Beauty Bar Final Report

A MARKETING RESEARCH STUDY OF THE BEAUTY BAR AT GEIST

Prepared for:Dr. Rebecca VanMeter

Prepared by:

David Gumbert, Alex Kumle, Darnell Smith, Nick Traub, and Duane MelcherFabFive, INC.

April 2015

1 │ Page

April 22, 2015

Dr. Rebecca VanMeterAssistant Professor of MarketingBall State University2000 W University Ave.Muncie, IN 47306

Dear Dr. VanMeter:

Enclosed in this report are our findings regarding The Beauty Bar at Geist. We were able to make some clear decisions on our objectives based on our findings. Our main findings were:

● We found that Sundays were not a specific day for people to attend The Beauty Bar.● There was no preference as to which days respondents would like to have service done.● Word of mouth is the highest overall way of referring new clients to The Beauty Bar.● Facebook is the highest overall social media way of referring new clients to The Beauty

Bar. We would like to thank you for the guidance you provided us with throughout the entire project. We appreciate your assistance and the time you put into this process.

Sincerely,

FabFive, INC.

2 │ Page

Table of Contents

Executive Summary…………………………………………………………………………... 4List of Illustrations………………………………………………………………………….….2The Research Problem………………………………………………………………………... 5Research Objectives………………………………………………………………….………...6Research Design and Sample Selection Process………………………….……………………7Data Analysis and results……………………………………………………………………...8-32Limitations…………………………………………………………………………………….33Recommendations……………………………………………………...…………………….34, 35Conclusion…………………………………………………………………………………….36Appendices………………………………………………….……………………………37, 38, 39Reference List…………………………………………………………………………………40

List of Illustrations

Table 1……………………………………………………………………………………8Table 2……………………………………………………………………………………9Table 3……………………………………………………………………………………10Table 4 …………………………………………………………………………………...10Table 5 ……………………………………………………………………………………11Table 6…………………………………………………………………………………….12Table 7 ……………………………………………………………………………………13, 14Table 8 ……………………………………………………………………………………16Table 9…………………………………………………………………………………….16, 17Table 10……………………………………………………………………………………17Table 11……………………………………………………………………………………18Table 12………………………………………………………………………………...…19Table 13……………………………………………………………………………………20Table 14…………………………………………………………………………………...20, 21Table 15……………………………………………………………………………………21Table 16……………………………………………………………………………………22Table 17……………………………………………………………………………………23Table 18……………………………………………………………………………………24Table 19……………………………………………………………………………………25, 26Table 20……………………………………………………………………………………27Table 21……………………………………………………………………………………28Table 22……………………………………………………………………………………29Table 23……………………………………………………………………………………30Table 24……………………………………………………………………………………30Table 25……………………………………………………………………………………31

3 │ Page

Executive Summary

The report answers the questions of how time sensitive clients are during a seven-day

period and which marketing vehicles work best for The Beauty Bar. The first objective asked

about how likely one would be to visit The Beauty Bar on a Sunday. The second objective was

to ask how likely one would be to refer a new client, and which marketing vehicle would be most

convenient. It was hypothesized that clients at The Beauty Bar would want to come for services

on Sundays. It was also hypothesized that social media would be the best marketing vehicles

used to refer new clients. After running vigorous tests, the analysis proved both of our

hypotheses to be wrong. Data used to collect the proper information was ran through a

convenience survey, which was distributed to 3,000 of The Beauty Bar’s current clients, students

at Ball State University, and family acquaintances.

When we got our data back we got to work on our analysis. We ran a wide assortment of

tests with our data trying to discover useful information for The Beauty Bar, and also to achieve

our objectives. We ran descriptive tests, difference tests, and correlation tests. The information

that we uncovered for The Beauty Bar was that there was no preference as to which days clients

would prefer to come in for services. We also found that word of mouth and Facebook were our

two most likely used marketing vehicles used to refer new clients. With this information, we

came up with some recommendations for The Beauty Bar to consider going forward with their

operations.

4 │ Page

The Research Problem

The two main research problems our team explored were the sensitivity of selecting

particular services during a seven-day period, as well as how to identify the best market vehicles.

As mentioned in their presentation, Erin and Chad were interested in finding out when their

clients and/or potential clients would prefer to receive service(s). Currently, The Beauty Bar

operates from Tuesday through Saturday.

For the first research objective, we believed that clients and/or potential clients would

have a preference towards visiting on Sundays. This was expected to be found by conducting a

survey based on a convenience sample of people in order to determine their likelihood of

selecting particular services throughout the course of the week. The conclusions were generated

by personal experience and preference. Moreover, we believed that more clients and/or potential

clients would prefer visiting The Beauty Bar on Sundays.

For the second objective, we believed that social media platforms are the most effective

way of reaching and referring new clients than the traditional word-of-mouth method. This was

expected to be found by conducting a survey based on a convenience sample of people in or

around the Fishers, Indiana area to determine how likely you are to refer a friend, family

member, or coworker to their venues through social media platforms. Moreover, we believed that

Facebook would be the most effective social media platform for referring new clients.

5 │ Page

Original Research Objectives

1.

Problem: How time sensitive are the clients toward selecting particular services during a seven-

day period?

