INTRODUCTION

Background of the Study

The beauty salon industry has become a crucial part of the service sector, thriving on

customer satisfaction, loyalty, and a competitive edge. The quality of service provided by

beauty salons significantly impacts their success and profitability, as customers’ perceptions

of service quality directly influence their satisfaction, repeat business, and overall

performance of the establishment. Service quality, defined as the difference between

customer expectations and their perceptions of the actual service received, is considered a

critical determinant of customer satisfaction and business performance in service-oriented

industries. As the beauty industry grows, with a rise in both demand and competition,

understanding the elements that contribute to service quality has become essential for salon

owners and managers to maintain and improve their performance.

According to Choi, Y., & Lee, S. (2015)the relationship between service quality and

customer satisfaction in beauty salons. It concluded that the most important dimensions of

service quality for beauty salons were tangibility, empathy, and assurance. The authors found

that improving these areas directly impacted customer loyalty and positive word-of-mouth,

which ultimately enhanced business performance.

However, despite extensive research on service quality in various industries, there is a

noticeable gap in empirical studies focusing specifically on the beauty salon industry. Most

research tends to generalize findings from other service sectors, such as hospitality and retail,

without addressing the unique attributes of beauty salon services. Factors such as technical
skill, ambiance, staff attitude, and personalized service in beauty salons require specific

attention. Additionally, there is limited research exploring the direct link between service

quality and the operational performance of beauty salons, including customer retention,

financial growth, and brand reputation.

This study aims to bridge this gap by investigating the influence of service quality on

the performance of beauty salons. It focuses on identifying the key elements that contribute to

the perception of high-quality service in salons and how these elements correlate with

business performance indicators, such as customer satisfaction, profitability, and overall

reputation. The purpose of this study is to provide a deeper understanding of how service

quality can be leveraged to enhance salon performance, offering insights that can help salon

owners and managers improve their operations, increase customer loyalty, and boost

profitability.

While there has been considerable research on service quality in general, specific

studies that address the relationship between service quality and the performance of beauty

salons remain scarce. Previous studies on service quality in the beauty industry often focus on

customer satisfaction, but few have directly linked service quality to tangible business

performance metrics like revenue generation, market share, or long-term success.

Additionally, existing studies tend to overlook the role of emerging service elements

in beauty salons, such as technological innovations, personalized services, and the impact of

online reviews. This gap highlights the need for more industry-specific research that explores

how varying dimensions of service quality contribute to the overall performance of beauty

salons.
 The primary purpose of this study is to examine the influence of service quality on the

performance of beauty salons. This will be achieved by identifying the key service quality

factors that affect customer perceptions and satisfaction, and exploring how these factors

directly influence the operational success and business performance of beauty salons. By

addressing the research gap, this study aims to provide practical recommendations for salon

owners and managers on improving service quality, which can lead to better customer

retention, increased sales, and enhanced brand reputation.

Theoretical Framework

Service Quality Model

This model emphasizes the importance of service quality dimensions such as

tangibles, reliability, responsiveness,

assurance, and empathy in shaping customer satisfaction and loyalty. In user-based approach,

quality is compared

with the satisfaction. The highest quality means the best satisfaction of consumers’

preferences. In value based

approach, quality is defined in terms of cost and price. It is perceived as a function of price.

Customer Satisfaction Model

This model suggests that customer satisfaction is influenced by perceived service quality,

which in turn affects

customer loyalty and behavioral intentions. A product or service (Oliver, 1997). Individuals

who pay for a

product/service but who do not use this product/service should not be expected to have the

type of (dis)satisfaction

that a product/service user (the consumer) will have.

Conceptual Framework

IV DV

Service Quality PERFORMANCE

Confidence/Trust Competitive Advantage

Assurance/Reliability Market Share

 Communication Productivity

Responsiveness Sales Volume

Tangibility Relationship building

Empathy

Complains Handling

Figure 1. This graph illustrating the relationships between three (3) distinct variable of the

theory of good service

perfomance in beauty salon.

Statement of the Problem

This study aims to determine the level of customer satisfaction nail services provided by

BNC students in Marcelo Baquial Sr. National High School. In particular, it sought to address

the following questions.

1. How does the technical and interpersonal service quality in beauty salons influence

customer satisfaction by BNC Students in Marcelo Baquial Sr. National High

School?

2. What is the impact of service quality, including customer interaction and service

delivery, on customer loyalty in beauty salons in BNC Students in Marcelo Baquial

Sr. National High School?

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

performance?

Objectives of the Study

To assess the level of service quality provided by beauty salons in Poblacion, Valencia

City, Bukidnon.

