFACTION WITH BEAUTY SERVICE IN BEAUTY SALON IN HANOI 64 3.1: The Assurance solutions 64

3.1.1:The “AF1 - Employees‟ behaviour instils confidence” solutions 64

3.1.2: The “AF2 - Customers feel safe in transactions” solutions 64

3.1.3:The “AF3 - Consistently courteous employees” solutions 65

3.1.4: The “AF4 - Employees‟ knowledge” solutions 66

3.2: The Tangibility solutions 67

3.2.1:The “TF1 - Equipment and facilities” solutions 67

3.2.2: The “TF2 - Physical facilities” solutions 68

3.2.3: The “TF3 - Employees” solutions 69

3.3: The Responsiveness solutions 70

3.4: Other solutions 71

CONCLUSION, LIMITATION AND IMPLICATION 75

1 Conclusion 75

2 Limitations 77

3 Implications 78

APPENDIX 1: QUESTIONNAIRE IN INENGLISH 83

APPENDIX 2: QUESTIONNAIRE IN VIETNAM 90

APPENDIX 3: RESULT CUSTOMER‟S ANALYSIS 99

APPENDIX 4: RESULT BUSINESS OWNER‟S ANALYSIS 115

ABBREVIATION

LIST OF FIGURES

Figure 1.1: The Relationship between service quality and customer satisfaction 16

Figure 1.2: Service Quality 5 Gap Model in SERVQUAL 17

Figure 1.3: SERVQUAL model 20

Figure 1.4: 5 factors to customer satisfaction at beauty salon 22

Figure 2.1: Favour of beauty service‟s kind 38

Figure 2.2: 10 steps‟s skin care 39

Figure 2.3: Validity of the scales of CUSTOMER 43

Figure 2.4: Validity of the scales of Beauty salon OWNER 46

Figure 2.5: Means spot of customer satisfaction by Time use service 59

Figure 2.6: Perception of the gender of customer on beauty satisfaction 62

Collusion 63

LIST OF TABLES

Table 1.1: 10 components of service quality 18

Table 1.2: Compare the two SERVQUAL model and SERVPERF model .21

Table 2.1: Global Spa Facilities by Type, 2007 32

Table 2.2: Number‟s beauty salons each district in Hanoi 35

Table 2.3: result‟s questionnaires of the beauty service‟s research .40

Table 2.4: Business demographics of the respondents 41

Table 2.5: Reliability of the scales 42

Figure 2.3: Validity of the scales of CUSTOMER 43

Table 2.6: Labelling of Extracted Factors of customer‟ questionnaires 45

Table 2.7: Labelling of Extracted Factors of customer‟ questionnaires 47

Table 2.8: Perception of the customer and business owner on 22 variables of service quality 48

Table 2.9: Perception of the customer and business owner on beauty service quality dimensions 49

Tablen 2.10: Result of Linear Regression Model of Customer 51

Table 2.11: Results of the hypothesis testing 53

Table 2.12: Result of Linear Regression Model of Owner 53

Table 2.13: Results of the hypothesis testing 56

Table 2.14: Results of comparison CS0 and OS0 56

INTRODUCTION

1 Rationale

“Mirror mirror on the wall, who is the fairest of them all?”- Fairy tale

Women are the most beautiful creature of Almighty.They present for seducion and beauty There is no dout that Beauty always lies in their eyes, smile, hair, skin and heart Women's beauty is appeared in many poets by lots of romantic poets and many songs and lyrics by a lot of sensive musicians Not only that, no less wars happened for women‟s beauty It is truly said that beauty lies in the eyes of the beholder but a beautiful and attractive face always get privileges everywhere In any time, women go out either for work, for shopping, for party or for just hang out with friends, it takes a huge time for them get ready by doing make up, hair styling, and using perfume These things help her a nice look and soothe others eyes

At social level, physical beauty is an advantage as being beautiful gives a person much more confidence

Even it has been demonstrated by Young (2011) that being attractive can give

a person up to 10 folds increases in getting marry According to Gilmore, Beehr & Love (1986) Physically attractive job candidates whose qualifications are similar to those of less attractive candidates are more likely to be hired highly for the same job Moreover, the beautiful are more likely to get promoted to higher positions and to

be paid more (Young 2011) it can be surely big advantage if you have a Physically attractive beauty and Everything will become easy to you

Women have been aware of their external appearance since ages themselves One can change her face and her figure in various numbers of ways now days In the old days, Woman used herbal treatment to beautify themselves to maintain longly their beauty Nowaday, a beauty salon is to take care of women‟s beauty One provides various kind of beauty service such as skin-facial, bleach, pedicure, manicure, body massage, spa, make up; hair-hair cut, oil massage, ozone treatment, spa, color; piercing, plucking, henna, waxing and different type of therapy