Objective 1: Likelihood of visiting on Sundays: Conduct a survey based on a convenience

sample of The Beauty Bar’s current clients, Ball State students, their families, their friends, and

their co workers to determine their likelihood of selecting particular services throughout the

course of the week. This will be based off a check box scale, where people can check certain

boxes according to the services that they would choose throughout the week.

2.

Problem: How do we identify the best market vehicles? Word of mouth is a major tool for The

Beauty Bar.

Objective 2: Likelihood to refer new clients: Conduct a survey based on a convenience sample of

The Beauty Bar’s current clients, Ball State students, their friends, their families, and their co

workers. If you experience a great service from a salon, then how likely are you to refer a friend,

family member, or coworker to their venues through social media platforms? This will be based

off a 7-point scale, where 1 = unlikely and 7 = very likely. Matrix table question style so the

question isn’t triple-barreled.

6 │ Page

Research Design and Sample Selection Process

After hearing Erin and Chad’s presentation, we elected to conduct exploratory research.

This aided our early research process, because it highlighted their current problems and areas of

interest. Also, we were able to gain a richer background on The Beauty Bar. Using the provided

information, as well as our notes from the presentation, we were able to develop a set of

objectives in hopes of expanding the company’s clientele.

Our survey was conducted based on a convenience sample. The notable respondents

would include: friends, family members, co workers, acquaintances, and Beauty Bar clients. The

survey was developed through a program known as Qualtrics. This survey was composed of

likert scales and matrix tables. The likert scales were based off a 7-point scale, where 1 = very

unlikely and 7 = very likely. The likert scale is based on metric data, which seeks to obtain

variance for identifying agreeing and non-agreeing statements. The matrix tables were used to

prevent triple-barreled questions. Students were to distribute the survey via email and social

media. The surveys were also distributed to the clients of The Beauty Bar.

Results showed that email and Facebook were the two most widely used methods of

distributing the survey. For the most part, email was the easier route for distribution, because the

survey was sent out to the student population. That being said, Facebook was a popular method,

because you have the ability to post the survey as a “feed.” Both methods of distribution offer the

ability to share (Facebook) and forward (email). Overall, we found that these two methods of

distribution offered the greatest return of responses.

7 │ Page

Data Analysis and Results

Once we received the data from the survey questionnaire we began to identify possible

ways to analyze the data in a way that would produce useful information for The Beauty Bar to

help them evaluate the decision alternatives. We were able to create some questions that we

believed would produce useful information once we analyzed those questions. The format of the

data begins with the question we wanted to learn the answer to, how we analyzed it, and then the

result and interpretation of those results. The following data analysis was performed:

On what days do clients prefer to have particular services done?

This chart is a true representation of the data received from running the frequency test of how many respondents checked the box that had a preferred day for a particular service.

Figure 1

Monday Tuesday Wednesday Thursday Friday Saturday Sunday No Preference0

5

10

15

20

25

30

35

40

45

What Percentage of Respondents prefer to have a service done on a specific day?

HaircutHair ColorManicurePedicureHair RemovalSkin CareMassageTanningOther

Prefered Day for Receiving Service

Per

cen

t of

Res

pon

den

ts

8 │ Page

Results and Interpretation: As seen from the chart, the most frequent response for each service was “No Preference.” This shows us that clients are not particular on which days they prefer to have any service done. What was also extract from this data is that the least frequent responses for each survey were for Monday and Sunday respectively. This tells us that if a client did prefer to have a particular service done on a particular day, then that day would most likely not be Monday or Sunday. This shows us that The Beauty Bar would not gain a large stream of customers by opening on Sunday or Monday.

With regards to women, how likely or unlikely are they to refer new clients if asked to do so by their salon service provider?Analysis: Descriptive Analysis

Figure 2

Descriptive Statistics

N MeanStd.

Deviation VarianceStatistic Statistic Std. Error Statistic Statistic

How likely would you be to refer someone to a salon, spa or barbershop if a service provider asked you to do so?

804 5.05 .054 1.531 2.345

Valid N (listwise) 804

Results and Interpretation: The mean response among the 804 women who answered this question was 5.05 on a 7 point scale going from Very Unlikely to Very Likely, with 4 being a neutral response. The response code 5 is associated with the response “Somewhat Likely.” This means that on average a woman who responded to this survey will be “Somewhat Likely” to refer someone to a salon if the service provider asked them to do so.

With regards to women, how likely or unlikely are they to refer a friend to a salon after they experienced great service?

Analysis: Descriptive Analysis

Figure 3


9 │ Page

N MeanStd.


If you experienced great service from a salon, spa or barbershop how likely would you be to refer:-Friend

805 6.52 .035 .983 .966


Results and Interpretation: The average response of the 805 women to answer this question was 6.52. This question was asked on a scale from 1 to 7 with 1 being “Very Unlikely” and 7 being “Very Likely.” There was a neutral option for this question and the code for it was 4. The response code 6 was associated with the response “Likely.” This means that on average a woman who responded to this question was between “Likely” and “Very Likely to refer her friend(s) after experiencing great service from a salon.

With regards to women, how likely or unlikely are they to refer a family member to a salon after they experienced great service?Analysis: Descriptive Analysis

Figure 4


N MeanStd.


