UK Beauty Industry’s Quality and Customer Loyalty Dissertation

Introduction

Background of the Study

The United Kingdom is one of the leading economies in the world, with a vibrant beauty industry that has attracted both local and international players. In a report by Whitefield-Madrano (2017), the United Kingdom and France are some of the top fashion centres in the global market. Buyers from all over the world come to this country to purchase different items in the beauty industry. Sierra (2015) defines beauty industry as that which offers products such as skin care, hair care products, nail care products, luxury spas, massage parlours, perfumes, colognes, and such related products.

In this industry, a customer may need to purchase different products such as skin care products, nail care products, hair care products, clothes, footwear, watches, bracelets, necklaces, and makeup products. Both men and women often purchase these products. However, one’s social class often determines the quality of products that they purchase. The rich often look for expensive and high quality products that can help in demonstrating their social status in the society.

On the other hand, those who are not financially empowered often look for basic beauty products, which they can afford. Different firms have specialised in different market segments based on a number of factors. Some of the fashion stores have specialised on serving the rich members of the society. They sell high-end products, which are of very high quality at high prices. On the other hand, some fashion stores have specialised on the middle-class, which form a large segment of the market. The large size is attractive to these customers even though they have a lower purchasing power compared with the rich. Then there are those companies offering basic beauty products for the lowest-end of the market.

According to Reason (2015), irrespective of the market segment that a firm serves in the beauty industry, service quality is increasingly becoming an important factor that these firms must consider when delivering their products to the customers. It is important to understand the difference between service quality and product quality in the context of this paper. The paper focuses on the quality of the service rendered to the customers when they are purchasing beauty products. A firm may have very high quality products, but if the service quality is low, then it may not be able to attract a pool of loyal clients.

Reynolds (2016) says that clients often remember the manner in which services are offered to them. They are human beings with feelings that can be affected depending on the interaction they have with their customers. Firms keen on ensuring that they have a pool of loyal customers, therefore, must consider going beyond offering quality products. They must also ensure that their services are of high quality as well. In this paper, the focus is to determine the impact of service on customer loyalty in the skin care and makeup segment of the beauty industry.

Research Problem

The beauty industry is one of the oldest industries that can be traced through various historic times. The industry is increasingly getting competitive as new firms emerge to compete for the existing market. Firms have been trying to find ways of ensuring that they remain competitive enough to overcome the emerging challenges in the market. One of the common strategies that many firms have employed is differentiation of their products.

Many firms are now keen on offering quality products that meet their customer needs in a special way. In the beauty industry, firms are coming up with new fragrance, shapes, and other qualities to make their products look unique. Barbery and Anderson (2013) say that the effort put in place by firms to make their products look unique has benefited many firms, but at the same time it has made customers demanding.

These consumers know that they can get the products they need from various companies hence they have become very choosy. In the skin care and makeup market, the competition is getting very stiff and firms have to come up with superior ways of overcoming these challenges. They have to go beyond offering superior skin care and makeup products.

The firms now have to focus on superior service delivery. They must find a way of developing a personal relationship with their customers in the market. They must make their clients feel comfortable and happy whenever they visit these stores. Superior quality in service delivery makes buyers feel appreciated. They make these customers develop a sense of belonging every time they visit the retailers.

It is only through that approach that a firm can develop a pool of loyal buyers. As Lovelock and Patterson (2015) say, failure of a firm to master emerging market trends may have serious ramifications on its operations. Firms such as Eastman Kodak and Lehman Brothers were forced out of the market because of their inability to master the changing market forces and act upon them appropriately. Currently, the issue of service quality within the beauty industry in the United Kingdom is growing in relevance. Only those firms that are able to master this new trend will be able to achieve the desired success in the market.

Importance of the Research

The skin care and makeup market is one of the most lucrative segments of the United Kingdom’s beauty industry. Irrespective of one’s social class, religion, age, gender, level of education or any other demographical classification, skin care and makeup products are basic needs. They are used on a daily basis by all within the country. The attractiveness of this industry has attracted numerous players keen on capitalising on it.

As such, it is currently one of the most competitive industries in the country. Indeed, it is true that the existing players have selected their most appropriate market segments, from the rich to the middle-class and the poor. However, in each of these segments competition is becoming very stiff. It means that only those firms with the capacity to adopt can manage the stiff competition. Service quality is becoming one of the ways of achieving competitive advantage in the market.

It is one of the ways of differentiation in the market today. This paper is very important because it explains why firms in the beauty industry within the United Kingdom should improve quality of their services even as they work hard to ensure that quality of their products is high. It explains why it is not enough for firm to ensure that they offer very high quality products in the market. It also explains how this can be done to achieve the expected outcome. The document will also be important for young scholars who will be interested in conducting research in this field. It provides a detailed explanation of the methodology used in this academic research, which young scholars can use to conduct research in related fields.

Research Aim and Objectives

The concept of service quality is not new, especially in the United Kingdom’s beauty industry. As firms use various platforms to promote their brands and products, they are also working tirelessly to ensure that they offer quality services t their customers as they visit their stores. They try to ensure that they create memorable experiences with their customers that will make them desire to revisit their stores in future. The primary aim of this research is to determine the impact of service quality on customer loyalty in the beauty industry. The following are the objectives that the researcher seeks to achieve by the end of the research:

• To find out the relationship between services quality and customer satisfaction.
• To understand the relationship between customer satisfaction and loyalty.
• To explore whether services quality impact on customer loyalty in the United Kingdom’s beauty industry.

Research Questions

According to Marsh, Gray, and Tosti (2015), when conducting a research, one must take into consideration the need to be precise in data collection and analysis to ensure that the set aim and objectives are achieved. It is common to find cases where a customer fails to maintain focus if proper guideline is not set when collecting data from respondents. As such, the researcher was keen on setting research questions to help in the collection and analysis of both primary and secondary data.

These questions helped in ensuring that the entire process of data collection and analysis focused on achieving specific goals. To determine the impact of service quality on customer loyalty within the beauty industry in the United Kingdom, the following questions were used in the process of collecting data:

Does service quality affect customer loyalty?

1. What is the relationship between services quality and customer satisfaction.
2. What is the relationship between customer satisfaction and loyalty.
3. Does services quality of beauty industry affect customer loyalty in the United Kingdom?

The researcher will rely on data collected from both primary and secondary sources to answer the above questions. The questions will also form the basis of the research hypotheses after the review of literature in the chapter that follows. The next chapter will provide a detailed review of the published works of other scholars who have done some work in this field.

Literature Review

The previous chapter has provided the background and justification for this study. This chapter will be dedicated to a comprehensive review of the literature on this topic. The beauty and fashion industry is currently one of the most competitive industries in the United Kingdom. As players struggle to find ways of remaining competitive in the market, scholars have been working to find a solution for them.

This field of research has attracted the attention of many scholars over the recent past. According to Baack, Harris, and Baack (2013), when conducting research, it is critical to start by reviewing what other scholars have found out in the same field. The ultimate goal of a researcher should always be to come up with new knowledge on a given topic. A new research project should develop the existing knowledge instead of duplicating information that is already available in other studies.

As such, conducting a comprehensive literature review is always very important. It also helps in providing information upon which the new research will be based. That is why this chapter focuses on conducting a detailed review of published literature available in books, journal articles, and other reliable online sources. The chapter will discuss theoretical concepts relevant to this topic and then develop hypotheses based on the information collected from secondary sources. The hypotheses will be analysed in chapter four of this paper.