Many firms identified the needs of women in beauty and established salon to meet them In line with the propositions put forward by Schwer & Daneshvary

(2000) and Joy, Sherry, Troilo & Deschenes (2010), Now women tend to spend more time, energy and money on beautification by visiting beauty salons

In recent years, the beauty care service industry has flourished in Vietnam The growing population of beauty-conscious women and their demand for variety

of service is crucial to the growth of the industry

To enter well in highly potential market of beauty, there is a need for beauty salon to change to meet more and more customer Therefore, maintaining high levels of service quality and developing new methods for improving service quality

in the beauty care industry are noteworthy topics for discussion, so the author would like to select the content of “Service quality and customer satisfaction of beauty service at the beauty salon in the city Ha Noi”

With research content as above, the author poses research questions for this topic as follows:

- What are the factors influencing customer satisfaction and service quality of beauty salons

- What is the current status of customer satisfaction and service quality of beauty salons

- What is the evaluation of business owner about customer satisfaction and service quality of their beauty salons?

- What is the difference between two sides in customer satisfaction and service quality of beauty salons?

- What are the suitable solutions to improve customer satisfaction on beauty service of beauty salon?

2 Literature review

 Chin-Hui Yanga,, Yu-Cheng Leeb (2016) conducted a research which focuses on the influence of high-quality items on customer satisfaction and evaluation Though 5 basic conponents of SERVQUAL and SERVPERF models, they are completed questionaires from 257 customers of beauty beauty salon s

model (RKM), and adopted various weighted scores to represent the importance of customer satisfaction The importance–performance analysis (IPA ) method and impact range performance analysis (IRPA) method were employed to determine the priority of service quality improvements.This study provides a very interesting figure that the customers placed the most importance on “cordial service,” The second most important aspect was “beauty care material” followed by “equipment maintenance”, “service provider knowledge” and “advanced beauty care equipment” One of the implications of this study is that higher levels of satisfaction could be enabled among customers through service improvements On the whole, beauty care centers or salons should emphasize improving service quality based on the criteria that were identified as less satisfactory according to the customers The author also made a recommendation for beauty care centers or salons to apply the principles of considering the most importance on “cordial service,” “beauty care materials,” “equipment maintenance,” “service provider knowledge,” and “advanced beauty care equipment.”

 Spyridoula Vryoni, Panteleimon Bakirtzoglou and Panagiotis Ioannou (2017) designed a research to investigate the impact of service quality on customers' satisfaction in SPA centers in Greece By an empirical study of 207 customers of 10 Spa centers Measurements included the use of the SERVQUAL instrument (Parasuraman, Zeithaml, & Berry, 1988) to measure perceptions of service quality Factor Analysis was used to identify the predictive variables of customers‟ satisfaction Results indicated from the five dimensions and twenty two items of SERVQUAL model, willingness to help the customer (responsiveness), management support in problem solving situations (assurance), food and beverages (tangibles), feel secure from danger (assurance), employees' commitment to the comfort of their customers (empathy) and honest and empathic treatment of customers (empathy)were the most predictive variables of Spa centers customers‟ satisfaction The conclusion of the study states , there are 6 service quality of 22 items that create customers' satisfaction Those 6 items could explain Spa customers' satisfaction at a percentage of 55.61%, namely Willingness help

customers, Management‟s support, Food and beverage, Feel secure, Commitment, Honest treatment Therefore Spa centers' management is encouraged to focus its service on those service quality dimensions

 Sharmin Sultana* Tasnim Islam Shimul Das ( 2016) have done a meticulous study aimed at measuring customer satisfaction on beauty salons in Chittagong city, Bangladesh The study team used questionaires which is developed on SERVQUAL model to gather data from 100 customers in 5 most popular beauty salons in Chittagong The study focuses to identify customer perception on tangibility, reliability, responsiveness, assurance and empathy in beauty beauty salon s in Chittagong and to evaluate the effect of service quality on customer satisfaction The statistical tools SPSS is used to calculate the mean and linear regression analysis The results have shown that tangibility has the highest mean score among five factors Moreover, tangibility factor has significant influence on customer satisfaction Beauty salons should consider these factors more to satisfy customer The author also made 5 recommendation for beauty beauty salon s to apply the principles of Quick and prompt service, Error-free records, Experienced and courteous employees, Price and quality, Promotional activities The limitations of the study are that The study is conducted in few popular beauty salon located in Chittagong city with 100 respondent and The respondents‟ response may have the biasness, which may not give true picture about the chosen research topic

 Le Huu Trang ( 2011) have done a meticulous study aimed at measuring customer satisfaction on hotel service at AN GIANG tourist joint stock company in