To determine the relationship between service quality and customer satisfaction.

To examine the impact of service quality on customer loyalty.

 To analyze the contribution of service quality to the overall performance of beauty

salons.

Hypothesis

Ho: There is a significant relationship between service quality and beauty salon

performance at

Poblacion, Valencia City, Bukidnon.

Ha: There is no significant relationship between service quality and beauty salon

performance at

Poblacion, Valencia City, Bukidnon.

Scope and limitations

This study focuses on the influence of service quality on the performance of beauty

salons in Poblacion,

Valencia City, Bukidnon from July to November 1, 2024. The research will be limited to the

perceptions of

customers who have availed services from these beauty salons during the specified period.

The study will primarily

examine the following dimensions of service quality: tangibles, reliability, responsiveness,

assurance, and empathy.

It will also explore the relationship between service quality and customer satisfaction, as well

as the impact of

service quality on the overall performance of beauty salons in the area.

However, this study has certain limitations. First, the findings may not be generalizable

to other regions or
types of beauty salons. Second, the study relies on self-reported data from customers, which

may be subject to bias.

Lastly, the study period may not capture the full range of seasonal variations and industry

trends.

Significance of the Study

This study lies in its potential to further broaden our understanding of how service

quality influence

the beauty salon’s performance of Poblacion,Valencia City Bukidnon. The findings of

this study will

provide valuable insights for.

Beauty Salon Owners. Understanding the critical role of service quality in attracting and

retaining customers.
Develop effective customer relationship management practices to foster long-term

relationships with their clientele.

Customers. Making informed decisions about choosing a beauty salon. They are the

lifeblood of any

business, as their satisfaction and loyalty directly impact its success.

Researchers. Researchers are individuals who conduct systematic investigations to gain

knowledge and

understanding of the world. By studying the relationship between service quality and

customer satisfaction in the

beauty industry, they contribute to the existing body of knowledge and can help businesses

improve their services

and customer experiences.

Academ. Contributes to the existing body of knowledge on service quality and customer

satisfaction within

the beauty industry, specifically in the context of Poblacion, Valencia City, Bukidnon. By

investigating the
relationship between these variables, this research can provide valuable insights for both

academic researchers and

industry practitioners.

Definitions of Terms

The following terms are operationally efined for the purpose of the study. Service

Quality is an assessment

of how well a delivered service conforms to the client's expectations. Service business

operators often assess the

service quality provided to their customers in order to improve their service, to quickly

identify problems, and to

better assess client satisfaction.

Customer Satisfaction is basically the judgment a consumer makes in relation to his/her

sense of fulfillment
related to his/her choices about the purchase and use of specific products and services. The

concept of satisfaction

emerging from past research shares three recurrent elements: the fact of being a (either

cognitive or emotional)

response to an evaluation process; the fact that such a response depends on a specific focus

(constituted by

individual expectancies, standards of comparison, and consumption experience); and the fact

that it depends on the

specific timing in which such a response takes place.

Customer Loyalty is the act of choosing one company’s products and services

consistently over its

competitors. When a customer is loyal to one company, they aren’t easily swayed by price or

availability. They

would rather pay more and ensure the same quality service and product they know and love.
 Service Performance the ability of a service provider, such as a beauty salon, to deliver

high-quality service

consistently. It includes factors like the skills and professionalism of the staff, the timeliness

of service delivery,

and the effectiveness in meeting customer needs.

Operational Efficiency the ability of a beauty salon to deliver services in a cost-

effective manner without

compromising quality. This includes optimizing staff performance, resource management,

and customer flow to

ensure smooth service delivery and high client satisfaction.

 CHAPTER II

REVIEW OF LITERATURE

The Importance of Service Quality in the Beauty Industry

According to Azad (2015) that customer satisfaction is one of the ways in identifying

customers positive

feeling and behaviour toward an establishment. The findings of the study revealed five

factors and each factor has

an important influence to beauty parlors in improving the service. Profits and gains of the

company should not only

be the center of attraction but the assurance, reliability, tangibility, empathy and

responsiveness since it is fairly

important in dealing customer’s satisfaction. This is also supported by Panicker and

Muhammad (2017) that

beauticians/hairdresser at the parlor has great contribution in gathering satisfaction of

customers. Also, a great

service quality results in excellent customer satisfaction which in return, the loyalty of the

customers. Most of

women are very accurate regarding the behaviour of the employees serving them. Once

they’re satisfied with one

particular employee, they would prefer the same employee in receiving the service once they

visit again the said

beauty parlor. Through this study, findings concluded that service quality provided by the

employees and customer

satisfaction associated with great performance has a strong relationship. Kim,M-J (2021)

pointed out that

employees in skincare salons lower turnover intention and feel more satisfied with their jobs,

especially when the

salons look for ways to reduce the manager’s negative leadership and implement fair

regulation and promotion.