The Beauty Industry in the United Kingdom

The United Kingdom’s beauty industry is registering impressive growth, and currently, it is one of the main industries in the country. Aidin (2014, p. 2) says, “The UK beauty industry is in the pink, employing more than one million people and worth £17 billion, it is forecast to grow 16 per cent by 2016.” The report shows that the industry is one of those that were able to withstand the forces of the global recession of the year 2008.

During the recession of 2008, the retail sales in the United Kingdom’s beauty industry rose by over 3.5%. The sales in 2013 were £7.1 billion, up 15.5% from that in 2008, which was £6.1 billion. As the disposable income continues to increase in this country, the number of people using products from this company is also increasing. People increasingly appreciate the need for them to purchase various products offered in this industry. Blythe (2013) says that a significant number of people from other parts of the world come to the country as tourists or business travellers, increasing the size of the market.

The beauty industry’s growth is not just attributed to the growing size of the middle-class and the rich. Many people in the country are also finding it relevant to choose wisely the products they use on their skin (Khraim 2011). The emergence of diseases such as skin cancer has made many people in the country very sensitive to the products they use on their skin. The industry, through extensive research, has been keen on developing unique products meant to nourish and protect the skin. The figure below shows two people using various skin care products.

According to Cavagnaro and Curiel (2012), the United Kingdom’s beauty market can be classified into five broad categories. They include fragrance, colour cosmetics, skin care, hair, and toiletries. These five categories of the beauty market products vary in size and the class of people they appeal to within the country. The figure below shows the five categories of the market and their varying sizes in terms of the sales they register per annum between 2012 and 2013.

As shown in the figure above, the colour and cosmetics market is the smallest, and it registered a sale of £ 1,325,206 in 2012. A year later in 2013, the figure increased to £ 1,333,375. The fragrance market is classified as the second smallest of the five categories based on the sales per year. In 2012, the industry registered sales of £ 1,337,913. The figure increased in 2013 to £ 1,348,914, which was a sign that it was growing.

The hair care market is also growing rapidly, and currently, it is classified as the third largest in the industry. It registered sales of £ 1,726, 176 up from £ 1,701,026. Placed second largest in the beauty market is the skin care market. In 2012, it registered sales of £ 1,836,669. The figure increased to £ 1,913,322 a year later in 2013. The toiletries come as the largest market segment in the industry. It is used by almost everyone irrespective of the social class, gender, religion, age, or any other demographical factor. In 2012, the sub-market registered a sale of £ 2,102,910. In 2013, the sales of the toiletries market grew to £ 2,112,629.

The statistics show that in total, the beauty industry registered sales of £ 8,438,415 in 2013, up from £ 8,303,724 in 2012. The growth of this market is forecasted to be consistent in the year to come, as suggested in that report. This paper will be focusing on skin care and makeup products. As shown in the figure 2 above, this is the second-largest market segment, and it registered the largest growth in sales.

It comes out as one of the most attractive market segments. According to French and Gordon (2015), this market segment has attracted both local and international players over the recent past. It is also one of the most sensitive segments of the beauty industry. It means that buyers often value brands because they do not want to do experiments with their skin. They want products, which are tried and tested. They also prefer using products that they know work well for their type of skin. A section of the market will prefer using one product while another section will opt for a different product. The strength of a brand in this industry means a lot for a firm because of the level of competition.

According to Gbadamosi (2016), the skin care market in the United Kingdom has a number of players. Some of the top brands in this market include Antipodes Grapeseed Butter Cleanser, Green People Orange Blossom Moisturiser, Weleda Almond Soothing Facial Cream, RawGaia Organic Hemp Glow Mist, Herbfarmacy Enriching Hand Cream, and Skin & Tonic Rose Mist among other top brands.

Gbadamosi, Bathgate, and Nwankwo (2013) argue that new brands keep emerging in the market as competition increasingly become stiff. Players are keen on meeting unique needs of their customers. Skin care products are slowly moving from beauty products to medicinal products. Indeed their primary focus is still on ensuring that their users remain attractive. However, they now include additional ingredients such as aloe vera, which is known for its medicinal value, especially on the skin. The move from basic beauty products to beauty products with medicinal value is caused by the desire to offer customers extra value for the products they purchase (Vryoni, Bakirtzoglou & Ioannou 2017).

These firms are keen on ensuring that they differentiate their products from that of their competitors. At first, differentiation came in the form of unique packaging and shape of the products. However, that has since gone a step higher to unique fragrance and use of the product. It is expected that players in this industry will continue being innovative as they struggle to outsmart one another in the market.

Service Quality

According to Yuen and Chan (2010), service quality refers to “the degree of discrepancy between customers’ normative expectations for the service and their perceptions of the service performance.” It is important to note that in this paper, the focus is not service as a product offered by a firm to its consumers but as a mode through which companies offers its products. The product is clearly outlined as the skin care and makeup products in the beauty industry. However, the research looks at the manner in which this service is offered to its customers (Resnick, Foster & Woodall 2014). Based on the above definition, it refers to the discrepancy between how the clients expect to be served when they visit the stores to purchase the skin care products to the actual manner in which they are served.

Normally, customers expect to be treated with respect and care when they visit these stores. They expect to get personal attention from the representatives of the firms responsible for selling the products. According to Lu, Marek and Chen (2015), clients often have different measure when determining service quality whenever they purchase products from different stores. Their measure is often based on their social class and other demographical factors.

The expectations of a rich client are very different from that of a middle-class customer. What a middle-class customer may regard as satisfying may not meet the expectations of a rich client. That is why it is important to understand these expectations to know how to meet them in the best way possible. Marketers have developed mechanisms through which customers’ expectation of service quality can be measured.

According to Louw (2012), the SERVQUAL model is currently one of the popular models used in determining the gap between customer perceptions and expectations. When customers plan to get a service from a given firm, they often have expectations of the kind of services they should receive. They have, in their mind, an idea of the manner in which, they should be treated, and the kind of relationship that should be developed from the entire process.

When they receive the service from the retailer, they often develop a perception of how well the service was. They will then develop a comparison between the quality of service received and the quality that was expected. If the perceived service quality is not met, then as per the SERVQUAL model there will be a negative gap. Such a gap leads to customer dissatisfaction. The gap is created because what they received is below what they expected.

When the expectations are met (the quality expected is the same as the perceived value), then the customer will be satisfied. There will be a zero gap between what was expected and what is offered. There are cases when what was expected in terms of quality is lower than the perceived value. It happens when a firm offers services superior in quality to what the customers expected. In such cases, customers will be thrilled. The gap between what was expected and what was offered is positive.

When using SERVQUAL model to determine the service quality, Oplatka and Hemsley-Brown (2012) talk about four main gaps that one should take into consideration. The first gap is that between customer’s expectation and that which a firm thinks customer expects. It is common for a company to come up with wrong customer expectation. This is common when a firm fails to understand the market segment.

For instance, a firm may work with the expectations of the middle-class customers while in essence, it is targeting the high-end clients. There will be a gap between what such a firm believes its clients expect and what they actually expect. In such cases, it is easy for a firm to make mistakes in product positioning and the manner in which a given product is offered to the buyers. The second gap occurs when a firm fails to come up with service standards, which meet expectations of the customers.

