Women entrepreneurs in beauty clinic industry in tamilnadu


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Women entrepreneurs in beauty clinic industry in tamilnadu

  1. 1. INTERNATIONAL JOURNAL OF MANAGEMENT (IJM)– International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 6510(Online), Volume 3, Issue 3, September- December (2012)ISSN 0976 – 6502(Print)ISSN 0976 – 6510(Online)Volume 3, Issue 3, September- December (2012), pp. 131-138 IJM© IAEME: www.iaeme.com/ijm.aspJournal Impact Factor (2012): 3.5420 (Calculated by GISI) ©IAEMEwww.jifactor.com WOMEN ENTREPRENEURS IN BEAUTY CLINIC INDUSTRY IN TAMILNADU Mrs.M.Chitra , Assistant Professor, School of Management, SRM University, Kattankulathur, Chennai, India. E-mail: chitramuthuraman@gmail.com,Chitra.m@ktr.srmuniv.ac.in Dr. Kalpana, Assistant Professor, School of Public Health, SRM University, Kattankulathur, Chennai, Tamilnadu, India. E-mail: kalpax4@gmail.com 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 131
  2. 2. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 –6510(Online), Volume 3, Issue 3, September- December (2012)find employment in salon or beauty parlor, a cosmetic manufacturing company, a health club orgym, 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 hassignificantly developed in terms of manufacture, promotion and marketing of different beautyproducts.2.0 Objectives of study1. 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 CollectionThe data was collected both primary and secondary data. The primary data was collected byusing 2 types of questionnaire. First questionnaire was framed exclusively for the beauticians andthe second questionnaire was focused on the customers of the parlors. Information fromsecondary sources. The study was conducted in Tamilnadu with a sample size of 350 womenowned beauty parlor and about 450 customers. Tools used to study are Chi-square test, weightedaverage method, factor analysis and multiple regression analysis.4.0 RESULTS AND DISCUSSIONFactor 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 andsphericity of the sample. Table : 1 KMO and Bartletts TestKaiser-Meyer-Olkin Measure of Sampling Adequacy. .582Bartletts Test ofApprox. Chi-Square 200.515Sphericity Df 45 Sig. .000To identify the factors which influence the success of entrepreneurship in beauty clinics, 10factors were selected from the questionnaire and used in the Factor analysis. The resultsrevealed that the first three components alone explain more than 72% of the variance. This 132
  3. 3. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 –6510(Online), Volume 3, Issue 3, September- December (2012)implies the three components consist of a number of factors which have to be concentrated on toimprove the success of the beauty clinics. For this purpose the varimax rotated componentmatrix 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 theentrepreneurs have to develop methods for managing stress in their day to day activities. Theyshould ensure that the workers in the clinics are well trained in every aspect of the trade andmotivate them in different ways [monetary and non-monetary ways] to improve theircommitment. As regards performance, the entrepreneurs should realize that the service renderedis highly personal and customized. So what is offered to one customer is not relevant orapplicable to others. In such a case, they have to understand the customer’s requirements welland translate it appropriately and design the package of service which would enhance thecustomer satisfaction. As these four factors are heavily loaded every positive improvement inthese 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 inproblem solving, general management skills and managing others. It could be noted that thesecond, 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 alsocarefully understand the experience of the others in the field. Added to this is the necessity toretain 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. Thismeans, apart from the experience in the business, the entrepreneurs need to understand the risksposing challenges to their business. These could be business related, customer related or otherexternal factor related. 133
  4. 4. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 –6510(Online), Volume 3, Issue 3, September- December (2012)Table : 2 Total Variance ExplainedComponent Extraction Sums of Squared Rotation Sums of Squared Initial Eigenvalues Loadings Loadings % of Cumul % of Cumulative % of Cumulative Total Variance ative % Total Variance % Total Variance % 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 89.539dimension 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 .752 100.000Extraction Method: Principal Component AnalysisMultiple Regression analysisIn order to examine the factors influencing the customer satisfaction, a number of variables wereselected 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. Theindependent variables included are : X1 location of the beauty clinic, X2 frequency of visit, X3pricing strategy, X4 punctuality of clinic employees, X5 quality of work, X6 quality of service intreatment, X7 internal facility and X8 parking facility., Y = satisfaction index 134