Kim and Lee,S.-T (2018) found a significant relationship between employee job satisfaction

with the employee’s

customer orientation and the impact of the relationship on the long-term business

performance of beauty shops in

South Korea. In addition, Park et al. (2019) suggested that active and systematic managerial

support for junior

workers is needed to achieve sustainability in the beauty service industry. Therefore,

establishing effective

organization management systems and planning distinctive strategies would secure

competitive advantages.
Service Quality Dimensions in Beauty Salons

Service quality is a multi-dimensional construct that includes both tangible and

intangible aspects that

influence customers' perceptions of the service they receive. In the context of beauty salons,

several studies have

identified key dimensions of service quality that are critical to customer satisfaction and salon

performance.

Tangibles this refers to the physical appearance of the salon, including cleanliness,

interior design,

equipment, and the professionalism of the staff. A clean and aesthetically pleasing

environment can significantly

enhance customer perceptions of service quality (Kang & Lee, 2016). Research shows that

customers often

associate the physical environment with the overall service quality, and salons with a well-

maintained atmosphere
attract more clientele (Teng & Lee, 2018).

Reliability, the ability of the salon to consistently provide services that meet customer

expectations.

Reliability includes factors like punctuality, accuracy, and the dependability of services. In

beauty salons, this

might mean delivering the promised hairstyle, treatment, or other beauty service with

consistent results (Huang &

Lin, 2017). Customers’ trust in the salon’s ability to deliver quality services is integral to

building long-term

relationships and repeat business.

Responsiveness involves the willingness and ability of the staff to help customers

promptly. This includes

quick service delivery, addressing customer concerns, and providing personalized attention.

Beauty salons that train

their staff to be more responsive, courteous, and attentive often see higher levels of customer

satisfaction (Nguyen

& Nguyen, 2021). Staff responsiveness directly influences the customers’ experience and can

lead to higher loyalty

and retention rates.

Assurance the salon's ability to instill confidence in clients through knowledgeable,

skilled, and professional

service providers. Assurance in beauty salons comes from the staff’s technical expertise and

ability to make

customers feel comfortable and secure with the services provided (Choi & Lee, 2015).

Customers expect to receive

expert advice and high-quality service, which influences their decision to return and

recommend the salon to others.

Empathy involves the staff's ability to understand and care for the individual needs of

each customer.
Personalized attention, understanding customer preferences, and creating a positive emotional

connection are

essential for customer satisfaction in beauty salons. Studies suggest that salons with staff who

are empathetic and

customer-focused enjoy better loyalty and repeat business (Gambetti & Biraghi, 2020).

Empathy also leads to

higher satisfaction by making customers feel valued and understood.

Beauty salon is an establishment that can provide and offer services for both men and

women in enhancing

their physical image. It offers various services like haircut, hair treatment, foot care and spa,

manicure, pedicure etc.

However, not all beauty salon can easily gain customers and increase profit due to the lack of

information that

should from their target individuals (Sena,2014).

In the Philippines, some beauty salon owners had a problem with the satisfaction of

customers. The ‘Shawie

Beauty Salon’ in Lipa City is a famous beauty parlour because of its ambiance and affordable

price. Even so, their

consumers were not satisfied of the quality of service they offer (e.g., straightening the new

colored hair aftermaths

hair damage). In the 2010s, the beauty industry underwent a rapid change, and there was a

diverse character of the

business globally Kim, M.-J. (2021). Even before COVID-19 had spread, the meaning of

beauty was changing to

be more global and connected to a sense of well-being Gerstell, E. et.al (2021).

The Relationship Between Service Quality and Performance

Research has consistently demonstrated that service quality has a direct impact on

business performance,

especially in service-oriented industries like beauty salons. Several studies highlight how

different dimensions of

service quality contribute to the overall performance of beauty salons in terms of customer

satisfaction, loyalty, and

financial success.
 Customer Satisfaction and Loyalty studies have shown that high service quality in beauty

salons leads to

higher customer satisfaction, which in turn fosters customer loyalty (Kang & Lee, 2016).

Loyal customers are more

likely to return to the salon for repeat services and recommend it to others, thereby driving

both revenue and brand

reputation. Service quality dimensions such as responsiveness and empathy directly influence

customer loyalty by

creating positive emotional connections with clients (Nguyen & Nguyen, 2021).