It is important to note that in this case, it is possible that the firm could know what customers expect. However, even with that knowledge, it fails to deliver what is expected. The third gap, as per the SERVQUAL model, occurs when the service delivery systems (processes, people, and technology) put in place by a firm fails to deliver up to the expected standards (Ravens 2014). A firm may be committed to delivering the quality, but the systems and structures end up failing to deliver as expected.

The fourth gap occurs in instances where a firm promises buyers specific standards of services, which the current capacity of its system and structures cannot deliver. It is common during advertising where a firm promises a lot more than it can deliver. Customers will base their expectations on what is promised, not knowing that the company lacks the capacity to deliver. Addressing these four gaps is critical for a firm to ensure that the quality of services meets expectations of its clients.

Customer Loyalty

Customer loyalty is critical when a firm is operating in a highly competitive business environment. Yuen and Chan (2010) define customer loyalty as “positive feelings towards a brand in addition to repurchasing time after time.” It is a behavioural attitude where one becomes very loyal to a brand, always keen on making repeat purchases, and often being less sensitive to changes in price. Loyalty is developed when a customer feels that a given brand offers the best services possible in the market.

Roy, Mutum, and Nguyen (2017) note that when a customer becomes loyal to a given brand or a product, he or she will always look for such brand or product in the market and would prefer go without purchasing a product at all than go for an alternative brand or product. Loyalty is created when a customer develops a close and personal relationship with a brand or a product. Loyalty may be towards a brand, a product, or the service with which a product is delivered (Atkins & Kim 2012).

Some customers are loyal to a product because of its high value as per their perception. Others are loyal to a brand because of their perception that the brand is known for high quality products. Others value the service they get whenever they want to purchase a given product.

Link between Service Quality and Customer Loyalty

According to Safko (2013), a close link exists between service quality and customer loyalty that a firm must understand. As stated in the section above, customer loyalty is created when customers believe that the quality they get is equal or superior to what they expected they planned to make the purchase. Loyalty may be developed because of the quality of service or product, and it may be directed towards a given staff or to a store/brand. The figure below shows the relationship:

As shown in figure 3 above, a customer who receives quality retail service may develop loyalty towards the store where the service was offered or the staff who offered the service. A bond may be created between the staff and the customer, making it easy for the customer to make repeat purchases. On the other hand, when the product is of high quality, the loyalty will be developed towards the store (brand). Both types of loyalty are critical for a skin care and beauty firm that is operating in the competitive United Kingdom’s beauty industry.

Theoretical Concepts

Scholars have come up with different theories to help explain the relationship that exists between service quality and customer loyalty in various industries. As Sharma and Shilpa (2013) says, although different industries may have unique characteristics that make them unique, factors that influence the loyalty of customers is often similar. They have to do with the quality of the product, quality of service delivery, competitiveness of the price, reliability, responsiveness among others.

Consumption Value Theory is one of the models currently used to define choices that customers make whenever they want to purchase a given product in the market. The theory suggests that the decision of a customer is often based on five dimensions. They include functional value, social value, emotional value, epistemic value, and conditional value. Functional value is based on the purpose for which a product is purchased.

A buyer would always be interested in a product that meets his or her intended purpose in the best manner possible (Borges, Babin & Spielmann 2013). Social value is related to the image that a product brings out in the society. Buyers often prefer products that bring out their social class. Emotional value focuses on the feeling that a given product arouses. Often clients would want to purchase products that bring out beautiful memories.

Epistemic value is related to the desire for novelty seeking or knowledge (Aulia, Sukati & Sulaiman 2016). Finally, the conditional value is based on the circumstances that a customer is faced with at a given time. Products that enabled a client to overcome particular challenges in life often remain fondly memorable in their minds. A customer can develop loyalty towards a given brand based on how effective each of the five factors are met by a given product.

Value Hierarchy Model is another theory that has widely been used to explain how loyalty of customers can be won by offering them high-value products. The model has three conceptualised levels that define desires of a customer. They include the desired attributes, the desired consequences, and the desired goals/end-states and purposes. The figure below gives a conceptual image of these desired attributes and their relationship with the satisfaction they bring out if adequately met.

The very basic desire of customer, as explained in this model is the attributes of a product and its ability to perform the purpose for which it is intended. A product must be capable of meeting the basic needs of a customer. When these needs are met, a client will achieve attribute-based satisfaction. He or she will be satisfied with the basic characteristics of that product. The second level is the desired consequences that are attached to a product.

A product may be capable of meeting the basic needs of a customer in the best manner possible (Zeiser 2015). However, it might have factors that make it dangerous. Travelling by a motorcycle may be an interesting way of moving from one place to another. However, when one looks at the consequences (the level of danger that it exposes to its users) as compared with other means of transport, it may not be the first choice, especially on long trips.

It is natural that one would always prefer the option with desirable consequences to achieve consequence-based satisfaction (Parasuraman, Zeithaml & Berry 1998). At the apex is the customer goals and purposes attribute. Other than the consequences and the attributes of a product, there is also the primary goal of the customer when making a purchase. When these goals are met, then there will be goal-based satisfaction.

When satisfaction is achieved at all the three levels identified above, then such a firm will win the loyalty of its customers (Zolait 2013). It may not be easy to achieve all of them, but it should always be the primary aim of any company, which is keen on achieving success in the current competitive market. This model explains how a firm should gauge its products and service delivery approach in the market. A company must find ways in which each of these three goals can be achieved.

Research Hypotheses

The concept of service quality and its impact on customer loyalty in the United Kingdom’s beauty industry has been researched extensively by various scholars. This chapter has reviewed what different scholars say about this concept. Given that the findings made by other scholars formed the basis upon which this research was developed, it is important to develop research hypotheses at this stage. It is important to note that the hypotheses are based on the information collected from the literature review. The following are the hypotheses that were set:

• H1. There is a positive relationship between service quality and customer satisfaction.
• H2. There is a positive relationship between customer satisfaction and customer loyalty.
• H3. Services quality has a direct impact on customer loyalty in the United Kingdom’s beauty industry.

Literature Table

This chapter has provided a comprehensive review of the literature as explained at its beginning. The next chapter will discuss methods used to collect, analyse, and present the findings. The table below is a list of journals articles used in this chapter.

Table 2.1: Literature table (developed by author).

Methodology

The United Kingdom’s beauty industry is growing very rapidly, and players are keen on taking advantage of the opportunities it presents. In chapter 2 above, the researcher has provided a detailed review of literature published by various authors over the recent past. In this chapter, the researcher will provide a detailed explanation of the research methods used to conduct the investigations.

According to Alsos, Eide, and Madsen (2014), when conducting research, it is critical to come up with an appropriate method that can be used to collect data from various sources and to analyse them to help come to a specific conclusion. In an academic research such as this project, the methodology section is critical because it explains why a researcher chose a certain path to arrive at a given finding and to make specific conclusion. The chapter will explain concepts and approaches that informed the entire process of data collection and the reasons why a given method of analysing data was considered most desirable. It will also explain the constraints that the researcher faced when collecting data and ethical considerations that were observed in the entire process.

Research Philosophy

According to Amelina (2012), when conducting research, one of the first steps that a researcher must take is to define the research philosophy that will guide the project. The philosophy explains the nature of knowledge development that a research will take. Depending on the philosophy that a researcher chooses, it is easy to explain and justify specific assumptions and beliefs made in the study. Bernard (2013) says that often a researcher may be forced to make assumptions at different stages of the project based on various beliefs.