If you experienced great service from a salon, spa or barbershop how likely would you be to refer:-Family Member

805 6.42 .043 1.226 1.502


Results and Interpretation: The average response of the 805 women that answered this question was 6.42. This question was asked on a scale from 1 to 7 with 1 being “Very Unlikely” and 7 being “Very Likely.” There was a neutral option for this question and the code for it was 4. The response code 6 was associated with the response “Likely.” This means that the average woman who responded to this question was between “Likely” and “Very Likely” to refer family members to a salon after experiencing great service at that salon.

10 │ Page

With regards to women how likely or unlikely are they to refer a coworker to a salon after they experienced great service?Analysis: Descriptive Analysis

Figure 5


N MeanStd.


If you experienced great service from a salon, spa or barbershop how likely would you be to refer:-Coworker

805 6.09 .049 1.384 1.915


Results and Interpretation: The average response for the 805 women who responded to this question was 6.09. This question was asked on a scale from 1 to 7 with 1 being “Very Unlikely” and 7 being “Very Likely.” There was a neutral option for this question and the code for it was 4. The response code 6 was associated with the response “Likely.” This means that the average woman who responded to this question said that they were likely to refer coworkers to a salon after experiencing great service from that salon.

With regards to women, how likely or unlikely are they to refer social media contacts after they experienced great service?Analysis: Descriptive Analysis

Figure 6


N MeanStd.


11 │ Page

If you experienced great service from a salon, spa or barbershop how likely would you be to refer:-Social Media Contacts

755 4.81 .076 2.090 4.368


Results and Interpretation: The average response of the 755 women that responded to this question was 4.81. This question was asked on a scale from 1 to 7 with 1 being “Very Unlikely” and 7 being “Very Likely.” There was a neutral option for this question and the code for it was 4.The response code 5 was associated with the response “Somewhat Likely.” This means that the average woman to respond to this question said that they were between neutral and somewhat likely to refer their social media contacts to a salon after experiencing great service at that salon. With regards to women, how likely or unlikely are they to refer new clients through different marketing vehicles if they were unprompted to do so?Analysis: Descriptive Analysis

Figure 7


N MeanStd.

Deviation Variance

Statistic StatisticStd.

Error Statistic Statistic

12 │ Page

If unprompted, how likely are you to use each of the following to refer someone to your salon, s...-Verbal Communication

805 6.01 .049 1.377 1.895

If unprompted, how likely are you to use each of the following to refer someone to your salon, s...-Text Message

805 4.70 .072 2.046 4.187

If unprompted, how likely are you to use each of the following to refer someone to your salon, s...-Yelp

805 2.06 .060 1.710 2.923

If unprompted, how likely are you to use each of the following to refer someone to your salon, s...-TV

682 2.01 .063 1.645 2.705

If unprompted, how likely are you to use each of the following to refer someone to your salon, s...-Facebook

710 4.12 .079 2.106 4.436

If unprompted, how likely are you to use each of the following to refer someone to your salon, s...-Twitter

254 4.09 .125 1.996 3.985

If unprompted, how likely are you to use each of the following to refer someone to your salon, s...-Instagram

389 3.90 .107 2.116 4.478

If unprompted, how likely are you to use each of the following to refer someone to your salon, s...-Radio

530 2.05 .073 1.685 2.839

13 │ Page

If unprompted, how likely are you to use each of the following to refer someone to your salon, s...-Pinterest

396 2.73 .099 1.976 3.905

If unprompted, how likely are you to use each of the following to refer someone to your salon, s...-Print Media

246 2.15 .112 1.749 3.059

If unprompted, how likely are you to use each of the following to refer someone to your salon, s...-E-mail

726 3.63 .080 2.157 4.651


Results and Interpretation: The sample sizes of this table vary due to the fact the not all of the responding women use the same social media and other media sources. These questions were asked on a scale from 1 to 7 with 1 being “Very Unlikely” and 7 being “Very Likely.” There was a neutral option for these questions and the code for it was 4. Response codes 2 and 3 were associated with the responses “Unlikely” and “Somewhat Unlikely” respectively. Response codes 5 and 6 were associated with the responses “Somewhat Likely” and “Likely” respectively. The following interpretations were derived from this table:The average response for the 805 women that responded to the option of verbal communication was 6.01. Which means that the average woman, who responded to this option, is “likely” to refer a new client through verbal communication if unprompted to do so from the service provider. What we can extract from this is that verbal communication is a valuable marketing vehicle for salons in terms of referring new clients. The average response for the 805 women that responded to the option of text messaging was 4.70. This means that the average woman, who responded to this option, is between “Neutral” and “Somewhat likely” to refer new clients through text message if unprompted to do so by the service provider. What we can extract from this is that text messaging could be developed into a good marketing vehicle for clients referring new clients to the salon. The average response of the 805 women that responded to the option of Yelp was 2.06. This means that the average woman, who responded to this option, is “Unlikely” to refer new clients through Yelp if unprompted to do so by the service provider. What we can extract from this is that Yelp is not a useful marketing vehicle in terms of referring new clients to the salon.The average response of the 682 women that responded to the option of TV was 2.01. This means that the average woman, who responded to this option, is “Unlikely” to refer new clients through TV communications if unprompted to do so by the service provider. What we can extract from this is that TV Is not a useful marketing vehicle to use solely to get current clients to refer new clients.