Several studies have linked improved service quality to better financial outcomes for

beauty salons. Huang

& Lin (2017) found that salons with higher service quality were more likely to experience

increased revenue and

profitability due to greater customer retention and positive word-of-mouth. Additionally,

salons that focus on

service reliability and assurance can create a reputation for quality that attracts new

customers and generates long-

term business success.

The competitive nature of the beauty industry requires salons to differentiate themselves

through

exceptional service quality. Salons that excel in service quality gain a competitive edge,

which enhances their

market share and customer base. A study by Gambetti & Biraghi (2020) emphasized that

integrating advanced

technologies and personalized services into the salon's offerings contributed to better service

delivery and stronger

customer retention. Moreover, salons that invest in training their staff in both technical skills

and emotional

intelligence tend to perform better in terms of customer loyalty and satisfaction (Lee & Kim,

2023).

Insights Gained

The relationship between service quality and salon performance is not just about

individual dimensions but

rather how these dimensions work together to create a comprehensive customer experience. A

salon that balances

technical expertise with empathy, reliability, and responsiveness is likely to have higher

customer satisfaction and

long-term success.

One of the key insights from recent studies is the importance of investing in staff

training. Both technical

and soft skills (e.g., communication, empathy, and customer service) play a crucial role in

enhancing service quality.

Salons that continuously train their staff to meet customer expectations are more likely to

improve customer loyalty,

which directly contributes to business performance (Nguyen & Nguyen, 2021).

 Another insight from recent research is the growing impact of technology on service

quality in beauty

salons. From online booking systems to personalized beauty treatments using innovative

tools, technological

advancements can improve service delivery and customer convenience. Incorporating digital

service quality

dimensions alongside traditional ones enhances the overall customer experience, driving

customer satisfaction and

improving salon performance (Gambetti & Biraghi, 2020).

 CHAPTER III

METHODOLOGY

This chapter will be focusing on various aspects of the research design, research locale,

participants of the

study, sample and sampling procedure, research instrument, data gathering procedure,validity

and reliability of

instrument, and ethical considerations, offering an in-depth discussion of the methodology

used in the study. This

chapter’s main goal is to give readers a thorough understanding of the methods used for

gathering and analyzing

data so they may comprehend the guiding ideas and arguments behind the research.

Research design

This study employs a quantitative approach, specifically using survey research through

Google Forms to
collect data and information. The goal is to analyze and identify the factors influencing

service quality in relation to

the performance of beauty salons. The primary independent variable in this study is service

quality, which

encompasses various dimensions such as tangibles such as the physical aspects of the salon

like cleanliness,

equipment, and ambiance, reliability the consistency and dependability of the services

offered, responsiveness the

staff's willingness to assist customers promptly, assurance the expertise and professionalism

of the staff, and

empathy the personalized care and attention given to customer needs . The dependent

variable is beauty salon

performance, which will be measured through indicators such as customer satisfaction the

level of contentment

with the salon's services, customer loyalty the likelihood of customers returning and

recommending the salon,

revenue/profitability the financial performance of the salon, measured by sales or growth, and

brand reputation the

public perception and trust in the salon’s services and quality.

Research Locale

This research study was conducted at Poblacion, Valencia City, Bukidnon located at

Alquino, Poblacion,

Valencia City, Bukidnon, Philippines. Valencia City, often referred to as the “City of Golden

Harvest,” is a highly

urbanized city in Bukidnon known for its economic vibrancy and natural beauty. Nestled in

the heart of Mindanao,

the city boasts a diverse economic landscape, including agriculture, agribusiness, and

commerce. The fertile lands

surrounding Valencia support the cultivation of various crops, with pineapples and bananas

being significant

contributors to the local economy. The city’s progressive outlook is reflected in its modern

infrastructure,
educational institutions, and vibrant cultural scene. Valencia City serves as a gateway to the

province and is a key

player in the region’s development.

Figure 2: Map of Poblacion Valencia City Bukidnon Map

Participants of the Study

The target population for this study will consist of customers who have used the services

of selected beauty

salons in Poblacion, Valencia City, Bukidnon, within the past three months. These

participants are chosen as they

have recent experience with the beauty salons and can provide relevant insights into the

quality of service and its

impact on their satisfaction and loyalty. A variety of customer demographics, such as age,

gender, and frequency of

salon visits, will be considered to ensure a diverse and representative sample. The study will

focus on gathering

opinions from individuals who have experienced different types of beauty services, such as

haircuts, styling,

skincare treatments, and other salon services. This will allow for a comprehensive analysis of

service quality
dimensions and their influence on salon performance. Participation will be voluntary, and all

responses will be

treated with confidentiality.