An Giang provice, VietNam The study team used questionaires which is developed

on SERVQUAL model to gather data from 175 customers in 3 branches Ben Da Hotel Sam Mountain, Dong Xuyen Hotel, Long Xuyen Hotel Each hotel point selects the number of samples corresponding to the turn of the customer to use the service of the entire corporation in the first 9 months of the year The study focuses

to identify customer perception on tangibility, reliability, responsiveness, assurance

SPSS is used to calculate the mean and linear regression analysis The results have shown CS =3.46E-016 + 0.515 * assurance factors + 0,254 * responsiveness factors + 0.120 * reliability factors + 0.117 * tangibility factors, that means the assurance factor has the highest mean score among five factors Moreover, responsibily factor and relibility factor and tangibility factor has significant influence on customer satisfaction

3 Aims of research

Aims of research is giving the recommendations to beauty salons enhance customer satisfaction with beauty services through identify the most important main factor and comparing customer‟s perception and business owner‟ perception

In order to suit with these aims, my thesis give the below missions of research:

- Literature review the previous research on customer satisfaction with beauty service quality in beauty salon

- Systematize the basic theories of service, service quality, beauty service, customer satisfaction, relationship between service quality and customer satisfaction

- Research the service quality measurement models, thereby selecting a suiable model for measuring beauty service quality and customer satisfaction evaluation

- Survey and analyse the status of beauty service quality and customer satisfaction

of beauty salons from two different view – customer‟s and business owner‟s - by the selected model then compare them Limited success evaluation and cause

- Give some recommendations to improve the quality of training services for beauty salons and enhance customer satisfaction with the service

4 Objects of research

Objects of research are beauty service quality and customer satisfaction with this service in beauty salons in Hanoi

5 Scope of research

- Scope of contents: customer satisfaction and service quality of beauty service

- Scope of space: 30 districts in city Hanoi

- Scope of time: questionaires were surveyed from November 2018 to March

2019, for 5 months

- Scope of sample: Individual customers are using and business owners are providing beauty services of beauty salons, with 495 questionnaries in both side

6 Research methodology

Data collection method

o Primary data: In order to fulfil the research objectives requirements,

empirical research was conducted with the primary data collected though questionnaire It contains 22 items combined with service quality factors (Tangibility – (4), Reliability – (5), Responsiveness – (4), Assurance – (4), Empathy – (5)) 5-point Likert scale ranging from 1- Strongly Disagree to 5- Strongly Agree

is used to measure these variables

o Secondary data: Many local and international articles, websites

related to customer satisfaction and service quality of beauty salon s have been used

as secondary sources of data

The questionnaire survey is the most important method in the thesis, which is described in detail as follows:

Base on research objectives and frameworks to identify the information needed: factors, variables and metrics

Determine the content of each question and logic of the questions focused on the evaluation forms currently used at beauty salon

Draft questionnaires

Submit a questionnaire to the instructor

Instructor guide, review, and agree to conduct the investigation

Ruler: use 5 level of Likert‟s measure from the least to the most

- Basic contents of the questionnaire:

Introduction: the author‟s name, the topic name, the main contents to be surveyed Assessment of beauty service quality of beauty salons from both sides according to the developed research model

Data analysis method

The dissertation uses two methods of data analysis: qualitative and quantitative

of scale selection is that it has Cronbach Alpha reliability of 0.6 or higher (Nunnally

& Bernstein , 1994) In this thesis, Cronbach Alpha must be from 0.6 to be retained

EFA analyse

EFA analysis is a technique used to shrink and summarize data This method

is useful for identifying variable sets that are needed for study and are used to find relationships between variables In the exploratory factor analysis, KMO (Kaiser – Meyer – Olkin) value is the index used to determine the appropriateness of factor analysis The KMO value must be between 0.5 and 1, and this analysis is

appropriate, and if the value is less than 0.5, factor analysis may not to be appropriate for the data

One – way ANOVA test

A one-way ANOVA is a type of statistical test that compares the variance in the group means within a sample whilst considering only one independent variable

or factor It is a hypothesis-based test, meaning that it aims to evaluate multiple mutually exclusive theories about the data

In a one-way ANOVA, there are two possible hypotheses

Hypothesis H0: there is no difference between the groups and equality between means Hypothesis H1: there is a difference between the means and groups

If:

Case 1: Significance of observation (Sig.) < 0.05 is sufficient basis to reject Hypothesis H0 and accept Hypothesis H1, meaning that the mean value is different from the test value

Case 2: Significance level of observation (Sig.) >0.05 is not sufficiently rejected Hypothesis H0 should accept Hypothesis H1, which means that the mean value is different from the test value