14 │ Page

The average response of the 710 women that responded to the option of Facebook was 4.12. This means that the average woman, who responded to this option, is between “Neutral” and “Somewhat Likely” to refer new clients to the salon, through Facebook, if unprompted to do so by the service provider. What we can extract from this is that Facebook could be developed into a useful marketing vehicle for referring new clients to the salon.The average response of the 254 women that responded to the option of Twitter was 4.09. This means that the average woman, who responded to this option, is “Neutral” to referring new clients to the salon through Twitter, if unprompted to do so by the service provider. What we can extract from this is that Twitter can be developed into a useful marketing vehicle for referring new clients to the salon. The average response of the 389 women that responded to the option of Instagram was 3.9. This means that the average woman, who responded to this option, is between “Somewhat Unlikely” and “Neutral” to referring new clients through Instagram, if unprompted to do so by the service provider. What we can extract from this is that Instagram would not be an ideal marketing vehicle to use to refer new clients to the salon. The average response of the 530 women that responded to the option of Radio is 2.05. This means that the average woman, who responded to this option, is “Unlikely” to refer new clients to a salon through Radio if unprompted to do so by the service provider. What we can extract from this is that Radio is not a good marketing vehicle in terms of referring new clients to the salon.The average response of the 396 women that responded to the option of Pinterest is 2.73. This means that the average woman that responded to this option was between “Unlikely” and “Somewhat Unlikely” to refer new clients to the salon through Pinterest, if unprompted to do so by the service provider. What we can extract from this is that Pinterest would not be a good vehicle to use in getting clients to refer new clients.The average response of the 246 women that responded to the option of Print Media is 2.15. This means that the average woman who responded to this option is “Unlikely” to refer new clients to a salon through print media, if unprompted to do so by the service provider. What we can extract from this is that Print Media will not be a good vehicle to use in getting clients to refer new clients. The average response of the 726 women who responded to the option of E-mail was 3.63. This means that the average woman who responded to this option is between “Somewhat Unlikely” to “Neutral” to referring new clients to a salon through e-mail, if unprompted to do so by the service provider. What we can extract from this is that E-mail could be developed into a good marketing vehicle in terms of getting clients to refer new clients to the salon.What are the population parameters for the following?

Likelihood to refer a friend after receiving great experience.

Figure 8

One-Sample Statistics

N MeanStd.

DeviationStd. Error

Mean

15 │ Page


805 6.52 .983 .035

One-Sample TestTest Value = 0

t dfSig. (2-tailed)

Mean Difference

95% Confidence Interval of the Difference

Lower UpperIf you experienced great service from a salon, spa or barbershop how likely would you be to refer:-Friend

188.160 804 .000 6.519 6.45 6.59

Results and Interpretation: The 95% confidence interval for this response is 6.45 – 6.59. This means that with 95% confidence we claim that the average woman would be between “Likely” and “Very likely” to refer a friend to a salon after experiencing great service after receiving great service from that salon. What we can extract from this is that experiencing great service is a strong factor when getting clients to refer new clients. We can also see that women, in general, refer friends to experience the same level of services that they receive.

Likelihood to refer a family member after receiving great experience

Figure 9


N MeanStd.

DeviationStd. Error

MeanIf you experienced great service from a salon, spa or barbershop how likely would you be to refer:-Family Member

805 6.42 1.226 .043


t df Sig. (2-tailed)

Mean Difference


16 │ Page

Lower UpperIf you experienced great service from a salon, spa or barbershop how likely would you be to refer:-Family Member

148.558 804 .000 6.417 6.33 6.50

Results and Interpretation: The 95% confidence interval for this response is 6.33 – 6.50. This means that with 95% confidence we claim that the average woman would be between “Likely” and “Very likely” to refer a family member to a salon after experiencing great service after receiving great service from that salon. What we can extract from this is that experiencing great service is a strong factor when getting clients to refer new clients. We can also see that women, in general, refer family members to experience the same level of services that they receive.Likelihood to refer a coworker after receiving great experience

Figure 10


N MeanStd.

DeviationStd. Error

MeanIf you experienced great service from a salon, spa or barbershop how likely would you be to refer:-Coworker

805 6.09 1.384 .049


t dfSig. (2-tailed)

Mean Difference


Lower UpperIf you experienced great service from a salon, spa or barbershop how likely would you be to refer:-Coworker

124.790 804 .000 6.087 5.99 6.18

Results and Interpretation: The 95% confidence interval for this response is 5.99 – 6.18. This means that with 95% confidence we claim that the average woman would be between “Somewhat Likely” and “Likely” to refer a coworker to a salon after experiencing great service after receiving great service from that salon. What we can extract from this is that experiencing great service is a strong factor when getting clients to refer new clients. We can also see that women, in general, are less likely to refer coworkers to experience the same level of services that

17 │ Page

they receive, than friends and family members. This shows that women are more likely to refer those whom they choose to interact with regularly than those whom they may be forced to interact with regularly.

Likelihood to refer social media contacts after receiving great experience.

Figure 11


N MeanStd.