These fundamental assumptions and beliefs are often captured in the philosophy that is embraced. A researcher may choose any of the four primary research philosophies based on their aims, objectives, and research questions. The chosen philosophy must be in line with the research objectives and must enable a researcher to achieve the set goals in the best way possible. In this study, the researcher considered pragmatism as the most appropriate research philosophy. It is important to explain the philosophy to help explain the fundamental beliefs and assumptions that will be made when collecting and analysing data from various sources.

Pragmatism is one of the popular philosophies among social sciences researchers. According to Brennen (2013), the philosophy holds the premise that a concept or a given piece of knowledge can only be true and acceptable if it can support a given action. The world is characterised by varying forces based on a number of factors such as the emerging technologies, geographical differences, cultural and religious differences, and many other factors.

People from different parts of the world and different socio-cultural backgrounds tend to view things differently. For instance, what Christians view as a decent dress code may not be acceptable among the Muslims. Similarly, some practices popular in Europe and North America may be considered strange among Africans. It means that when interpreting the world, it is common to find varying views from varying groups of people.

It is wrong for one to assume that his or her way of interpreting the world must be accepted by others (Yanow & Schwartz-Shea 2014). In a highly diversified world that we live in today, people must be tolerant towards the views of others. That is what this philosophy proposes. It demands that a researcher should be open-minded and be able to allow others’ views to be explained and justified before coming to a conclusion.

It holds that a given concept can be interpreted differently by different people, but the fundamental issue must always be the ability to support a given action. The measure that should be used to test the practicality of a concept should be how well it can be put into action to give the expected outcome (Vaioleti 2015). Interpretations that cannot support actions should be rejected. However, in cases where two or more interpretations support varying actions, then such interpretations should be held as true.

The flexibility of this philosophy enables a researcher to bring out views of different groups of people when making interpretations (Bryman & Bell 2015). The beauty industry in the United Kingdom is growing very rapidly, and currently, it is one of the largest in Europe in terms of sales per annum.

However, one must understand that the industry is critical to almost every resident of this country, especially the skin care and makeup products, which is the focus of this research. Men and women, children and adults, the rich and the poor, the Jews and the Gentiles, the Whites and the non-Whites all use skin care products almost on a daily basis. However, they are loyal to different brands and products based on their personal preferences and financial capacity.

Some people purchase specific products because of their affordability. Another group is loyal to a given brand because it is the most appropriate among people of that gender. Another group will be influenced by their religion, social class, or personal values. It is wrong for a researcher to conclude that in such a highly diversified environment, only one or two factors define the loyalty of customers. Pragmatism, as a research philosophy, highly recommends the need to be flexible.

One should appreciate that a number of factors may influence the loyalty of buyers (Theron 2012). Quality service is one thing that every customer appreciates in the market. Customers are more likely to visit stores where they are served with respect. However, it is important to note that when other factors are also to be considered, then it may not be strange when clients revisit a store that fails to offer services to their expectations.

Research Strategy

According to Choy (2014), it is critical for a researcher to come up with a strategy that will help in achieving the research goals and objectives. The chosen strategy must enable the researcher to collect data from various sources. In this research project, a survey was chosen as the most desirable strategy for collecting data from the respondents. Secondary data play a critical role in informing a given research. It provides a basis upon which a researcher can root his or her study (Tate 2015). However, any new study should come up with its findings to confirm or strengthen the existing information.

As such, a survey was considered the most appropriate way of collecting data. The researcher was interested in collecting data from as many people as possible within the country. As an academic research, time available for data collection was limited. As such, it was necessary to find a way of conducting a survey within that short period, but with the maximum possible output. That is why the researcher opted to use Qualtrics software to conduct an online survey for the study.

Data Collection Method

According to Fowler (2013), one of the most important stages in a research project is data collection. It is critical to gather data from various sources to inform a given study. In this project, just like many other academic research projects, data were collected from both primary and secondary sources. Secondary data sources came from books, journal articles, and reliable online sources. Data from these sources have been critically reviewed in chapter 2 above. The primary data was collected from participants who were part of this project. Data obtained from the primary sources were analysed and presented in chapter 4 of this paper.

Sampling Method

The impact of service quality on customer loyalty is a very sensitive issue and data can be collected from a wide range of people. However, as an academic research, a number of constraints limit the number of people from whom data can be collected (Ross 2012). As shown in the research topic, this project is specifically interested in the United Kingdom’s beauty industry. Using online platforms makes it easy to collect data from various people irrespective of their geographic location as long as they are connected to the internet.

However, the topic provided for this project shows that the sampled respondents must either be living in the United Kingdom or have experience with the United Kingdom’s beauty industry. It means that it is possible to collect data from someone who is currently living in the United States, Germany, France, or in any other country as long as they have stayed in the United Kingdom long enough to provide the needed information about this country.

The researcher collected information from customers who have been using skin care and beauty products in the country, players in the industry who have been interacting with these customers, and the industry experts with the right knowledge about this topic. Data was collected in the online platform. Knowing that some of the sampled respondents would fail to take part in the study, the researcher collected data from a wide range of participants (Skott & Ward 2013). It was meant to help ensure that a significant number of participants would answer and send back the questionnaire in time for the analysis.

Design of the Questionnaire

In this quantitative research, it was important to collect data in an organised manner. As such, the researcher considered it appropriate to use an instrument that would help in harmonising the process of data collection. The use of a questionnaire was considered the most appropriate approach when collecting data in an online platform (Reis & Judd 2014). The tool made it possible to collect information from the respondent in a uniform manner.

The questionnaire used had several parts. The questionnaire started with a short introduction, informing the participants about the project and its importance, and the role of the sampled respondents. It was meant to guide the respondents when answering the questions and to ensure that they did it in a uniform manner. The first section of the questionnaire focused on respondents’ basic information.

The detailed captured in this section include their age, gender, level of education, occupation, and monthly income. According to Hair (2012), it is always important to capture the demographical categories of the respondents when collecting data to help in capturing any form of bias. This is so because of a number of factors. In the fashion industry, the needs and preferences of men vary from that of women. What men may consider desirable may not have the same value for women. It is also true that people of a different social class have varying views when answering specific questions on beauty products, as discussed in the literature review.

Jasti and Kodali (2014) also note that when answering questions, individuals with high academic qualifications may have varying views from the individuals who have less academic qualifications. Capturing the academic background of the respondents may help justify why a question is answered differently by different respondents. The section ensured that the information collected could be based on varying demographical factors of the respondents.

The second section of the questionnaire focused on specific issues relating to service quality in the United Kingdom’s beauty industry, and the manner in which it affects customers’ loyalty. The section has a series of multiple-choice questions, and the respondents were expected to choose the appropriate answers for each question. The questionnaire ends with thanking the respondents for their participation in this project (Nestor & Schutt 2014).

The questionnaire was administered through Qualtrics software. It was considered an appropriate platform for collecting relevant information within a relatively short time. Although it was considered advisable to have a face-to-face interview with some of the respondents, the time available for this study made it necessary to rely largely on information collected from the Qualtrics software. It was a more convenient way of collecting data from the customers than a face-to-face interview.

Data Analysis

The information collected from the participants was analysed mathematically using Statistical Package for Social Sciences (SPSS) software. In this quantitative research, it was important to quantify the degree to which service quality affects customer loyalty. As evident in the questionnaire attached at the appendix of this paper, the respondents were provided with multiple-choice questions. All they had to do was to tick the most appropriate answer from the choices provided based on their experiences and knowledge (Mittelhammer 2013). The researcher, when analysing the data, was able to classify their responses to determine their views.