+ Significance level of observation (Sig.) >0.05 is not sufficiently rejected Hypothesis H0 should accept Hypothesis H1, which means that the mean value is different from the test value

Carry out the customer‟s assessment of beauty salons and the owner‟s assessment

of beauty salon retail credit quality standards by dependent-sample T-test

With Hypothesis:

- H0: Mean value = test value

- H1: average value is different from the test value

If:

+ Significance level of observation (Sig.) >0.05 is not sufficiently rejected Hypothesis H0 should accept Hypothesis H1, which means that the mean value is different from the test value

+ Significance of observation (Sig.) < 0.05 is sufficient basis to reject Hypothesis H0 and accept Hypothesis H1, meaning that the mean value is different from the test value

o Qualitative methods

Using qualitative research methods, interviewing some business owners, some customers Interview content will be recorded and synthesized as a basis for designing the questionnaire Moreover, methods of statistical analysis, statistical analysis, compilation and comparison will also be used in the dissertation

CHAPTER 1: THEORETICAL BACKGROUND ON CUSTOMER SATISFACTION WITH BEAUTY SERVICE QUALITY

“The application of specialised competences (operant resources – knowledge and skills), through deeds, processes, and performances for the benefit of another entity

or the entity itself” that is under the so-called value-in-use view On the other hand, The Nordic School view services as “Processes that consist of a set of activities which take place in interactions between a customer and people, goods and other physical resources, systems and/or infrastructures representing the service provider and possibly involving other customers, which aim at solving customers‟ problems” (Grönroos, 2006)

Another way to deal with Parasuraman (1991) explains that in order to know the perception of customer, it is best to identify and understand their expectations Developing a system that addresses customer‟s expectations is essential

In the thesis, the author proposed and selected the definition of service is based on Lewis and Booms (1983), “Service is a measure of how well the service delivered to the customer is commensurate with the expectations of customer Creating a quality service means responding to customer expectations in a consistent way” This statement clearly demonstrates that the service quality relates

to the expectations of customers and their perception of the service

Services have some characteristics however there are three specific Characteristics in this thesis, namely Intangibility, Heterogeneity, Inseparability

- Intangibility

simultaneity in which services are produced and consumed (Pena, M M., Silva, E

M S da, Tronchin, D M R., & Melleiro, M M 2013)

There is no doubt that intangibility is the most fundamental and most frequently mentioned of the various characteristics of a service (Bateson & Hoffman, 2011; Parasuraman & Berry, 1985)

- Heterogeneity

Heterogeneity (variability) in the service context implies that it is difficult to standardise services, especially in labour-intensive services (Bateson & Hoffman, 2011:68; Fisk et al., 2008:9; Kasper et al., 2006:59; Lewis, 2009:234; Lovelock & Gummesson, 2004:27; Young, 2008:75) The variability (heterogeneity) concerns to whom, where and when services are provided The perishability reinforces that services cannot be stored in advance, so it is necessary that strategies are established for the balance between existing demand and provision of services (Kloter P, Keller KL, 2003) Services will vary in different types, such as services in beauty sector and services in travel sector

- Inseparability

Inseparability in relation to services implies that the production and consumption are inseparable and occur simultaneously (Bateson & Hoffman, 2011; Evans & Lindsay, 2008) The inseparability of services therefore leads to a relatively small time-gap between production and consumption, and the services are often consumed as they are produced The customer has to be present during the production of many services and the customer is forced into intimate contact with the production process (Kotler & Armstrong, 2010; Wilson et al., 2008) So, the interaction between suppliers and service recipients ( customers) may affect quality of service

 Beauty

Going by the dictionary, the quality of being pleasing, especially to look at, or

someone or something that gives great pleasure, especially when you look at it

From Burke viewpoint, in his Philosophical Enquiry into the Origin of Our Ideas of the Sublime and Beautiful, the author wrote that „„Beauty is, for the greater part, some quality in bodies acting mechanically upon the human mind by the

intervention of the senses‟‟ That definition suggests that there is a unique faculty of

beauty that can be stimulated by any and all the senses

Beauty is always the purest desire of man and it is also the goal of reaching enternally of mankind

 Beauty services

Mentioning to beauty services concept, the author is unable to find any definition about this concept There is still a discussion about whether beauty service is a commodity and its market characteristics Although there are many different opinions, many have agreed that, with the guideline of aesthetic theory and artcriticism, beauty services is still growing and increasing not only the quantity but also the quality to serve more and more customer who wants to become prettier and prevent the aging

1.1.2: Service quality

 Quality

Parasuraman et al (1985:41) defined: “Quality is zero defects – doing it right the first time” According to Juran, Gryna and Bingham‟s (1974) definition of quality is consistent with the user- based approach It is essential to fitness for use, the extent to which the product successfully serves the purpose of the user during usage