DeviationStd. Error

MeanIf you experienced great service from a salon, spa or barbershop how likely would you be to refer:-Social Media Contacts

755 4.81 2.090 .076


t dfSig. (2-tailed)

Mean Difference


Lower UpperIf you experienced great service from a salon, spa or barbershop how likely would you be to refer:-Social Media Contacts

63.265 754 .000 4.812 4.66 4.96

Results and Interpretation: The 95% confidence interval for this response is 4.66 – 4.96. This means that with 95% confidence we claim that the average woman would be between “Neutral” and “Somewhat likely” to refer social media contacts to a salon after experiencing great service after receiving great service from that salon. What we can extract from this is that experiencing great service is a strong factor when getting clients to refer new clients. We can also see that women, in general, are less likely to refer social media contacts than they are to refer friends,

18 │ Page

family members, and coworkers. This shows that women are more likely to refer those whom they interact with most frequently than those who they do not interact with as much. Likelihood to refer if asked to do so by the service provider.

Figure 12


N MeanStd.

DeviationStd. Error

MeanHow likely would you be to refer someone to a salon, spa or barbershop if a service provider asked you to do so?

804 5.05 1.531 .054


t dfSig. (2-tailed)

Mean Difference


Lower UpperHow likely would you be to refer someone to a salon, spa or barbershop if a service provider asked you to do so?

93.478 803 .000 5.049 4.94 5.15

Results and Interpretation: The 95% confidence interval for this response is 4.94 – 5.15. This means that with 95% confidence we claim that the average woman is between “Neutral” and “Somewhat Likely” to refer new clients to the salon if the service provider asked her to do so. What we can extract from this is that women, in general, respond favorably to being asked to refer new clients to a salon.

Likelihood to refer through verbal communication if unprompted.

Figure 13


N MeanStd.

DeviationStd. Error

Mean

19 │ Page


805 6.01 1.377 .049


t dfSig. (2-tailed)

Mean Difference


Lower Upper If unprompted, how likely are you to use each of the following to refer someone to your salon, s...-Verbal Communication

123.908 804 .000 6.012 5.92 6.11

Results and Interpretation: The 95% confidence interval for this response is 5.92 – 6.11. This means that with 95% confidence we claim that the average woman is between “Somewhat Likely” and “Likely” to refer new clients through verbal communication if unprompted to do so by a service provider.

Likelihood to refer through Facebook if unprompted.

Figure 14


N MeanStd.

DeviationStd. Error

Mean If unprompted, how likely are you to use each of the following to refer someone to your salon, s...-Facebook

710 4.12 2.106 .079


t dfSig. (2-tailed)

Mean Difference


Lower Upper

20 │ Page

If unprompted, how likely are you to use each of the following to refer someone to your salon, s...-Facebook

52.083 709 .000 4.117 3.96 4.27

Results and Interpretation: The 95% confidence interval for this response is 3.96 – 4.27. This means that with a 95% confidence we claim that the average woman is between “Somewhat Unlikely” and “Neutral” to refer new clients through Facebook if unprompted to do so by a service provider. What we can extract from this is that the use of Facebook to refer new clients among women is not the most favorable marketing vehicle to use.

Likelihood to refer through Twitter if unprompted.

Figure 15


N MeanStd.

DeviationStd. Error

Mean If unprompted, how likely are you to use each of the following to refer someone to your salon, s...-Twitter

254 4.09 1.996 .125


t dfSig. (2-tailed)

Mean Difference


Lower Upper If unprompted, how likely are you to use each of the following to refer someone to your salon, s...-Twitter

32.628 253 .000 4.087 3.84 4.33

Results and Interpretation: The 95% confidence interval for this response is 3.84 – 4.33. This means that with a 95% confidence we claim that the average woman is between “Somewhat Unlikely” and “Neutral” to refer new clients through Twitter if unprompted to do so by a service provider. What we can extract from this is that the use of Twitter is not the most favorable marketing vehicle among women.

21 │ Page

Likelihood to refer through Instagram if unprompted.

Figure 16


N MeanStd.

DeviationStd. Error

Mean If unprompted, how likely are you to use each of the following to refer someone to your salon, s...-Instagram

389 3.90 2.116 .107


t dfSig. (2-tailed)

Mean Difference


Lower Upper If unprompted, how likely are you to use each of the following to refer someone to your salon, s...-Instagram

36.395 388 .000 3.905 3.69 4.12

Results and Interpretation: The 95% confidence interval for this response is 3.69 – 4.12. This means that with a 95% confidence we claim that the average woman is between “Somewhat Unlikely” and “Neutral” to refer new clients through Instagram if unprompted to do so by a service provider. What we can extract from this is that the use of Instagram is not the most favorable marketing vehicle among women.

Likelihood to refer through E-mail.

Figure 17


N MeanStd.

DeviationStd. Error

Mean

22 │ Page

If unprompted, how likely are you to use each of the following to refer someone to your salon, s...-E-mail

726 3.63 2.157 .080


t dfSig. (2-tailed)

Mean Difference


Lower Upper If unprompted, how likely are you to use each of the following to refer someone to your salon, s...-E-mail

45.312 725 .000 3.627 3.47 3.78

Results and Interpretation: The 95% confidence interval for this response is 3.47 – 3.78. This means that with a 95% confidence we claim that the average woman is between “Somewhat Unlikely” and “Neutral” to refer new clients through e-mail if unprompted to do so by a service provider. What we can extract from this is that the use of e-mail is not the most favorable marketing vehicle among women.

With regards to women, we believe that there is a difference in their likelihood to refer if asked to do so by the service provider, between the age groups 18-24 and 25-30.Ho: There is no difference in likelihood to refer if asked to do so by the service provider, between the age groups 18-24 and 25-30.Ha: There is a difference in likelihood to refer if asked to do so by the service provider, between the age groups 18-24 and 25-30.

