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THE KAYA CASE STUDYGroup Members Sheikh Rehmatullah, ShagunLidhoo and Prabhav Tiwary

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A Few Irrefutable Insights India is an emerging market that is witnessing radical changes

in the lifestyles and spending patterns of customers.

There is huge unrealized potential in the Indian Hair and BeautyCare Industry.

There is growing desire in the Indians to look good and feelconfident about their appearance, especially for recognition by

others.

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Difference between Product and ServiceOffering

Case in Mind Kaya Skin Clinic

Storage

A Product offering can be stored for an indefinite period of time,whereas a primary Service ends after it is executed.

(Example Difference between Kaya Skin Moisturizer Cream

Tube vs Facial Treatment at Kaya Skin Clinic)

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Difference between Product and ServiceOffering

Homogeneity vs Heterogeneity

A Product offering will be uniform and standardised in nature.A Service offering on the other hand may differ according to the

person and organisation offering the service.

(Example Composition of the Kaya Moisturizing Cream will be the same, irrespective of the place of purchase.

However, services at different Kaya Skin Clinics may differ eventhough efforts are made to make the offering and experienceconsistent and standard)

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Difference between Product and ServiceOffering

Tangibility

Product Offering TangibleService Offering Intangible

(Example Texture and consistency of the Moisturizing Creamcan be ascertained by touching the cream and applying it.

Services at the Kaya Skin Clinic have little or no room fortactility. Service of Manicure can only be felt in the form ofexperience, but not touched. )

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Difference between Product and ServiceOffering

Ownership

Transaction involving products result in direct transfer ofownership from seller to buyer

In case of services, the concept of ownership of title is aambiguous and service recipients cannot claim ownership of thereceived service.

(Example You own a Kaya Skin Moisturizing Cream, but doyou own a hair grooming service from Kaya Skin Clinic?)

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Service Offering First Time and LoyalCustomers

In case of Product offering, the first time users may give theoffering several chances till the contents of the product are over.Customer in this case more or less is aware of the needs.

Especially in the Indian context, families tend to avoid wastageof such products and tend to give the product some time toshow its claimed effects.

For Loyal Customers, the product offering may have providedthem with the desired/expected result. As a result, the standard

product is purchased over a period of time and preferred overthe competitors.

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Service Offering First Time and LoyalCustomers

In case of Service Offering, the customer is most of the timesundecided about the right course of action for her skintreatment.

Hence, the first time customers would be looking forward toinputs about ways to improve her skins health and look.

Loyal Customers on the other hand have gone beyond the

identification of problem and have got accustomed to a set ofservices provided at the service location. Sometimes they desireservices to be provided by a particular person they have built atrust in.

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Service Offering First Time and LoyalCustomers

Example

While buying Kaya Skin Moisturizing Cream, the first timecustomer has identified that the sole problem she faces is dryskin (especially during winters)

After using this cream once, the satisfaction level decides repeat purchases and eventual loyalty to the product / brand.

For someone who has multiple skin problems or is too cautiousto take a call herself, the (potential) customer visits a particular

beauty parlour and seeks the advise of the service providers.

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Service Offering First Time and LoyalCustomers

Kaya Skin Clinic has to step in to make their parlour the idealcentre for first time customers.

After it has roped in customers, it has to understand thedimensions of a loyal customer in a beauty parlour to convertthese first timers into regulars.

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Advantages of Understanding First Timevs Loyal Customers of Beauty Parlours

Kaya Skin Clinic, like any other service provider in the beautyand skin care industry, would want to serve not just morecustomers, but the same clients too.

Hence the foremost advantage would be that Kaya Skin Cliniccan develop strategies that convert their fresh clients intoregulars.

Dimensions of First Time and Loyal Customers in BeautyParlours would be almost the same in case of Kaya Skin Clinic.

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Advantages of Understanding First Timevs Loyal Customers of Beauty Parlours

Understanding First Time Users and Loyal Customers can helpKaya built separate strategies for the two groups.

This will result in focussed marketing activities and the resultand effectiveness on the two separate groups can be measured

better.

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Advantages of Understanding First Timevs Loyal Customers of Beauty Parlours

Questions that Kaya can ask and build their strategy on are

What features of the parlour induce repeat visits?

What is the first thing that a first time customer expects fromthe parlour?

What expected features from the parlour are common betweenfirst timers and loyals?

What attribute is expected by first timers that is ignored byloyals and vice versa?

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Advantages of Understanding First Timevs Loyal Customers of Beauty Parlours

What is the desired level of satisfaction for first time users andloyal customers?

Do first timers and loyal customers expect services tostandardised or is there a difference in the approach of the twogroups?

Do first timers get lured by beauty parlours through Word of

Mouth? Do loyal customers discuss about their beauty parloursamongst their friend/peer circle?

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Analysis of Data Data has been collected for the two types of customers of beauty parlours First Time Users and Loyal Customers

This data is further divided into three sections

Section I data reflects the expectations of the first time andloyal customers from a beauty parlour

Section II data reflects the experience of both the customerswith the beautician / service provider in the parlour

Section III data reflects the final experience of the respondentagainst the corresponding expectation in Section I

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Patterns in DataThere is a clear variation in the expectation of customers andthe final experience or the result. (Variation in Section I andSection III)

The realized output or result clearly drops in comparison to theinitial expectation.

The only exception to this drop is in the expectation of the

service helping the customer feel more attractive. In this case, both the first timers and loyals responded that the result washigher than the expectation

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Patterns in Data Amongst both the classes of customers, the variation in

response about the expectation and result is more in First TimeUsers than in Loyal Customers.

In other words, according to the data, the gap between theexpectation of first time users and the final experience is widerthan in loyal customers.

However, there are a few exceptions. For instance, the gap between expectation and experience of reasonable prices is(almost) the same for both classes of customers.

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Patterns in Data In response to continuing the service of the beauty parlour, the

loyal customers were more positive in their response than thefirst time users.

The loyal customers are more willing to repeat visits at the parlour than first time customers.

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Differentiating b/w First Time and LoyalCustomers

Our Understanding - To identify the differentiating aspect ofdecision making, we need to look for the questions which have

produced wider gulfs in the response of the two classes.

Hence, expectation of customer from employees to help withinitial inquiries about products and services can be used as adifferentiating factor.

Expectation of loyal customers is much higher in comparison to

first timers. Another differentiating factor is the willingness to continue

using the parlour service. Here too, loyal customers are morewilling than first time users.

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Characteristics of Service Quality Customer Response

Section I and Section III represent two different stages ofdecision making.

Section I represents decision making prior to availing theservice, in the expectation level.

Section III represents decision making after availing theservice, in the experience level.

Section II represents service quality in terms of the beautician.

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Characteristics of Service Quality Customer Response

Various characteristics of service quality can be measuredagainst different responses in the stages of decision making.

For instance, ambience feature of parlour has a high expectationresponse of 4.21 and 4.27 in Loyal and First time customersrespectively.

However, the stage of service experience shows a new figure of

4.00 and 3.86

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Characteristics of Service Quality Customer Response

Implication

This study and analysis indicates how a particular feature /characteristic is held in importance of expectation, and the levelof satisfaction gained after the experience.

The variation in response for the particular attribute of parlourservice in decision making stage of expectation and stage of

experience can be used by marketers to identify problems anddevise solutions.