The effect of experience quality on customer perceived value and customer satisfaction and its impact on customer loyalty

According to the results of the hypothesis test, it can be known that experience quality (X) has a positive and significant influence on customer perceived value (Y1) with path coefficient value as much as 0.772, t-count value by 20.682, and p-value by 0.000. The t-count value shows a greater value than the t-table which is equal to 1,960 whereas the p-value is less than 0.05. Referring to these results, it can be concluded that if experience quality is increased, customer perceived value will also increase. The average value of the overall experience quality indicators is 3.75 which means that the answers from customers about the research items are positive. In other words, customers have good experiences and are impressed when visiting the natural nuanced outdoor cafés. On the other hand, the average value of the overall customer perceived value indicators is 3.78. This means that the answers from customers concerning the research items are positive. It can be said that the prediction of the customers exceeds their expectation when visiting the cafés.

The results of this test are in accordance with the opinion from [13] that experience quality is used as an affective and cognitive aspect generated from the services in the visit so as to produce values that can be felt by customers in accordance with the benefits obtained. Gentile et al. [29] emphasized that experience quality comes from the interactions between customer and products, companies, or part of the organization that triggers customer involvement. This is in accordance with the findings of the research that the experience of the customers comes from the quality of the products and services provided by the cafés so that it can lead to customer involvement such as the value of benefits received by customers. This is also in line with the attitude theory developed by [2] that customer perceived value is the result of affective attitudes formed by cognitive attitudes, namely experience quality.

The findings of this research also confirm the equity theory proposed by [30] that there is a relationship between perceived value and sacrifices expected by customers in terms of time, cost, and effort so as they will feel satisfied after receiving the benefits. In this case, the experience felt by customers in the visit and purchase as well as the time, cost, and effort that has been sacrificed are already in accordance with their expectation. Besides that, the results of this study support the research from [31] that customer perceived value can be obtained through the aspects of the pre-purchase, transaction, and post-purchase [31] also defined customer values as preferences perceived by customers to be used as an evaluation for the product attributes and its performance as well as for the consequences arising from the use of the products to reach customer goals. This is the result of the experience obtained by customers in accordance with the expectation during pre-purchase by considering the evaluation of product attributes and its performance as well as its consequences from the use of the products that are in line with the initial goals of the customers.

The results of the study regarding the positive and significant relationship between experience quality and customer perceived value were supported by several previous studies. The research conducted by [32–34] highlighted that experience quality has a positive and significant relationship to customer perceived value in the objects of tourist attractions and restaurants. This is an empirical study which can support the results of the research due to the suitability of research object. However, the results of this research reject the findings from [34] that experience quality does not have a positive and insignificant relationship with customer perceived value in the visitors of Fancyworld Janfusan Tourism Park in Yun-Lin County Taiwan.

In addition to literature reviews and several previous studies, there are several characteristics of respondents that support the research findings. Most of the respondents who visited and made purchasing decisions are students aged 18–29 years old, are high school graduate and/or a bachelor. Respondents in this study are millennials; this is in line with the current trend that the emergence of technology (gadgets and the internet) has made changes in terms of geographical condition and purchasing power. Gadgets and the internet are no longer limited to technology but are the friends for millennials to find out about the information about the products such as the prices, product features, promotion, and customer reviews. Social media is mostly used by respondents to find information about cafés so that after they get the information, they can imagine getting the experience they expect. To make purchasing decisions, the majority of the respondents visit the cafés for more than 2 times with the intensity of visit as many as 1 to 3 times a week. Therefore, it can be concluded that the customers get the expected experience and are willing to recommend the cafés to others.

4.3.2 The effect of experience quality on customer satisfaction

Based on the results of the test, it can be seen that experience quality (X) has a positive and significant influence on customer satisfaction (Y2). It is shown that the path coefficient value is 0.527 with a t-count value by 7.124 and a p-value by 0.000. The value of t-count is greater than t-table which is equal to 1.960 while p-value is lower than 0.05. Based on the results, it can be said that if the variable of experience quality is improved, customer satisfaction will be increased too. The average value of the overall indicators of experience quality is 3.75 which means that the answers from customers about the research items are positive. In other words, customers have good experiences and are impressed when visiting the cafés. The average value of the overall indicators of customer perceived value is 3.83. This also means that the answers from customers about the research items are positive. This denotes that the customers are satisfied when visiting the natural nuanced outdoor café.

