Our Lady of Fatima University
College of Business and Accountancy

PROJECT REPORT ON CONSUMER BEHAVIOR

TOPIC- THE EFFECTS OF NEARBY SALONS IN THE BUSINESS ADMINISTRATION STUDENTS OF OLFU QC CAMPUS

MKTG3A1-2
Cabriana, Sharmaine A.
Catubig, Jessica M.
Dulguime, Dhonna L.
Maniquis, Jerica F.

ACKNOWLEDGEMENT

First of all, we give honor to Our Almighty God for giving us knowledge, patience, strength and motivation to create this research. We give thanks to our classmates and friends for giving us information and we give thanks to our family for moral support, financial support, and endless guidance and love they given us. Nonetheless, we thank Ms. Edith Laurente our subject professor who always helped give concern and provided guidance during the course of our project. God Bless You All and Mabuhay!

THE RESEARCHERS

CONTENTS

I. Executive Summary II. Introduction III. Growth of Retail Sector IV. History of salons V. Review of Literature VI. Research Methodology VII. Analysis & Interpretation VIII. Findings IX. Complaints X. Recommendations XI. Questionnaire XII. References

I. Executive summary

The project is about the consumer behavior towards the nearby salons in schools or universities. This project report is the study of the effects of these nearby salons in the students
A questionnaire has been drafted, to try and understand the psyche of the nearby salons to its customers and to know their comments and expectations which can be helpful to us if ever we open a salon near schools/universities. It also helps us in understand the different views of students in this study.
In the end, we came up with some suggestions based on our analysis of customer tastes and preferences and competition prevailing in retail sector.

II. Introduction

The fast spread of beauty salons around the country is truly unstoppable. Beauty salons were scattered wherever you go. Many business persons tried to open up such kind of business because of the growing numbers of the persons who avail beauty or wellness services. And also, many people used to follow the latest trends in the beauty industry that is why this kind of business has great demand in the people.

The rapid change of the beauty trends has great impact in the consumers. Nowadays, many people were very conscious on their physical appearance, they always want to look and feel good. This study is about student’s perception on salons near their university and it happens that students also want relaxation after their long and stressful days in school.

III. Growth of retail sector

As you can see in this figure, male has the greatest percentage of the people who avail beauty or wellness services in the salons, next was female and lastly, mothers with children who has the least percentage. Nowadays, males were more conscious on their physical appearance compared to females. They were never contented on their styles especially on their hairstyle that is why they always go for a visit on a salon at least once a week. Unlike female, once they achieve their wants or once they were satisfied they just stick into it.

IV. History of salon
The beauty salon industry in the Philippines is undeniably one of the good businesses to venture because of the continuous demand and the increasing numbers of customers that is continuously availing the beauty and wellness services that a beauty salon offers anywhere in the country most especially in the cities.

In the year 1990, the existence of beauty salons here in the country started to rise and it became as one of the businesses that usually don’t fail because as time goes by multiple number of people keeps on availing and enjoying the services that the beauty/wellness salons offers. Every exchange of years, a growing trend in the beauty industry is increased because of new discoveries and improving technologies. A salon before only offers services such as haircutting, styling, coloring, shampooing and permanents. By the year 2000, salons have expanded their businesses and offer services such as nail care, hair treatments, facials, makeup application, waxing, massage, tanning and other beauty treatments. From this year and on, many businesspersons took the risks on opening a beauty salon because it has a great demand in the people. People avail this kind of services because they are conscious on how they look and everybody wants to look and feel good. And also, many people used to follow the latest trends that are coming out and because of the rapid change of styles generally in both men and women, beauty industry boosts and is always a demand.
Nowadays, beauty salons have been scattered everywhere. Some salon business owners decided to place or put up a branch near schools or universities. This is to market out students who dominate a big percentage in the market of beauty salons. The reason why students have the most numbers of salon clients is that because youth/students are updated for the newest, latest and the hottest trend in the beauty industry.

V. Review of Related Literature
The salon products market has been affected by the economic woes gripping most Americans, as consumers keep a closer eye on their expenditures and trade down on everything from cars to clothing to personal care. In addition, salon brands have found themselves competing with mass market brands delving into the high-end market of hair and skincare, as they also struggle to deal with the practice of diversion, which is becoming increasingly common.
Key findings in this report include: * The impact of diversion and how manufacturers are handling it * A look at the competing factors—such as better products in the regular retail channels as well as a poor economy - that are taking sales away from salons and salon products * A closer look at some salon brands and how they’re innovating in order to stay on top * The manner in which black haircare is influencing the salon market * How salons are trying to keep pace with FDM retail channels * What the potential trends are for the future, as salons determine how to stay afloat in a recession * How prevalent the purchase of products at salons is, relative to other retail channels * What the most popular hair and skincare products are at salons * The attitudes that respondents have regarding salon brands purchased through other retail channels such as mass merchandisers * How the presence of children in the household affects the purchase of salon brands
Source:
http://store.mintel.com/salon-products-and-consumer-purchasing-us-november2009.html?cookie_test=true

Design for emotional buying behavior
By Leon Alexander | 04/01/2011 8:02:08 PM
Companies like CVS and Duane Reade have recognized the potential impact beauty products have on their bottom line and are adjusting their strategic plans accordingly by designing their new locations to gain an even greater market share of the hair care and skincare markets. In essence, they are coming after your salon business--the beauty industry business.