From Feigenbaum (1951) viewpoint, quality is defined in terms of costs and prices Another key concept is definition of quality as value

Not only Quality is a critical component of customer satisfaction (Gremler et al., 2001; Radwin, 2000) but also Quality, service quality, and customer satisfaction are primary concerns in the manufacturing and service industries (Wang, Lo, and Yang, 2004) Therefore, Quality is one of the most important elements to affect the activities of the firm

 Service quality

There are various definitions of service quality, according to Gronroos (1984), the definition of service quality includes two components of service quality: (1)

Another key concept, Parasuraman, Zeithaml and Berry (1985, 1988) define service quality as the distance between service expectations and customer perception when using the service

According to Stevenson (2002), quality refers to the ability of a product or service to meet or exceed customer expectations consistently “Service quality” is considered a more important order winner than “product quality” in some manufacturing industries (Ghobadian, Speller & Jones 1994), as service-quality improvements can lead to customer satisfaction and cost management that result in improved profits (Stevenson 2002)

According to Cronin and Taylor (1992) and Yacas et al (1997), Ahmad and Kamal (2002), definition of service quality is the most influencing factor for customer satisfaction It is clear to see that if a service provider gives customer quality products that meet their needs, afterward that business has initially made them happy

Moreover, the mention in former sector (Wang, Lo, and Yang, 2004) show the closed relationship between service quality and customer satisfaction It is very important premise to approve the analysis later

In the thesis, the author selected and proposed the definition of service quality according Parasuraman, Zeithaml and Berry (1985, 1988) defining service quality as the distance between service expectations and customer perception when using the service

of which each of service and situation had met their expectations Those feelings can be classified into several levels based on the environment and conditions of service at a time

One major contribution of Kumar, Kee and Manshor (2009) was to provide a terse definition of service quality They defined that high quality of service can result in high customer satisfaction and increases customer loyalty

In line with the propositions put forward by Kotler and Keller (2006), satisfaction is the level of a person‟s sense state that results from comparing the perception of a product to his or her expectations Accordingly, there are three levels of satisfaction:

- If the customer‟s perception is smaller than expected, the customer doesn‟t feel satisfied

- If the expectations, the customer feel satisfied

- If the perception is better than expected, the customer feel very satisfied

By way of explanation, customer is the cornerstone of the marketing concept

of satisfying customer‟s needs and desires A satisfied customer is a significant factor for maintaining long-term business success and appropriate business strategies to attract and retain customers

1.2: Service quality and customer satisfaction

The relationship between service quality and customer satisfaction has been the subject of continuous discussion among researchers over the past decades Start

in the 1880s, when businesses realized that maintaining competitive advantage is not guaranteed by a quality product, standing alone (van der Wal, Pampallis & Bond 2002) Quality of services can be the difference between success and failure

in both service and manufacturing firms (Gupta, McDaniel & Herath 2005) That‟s

a reason why delivering superior service quality is a prerequisite for success and survival in today‟s competitive business environment (Gilbert & Wong 2006) as it can ensure increased customer satisfaction

Service quality and customer satisfaction are very important concepts that companies must understand if they want to remain competitive and grow The quality of services provided and customer satisfaction are critical success factors in

claim that Quality and customer service have been identified as critical strategic issues for the organizations

However, many researchers showed that service quality and customer satisfaction are two distinct concepts From Parasuraman et al (1993) argue that there are some differences between service quality and customer satisfaction, the main difference being the “cause and effect” Customer satisfaction is influenced by many factors such as: product quality, service quality, price, situational factors, personal factors (Zeithalm and Bitner, 2000)

Service quality and satisfaction are two different but closely related concepts

in service research (Parasuraman et al 1988) Accepting the premise that service quality is the cause of satisfaction (Cornin and Taylor, 1992; Spreng and Taylor , 1996) Therefore, service quality is related to service delivery, and satisfaction is measured only after service has been used

Customer satisfaction as a result, service quality as a cause, satisfaction is predictive nature, expectations Service quality is an ideal standard; customer satisfaction

is a general concept, expressing their satisfaction when consuming a service

As such, service quality is a factor that greatly affects customer satisfaction If

a service provider supply customers with good quality products that meet their demand, that network provider is initially making the customer pleased To improve

as good customer satisfaction as possible, services providers must promote service quality By other way, service quality and customer satisfaction are closely interrelated Therefore, when using the service, if customer feels the service is high quality, they will be satisfied with that service In contrary point, if customers feel the service is low quality, dissatisfaction will arise

Figure 1.1: The Relationship between service quality and customer satisfaction

(Source: Zeithaml & Bitner (2000), Services Marketing, MacGraw – Hill)