The structured manner of the questionnaire made it possible to have a mathematical analysis of the responses. Knowing the most common responses to each question asked made it possible to conclude about a given pattern monitored in the field. The findings made from the mathematical analysis of the responses were presented in the form of graphs, charts, and tables to enhance clarity for the readers. Each of the findings made was properly explained, and any bias witnessed stated in various demographical classes discussed above.

Validity and Reliability of Data

The beauty industry is one of the most competitive industries in the United Kingdom. It is very likely that players in this industry are looking for information from various sources to help them come up with competitive strategies in the market. As such, the information that will be presented in this document may be very meaningful to these firms (Mehl & Conner 2012). It is likely that they may consider implementing the recommendations made at the end of this paper.

It is also highly probable that the policy makers in this country may consider this document informative. The policy makers have been trying to reform this industry as a way of making it sustainable and suitable for all the players irrespective of their size. They are keen on getting new knowledge that can help make the industry have a level playing ground for all the competitors. Other scholars who may be interested in conducting further study in this field will also find this document useful. It is possible that they can base their primary arguments on the findings of this report.

It was critical, therefore, to ensure that the issue of validity and reliability f the information was taken into account. To help validate the data used in making a conclusion in this report, the researcher used triangulation. It means that data was verified by obtaining information from two or more sources. To enhance reliability, the researcher avoided all forms of personal bias throughout the project (Mahrooqi, Thakur & Roscoe 2015).

Personal interests and preferences did not in any way influence the books or journal articles selected for the study, and the participants identified to help in collecting the data, the method used in the analysis, or any other activity that would sway the outcome of the project as per the desires of the researcher. Any form of bias identified on the part of the respondents was explained as captured in their demographical space.

Ethical Considerations

When conducting research, it is always important to take into consideration ethical concerns. As an academic researcher, a number of ethical requirements must be met to ensure that the document can be presented for examination. First, the researcher played the central role in the entire project, from the start to the end. A proposal was developed as required and presented for the purpose of approval.

After getting the approval, the researcher set forth to collect data needed for the study. Given the time constraints, the researcher used Qualtrics to help collect data. As an academic requirement, this paper was not in any way plagiarised. The information obtained from other sources was clearly referenced using Harvard referencing style. The researcher knew that any form of plagiarism is a serious offense as outlined in the school’s code of conduct.

The researcher maintained a close relationship with the lecturer and all the recommendations received from him were promptly implemented to ensure that the desired outcome of the study was achieved. The researcher ensured that the identity of the respondents was protected. That is why the questionnaire did not require the respondents to state their names. They only needed to identify their social status, level of education, gender, and age.

These factors cannot be used to determine the identity of a person. The need to protect the identity of the participants was informed by the fact that sometimes people may want to victimise others based on their personal views, which may be different from that of the majority. Protecting their identity ensured that their participation in this research project does not put their lives or character in danger.

Practical Constraints

In this section of the methodology, it is important highlight practical limitations that the researcher faced when conducting the study. One of the biggest limitations was time. The research topic is very interesting, and it is possible to collect data from a wide range of sources. It would have been interesting to conduct a face-to-face interview with as many participants as possible. According to Kara (2015), a physical interaction between a data collector and a respondent makes it easy to clarify issues and to ask respondents to justify their responses, especially when their answer significantly varies from the existing knowledge sources or the opinion of the majority of the other respondents.

The physical interaction also minimises cases where the respondent deliberately provides misleading answers. However, as an academic research, a specific timeline had to be respected in this study. That is why a face-to-face interview with the respondents was avoided. Instead, the researcher opted to use Qualtrics software to collect data from the participants (Kuada 2012). Another challenge that the researcher faced was the difficulty of reaching out to the industry experts.

While the questionnaire was used to collect data from the customers, information from industry experts and some of the employees of the top skin care and makeup companies was also considered critical. However, it was not easy identifying and successfully engaging these individuals within the time available for the research. It forces the researcher to rely heavily on the information obtained from the customers.

Findings

In the methodology section above, the researcher has explained the sources of data in this research project, methods used in analysing, and presenting the data, challenges faced in the project, and ethical considerations observed. In this chapter, the researcher will focus on analysing data that was collected from primary sources. The researcher seeks to obtain primary information about the current state of affairs on this topic and to determine if the information collected from secondary sources is true based on the primary data.

Understanding the Demographics of the Respondents

As explained in the methodology section of this report, the demographical factors of the respondents often define the manner in which they respond to the research questions. As such, before proceeding with the testing of the hypotheses, it is important to understand the kind of people who were interviewed in this research. The demographical factors considered important include gender, age, educational level, occupation, and monthly income.

Gender

The first demographical factor that was considered important to look at is the gender. In many cases, products that men use are different from that of women. Their tastes and preferences also differ. It was believed that the experiences of women might be different from that of men. The graph below shows the frequency of the gender of the respondents.

Data were collected from 31 male subjects, which accounts for 10% of the interviewees, and 278 female subjects accounting for 90% of the respondents. It means that the views obtained from the respondents were predominantly that of female subjects. This was acceptable given that they are the most attractive segment of the skin care and makeup products’ market.

Age

Age was another issue that the researcher considered important when collecting data. Factors that influence loyalty of a teenager are different from those that influence a middle-aged person or the elderly. That is why it was necessary to capture their age to help understand why they responded in a given manner. The chart below provides the classification of the respondents based on their age:

The result shows that majority of the respondents (38%) were individuals aged between 26-35 years. According to Gurski (2014), this is the most attractive market segment for skin care and makeup products. They are young adults, most of who are employed, and are very keen on their image. They take a keen interest in the products they use on their skin. The middle-aged individuals aged 36-45 years also formed a significant segment of the respondents at 27%. Other important segments included the under 26 years at roughly 20% and the over 45 years at 15%.

Education level

The level of education of a respondent plays a critical role in defining how they respond to specific questions. In many cases, people tend to answer questions based on their personal feelings towards the issue. However, those who are academically empowered sometimes try to separate the truth from their emotions when answering questions. They are less guided by ignorance, compared with their illiterate colleagues. The figure below shows the classification of the respondents based on their education level:

It is evident from the graph above that majority of the interviewees (39.2% or 121 people) had a bachelors degree. Another significant group (27%) was college graduates, while those with masters or PhD qualifications were 10.7% of the total population. It means that majority of the respondents (77.4%) had college certificate or higher academic qualifications.

Monthly income

One of the most important demographical factors when analysing customer loyalty as influenced by the quality of service is the level of income of the respondents. Irrespective of gender or academic qualifications of an individual, his or her monthly income has a significant impact on how they view the quality of service and how they are likely to react when they feel that the service is of poor quality. The figure below shows the level of monthly income of the respondents.

The majority of the participants (58.6%) earn between 4000-8000 RMB per month. 24.3% of the respondents earn less than that while 17.1% earn more. It means that the majority of the respondents fall in the middle-class. Others fall in the rich category while a significant fraction falls under the less privileged category. It is a true image of the society in this country. It means that the information collected from these respondents is as representative of the entire population as possible. The table below shows a summary of the demographical classification of the respondents, including their occupation:

Table 4.1: Overview of sample information (developed by author).

Testing the Hypotheses

At this stage, it is important to test the set hypotheses after understanding the demographical classification of the respondents. As explained in the previous chapter, the focus at this stage will be to analyse the primary data collected qualitatively to help come to a given finding. The researcher set three hypotheses, which are interrelated.