Analysis: Independent Samples T-test

Figure 18

Group StatisticsAge Category N Mean

Std. Deviation

Std. Error Mean

How likely would you 18-24 228 5.10 1.461 .097

23 │ Page

be to refer someone to a salon, spa or barbershop if a service provider asked you to do so?

25-30

82 5.12 1.391 .154

Independent Samples TestLevene's Test for Equality

of Variance

s t-test for Equality of Means

F Sig. t df

Sig. (2-

tailed)

Mean Differenc

e

Std. Error Differenc

e

95% Confidence Interval of

the Difference

Lower

Upper


Equal variances assumed

.467

.495

-.113 308 .910 -.021 .186 -.387 .345

Equal variances not assumed

-.116

149.617 .908 -.021 .182 -.380 .338

Results and Interpretation: With 95% confidence we fail to reject the null hypothesis that states that there is no difference in likelihood to refer if asked to do so by the service provider, between the age groups 18-24 and 25-30. This means that there is no statistically significant difference between the means in the samples. What we can extract from this is that there is no difference in likelihood to refer if asked to do so between our current target market customers (25-30) and our future target market customers (18-24). This is useful because it will help us identify marketing opportunities for the future target market consumers.

24 │ Page

With regards to women, we believe that there is a difference between likelihood to refer new clients, if unprompted, through verbal communication and likelihood to refer new clients if asked to do so by the service provider.Ho: There is no difference between the likelihood to refer new clients, if unprompted, through verbal communication and likelihood to refer new clients if asked to do so by the service provider.Ha: There is a difference between the likelihood to refer new clients, if unprompted, through verbal communication and likelihood to refer new clients if asked to do so by the service provider.Analysis: Paired Samples T-test

Figure 19

Paired Samples Statistics

Mean NStd.

DeviationStd. Error

MeanPair 1 If unprompted, how

likely are you to use each of the following to refer someone to your salon, s...-Verbal Communication

6.01 804 1.377 .049


5.05 804 1.531 .054

Paired Samples TestPaired Differences

t dfSig. (2-tailed)Mean

Std. Deviation

Std. Error Mean

95% Confidence Interval of the

DifferenceLower Upper

25 │ Page

Pair 1

If unprompted, how likely are you to use each of the following to refer someone to your salon, s...-Verbal Communication - How likely would you be to refer someone to a salon, spa or barbershop if a service provider asked you to do so?

.965 1.779 .063 .842 1.088 15.385 803 .000

Results and Interpretation: With 95% confidence the p-value of this test is .000 so therefore we reject the null hypothesis in favor of the alternative hypothesis that states that there is a difference between the likelihood to refer new clients, if unprompted, through verbal communication and likelihood refer new clients if asked to do so by the service provider. Since there is a statistically significant difference between the two means, that means that of the 804 women that responded to both of these questions, they are more likely to refer a new client through verbal communication, if unprompted to do so, than they are to refer a new client if asked to do so. This tells us that letting current clients spread the word about the salon verbally could be more effective than asking those clients to go out and refer new clients.

With regards to women, we believe that there is a difference in likelihood to refer new clients, if unprompted, through verbal communication among age groups.Ho: There is no difference in likelihood to refer new clients, if unprompted, through verbal communication among age groups.Ha: There is a difference in likelihood to refer new clients, if unprompted, through verbal communication among age groups.Analysis: ANOVA

Figure 20

ANOVA If unprompted, how likely are you to use each of the following to refer someone to your salon, s...-Verbal Communication

Sum of Squares df Mean Square F Sig.

26 │ Page

Between Groups 27.575 8 3.447 1.834 .068

Within Groups 1496.301 796 1.880Total 1523.876 804

If unprompted, how likely are you to use each of the following to refer someone to your salon, s...-Verbal

CommunicationScheffea,b

Age Category N

Subset for alpha = 0.05

146-50 62 5.7341-45 72 5.7818-24 229 5.9356-60 66 5.9461+ 68 5.9651-55 70 6.0131-35 77 6.2236-40 79 6.2325-30 82 6.35Sig. .424Means for groups in homogeneous subsets are displayed.a. Uses Harmonic Mean Sample Size = 77.341.b. The group sizes are unequal. The harmonic mean of the group sizes is used. Type I error levels are not guaranteed.

Results and Interpretation: With 95% confidence we fail to reject the null hypothesis which states that there is no difference in likelihood to refer new clients, if unprompted, through verbal communication among age groups. This means that there is no statistically significant difference between each age group in terms of likelihood to refer through verbal communication if unprompted to do so by the service provider. This means that women of all ages are just as likely to refer new clients through verbal communication as women of a different age. What we can extract from this is that even as women age, they will still continue to refer new clients to a salon.