The results of this study are in accordance with the research from [7] that customer experience is input from the state of subjective awareness with various symbolic meanings, hedonic responses, and aesthetic criteria so as to produce output in the form of customer satisfaction. This confirms the opinion of [35] that customer satisfaction is formed on the results of evaluating the overall experience quality in purchasing the products and services that customers expect in accordance with their expectations. Moreover, the findings of this study are in line with the attitude theory developed by [2] that customer satisfaction is the result of affective attitudes formed by cognitive attitudes namely experience quality. This study also supports the equity theory that is proposed by [30] which explained that the experience gained from customers’ sacrifice in terms of time, cost, and effort, as well as the perceived value of the products and services, received can shape customer satisfaction.

The results of the study concerning the positive and significant relationship between experience quality and customer satisfaction are also supported by several previous studies. According to [16], experience quality has a positive relationship with customer satisfaction on guesthouse travelers in Ghana. Thus, the research can be used by the guesthouse owners as an evaluation material to always improve the quality of their places so that customers will be satisfied in the stay [36] also explained that experience quality directly influences customer satisfaction on hotel guests in Haridwar and Dehradun districts in India, both domestic and international guests [18] added that experience quality has a direct influence on customer satisfaction on Port wine customers who consumed wine in the research location.

On the other hand, the research from [34] who observed the customers of Tayih Landis Restaurant in Tainan City and Farglory Hotel Restaurant in Hualien City found that experience quality has a direct influence on customer satisfaction [22] in the research argued that experience quality is a determining factor of customer satisfaction for the visitors of Janfusan Fancyworld Tourism Park in Taiwan. In contrast, the findings of this study do not support the study conducted by [37] that experience quality does not have a significant relationship with customer satisfaction on the visitors of tourist villages in Hahndorf main road, Australia. As we can see from the theories and previous research, it can be concluded that experience quality is one of the determinants of customer satisfaction in the field of hospitality, tourism, and cafés or restaurants. The memorable experience that customers get when visiting and making purchases will result in the satisfaction of the customers.

Besides the literature reviews and previous studies as stated above, there are several characteristics of respondents’ descriptions that support the research findings. Most of the respondents who visited and made purchasing decisions are students aged 18–29 years old, a high school graduate and/or a bachelor. The respondents of this study are millennials. This shows that the satisfaction experienced by customers comes from the attitude of the customers itself. The majority of visits from the respondents in making the purchasing decisions are more than 2 times with the intensity of visits 1 to 3 times a week. Therefore, it can be said that the customers are satisfied with the experience obtained from the visit and purchase on the cafés. Most of the respondents are willing to recommend the cafés to others because they were satisfied with the whole products and services given.

4.3.3 The effect of experience quality on customer loyalty

The results from the hypothesis testing show that the experience quality (X) has a positive and significant influence on customer loyalty (Y3). The value of the path coefficient is known to be 0.225 while the t-count value is 2.682 and p-value is 0.000. It is shown that the value of t-count is greater than t-table which is equal to 1,960 and the p-value is less than 0.05. Based on that data, it can be assumed that if the experience quality is increased, customer loyalty will also increase. The average value of the overall indicators of experience quality is 3.75 which means that the answers from customers about the research items are positive. In other words, the customers have good experiences and are impressed with their visit on the natural nuanced outdoor cafés. Whereas, the average value of the overall indicators of customer perceived value is 3.71. This means that the answers from customers about the research items are positive. This points out that the customers will be loyal to visit the cafés. The results of this study confirm the Theory of Reason Action proposed by [1] that attitudes can be used as the predictions of future behavior. It is found that after making a purchase, customers have a positive word of mouth communication so that it can be predicted that customers will come back and invite others to go to the café.

Besides that, the results of this study support the opinions of [38] that customer loyalty can be understood through examination of beliefs, affective connections, and conative processes that direct customers to the products or services. In this study, customer loyalty can be formed from customers experience on affective and conative beliefs about the overall products and services perceived. However, this study is not in line with the definitions proposed by [39] that customer loyalty acts as a behavioral impulse to purchase the products or services repeatedly. Customer loyalty, in this study, is a behavioral impulse obtained from the experience of the customers to do positive word of mouth. According to [13], experience quality is the affective and cognitive aspects resulting from the services when visiting and making purchases of something which will lead to some attitudes such as satisfaction and behavioral outcomes such as loyalty and word of mouth.

In regards to the positive and significant relationship between experience quality and customer loyalty, [18] believed that there is a direct relationship between experience quality and customer loyalty to customers in Portugal’s Port wine. On the other hand, the results from [14] are in contrast with the findings of this study that physical environment as one of the indicators for experience quality does not affect customer loyalty to hotel guests in Malang and Magelang. Based on some theories and previous research that support the results of this study, it can be concluded that experience quality is one of the determinants of customer satisfaction in the field of banking, tourism, and cafés or restaurants while it is still doubtful in the hospitality sector. The memorable experience that customers get when visiting and making purchases will result in customer loyalty and will generate a positive word of mouth communication.