Sample and Sampling Procedure

A cluster sampling technique will be used to select participants for this study. The target

population will be

divided into clusters based on specific criteria, such as beauty salons located in different areas

of Poblacion,

Valencia City, Bukidnon. From each cluster, a random selection of customers who have

availed of services within

the past three months will be chosen. This sampling approach ensures representation from

various segments of the

population while considering factors like geographical proximity and availability. The sample

size will be
determined using appropriate statistical methods to ensure that the sample is large enough to

provide reliable and

valid results. Participation will be voluntary, and customers who are willing to engage in the

research will be

ncluded in the study.

 Research Instrument

The research instrument use in this study was the survey questionnaire developed by the

researchers that

they survey questionnaires was based from the objectives of the study which contains the

main purpose of

conducting the research report, in order to have an effective adequate respondents’ response

collection.

Validity and Reliability of Research Instrument

The research instrument, a questionnaire designed to assess service quality in beauty

salons, will undergo a

rigorous validation and reliability process to ensure its accuracy and consistency.

To establish the validity of the questionnaire, it will be reviewed and assessed by subject-

matter experts in
the field of service quality and beauty industry research. These experts will evaluate whether

the questions

effectively measure the intended constructs, such as the key dimensions of service quality

(tangibles, reliability,

responsiveness, assurance, and empathy). This expert validation will help ensure that the

questionnaire accurately

reflects the relevant variables for the study, thus ensuring that the responses gathered will

genuinely reflect

customers' perceptions of service quality in beauty salons.

To assess the reliability of the questionnaire, a pilot test will be conducted with a smaller

sample of

respondents prior to the main data collection. This will allow the researcher to identify any

inconsistencies in the

questions and make necessary adjustments. Additionally, Cronbach’s Alpha will be used to

measure the internal

consistency of the survey instrument. A Cronbach's Alpha value of 0.70 or higher will be

considered acceptable,

indicating that the questionnaire reliably measures the dimensions of service quality.

The responses of the selected customers will then be statistically analyzed according to

the study's data

requirements to determine the level of satisfaction with the service quality provided by

beauty salons in Poblacion,

Valencia City, Bukidnon. This analysis will help identify patterns of service quality

perceptions and the extent to

which these perceptions influence salon performance.

Data Gathering Procedure

The data gathering process for this study will be conducted with full consideration of

ethical standards.

Informed consent will be obtained from all participants before they engage in the survey,

ensuring they are fully

aware of the purpose of the study, their rights, and the voluntary nature of their participation.

Participants will be

assured that their responses will remain confidential and used solely for research purposes.

The survey will be administered through both online and offline methods to

accommodate different

participants. The online survey will be distributed via Google Forms, while the offline

version will be made

available in hard copy at selected beauty salons in Poblacion, Valencia City, Bukidnon. The

researcher will ensure

accessibility by scheduling convenient times for respondents to complete the survey, either

digitally or in person.

The questionnaire will be carefully designed, incorporating questions from related

studies as well as original

questions developed by the researcher. The majority of the questions will be

dichotomous("yes" or "no" responses),

with a few open-ended questions to allow participants to express their views more fully.

These questions are aimed

at gathering data on participants' experiences with service quality and its influence on salon

performance.

Data collected from the surveys will be recorded, totaled, and analyzed for patterns and

insights. This

information will form the basis for the study's analysis and interpretation of how service

quality influences the

performance of beauty salons. The entire data gathering procedure will be carried out

between November and

December 2024.
Scoring Procedure

A four-point Likert scale was employed to measure the level of agreement or

disagreement with the

statements related to service quality dimensions. The scale ranged from 1 (strongly disagree)

to 4 (strongly agree).

Scale Range Quantitative Description Interpretation

4 3.26-4.00 Strongly Agree Service quality is

perceived as excellent.

3 2.51-3.25 Agree Service quality is

 perceived as good.

2 1.76-2.50 Disagree Service quality is

perceived as fair.

1 1.00-1.75 Strongly Disagree Service quality is

perceived as poor.

Note: The higher the score, the better the perception of service quality.
Statistical Treatment

This study will involve several analytical techniques to examine the relationship

between service quality

and beauty salon performance. First, descriptive statistics will be used to summarize the data

collected from the

survey. Measures such as frequency distribution, mean, and standard deviation will help

describe respondents'

demographic profiles and their ratings of service quality and salon performance. These

statistics will provide a clear

understanding of the distribution and central tendency of the data.

Next, Pearson's correlation coefficient will be used to assess the strength and direction of

the linear

relationships between the independent variable (service quality dimensions) and the

dependent variable (beauty

salon performance). This will allow the researcher to determine if higher service quality is

associated with better

salon performance, and the strength of that association.