27 │ Page

With regards to women, we believe that there is a relationship between frequency of visitation to a salon and the likelihood to refer new clients to that salon, if unprompted, through verbal communication.Ho: There is no relationship between frequency of visitation to a salon and the likelihood to refer new clients to that salon, if unprompted, through verbal communication.Ha: There is a relationship between frequency of visitation to a salon and the likelihood to refer new clients to that salon, if unprompted, through verbal communication.Analysis: Correlation Testing

Figure 21

CorrelationsPlease

indicate about how often you visit your

current salon or

barbershop. If unprompted, how likely are you to use each of the following to refer someone to your salon, s...-Verbal Communication

Pearson Correlation -.021

Sig. (2-tailed) .562N

774

Results and Interpretation: With 95% confidence we fail to reject the null hypothesis which states there is no relationship between frequency of visitation to a salon and the likelihood to refer new clients to that salon, if unprompted, through verbal communication. With a p-value of .562 there is no statistically significant relationship between the two variables. With regards to women, we believe that there is a relationship between satisfaction of hair cut services and likelihood to refer new clients, if unprompted, through verbal communication.Ho: There is no relationship between satisfaction of hair cut services and likelihood to refer new clients, if unprompted, through verbal communication.Ha: There is a relationship between satisfaction of hair cut services and likelihood to refer new clients, if unprompted, through verbal communication.Analysis: Correlation Testing

Figure 22

CorrelationsSatisfaction-

Hair Cut

28 │ Page


Pearson Correlation .116


765

Results and Interpretation: With 95% confidence we reject the null hypothesis in favor of the alternative hypothesis which states there is a relationship between satisfaction of hair cut services and likelihood to refer new clients, if unprompted, through verbal communication. With a p-value of .001 there is a statistically significant relationship between these two variables. Also, with a .116 correlation coefficient we can tell that the relationship between the two variables is positive and the strength of the relationship is weak. This relationship says that as the satisfaction of the haircut received increases, as does the likelihood of referring new clients through verbal communication. This relationship is valuable to understand because if the salon provides quality haircut services then clients will refer more new clients on a consistent basis.

With regards to women age 25-35, what is the likelihood that they will refer a new client, if unprompted, through verbal communication?Analysis: Descriptive Analysis

Figure 23


N MeanStd.


29 │ Page


159 6.29 .085 1.075 1.156


Results and Interpretation: The average response among the 159 women ages 25-35 that responded to this question was 6.29. This question was asked on a scale from 1 to 7 with 1 being “Very Unlikely” and 7 being “Very Likely.” There was a neutral option for this question and the code for it was 4. The response code 6 was associated with the response “Likely.” This means that the average woman between the ages of 25 and 35 that responded to this question is between “Likely” and “Very Likely” to refer new clients through verbal communication if they were unprompted to do so by the service provider.

What are the population parameters for the likelihood to refer a new client, if unprompted, through verbal communication for women ages 25-35?

Figure 24


t dfSig. (2-tailed)

Mean Difference


Lower Upper If unprompted, how likely are you to use each of the following to refer someone to your salon, s...-Verbal Communication

73.751 158 .000 6.289 6.12 6.46

Results and Interpretation: The 95% confidence interval for the response is 6.12 – 6.46. This means that with 95% confidence we claim that the average woman is between “Likely” and “Very Likely” to refer new clients through verbal communication if unprompted to do so by a service provider. What we can extract from this is that those in the target market

With regards to women ages 25-35, we believe that there is a relationship between the likelihood of referring a friend after receiving great experience and likelihood to refer new clients through

30 │ Page

verbal communication if unprompted to do so by the service provider.

Ho: There is no relationship between the likelihood of referring a friend after receiving great experience and likelihood to refer new clients through verbal communication if unprompted to do so by the service provider.

Ha: There is a relationship between the likelihood of referring a friend after receiving great experience and likelihood to refer new clients through verbal communication if unprompted to do so by the service provider.

Analysis: Correlation Testing

Figure 25

Correlations If

unprompted, how likely

are you to use each of the

following to refer

someone to your salon, s...-Verbal

Communication


Pearson Correlation .311


159

Results and Interpretation: With 95% confidence we reject the null hypothesis which states that there is no relationship between the likelihood of referring a friend after receiving great experience and likelihood to refer new clients through verbal communication if unprompted to do so by the service provider. With a p-value of .000 we can determine that there is a relationship between the two factors. The correlation coefficient of this relationship is positive so therefore it is a positive relationship. With a .311 correlation coefficient we can state that it is a moderate relationship. What this relationship tells us that as the likelihood of a client referring a friend to the salon increases, the likelihood of that client referring someone through verbal communication

31 │ Page

also increases. This relationship suggests that if a client is likely to refer a friend after receiving great experience, then they are likely to refer that friend through verbal communication.

This data analysis allowed us to create recommendations for The Beauty Bar to consider.

Limitations

We believe that there were a few limitations that hindered our results. Although we

surpassed our sample size for total respondents of the survey, we believe that there could’ve been

a lot more respondents that could have given us a better representation of the population as a

32 │ Page

whole. A total of 291 respondents failed to complete the survey, so we did not receive their data.

Although we did not receive this data, we still had a large enough sample to estimate the feelings

and responses of the population.

The next limitation to be considered is that the survey was sent by the students. This was

a limitation, because students, which are between the ages of 18-22, are not in The Beauty Bar’s

target market. It can also be assumed that not all respondents were familiar with The Beauty Bar,

so that made it difficult for the respondents to answer to some of the questions. Although this

data did not improve our results for our two objectives, it was useful in identifying future

strategies for The Beauty Bar to consider.