1.3: Service quality assessment models

1.3.1: Service Quality Grap Model

The result of the analysis as a whole verified that there is a set of key discrepancies or gaps, consisting of the differences between users‟ expectations and what is actually offered These gaps can be the main obstacle for users to perceive the provision of such services as high quality

Figure 1.2: Service Quality 5 Gap Model in SERVQUAL

(Source: Parasuraman & el (1985)) When perceptions are higher than expectations, the gaps are narrow and there are high levels of satisfaction, considering the excellent service and quality Five corporate gaps are emphasized that are usually encountered between the expectations and perceptions of users These are:

• Gap 1: refers to consumer expectations and the perception of management towards them The service providers do not always understand what requirements connote excellence of quality for consumers;

• Gap 2: is the specification of the quality of the services defined by the translation of perceptions that management has of the expectations of users This discrepancy is due to the lack of specification of the offer, adjusted to the wishes of the consumers;

• Gap 3: relates to the actual performance of service in the face of previously established specifications;

• Gap 4: relates to the service actually provided and external communications (service specifications announced in the media or other communication channels);

• Gap 5: This was established as a function of the four previous shortcomings, namely The service quality model according to these researches can be expressed as follow:

SQ = f (Gap 5 = f [gap 1, gap 2, gap 3, gap 4])

Inside:

- SQ is service quality

- Grap 1, Grap 2, Grap 3, Grap 4, Grap 5 are quality distances 1, 2, 3, 4, 5

It is essential to perform the measurement of user satisfaction to focus on the expectations and perceptions that the user has about the offered services (Parasuraman A, Berry LL, Zheitmal VA, 1991) Accepting the premise, used both for services as well as for products, has been understood as superiority or excellence, while the concept of service quality is more abstract and intangible In the absence of objective measures, it may be considered appropriate that the evaluation is performed by measuring user‟s perception of the service (Zeithaml V, Parasuraman A, Berry LL,1990)

The difference year model is a general, theoretical model of service quality In order to be able to practice, Parasuraman et al have tried to build a scale for measuring quality in the service sector, according to him, any quality service that consumers perceive is based on the following 10 components

1.3.2: Service quality 10 components model

The 10 components model of service quality described though Table1.1:

Table 1.1: 10 components of service quality Component Example of evaluative criteria

1 Tangibility Appearance of physical facilities and personnel

2 Reliability Performing services right the first time

3 Responsiveness Willingness and ability to provide prompt service

4 Communication Explaining service to customers in a language they can understand

5 Credibility Trustworthiness of customer-contact personnel

6 Security Confidentiality of transactions

7 Competence Knowledge and skill of customer-contact personnel

8 Courtesy Friendliness of customer-contact personnel

9 Understanding/ Making an effort to ascertain a customer‟s specific

The ten components model of service quality has the advantage of covering almost every aspect of the service Although, this model has some disadvantages of complexity in measurement Besides, this model is theoretical, there may be many components of the service quality model that do not achieve distinctive values From Parasurama (1988) viewpoint, service quality is the distance between perception and expectation of a service, that is discussed by himself

It is essential to be understood as: Service quality = Perceived Level – Expected Value

But perception can be understood and defined explicitly based on the customer

„s belief in the service when they use it, the expectation seems to be understood vague and can be understood in terms of many different point

1.3.3: SERVQUAL and SERVPERF models

One of the first service-quality models is the SERVQUAL model, demonstrated by Parasuraman, Zeithaml, and Berry (1985), comparing customer expectations with respect to a service and customer perception of the service being actually delivered Include five service quality distance model and component quality service model The descriptions provided for each of the SERVQUAL dimensions are as follows five criterias through 22 scales

Figure 1.3: SERVQUAL model

(Source: Parasurama, Zeithaml & Berry 1985, 1988

www.marketingstudyguide.com.)

Cronin and Taylor (1992) modelled SERVPERF, suggesting that the level of customer perception of service performance reflects the best service quality That measures experiences only and does not ask respondents about expectations As a result, SERVPERF uses only the perceptions part of the SERVQUAL scale Can also be understood as:

Satisfaction of service quality = level of perception

As a variant of SERVQUAL model, the SERVPERF model consist of five basic components, namely:

1 Reliability: Ability to perform the promised service dependably and accurately

2 Responsiveness: Willingness to help customers and pro-vide prompt service

3 Assurance: Employees‟ knowledge and courtesy and their ability to inspire

trust and confidence

5 Tangibles: Appearance of physical facility, equipment, personnel and

Perceived level -

Expected value

SERVPERF : Service

quality =

Perceived level -

(Source: author (2019)) While perception can be clearly understood, and defined based on the customer‟s belief in the service they use, the expectation seems to be understood rather ambiguously and can be understood once more Thus, when measuring service quality, the SERVPERF model is often used more popular