To further investigate how service quality influences salon performance, multiple linear

regression analysis

will be employed. This analysis will enable the researcher to evaluate the relative

contributions of each service

quality dimension (such as tangibles, reliability, responsiveness, assurance, and empathy) in

predicting salon

performance, including indicators like customer satisfaction, loyalty, and brand reputation.

The model will help

identify which dimensions of service quality have the most significant impact on performance

outcomes.

Ethical Considerations
 This study on the influence of service quality on beauty salon performance will adhere

to the highest ethical

standards throughout the research process. First and foremost, the principle of informed

consent will be strictly

followed. Participants will be fully informed about the purpose of the study, the voluntary

nature of their

participation, and their right to withdraw at any time without any consequences. They will

also be made aware of

the confidentiality and anonymity of their responses, ensuring that no personal identifiers will

be linked to their

data.

To further protect participants, the research will emphasize the use of confidentiality in

handling sensitive

information. All survey responses will be kept private, and data will be stored securely,

accessible only to the

research team. Only aggregate results will be reported, ensuring that individual responses

cannot be traced back to

any particular participant.

 Moreover, the study will ensure that no psychological harm or distress occurs during the

data collection

process. Questions will be carefully phrased to avoid any sensitive or invasive topics, and the

survey will allow

participants to skip any question they feel uncomfortable answering. The research will also

comply with all

applicable ethical guidelines and local regulations, and the study protocol will be reviewed

and approved by an

appropriate ethical review board.

In addition, special consideration will be given to ensuring fair treatment and avoiding

any form of

discrimination in the recruitment and selection of participants. The study will aim for a

diverse sample, reflecting a

variety of customer experiences with beauty salons, while ensuring that the data collection

process is inclusive and

unbiased. These ethical practices will guide the research process and safeguard the rights and

well-being of all

participants.
 CHAPTER 4

PRESENTATION, INTERPRETATION AND ANALYSIS OF DATA

Demographic Profile of Respondents

Table1: Breakdown of Customer Demographics

Demographic Variable Category Frequency Percentage (%)

Age 18-24 years 25 25%

25-34 years 35 35%

35-44 years 20 20%

45+ years 20 20%

Gender Male 15 15%

 Female 85 85%

Frequency of Visits Once a month 30 30%

2-3 times a month 40 40%

Weekly 20 20%

Less than once a month 10 10%

Preferred Services Haircut/ Hairstyling 45 45%

Facials 30 30%

Manicure/ Pedicure 15 15%

Massage 10 10%

Demographic Variable Category Frequency Percentage (%)

Age 18-24 years 25 25%

25-34 years 35 35%

35-44 years 20 20%

 45+ years 20 20%

Gender Male 15 15%

Female 85 85%
 Frequency of Visits Once a month 30 30%

2-3 times a month 40 40%

Weekly 20 20%

Less than once a month 10 10%

Preferred Services Haircut/ Hairstyling 45 45%

Facials 30 30%

Manicure/ Pedicure 15 15%

Massage 10 10%

Age - This dempgraphic variable categorizes respondents based on age groups. A significant

portion (35%) of

respondents falls within the 25-34 age range.

Gender- This category shows a clear preference for female respondents, with 85% identifying

as female.
Frequency of Visits- Most respondents (40%) visit the beauty salon 2-3 times a month,

suggesting frequent

usage among the customer base.

Preferred Services- The most popular service is haircut/ haistyling, chosen by 45% of the

respondents,

followed by facials at 30%.

This table shows a clear overview of the demographics of the customers who were

surveyed, which

can help in understanding customer behavior and preferences in relation to the beauty salon’s

perfornance and

service quality.
Service Quality Ratings

The bar graph show the customer ratingd for each of the SERVQUAL dimensions,

typically measured

on a Likert scale. (Where 1= Strongly Disagree and 5= Strongly Agree)

SERVQUAL Dimension Customer Perception Rating

(Average)

Reliability 4.2

Responsiveness 4.0

Assurance 3.8

Empathy 4.1

Tangibles 3.9
 Pie Chart Data

SERVQUAL Dimension Customer Perception Rating

(Average)

Reliability 24%

Responsiveness 20%

Assurance 18%

Empathy 21%

Tangibles 17%

Realibility- Customers rated the reability of the beauty salons the highest, with a rating of 4.2,

suggesting that

customers are generally satisfied with the consistency and dependability of services.
Responsiveness- With an average score of 4.0, responsiveness is also seen positively, though

slightly lower

than reliability.