Recommendations

What we have extracted from the data has led us to create a few recommendations for

The Beauty Bar at Geist. First we recommend that The Beauty Bar should remain closed on

Sunday and Monday. Second, we recommend that The Beauty Bar should launch a referral

33 │ Page

incentive program. Our final recommendation for The Beauty Bar is that they continue to build a

presence on social media. We believe that these recommendations will help The Beauty Bar

build its clientele base as well as build stronger relationships with those clients.

The first recommendation that we have for The Beauty Bar is that they should continue to

keep the store closed on Sunday and Monday. We found through our research that a majority of

salon clients do not prefer to have services done on a particular day of the week. This suggests

that the clients will go to the salon whenever it is convenient for them and also when the salon is

open. When we looked at the data for preferring Sunday and Monday, we found that those were

the least selected days of the week. This shows that even if clients had a strong preference on

which day they wanted to have services done, Sunday and Monday were the days that they

would least prefer. This shows that the amount of customers that would come to The Beauty Bar

on a Sunday or a Monday, would not produce enough revenue to overcome the operational costs

of opening the salon on those days.

Our second recommendation for The Beauty Bar is to launch a referral incentive

program. Through this program The Beauty Bar can create a way to get current clients to refer

others to come experience the uniqueness of The Beauty Bar. The rewards of this program can

range from a few different alternatives, or a combination of them. The alternatives for this

program could be something as simple as a free T-shirt with The Beauty Bar logo, or the gesture

of offering complimentary glasses of champagne to those who bring new clients to the salon with

them. Another alternative could be offering the current clients a free Aveda salon product for

referring that new customer. The possibilities are endless for this incentive program and we

believe that offering these alternatives would not cheapen the brand of The Beauty Bar in any

way. We also believe that launching this program will expand the clientele base exponentially.

34 │ Page

Our final recommendation for The Beauty Bar is that they maintain a consistent presence

on social media. A unified social media presence could prove invaluable to The Beauty Bar as

the prevalence of social media continues to increase. Although social media is not the best

method of referral for those within the target market of 25-35 year old women, it is becoming a

much more integral component of advertising for organizations. This is because the millennial

generation is heavily reliant on social media and as their buying power increases in the

marketplace, more and more organizations will turn to social media in attempt to connect with

these consumers. If The Beauty Bar establishes a consistent image and presence on social media

then when these consumers become the members of the target market, those consumers will be

more likely to recognize The Beauty Bar brand. If The Beauty Bar can create the relationship

with those consumers now, they will be much more likely to consistently visit The Beauty Bar

once they have the disposable income that allows them to frequently visit a salon.

These recommendations were conceptualized and supported by the data analysis from our

survey. We believe that if The Beauty Bar executes on all of these recommendations, then their

clientele base will expand exponentially. Not only will the current customer base increase, but it

will also create a great opportunity to build relationships with future clients. These opportunities

for expansion are incredibly favorable for The Beauty Bar and it would not be highly expensive

to execute these new marketing strategies.

Conclusion

In summation, we did not find what we expected to find through our data analysis. We

did however; find useful information that was used to create recommendations for The Beauty

35 │ Page

Bar. Our first objective failed to identify a large enough population that would be interested in

receiving services on Sunday and Monday. The data shows that only 124 respondents would be

interested in visiting on Sunday. Also, the data shows that only 92 of the respondents would be

interested in visiting on Monday. After running descriptive tests for both hypotheses, we

recommend that it would be in the best interest for The Beauty Bar to remain closed on Sunday

and Monday.

As for the second objective, we found that word-of-mouth is the best method for reaching

and referring new clients. Although our results show that social media is a less favorable method

(as opposed to word of mouth) for referring potential clients, we can infer that social media

remains a prevalent method for reaching new clients. Our results showed that the best social

media platform to use is Facebook. That being said, Instagram and Twitter are viable options as

well. With The Beauty Bar’s target market aging between 25-35, this will aid Erin and Chad by

familiarizing them with most widely used social media sources on the market. Our research also

provides insight on the opportunities coming in the future for The Beauty Bar. They can use our

results to better enhance their promotional strategies as well as identifying how customers are

responding to these promotional strategies.

Appendices

Appendix A: Survey Question Format

36 │ Page

This picture is a snapshot from the Qualtrics Survey Software. This is how we set up the question that provided us with the results of how many people preferred a particular service on a particular day.

This picture is a snapshot from the Qualtrics Survey Software. This is how we set up the question that provided us with the results that allowed us to run a correlation test to see if there was a relationship through likelihood to refer through verbal communication if unprompted to do so by the service provider and the frequency of visit.

37 │ Page

This picture is a snapshot from the Qualtrics Survey Software. This is how we set up the question that provided us with the information about how likely clients would be to referring particular groups of people after experiencing great service at a salon.

This picture is a snapshot from the Qualtrics Survey Software. This is how we set up the question that provided us with the information about how likely clients would be to refer new clients if asked to do so by the service provider.

This picture is a snapshot from the Qualtrics Survey Software. This is how we set up the question that provided us with the information about how likely clients would be to refer new clients through various marketing vehicles if unprompted to do so by the service provider.

38 │ Page

Reference List

BOOK:

Burns, Alvin C., and Ronald F. Bush. Marketing Research. 7th ed. N.p.: Pearson, 2014. Print. The Beauty Bar at Geist: http://www.thebeautybargeist.com/

Dr. VanMeter

39 │ Page

Documents

Beauty Bar Final Report