  5. 5. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 –6510(Online), Volume 3, Issue 3, September- December (2012)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 .168Extraction Method: Principal Component Analysis, Rotation Method : Varimax with KaiserNormalization ,a. Rotation converged in 5 iterationsThe result indicated a very high R2 value of 0.900, implying that the factors included for theanalysis together explain 90% of the fluctuations in the Customer satisfaction. A statisticallyhigh F value [31.499] implied that the regression equation is fit for both interpretation as well asprediction.Table : 4 ANOVAbModel Sum of Squares df Mean Square F Sig.Regression 953.028 8 119.129 31.499 .000aResidual 105.895 28 3.782Total 1058.923 36 135
  6. 6. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 –6510(Online), Volume 3, Issue 3, September- December (2012)Table : 5 Coefficients aModel Unstandardized Standardized Coefficients Coefficients B Std. Error Beta t1 (Constant) 108.874 2.175 50.048Location of the parlor .061 .362 .014 .169 .867Frequency of visit .250 .439 .044 .570 .573Pricing strategies -2.830 .862 -.370 -3.283 .003Punctuality of clinic Members .600 .308 .000 4.5852.752Quality of work 1.376 .527 .229 2.612 .014Quality of service in treatment .827 .329 .001 3.8043.145Internal facility 1.931 .545 .286 3.543 .001parking facility 1.140 .295 .297 3.866 .001a. Dependent Variable: Satisfaction indexThe 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 significantwhich means customer satisfaction index in a significant manner. As pricing strategy of thebeauty clinic holds the key for improving customer satisfaction. Any price difference betweenclinics for any service is bound to affect the customer response and customer satisfaction. Withvery 1 unit reduction in price, the satisfaction would go up by 2.83 units. The presence ofnegative 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 theclinic; it should be honored without fail. So this adherence to the appointment can improvecustomer satisfaction. Every one point improvement in punctuality among the employees canimprove the customer satisfaction by nearly 2.752 points. For this to happen, the employees 136
  7. 7. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 –6510(Online), Volume 3, Issue 3, September- December (2012)should be stress free, well supported and motivated by the entrepreneur. Another statisticallysignificant factor is the quality of work. That is, every work done by the employee in the clinicshould be of high quality. As is clear from the equation every unit improvement in the quality ofwork turned out the customer satisfaction would go up by 1.376 units. The next factor is qualityof service in treatment. The equation points out that every unit increase in the quality of serviceadds to the customer satisfaction by 3.145 units. A very important expectation among thecustomers is a good internal environment. By addressing this in a professional manner, thecustomer satisfaction is bound to increase as shown by this equation. To be specific every unitimprovement 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 freeparking facility. This is an external factor which has nothing to do with the way the customerservice is rendered. But this is equally important as no customer would leave the vehicle on roadunprotected. So the beauty clinics can provide some reserved parking facility for customersatisfaction. Every unit support in providing parking facility would improve the satisfaction by1.14 units.5.0 CONCLUSIONSKey for achieving a higher customer satisfaction lies with the entrepreneur. Every satisfiedcustomer will not only visit again, but also would spread the message among others. When theconstituent of demographic profile of the respondents was studied with customer satisfaction, itwas found only age has a significant relationship with customer satisfaction. A very importantlesson from this, the entrepreneurs should give very high priority while dealing with eachcustomer depending upon the age. Always the youngsters come to the clinics only to fine tunetheir beauty and the clinic should rise up to their expectations. Similarly middle aged and elderlywomen visit the clinic with specific requirements and expectations. The clinic should addressthis on a case to case basis so that each customer is satisfied.6.0 REFERENCES1. 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. 137
  8. 8. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 –6510(Online), Volume 3, Issue 3, September- December (2012)3. Bebko,C.P (2000). Service Intangibility and its Impact on Consumer Expectations of Service Quality: Journal of Service Marketing, 14(1), 9-264. 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 - 737. 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), 36-449. Service marketing ,The Indian context,R Srinivasan, Prentice-hall of India Private ltd, New Delhi ,2004 pp -202. 138