Empathy- Scores are high at 4.1, showing that salons are perceived as understanding and

attentive to customer

needs.

Assurance- The lowest score at 3.8 suggests that while customers feel relatively confident in

the skills of the

salon staff, there may be some room for improvement in staff professionalism or

communication.

Tangibles- At 3.9, tangibles (salon cleanliness, decor, and equipment) scored fairly well but

were not as

highly rated as the core service quality dimensions like reliability and responsiveness.
Salon Performance Data

This data table provide insights into the performance of different beauty salons, revealing

the

relationship between customer satisfaction, retention, and overall business outcomes.

Performance

Indicator Salon 1 Salon 2 Salon 3 Salon 4 Salon 5 Average

Average 50,000 75,000 65,000 55,000 70,000 63,000

Monthly

Revenue (₱)

Repeat 60% 70% 65% 75% 68% 67.6%

Customers (%)
 Customer 4.2 4.5 4.0 4.3 4.4 4.28

Satisfaction

Score (1-5)

Customer 55% 65% 60% 70% 64% 62.8%

Retention Rate

(%)

Number of 5 7 6 5 8 6.2

Employees

Services Haircut, Haircut, Haircut, Haircut, Haircut, -

Offered Facial, Massage, Manicure, Facial, Facial,

Manicure Facial Pedicure Massage Manicure,

Pedicure
Average Monthly Revenue (₱)- Shows the average income generated by each salon per

month. For example,

Salon 2 has the highest average monthly revenue of ₱75,000.

Repeat Customers (%)- The percentage of customers who return to the salon after their initial

visit. Salon 4
has the highest repeat customer rate at 75%.

Customer Satisfaction Score (1-5)- The average rating given by customers on a scale of 1 to

5, based on

satisfaction with the services. In this case, Salon 2 has the highest average customer

satisfaction score of 4.5.

Customer Retention Rate (%)- Represents the percentage of customers who continue to

use the salon’s

services over a longer period. Salon 4 also has the highest retention rate at 70%.

Number of Employees- Indicates the size of the salon team. Salon 5 has the largest team with

8 employees.

Services Offered- The range of services offered by each salon. This helps to provide context

on whether a

broader range of services correlates with higher performance indicators.

Summary Interpretation

Revenue and Performance- Salons with higher revenues tend to offer a broader range of

services and have a

larger number of employees. For example, Salon 2, which has the highest revenue, offers a

mix of popular

services like haircut, massage, and facial.

Customer Loyalty and Satisfaction- There is a positive correlation between customer

satisfaction and repeat

customer rates. Salon 4 has the highest repeat customer percentage (75%) and also a high

customer

satisfaction score (4.3), suggesting that service quality strongly influences both customer

retention and

revenue.

Average Metrics- The average customer satisfaction score of 4.28 is strong across all salons,

indicating that
most customers are generally satisfied with their salon experiences. However, there is still

room for

improvement, especially in customer retention which averages at 62.8%.

Correlation Between Service Quality and Salon Performance

Scatterplot: Service Quality vs. Salon Performance

Salon Service Quality Repeat Customers Customer Average

Monthly

Score (Average) (%) Satisfaction Score Revenue (₱ )

(`-5)
Salon 1 4.2 60% 4.2 50,000

Salon 2 4.5 70% 4.5 75,000

Salon 3 4.1 65% 4.0 65,000

Salon 4 4.3 75% 4.3 55,000

Salon 5 4.4 68% 4.4 70,000

- If the trend line slopes upward, this indicates a positive correlation, meaning higher service

quality is

associated with better performance ( higher revenue or more repeat customers).

- If the trend line slopes downward, it indicates a negative correlation, implying that higher

service quality

may not always correspond to higher performance.

- If there’s no clear upward or downward trend, it suggests no significant correlation.

Correlation Matrix: Service Quality vs. Business Performance Metrics

Metric Service Quality Repeat Customers Customer Average

Monthly

Score (Average) (%) Satisfaction Score Revenue (₱)

(`-5)

Service Quality 1.00 0.85 0.90 0.80

Repeat Customers 0.85 1.00 0.75 0.70

(%)

Customer 0.90 0.75 1.00 0.85

Satisfaction (1-5)

Average Monthly 0.80 0.70 0.85 1.00

Revenue (₱)

Service Quality and Repeat Customers-The correlation coefficient is 0.85, which indicates a

strong positive
relationship. This suggests that as service quality improves, the percentage of repeat

customers increases.

Service Quality and Customer Satisfaction- The correlation of 0.90 is very strong, meaning

that higher service

quality is strongly associated with higher customer satisfaction.