• H1. There is a positive relationship between service quality and customer satisfaction.

The first hypothesis focused on establishing the relationship between service quality and customer satisfaction. The researcher believed that there are a series of events that take place from the moment a customer is offered quality services to the moment they become loyal. It does not just happen. As such, when developing this hypothesis, the researcher assumed that satisfaction is the fundamental factor that leads to customers developing loyalty towards a given brand.

It means, therefore, that the relationship between customer satisfaction and quality service had to be established. The researcher used a regression analysis to determine statistically if there is a relationship between the variables as shown below. It is important to note that the tables have retained their numbers as per the SPSS output. That is why it is not consistent with the numbering in other section of the paper. A detailed outcome of the analysis is provided in the appendix of the report.

Regression Analysis Results of Model 1

Model 1: the explained variable is Customer satisfaction, and the explaining variable is Service quality Customer satisfaction=a0+a1*Service quality.

Table 4.2: Goodness-of-Fit Test Results.

As shown in Table 4.2, the Goodness-of-Fit or the Adjusted R Square is 0.65, indicating that the Adjusted R Square of Model 1 is relatively large with good fitting results

Table 4.3: F Results of Model Equations.

As indicated in Table 4.3, the Significance F of Model 1 is observed to be 595.523 with the Sig. value that is lower than 0.05. It means that the partial regression coefficient of Model 1 is not 0 at the same time, which means that the equation of Model 1 is feasible.

Table 4.4: Calculation Results of the Regression Coefficient.

It is evident, based on table 4.4 above that the results on the colinearity of independent variables show that the variance inflation factor (VIF) is lower than the tolerance of 10. It means that the equation given in the model is feasible. The test result on the significance of the influencing factors (significance of service quality on customer satisfaction) is lower than 0.05, which confirms that there is significance. The equation that is confirmed by this analysis is:

• Customer satisfaction=2.927+0.274*Service quality.

Based on the above equation, it is shown that quality of services has a positive impact on customer satisfaction, with the influencing co-efficient being 0.274. It means that when service quality is improved, the level of customer satisfaction is also likely to improve. On the other hand, when a firm offers substandard products, then it may end up losing its customers. The first hypothesis (H1) ‘There is a positive relationship between service quality and customer satisfaction’ is confirmed based on the analysis of primary data.

• H2. There is a positive relationship between customer satisfaction and customer loyalty

After establishing the relationship between customer satisfaction and service quality, it was necessary to establish the relationship between customer satisfaction and customer loyalty. It was assumed, based on the detailed review of existing literature, that the link between customer loyalty and service quality is customer satisfaction. The outcome of the analysis has confirmed that there is a direct and very significant relationship between service quality and customer satisfaction. At this stage, primary data had to be analysed statistically to establish the existence of a relationship between customer loyalty and customer satisfaction.

Regression Analysis Results of Model 2

Model 2: the explained variable is Customer loyalty, and the explaining variable is Service quality, Customer satisfaction.

Customer loyalty=b0+b1*Service quality+b2*Customer satisfaction

Table 4.5: Goodness-of-Fit Test Results.

As shown in the table above, the Adjusted R Square of Model 2 is 0.546. It means that the Adjusted R Square is relatively large, indicating good fitting results.

Table 4.6 F Results of Model Equations.

The results shown in Table 4.6 above indicate that the significance F of Model 2 is calculated to be 187.417 with the Sig. Value lower than 0.05. It means that the partial regression coefficient of Model 2 is not zero, which means that the equation of Model 2 is feasible.

Table 4.7: The Calculation Results of the Regression Coefficient.

The outcome of the analysis, as shown in table 4.7 above, on the colinearity of the independent variable demonstrates that the variance inflation factor (VIF) of the independent variable is less the tolerance of 10, which is a confirmation that equation of model 2 is feasible. Based on the outcome of the significance of the influencing factor, the significance of the influence of service quality on customer satisfaction is less than 0.05, which means that there is significance. The equation confirmed by the above outcome is:

Customer loyalty=1.170+0.325*Service quality+0.351*Customer satisfaction.

It means that service quality has a positive impact on customer satisfaction, as found out in the Model 1 analysis. With a coefficient of 0.351, it is also clear that service quality influences customer loyalty. It means that the third hypothesis for this study (H3) below is confirmed to be true.

• H3. Services quality has a direct impact on customer loyalty in the United Kingdom’s beauty industry

When buyers are offered high-quality products, they will be satisfied. Their satisfaction would lead to the need to make repeat purchases from the same store or to purchase the same brand. They then become loyal customers of a given company. A firm that seeks to win over a pool of loyal customers must start by offering its clients quality services. When the high quality is maintained, the customer is likely to develop loyalty, assuming that other factors (product quality, product price, and other attributes that may also influence the buyer decision-making process) are held constant.

Testing the Validity and Reliability

As explained in the methodology section, it was important to ensure that the data collected and analysed in this report is reliable. That is why it was important to analyse of the reliability of the data used in this report. The researcher used Cronbach’s alpha to determine the reliability of the data. The outcome of the analysis is shown in the table below:

Validity Test of the Scale on Service Quality and Customer Loyalty in the Cosmetics and Skin Care Business.

Table 4.8: Test Results of the Validity Test of the Scale on Service Quality and Customer Loyalty in the Cosmetics and Skin Care Business.

Based on the table 4-2 above, Cronbach’s coefficient is 0.830. When an analysis is conducted from multiple dimensions, Cronbach’s alpha for service quality is 0.795, that for customer satisfaction is 0.85, and that of customer loyalty is 0.745. This outcome, when combined with the criterion mentioned for validity analysis, shows that the scale of validity in the study is acceptable.

Discussion

The United Kingdom’s beauty industry is currently one of the most competitive in the global market, with many local and international players trying to tap into the opportunities locally. The skin care and makeup products form one of the largest and most lucrative segments of the beauty industry in this country. It is clear from the primary and secondary data collected that almost everyone users skin care products irrespective of the social class, gender, religion, or any other demographical factor.

These products are basic in the normal lives of the residents of the country. Different firms target different market segments based on various factors. Some firms target women while others target men. Some brands target the rich while others target the middle-class.

Irrespective of the segment that a company targets, it is evident that competition is unavoidable. These firms have to deal with the fact that their ability to survive depends on whether they can understand the needs and preferences of their clients in the market (Conlumino & SAS 2013). Customers will always have a choice in such a market, and their decisions will always be made based on how well they feel a given firm or a brand meets their interests.

According to Kamath and Saurav (2016), competition in the market can both be destructive and constructive based on the approach that the competitors embrace. Sometimes competing firms get desperate as they try to edge out their rivals out of the market. They may try increasing the quality or quantity of their products without changing the price in a bit to attract all the customers of the rival firms.

If this fails to work, then they can employ price war as the ultimate tool of winning over competition. Cavallone (2017) says that using pricing, as a strategy in the market can be very destructive. The rival firms are expected to react to such sudden change in the strategy of their rival firms. As they try to retain their customers, they may be tempted to lower their prices. The outcome will be a price war that leaves all the involved companies hurting.