Never has there been a better time to design our salons around the emotional buying patterns of the consumer. But to compete, we have to go beyond mere design. We must incorporate the tenets of environmental psychology. We have to emulate the best-proven practices of successful retailers, service providers and marketers outside the beauty industry.

The salon of today and of the future, must combine elements of dependable science, blended with wishful thinking to create an alluring cocktail of reality and desirable fantasy.

The fundamental tenet of market research is that you can ask people questions and what they tell you will be the truth. In fact, it turns out that the opposite is far closer to the truth. The conscious mind finds it impossible to resist putting a spin on events. From the moment we do anything, the mind introduces distortions. When the mind considers the future, it does so with idealism that is both optimistic and simultaneously devoid of any objective assessment of the past.

There is a way to obtain a deeper understanding of consumers and make better-informed decisions. Humans have virtually lost the ability to appreciate the present, so wrapped up are we in dwelling on the past and wondering about the future. We want our lives to have meaning. In the quest for significance, we miss the moment of now. It is in this moment of consumer behavior that we have the best opportunity to connect.

Understanding the Conscious Mind
The unconscious mind is the real driver of consumer behavior. Understanding consumers is largely a matter of understanding how the consumer's mind operates. The first obstacle is to recognize how we frequently react without conscious awareness. As long as we protect the illusions that we are primarily conscious agents, we pander to the belief that we ask people what they think and trust what we hear in response. Easy usually wins!

Repeated conscious actions create unconsciously driven behavior. Thinking uses glucose, so the more thought any activity requires, the more tired we will become. The extent to which our unconscious mind likes the path of least resistance is both intriguing and disconcerting!

Studies have found that stocks with easily pronounced names are preferred and selected over those with less familiar strings of letters, and handwriting clarity and font choice also affect how people respond to something. But of course, we don't know we are doing this and that is shaping our judgments.

The saying 'first impression' applies to more than just the visual when a consumer enters a salon. It is also important in verbal communication with a consumer. For example, when people were asked who they think they would like more:
John is intelligent, industrious, impulsive, critical, stubborn and jealous.
Mark is jealous, stubborn, critical, impulsive, industrious and intelligent.

It shouldn't make a difference, since the descriptions contain exactly the same words, yet more people attach more weight to the words they hear first and say they prefer John.
Environmental Influences
Humans like animals, interact and respond to their environment far more than we are aware of at a conscious level. If we want to change people's behavior, the first thing we can do is change the environment. Changing the environment is uniquely powerful in changing behavior. There is no greater single influence.

If we want to know why someone does or doesn't buy, we have to understand how the environment shapes behavior. To maximize sales or impact of communication, the environment has to be right. It is not a revelation to learn that music and lighting can affect our mood and as a result, our behavior, the extent to which both can cause people to spend more is surprising.

For example, people spend more than three times as much on a bottle of wine when classical music was playing, compared to when pop music was selected. They assumed that they were buying wine they wanted to buy and would be able to provide apparently rational justifications for doing so.

The taste of wine is also influenced by what music is playing because of the impact of unconscious mental associations and potential misattribution. Music can also dramatically alter the amount of time people stay in a store and how quickly they move.

It is well documented that light levels have an effect on brain chemistry. Light regulates the body clock and is associated with the release of serotonin, which plays an important role in the regulation of mood, mental clarity and energy levels. Consumers who engage with displays that are illuminated, touch more of the items, and spend significantly longer shopping. As a result, they also buy more products.

People in rooms with higher ceilings perform better and spend more than people in rooms with lower ceilings. The environmental influences take place at an unconscious level. Our conscious minds are oblivious to what's really driving our thoughts, feelings and behavior.

I Have Emotions, Therefore I am Rational since Descartes, 300 years ago said, 'I think, therefore I am,' we have seen emotions as something that interferes with rationality. We now know the reverse is true. "People have emotions, therefore, they are rational.' We should view emotions as a fundamental component of rationality. People buy on emotion, not logic.

Great retailers want to understand why consumers are acting in a particular way. It is important to read the environment as a consumer's unconscious mind does.