Service Quality and Revenue-The correlation of 0.80 indicates a moderate to strong positive

relationship,

suggesting that improving service quality could lead to higher revenue.

Repeat Customers and Revenue-The correlation of 0.70 suggests a moderate relationship.

While repeat

customers are important, other factors might influence revenue as well.

Scatterplot visually observe the better service quality leads to higher business performance,

such as increased

repeat customers or revenue. Correlation matrix provides numerical values to quantify the

strength and

direction of the relationships between service quality and various business performance

metrics. A positive

correlation indicates that improvements in service quality are likely to lead to better

performance outcomes

( higher customer satisfaction, more repeat customers, and higher revenue).

This combination of scatterplot and correlation matrix allows you to analyze both the

visual trends and

the statistical relationships between service quality and salon performance metrics.
 CHAPTER 5

SUMMARY, FINDINGS, CONCLUSION, AND RECOMMENDATION

This chapter concludes the study by offering an extensive summary of the research. It

includes detailed

discussions on the summary, findings, conclusion, and recommendations resulting from the

study.

Summary

This study aimed to examine how service quality affects the overall performance of

beauty salons in

Poblacion, Valencia City, Bukidnon. Specifically, the study explored the relationship between

technical and

interpersonal service quality, customer satisfaction, customer loyalty, and the performance of

beauty salons.

Data were collected through surveys and interviews with salon clients to assess their

perceptions of service
quality, while salon performance was measured using indicators such as customer retention,

revenue growth,

and market reputation.

The research findings underscore that both technical skills (hairstyling, treatments) and

interpersonal

qualities ( customer service, communication) significantly impact customer satisfaction and

loyalty. The study

also reveals a clear link between high service quality and improved salon performance.

Salons that

consistently deliver superior service quality see better financial outcomes, increased customer

retention, and

positive word-of-mouth promotion. The research ultimately highlights the importance of

focusing on both the

technical and relational aspects of service in driving business success.

Findings

The study found a strong positive correlation between service quality and customer

satisfaction in

beauty salons. Customers who rated the technical skills of the staff highly, such as precision

in haircuts or

effectiveness of treatments, were more likely to express high levels of satisfaction.

Furthermore, positive

interpersonal service, including friendly staff interactions, attentiveness, and clear

communication, also

contributed significantly to customer satisfaction. Salons that effectively combined both

elements of service

quality were more likely to retain customers and gain their loyalty.
 Additionally, service quality was found to have a direct influence on customer loyalty.

The more

satisfied customers were with their experience, the more likely they were to return and

recommend the salon

to others. This loyalty translated into consistent business for the salons, as loyal customers

formed the core of

repeat visits and referrals. Finally, the research demonstrated that salons with high levels of

service quality

also reported better business performance. These salons experienced higher revenue, better

customer retention,

and an enhanced reputation in the local market.

Conclusion

This study clearly indicates that service quality is a crucial determinant of beauty salon

performance.
Both technical and interpersonal aspects of service quality play an integral role in influencing

customer

satisfaction and loyalty. Salons that provide superior service, characterized by skilled

professionals and

excellent customer relations, are more likely to experience positive outcomes such as

increased client

retention, higher revenue, and stronger market performance.

Furthermore, the study highlights that customer satisfaction and loyalty are not solely

driven by the

technical aspects of services but also by how customers feel treated during their salon visits.

This underscores

the importance of building relationships with customers, understanding their needs, and

consistently

delivering high-quality experiences. In conclusion, a focus on service quality in both its

technical and
interpersonal dimensions is essential for enhancing salon performance and sustaining long-

term success.

Recommendations

Based on the findings, several recommendations can help beauty salons in Poblacion,

Valencia City,

Bukidnon, improve their service quality and overall performance. First, salons should

prioritize staff training

to improve both technical skills (hair treatments, styling) and interpersonal skills

( communication, customer

service). Well-trained staff will provide a higher level of service, leading to increased

customer satisfaction.

Second, salons should implement regular customer feedback systems to continuously

evaluate service

quality and identify areas for improvement. This will ensure that customer expectations are

met consistently
and allow salons to adapt to changing needs. Third, beauty salons should consider

implementing customer

loyalty programs to reward repeat clients and encourage referrals. These programs will

enhance customer

retention and create brand advocates who help promote the salon.

Finally, salons should emphasize creating a welcoming and customer-centric

environment.

Personalized service, such as remembering returning clients' preferences, and providing a

comfortable

atmosphere can significantly enhance the customer experience. By focusing on these

recommendations,

beauty salons can improve service quality, foster loyalty, and strengthen their overall business

performance.
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