As they lower their prices, the profit margin also goes down. In fact, it may reach a time when the firms are not making profits if they do not change the strategy. At such extreme measures, smaller firms often hurt the most. They do not have the financial muscle to sustain such prolonged price wars. As such, they may be forced out of the market. However, Boone and Kurtz (2016) say that it does not mean the larger firms will be safe. If the price war is sustained for a long time, even the larger firms may be crippled due to financial constraints. Such approaches to managing market competition are dangerous and should be avoided.

Competition can also be very constructive if the players look at it from a positive angle. The market today is characterised by many dynamic factors that companies must understand and be able to deal with to achieve success. It is important that these firms remain innovative as they try to find ways of meeting the needs of their customers in the most appropriate manner. Lack of competition creates laxity in the market.

The provider that dominates the market knows that buyers have no alternative in the market. They know that customers must choose their products whenever they want to purchase a product. It makes them compromise on quality, and sometimes they charge exorbitant prices for the products they offer (Baglieri & Karmarkar 2014).

Operating in such a market is very dangerous because it is always open to foreign competitors. Such a company may have succeeded in killing local competition, but foreign firms will see an attractive market gap that they can tap into with their high-quality products. When such foreign companies start their operations locally, it may be difficult for the local firms to survive. Embracing competition is important.

A firm should always consider its competitors as a positive push that forces them to be creative in the market. As they try to outsmart their competitors in terms of quality offered, reliability, and other attributes, they will become better firms when it comes to service delivery. The value of their products and service delivery will be high (Ponirin, Scot & Heidt, T 2009). They will make the local market less attractive to foreign firms. The local customers will also be satisfied because these companies will be committed to understanding their needs. It is the reason why it is important for firms to have a positive view towards competition in the market.

Rezaei (2017) says that although competition should be considered as a positive force in the market, it is equally dangerous, especially for a firm that is unable to master the standards set by the market leaders. It is apparent from the data analysed that customers are always motivated to purchase products of a given brand due to a number of factors. Some of the factors identified in this paper include price, product quality, service delivery method, reliability, convenience, and many other factors. In many cases, a company may not be excellent in meeting the expectations of customers in all these areas.

It may be that the store offers high-quality products at the best price in the market in a reliable manner, but its sales team lack courtesy. A customer may ignore one negative factor to benefit from other factors. Such unique interpretations of the world may exist in this study, and that is why pragmatism was considered the most appropriate. However, it should always be in the interest of the firm that all the mentioned areas are taken seriously to ensure that the customer remains happy with the products offered.

When trying to establish the relationship between service quality and customer loyalty in the United Kingdom’s beauty industry, the researcher developed three hypotheses. The first hypothesis focused on determining the relationship between service quality and customer satisfaction. The essence of developing this hypothesis was the belief that high-quality services lead to something, which in turn leads to customer loyalty (Kumar & Shah 2015).

Primary data analysis showed that there is a significant relationship between service quality and customer satisfaction. The information given by the respondents confirmed the knowledge that exists in the literature reviewed in chapter 2 of this project. It was confirmed that when service quality is low, customers would be dissatisfied with the product or the brand. When the service quality meets their expectations, they will be satisfied. In cases where the quality offered is greater than their expectations, then such customers will be thrilled.

The second hypothesis focused on establishing the relationship between customer satisfaction and customer loyalty. Customer loyalty does not happen overnight. It is something that must be created over time. As explained in the above paragraph, a customer can be dissatisfied, satisfied, or thrilled with the services offered depending on the quality. The loyalty of customers will be based on the three factors.

A customer who is dissatisfied with the quality of service offered by a firm, assuming that all other factors are held constant, will try not to visit the store or purchase that particular brand again. They will associate the brand or the store with the sad experience they had during their first purchase. Even though they are not sure the kind of quality other stores may offer, they are likely to try out a different outlet. One advantage that the other store may enjoy is that the expectation of such a customer is always lower.

After the dissatisfying experience before, they will be looking for a bare minimum quality from the next store. That is why Blazey (2013) says that when a customer leaves a store dissatisfied, it may be difficult to influence them to revisit the store in future. When a customer is satisfied, which means that their expectations are met, they are likely to visit again as long as they are sure no other firm offers a better service.

Such a customer may sometimes visit other stores, just to test the quality of service there, but they always come back to the store where their expectations were met. Then there are cases when buyers are thrilled with the services they get from the retailers. It occurs when the quality offered is way beyond their expectations. Such customers will become very loyal to that brand or store. The pleasure they get from such quality service makes them inclined towards making repeat visits to the store.

The confirmation of the second hypothesis confirms the third hypothesis. If there is a positive relationship between service quality and customer satisfaction and between customer satisfaction and customer loyalty, it means that there is also a quality relationship between service quality and customer loyalty. According to Rozenes and Cohen (2017), although when a customer is thrilled with specific services, they are likely to make another visit to the store, it takes sustained high-quality service to win their loyalty.

If they are offered superior services on the first day, they will make another visit to confirm if indeed the firm stands out among the rest in the market. If the superior quality is sustained over a given period, such a customer will develop a habit of always visiting the firm when planning to make sales.

A firm must understand what the customer needs and how the need can be met in the best way possible. As Thompson (2015) states, the world we live in is very dynamic, and what customers find valuable today may not remain valuable forever. It means that a firm must understand the changing customer needs and how these needs can be met by changing product or service delivery from time to time. As their tastes and preferences change, a firm must be able to adjust its operations in the market.

Service quality in the skin care industry may have very little to do with the quality of the products offered by the companies. It has everything to do with the sales representatives who are regularly interacting with their clients (Price & Jaffe 2015). Customers are human beings with feelings. They always want to be respected and treated with decorum every time they want to purchase a given product. The sales representatives must know how to treat their clients in a way that will make them feel appreciated.

It is important to note buyers are always diversified in the United Kingdom’s market in terms of age, gender, race, religion, social class, and many other demographical factors. The language that the youth prefer using may not be popular among the elderly customers (Pride & Ferrell 2014). Similarly, the manner in which a Christian may engage with the sales agents may not be the same approach desired by a Muslim faithful. Some words that a section of the society may prefer to use can be offensive when handling another group of buyers.

The sales representatives must be taken through regular training to enable them to understand the best way of handling their customers. The best way of doing the training is to start by grouping the sales representatives. Sensitive groups such as the youth, the rich, the elderly, and the middle-class should have specific sales representatives. In each of their groups, these employees should be trained on how to handle their clients.

They need to know the best language to use when handling their patrons, their expectations, and the manner in which they want to be treated when they visit the stores. The sales representatives will be specialised when it comes to handling the buyers.

They can be at the same store, but they will be handling different customers based on their specialisation. Dixit (2017) says that in such a setting, it is equally important for these employees to have basic knowledge of how to handle general patrons because their attention may be needed in areas outside their specialisation. They should have the capacity to handle other clients in a manner in line with their expectations. It is only through quality service delivery that a firm can develop a pool of loyal customers in the competitive United Kingdom’s beauty industry.

Conclusion and Recommendations

The United Kingdom’s beauty industry is increasingly becoming competitive, and it is only those firms with the ability to master the changing trends in the market, which can manage the can remain sustainable. It is evident from the data obtained from both primary and secondary sources that the current level of competition in the skin care products is likely to stiffen as new entrants find their way into the local market.

It forces local firms to find proper ways of protecting their market share as they struggle to expand their operations. One of the best means of doing that is to develop a pool of loyal customers. Customer loyalty is important, especially when several alternative products or brands exist in the market. The researcher wanted to determine if customer loyalty is influenced by service quality in the United Kingdom’s beauty industry.