The most useful objective measurement is conversion: What proportions of people who engage with product go on to purchase it? What proportions of the people who go into a store make a purchase? How many leave without purchasing? The amount of time someone spends shopping in a store is the most important factor in determining how much he or she will buy. The interception rate is also crucial.

It is possible to gain an insight into the mindset of the consumer by closely observing their total package of expressions. By paying attention to the words people choose to use, their tone of voice, their gestures, postures and facial expressions, one can read with surprising accuracy the ego state (or frame of mind) they are occupying at any particular time. The key is to observe the total package rather than erroneously attach significance to just one aspect and deduce, for example that because someone has their arms folded they are defensive. Observing how someone's emotional state alters as they move through a retail experience and identifying where a number of people respond similarly is the key to identifying where an aspect of retail experience is having an emotional impact.

Many key elements contained in a retail store design become unnoticed by consumers. Customers scan the perimeter of the store to navigate it, enabling them to retain one focal length as they scan the environment, and ignored relatively large features in the middle of the store. Humans like animals scan their boundaries for exits! It is not that they don't know that it is there. People often ignore apparently significant visual events if their attention is focused elsewhere.

Your competition is not the salons in your region; it is retailers like Sephora, Duane Reade and CVS. The formula for success is to design our salons around the consumer's experience. Where the beauty industry has a great advantage over national retailers is the ability to offer our consumer a personal experience. Environmental Design + Personal Consumer Experience = Sustainable Competitive Advantage we must up our game to a level that aspires to maximize the potential of our retail and service business. A more self-esteem conscious consumer exiting the recession compounds this opportunity. The future for those salons that pioneer and implement this vision is bright.
Source: http://www.salontoday.com/blogs/guest/leonalexander/designed_for_emotional_buying_behavior_125307823.html

Most people view a spa visit or a salon treatment as a bit of a treat, especially if they are going for a pampering massage or body treatment rather than a straightforward leg wax which can't be described as relaxing by any stretch of the imagination!
The 'luxury' element of a spa break, and to a certain extent a salon visit too, means that you don't really want to opt for a 'budget' treatment - let's face it, who wants to go to a 'no frills' spa? You want the experience and to feel a little bit spoiled. But there are sneaky ways to make your pennies stretch further.

Mid Week Breaks
Most spas have special offers for mid-week stays, mainly because most people like to go at the weekend, for long weekends or overnight on a Friday and Saturday. Spas know this, and so they often have spaces to fill during the week. Look at spa websites, especially the larger, better known spas, and check out their special offers. You're bound to be able to get in for cheaper if you're flexible on which night(s) of the week you stay.
Most of the deals will also include a set menu of treatment options in the price, so you could end up with unlimited use of the pools and wet rooms, a facial and a massage treatment all thrown in. You'll often get unlimited gym use as well, and the food is generally part of the deal. Check the terms and conditions when you book, just so that you know exactly what to expect, and there are no nasty surprises.

The beauty of one of these mid-week deals is that you can add on as many extras as you like too. So you can have a straightforward massage, but choose to add in a Reiki session to complement your free yoga class.

Phone a Friend
Another common spa deal is the 'take a friend for free' option. Again, this is usually mid-week, and often at times when spa takes up is quite low. If you're flexible, and have a willing accomplice, you can grab good deals by splitting the cost of a midweek stay with a good friend. You'll probably end up having to share a room, so make sure that it's a friend you know well!

Get a Room
Many hotels are getting in on the beauty act these days, and it's rare to find a large, or chain hotel without some kind of spa facility. It probably won't be as up market as a dedicated spa, but if you really just fancy lounging around in a pool and maybe having a facial, search for a hotel with a spa on one of the last minute accommodation websites, and find a cheap room.
You can make up for the amount of money you've saved on booking a room in an actual spa, and spend the cash on pampering yourself with upmarket treatments. Most hotel spas will use the same cosmetic brands as the big, dedicated spas and salons, so your treatment will be just as good, it's just the room you'll be downsizing.

Practice Makes Perfect
All spa and salon therapists have to learn their trade somewhere, and there are colleges up and down the country that teach beauty therapy. This means that if you really are strapped for cash but you fancy a cheap leg wax, body massage or beauty treatment, if you're willing to forego some of the trimmings, scented salon surroundings or kudos of the up market spa visit you could bag a professional treatment at a bargain price.
Check your local colleges to see if they offer treatments by trainee therapists, and you could get an absolute bargain.
Source: http://www.beautytreatmentexpert.co.uk/salon-treatments-best-value-spa-visit.html

VI. Research methodology

We conducted the study inside the premises of the school and the students who answered the surveys and we interviewed are from College of Business and Accountancy, fifteen from entrepreneurial major students and thirty-five from marketing major students with a total of fifty. Most students we surveyed are on third year level and the rest are from second and fourth year level. The primary source of our data is from the survey we conducted and secondary source is from the internet and the library.