1.3.4: Theorical framework and Hypothesis

Based on the mode relationship between service quality and customer satisfaction (Figure 1.1), the model applied to the case of beauty salon in Hanoi was created and presented in Figure 1.4 The model has been adjusted to be more suitable for beauty service analysis Specially, there are two form questionnaires for two distinct candidates, and that is built the same question which based on 22 questionnaires of Paramurama The author will compare the different perceptions of service quality between customer and business owner To find important difference from “business owner thinks” side and “customer feels” side then give some solutions to improve customer satisfaction

Figure 1.4: 5 factors to customer satisfaction at beauty salon

(Source: author (2019))

We have the regression model estimated:

Customer satisfaction =  + 1* Reliability Factors + 2* Responsiness Factors + 3 * Assurance Factors + 4 * Empathy Factors + 5 * Tangibility Factors Inside: Customer satisfaction of both side

The hypothesis for the model is as follows:

Hypothesis 1: Reliability factors has positive affection to beauty service porvided by beauty salon Hypothesis 2: Responsiness factors has positive affection to beauty service porvided by beauty salon Hypothesis 3: Assurance factors has positive affection to beauty service porvided by beauty salon Hypothesis 4: Empathy factors has positive affection to beauty service porvided by beauty salon Hypothesis 5: Tangibility factors has positive affection to beauty service porvided by beauty salon

1.3.5: Designing Scales and Questionnaires and Sample

When designing the measurement scales, it is necessary to evaluate in order to ensure the quality of measurement The author has design the scales based on the evaluation forms of 22 Paramurama‟ questionnaires Questionnaires were guided, review, and agree to conduct the investigation

In this research, the author uses Likert‟s 5-point scales in measuring impact factors to customer satisfaction of beauty salon (from 1 to 5, in which: 1: strong disagree/ 2: disagree / 3: neutral/ 4: agree / 5: strong agree)

Scales of Reliability factors

Factors Questions Code

(Customer)

Code

(Owner)

Agree level 1

Performs service right the

(Source: author (2019))

Scales of Responsiness factors

Factors Questions Code

(Customer)

Code

(Owner)

Agree level 1

Scales of Assurance factors

Factors Questions Code

(Customer)

Code

(Owner)

Agree level 1

Customers feel safe in

Scales of Empathy factors

Factors Questions Code

Has the best interest of

(Source: author (2019))

Scales of Tangibility factors

Factors Questions Code

(Customer)

Code

(Owner)

Agree level 1

satisfactio

n

(Source: author (2019)) Business owner‟s side:

(Customer)

Agree level 1

satisfactio

n

(Source: author (2019))

1.3.6: Data collection method

From the need to receive back 105 responses of customer and 285 responses

of business owner, the author has implemented the data collection as follows:

- Step 1: Using Microsoft Office to design and printing questionnaires

- Step 2: The First period: Sending 160 questionnaires to 8 sales of

Mediworld cosmetic company, asking them to give their customer (the business owner, boss or manager of beauty salon) and collect back 95 sheets, but there are 4 wrong sheets because of missing information, therefore only have 91 right sheets Besides, choose 13 unit in 7 central district in Hanoi of them to ask directly customer of beauty salon Sending 130 questionnaires to random customers of 13 units and collect back 111 sheets, but there are 6 wrong sheets because of missing information, therefore only have 105 right sheets

The second Period: invite amount of data customer‟s Mediworld company, which business cosmetic product, to go to the grateful conference to customer (who is a business owner‟s beauty spa) and the ceremony of new products on 25th march 2019, total customer is about 160 people to 200 people And there are 205 questionnaires is sent to them by Marketing department and collected back 187 right sheets

Totally, collect the questionnaires that have been fully answered for 5 months

- Step 3: Receiving answered questions from 8 sales

CHAPTER 2: ASSESSING THE SITUATION OF CUSTOMER SATISFACTION WITH BEAUTY SERVICE AT BEAUTY SALON IN HANOI

2.1: Introduction of Beauty salon in Hanoi

2.1.1: Introduction of beauty industry

Beauty salon (or salon spa) is one of units which business the beauty services Think of beauty salon, it is not impossible to mention the spa These are the two subjects that are closely connected by the goals Can be understood clearly that beauty salon is one of spa typologies

Nowadays, Spa is very familiar to everyone According to the latest Global Spa Research of ISPA (International Spa Association) estimated point to nearly 100 million active spas globally