To determine if a relationship exists between the two variables, the researcher collected data from both primary and secondary sources. The information gathered from these sources revealed that there is a positive relationship between service quality and customer satisfaction. When clients are offered poor services, they get dissatisfied with the product and the retailer that offered the service. When the quality offered meets their expectations, they will be satisfied. When a firm offers customers services that exceed their expectations, then they get thrilled.

When a client is thrilled with the services offered to them, they are likely to make repeat purchases. They can also turn into evangelists for a product or a brand, often referring other customers to the firm to enjoy the quality service. The primary and secondary data also revealed that there is a positive relationship between customer satisfaction and customer loyalty. When customers are always satisfied with the products offered by a given brand or a retail outlet, they will develop loyalty.

They will be committed to that particular brand or retailer, knowing that every time they visit, their need will be met to the levels that they desire. Therefore, it means that service quality has a direct impact on customer loyalty. The only way that beauty firms in the United Kingdom can win the loyalty of their clients is to ensure that services they offer are to the best of the standards in the market. They must understand the changing needs and preferences of the customers and find ways of developing products that meet them in the best way possible.

It is expected that industry experts and players in the beauty market may want to understand how they can deal with the forces in the market. They may find this document very important in informing their practices when operating in the United Kingdom’s beauty industry, especially in the skin care market. That is why this paper seeks to provide a list of recommendations that various stakeholders can take into consideration to help take this industry to the next level. It is important to note that the recommendations made in this study are based on the conclusions drawn after analysing data from both the primary and secondary sources. The following are the recommendations that should be taken into consideration based on the findings of this study:

• It is recommended that firms should learn how to offer customers the best products in a reliable manner, at the best price, at the right locations, and in the best way possible. It has been established that winning the loyalty of customers requires a combination of factors that will ensure that they are thrilled every time they purchase a given product.
• It is important for a firm to ensure that they maintain high service quality because studies suggest that service quality results into customer satisfaction, which in turn leads to customer loyalty in the market.
• It is important for a firm to vet thoroughly each of the sales team hired to engage directly with the customers. They should have positive attitude when at work and a will to meet the needs of the clients. They should also understand the language of the buyers to ensure that they can communicate easily.
• The sales representatives should be taken through regular training at least once a year. As the individuals who are always interacting with the customers, these employees need to understand the changing customer needs and how best they can handle them. They need to know how to handle buyers of different demographical classifications.
• In a world that is increasingly embracing technology, it is important for the skin care firms to focus on online marketplace. Most of the middle-class buyers in the United Kingdom prefer making their purchases in the online platforms because of the limited time. Firms should develop online platforms that can enable these customers to get superior services when they choose to make online purchases.

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Appendices

Appendix 1: Questionnaire

The questionnaire about the impact of the service’s quality of beauty and skin care on customer loyalty

Dear consumer,

Hello! Now the author is conducting a survey on <

>, to understand your spending habits and purchase preferences. There is no right or wrong questions in the questionnaire. Please fill out the form according to your actual situation without signing. Once again, thank you for your support and cooperation!

Section 1: Customer basic information

1. Your gender:
   1. male.
   2. female.
2. Your age:
   1. Under 25 and 25.
   2. 26-35.
   3. 36-45.
   4. 46 and over 46.
3. Study level:
   1. School.
   2. College.
   3. Bachelor.
   4. Master and PhD.
4. Your monthly income (RMB):
   1. Under 4000 and 4000.
   2. 4001-6000.
   3. 6001-8000.
   4. 8001 and over 8001.
5. Your occupation:
   1. Student.
   2. Stuff.
   3. Individual.
   4. Others.

Section 2: Questionnaire subject (multiple choice)

1. Category of your daily makeup and skin care (cosmetic):
   1. Conditioner.
   2. Sunblock.
   3. Cream.
   4. Foundation.
   5. Nail polish.
   6. Facial cleanser.
   7. Toning lotion.
   8. Facial mask.
   9. others.
2. What do you think the most important function of cosmetics:
   1. Moisturizing.
   2. Whitening.
   3. Oil-control.
   4. acne.
   5. Spot.
   6. Minimize pores.
   7. Others.
3. The frequency that you purchase cosmetics:
   1. Several times a month.
   2. Once a month.
   3. Once or twice per season.
   4. Others.
4. How much cosmetics do you purchase every time (pieces)?
   1. 2-4.
   2. 5-7.
   3. 8 and over 8.
5. The average costs that you spend on your cosmetics every time (RMB):
   1. Under 200 and 200.
   2. 201-400.
   3. 401-600.
   4. 601 and over 601.

Section 3, the following from is the description of your views on beauty industry; please using “√” to tick your choices according to your actual feelings:

Thanks again for your cooperation!

Appendix 2: Data Output

Empirical Analysis Results

Overview of Sample Information

Table 4-1 Overview of Sample Information and distribution.

The Reliability and Validity of the Scale on “Service Quality and Customer Loyalty in the Cosmetics and Skin Care Business”

Validity Test of the Scale on “Service Quality and Customer Loyalty in the Cosmetics and Skin Care Business

Table 4-2 Test Results of the Validity Test of the Scale on “Service Quality and Customer Loyalty in the Cosmetics and Skin Care Business”.

Validity Test of the Scale on “Service Quality and Customer Loyalty in the Cosmetics and Skin Care Business”

Table 4-3 KMO Value Calculated from the Factor Analysis.

Table 4-4 Factor Selection Results of the Factor Analysis.

Analysis of the Customers’ Actual Purchasing of Cosmetics and Skin-Care Products

Table 4-5 Main Types of Cosmetics and Skin-Care Products Used by the Subjects.

Table 4-6 The Effects of the Cosmetics and Skin-Care Products Valued the Most by the Subjects.

Table 4-7 Subjects’ Frequency in Purchasing the Cosmetics and Skin-Care Products.

Table 4-8: Number of Cosmetics and Skin-Care Products Purchased by the Subjects Each Time.

Table 4-9 Subjects’ Expenses on the Products Each Time.

Table 4-10 Differences in Average Spending on the Cosmetics and Skin-Care Products between Males and Females.

Analysis of the Actual Performance of Customers’ Loyalty and the Influencing Factors

Table 4-11 Results on the Indexes of Various Dimensions in the Questionnaire.

Table 4-12 Differences between the Males and Females in Terms of Customer Loyalty and the Influencing Factor.

Table 4-13 Differences among Customer of Various Age Groups in Terms of Customer Loyalty and the Influencing Factor.

Table 4-14 Differences among Customers with Various Education Backgrounds in Terms of Customer Loyalty and the Influencing Factor.

Correlation and Regression Analysis of the Customer Loyalty and the Influencing Factors in the Cosmetics and Skin-Care Business

Correlation Analysis of the Customer Loyalty and the Influencing Factors in the Cosmetics and Skin-Care Business

Table 4-15 Results of the Correlation Analysis on the Dimension Indexes in the Questionnaire

Regression Analysis of Customer Loyalty and the Influencing Factors in the Cosmetics and Skin-Care Business

Regression Analysis Results of Model 1

Table 4-16 Goodness-of-Fit Test Results.

Table 4-17 F Results of Model Equations.

Table 4-18 The Calculation Results of the Regression Coefficient.

Regression Analysis Results of Model 2

Table 4-19 Goodness-of-Fit Test Results.

Table 4-20 F Results of Model Equations.

Table 4-21: The Calculation Results of the Regression Coefficient.