VII. Analysis and interpretation
This is the analysis and interpretation of each question in the survey we conducted in Our Lady of Fatima University answered by the business administration students. 1. Do you think it is convenient for a student like you to have nearby salons and spa?

In the graph above, it shows that convenience of salon to the consumer is one of the factors why a demand for salons is increasing. 2. Do you think they can give you good results same as the other well-known salons?

Students who want to try treatments or services on the salons near Our Lady of Fatima University believe that they can get good results on this salon even it is not that well-known.

3. You as a consumer, do you trust the services they are offering?

Students trust on services of salons or spas near their university is slightly not that full for the reason that some salons are not that well-known.

4. Do you feel glad when salons are already near your school or university?

72% of students are glad because salons and spas are now near their university and making time for relaxation is not that far.
5. Have you tried their services? If yes, do their services meet your expectations?

Half of the student we surveyed who already tried services at the salons near their school or university meets their expectation.

6. Do you think these salons receive great demands from the students?

Based on the survey we conduct 76% of business administration student’s demand for salons near their university.

7. If you already tried their services, would you recommend or suggest it to your classmates/friends/relatives?

35 out of 50 students we surveyed said that they are willing to recommend salons near their university to their classmates, friends and relatives.

8. Do you think their services have affordable and reasonable prices for students?

Spa and salons near universities and schools gives reasonable prices to their services because they know that their prospective consumers are mostly students. 9. Do you think it is effective to locate or place a salon and spa near schools and universities?

Business administration students think that putting salons near Our Lady of Fatima University is really effective because of convenience for the student and large prospective consumers or clients. 10. Do you think it is important to have salons near schools and universities?

52% of the business administration students believe that salons near their university are really important. VIII. Findings 1. The study finds that having a salon near schools or universities is convenient for the students. 2. Students would just go for a salon near their school than going in the salons inside a mall even though they are not sure for whatever will be the result. 3. The reason why some beauty salons opened near schools or universities is because they are after the students who always go for salon treatments.

IX. Complaints

1. Some salons near schools are not relaxing and comfortable. 2. Don’t have a good ambiance. 3. Some salons are not fully air-conditioned. 4. Slow service. 5. Using cheap treatments. 6. Not satisfied for the results. 7. Unprofessionalism of the staffs. 8. Incompetent hairdressers

X. Recommendations
The goal of a salon to the consumer is to make its customer’s look and also to increase more confidence to the consumer because they look and feel positive as possible about their new physical appearance by the treatment they give by the salon. Once the consumer meet their expectations or satisfaction level , the customers or clients will highly recommended with their friends or relatives because they know that this salon is an excellent and better one because they tried and prove it so well. Salons might also offer a discount for new customer because it is the way by having new clients.
To make building a relationship between the salon and the customers is that goodwill created and considers how you can make happier with your services and help them maintain positive results.

XI.
Questionnaire
OUR LADY OF FATIMA UNIVERSITY
QUEZON CITY CAMPUS
COLLEGE OF BUSINESS AND ACCOUNTANCY
TOPIC- “THE EFFECTS OF NEARBY SALONS IN THE BUSINESS ADMINISTRATION STUDENTS OF OUR LADY OF FATIMA UNIVERSITY QC CAMPUS”
Name (optional): _____________________ Age: ________
Gender: female male Year & section:____________
Direction: Please check (✓) the following that responds to your answer. Yes | No | | | | | | | | | | | | | | | | | | | | |

1. Do you think it is convenient for a student like you to have nearby salons and spa? 2. Do you think they can give you good results same as the other well-known salons? 3. You as a consumer, do you trust the services they are offering? 4. Do you feel glad when salons are already near you
School or university? 5. Have you tried their services? If yes,
Do their services meet your expectations? 6. Do you think these salons receive great demands from the students? 7. If you already tried their services, would you recommend or suggest it to your classmates/friends/relatives? 8. Do you think their services have affordable and reasonable prices for students? 9. Do you think it is effective to locate or place a salon and spa near schools and universities? 10. Do you think it is important to have salons near
Schools and universities?

XII. References http://store.mintel.com/salon-products-and-consumer-purchasing-us-november2009.html?cookie_test=true http://www.beautytreatmentexpert.co.uk/salon-treatments-best-value-spa-visit.html http://www.salontoday.com/blogs/guest/leonalexander/designed_for_emotional_buying_behavior_125307823.html www.Wikipedia.org www.google.com.ph www.yahoo.com.ph