According to The Global Spa Economy (2007), there are estimates that the total size of the global spa economy was USD254 7 billion This estimate includes USD 60.3 billion in core spa industries and an additional USD 194.4 billion in spa-enabled industries

What is a Spa

Introduced by the Romans during the Hippocratic era in 400BC, 'spa' is an acronym for the Latin Solus Per Aqua (treatment through the use of water) where streams of hot water were directed on the battle-weary bodies of Roman legionnaires, providing relief from exhaustion as well as to treat battle-inflicted scars and wounds (web7.bemama.corn)

According to International SPA Association, Spas are entities devoted to enhancing overall well-being through a variety of professional services that encourage the renewal of mind, body and spirit For the purposes of reliable industry benchmarking, Intelligent Spas defines "spa" as:

"A business offering water-based treatments practiced by qualified personnel

in a professional, relaxing and healing environment"

This definition was developed to support the original meaning of spa being

"healing through water" Water-based treatments may include body wraps, body scrubs, baths, and so on

A relaxing and healing environment distinguishes spas from standard beauty salons and clinical medical centres that are not promoted as spa businesses Qualified personnel include employees who have successfully completed professional external training courses and/or on-the-job training of relevant standard operating and treatment procedures required of a professional spa businesses

History of Spa

According to Van Tubergen, A (2002), there are five general period of spa‟s history

- Ancient Greece and Roman Empire

Taking the waters used to be a popular treatment for a wide range of diseases

in classical times The Greeks preferred baths in fresh water from natural resources, although bathing in the sea (thalassotherapy) was also applied Initially, bathing was confined to the wealthier people in private baths, but soon public baths were opened

In Homeric times, bathing was primarily used for cleansing and hygienic purposes By the time of Hippocrates (460–370 BC), bathing was considered more than a simple hygienic measure; it was healthy and beneficial for most diseases Influenced by the Greeks, the Romans built their own thermal baths at mineral and thermal springs A military presence was often the key to development of such

a spa resort Spas served not only for recuperation of wounded soldiers but also as rest and recreation centres for healthy soldiers In contrast with the Greeks, who took the waters after intensive physical exercises, the Romans considered the baths more important than the gymnastics alone Besides cleansing, exercises, socialising, relaxation, and worship, medical treatment was also applied extensively Spa treatment consisted of application of water to afflicted parts of the body, immersion

of the whole body in the water and drinking excessive quantities of water

- The Dark and middle ages

With the fall of the Roman Empire in 476 and the rise of Christianity, the bathing culture fell into disrepute and bathing was officially prohibited Baths were redeveloped as churches, although some remained available for the aristocrats who

From the 13th century onwards, baths gradually came into re-use, particularly

in southern Europe under the influence of the Moors Public baths were rebuilt and the entrance was usually free The baths were often crowded and people bathed for hours, sometimes days in the same bath Bloodletting, enemas, and drinking cures (up to 10 litres a day) were prescribed, although relaxation and pleasure were most often the reasons for bathing

The use of mineral waters and the development of hotels and guesthouses at the springs became prevalent throughout Europe and North America Every spa resort had its own theatre, casino, and promenades besides the bathing buildings In Britain, Germany, Austria, and Belgium much importance was attached to

ostentation Grand hotels arose with casinos and dancing establishments surrounding the spa resorts The spa resorts became not only a meeting centre for the elite but also a place of creativity for painters, writers, and composers The baths were again crowded Baden Baden (Germany) became the most glamorous resort in continental Europe It was the place to see and to be seen

However, in Britain use of the spa declined The English spa resorts were run

by amateurs, and the medical hydrology was poorly organised Competition from seaside and foreign resorts, and an economic depression in the 1930s led to a further decline As such, many spa resorts in Britain closed down

After the second world war and with the rise in welfare, spa treatment became available for the common man in many European countries, mainly owing to reimbursement by state medical systems Other activities and new treatments were introduced, and balneology, hydrotherapy, and physiotherapy underwent major developments

The medical significance of bathing is now acknowledged, especially by many rheumatologists and dermatologists, and this aspect is considered more important for a number of spa resorts than prestige and leisure Bathing is usually combined with many other treatments, such as physical exercises, hydrotherapy, and mud packs The spa resorts are differentiated according to their location (for example, seaside, mountain area) and the chemical composition of their mineral water (for example, sulphurous, bicarbonate, or sulphated) In Britain, a revival of the spa culture may be expected, with the re-opening of the hot springs in Bath in 2002 This spa will offer facilities for medical treatment, but, in addition cater for a growing number of so-called health tourists, who combine their holidays with an investment in wellbeing

Today, spa and beauty salon is receiving renewed attention from many prevented aging and having a revival Throughout the ages, Spa has been viewed with different opinions, from very enthusiastic to extremely critical, and from