Besides the literature reviews and several previous studies as explained above, there are several characteristics of respondents that support this study. Most of the respondents who visited and made purchasing decisions are students aged ranging from 18 to 29 years old, a high school graduate and/or a bachelor. The respondents are millennials; this shows that the commitment held firmly by customers to become customer loyalty is obtained from the attitude of the customers itself. Most of the visits of the respondents are more than 2 times with the intensity of visits by 1 to 3 times a week. By that, it can be concluded that customer loyalty is constructed through a repeat purchase that is based on the experience gained during the visit and purchase at the cafés. Most of the respondents were willing to recommend the cafés to others because they had committed to be loyal customers by providing positive communication and reviews.

4.3.4 The effect of customer perceived value on customer satisfaction

Seen from the hypothesis test, it can be concluded that customer perceived value (Y1) has a positive and significant influence on the customer satisfaction (Y2). It is known that the path coefficient value is 0.330, the t-count value is 4.363, and the p-value is 0.000. The value of t-count is greater than t-table which is equal to 1,960 and the p-value is smaller than 0.05. This means that if there is an increase in the experience quality, the customer loyalty will also be increased. The average value of the overall indicators of experience quality is 3.75 which implies that the answers from customers about the research items are positive. In other words, the customers have good experiences and are impressed in the visits. Meanwhile, the average value of the overall indicators of customer perceived value is 3.71. This indicates that the answers from the customers are positive and customers will be loyal to visit the cafés.

The results of this study are in accordance with the research from [40] that customer perceived value is an emotional bond that is formed between customers and companies after using the products or services which able to provide an added value or satisfaction to customers. This is also similar with the opinion of [3] that satisfaction is the assessment of the customers towards the products and services received in accordance with the needs and expectations of the customers. The results of this study indicate that customers satisfaction is formed from the value of benefits received after using the products or services provided by the natural nuanced outdoor cafés.

In concern with the positive and significant relationship between customer perceived value and customer satisfaction, there are other studies which support this study [15, 25] wrote that customer perceived value has a direct relationship to customer satisfaction in the Indonesian aviation industry and visitors to historical tourist attractions in Taiwan [24] also proposed that customer perceived value has a positive and significant effect on the customer satisfaction of the waterpark visitors in South Korea. Moreover, according to [34], customer perceived value has a positive and significant influence on the customer satisfaction of Tayih Landis Restaurant customers in Tainan City and Farglory Hotel Restaurants customers in Hualien City.

Jin et al. [24] emphasized that customer perceived value is a determinant of customer satisfaction for the visitors of Janfusan Fancyworld Tourism Park in Yun-Lin County Taiwan. Based on the theories and previous research that support this study, it can be concluded that customer perceived value is one of the determinants of customer satisfaction in the field of the hotel industry, tourism, and cafés or restaurants. The value of benefits obtained by customers when visiting and making purchases can form a feeling of satisfaction if it is in accordance with customers desires and expectations.

In addition to the literature reviews and previous studies, there are several characteristics of respondents that support this research. Most of the respondents who visit and make purchasing decisions are students aged ranging from 18 to 29 years old, a high school graduate and/or a bachelor. Therefore, it can be concluded that the respondents consider their feeling of satisfaction based on the value received, whether it suits their point or not. Some respondents got information about the cafés from friends and social media. This shows that customers who are satisfied with their expectations will give positive reviews. The respondents usually visit the cafés for more than 2 times with the intensity of visit 1 to 3 times a week. By that, it can be said that the customers are satisfied because it confirms their expectations.

4.3.5 The effect of customer perceived value on customer loyalty

From the hypothesis testing, it is obtained that customer perceived value (Y1) has a positive and significant effect on customer loyalty (Y3). The value of the path coefficient is known to be 0.261 with a t-count value by 3.229 and a p-value by 0.001. The value of t-count is greater than t-table (1.960) while the p-value is less than 0.05. Generally saying, if the experience quality is increased, customer loyalty will also be improved. The average value of the overall indicators of experience quality is 3.75. This means that the answers from customers about the research items are positive and customers have good experiences and are impressed when visiting the café. On the one hand, the average value of the overall indicators of customer perceived value is 3.71. This points out that the answers from customers are positive and customers will be loyal to visit the café.

This is in line with the research from [41] that customer perceived value is related to the total costs incurred for visiting and making purchases at the cafés which also includes the benefits as desired by customers [42] also said that customer loyalty emphasizes more on the behavioral aspect which is the customer’s behavior to have a positive word of mouth communication. In other words, the customers who receive benefits after making a purchase will conduct a positive behavior of word of mouth communication. This finding is in accordance with the attitude theory developed by [2] that customer loyalty is the result of behavior that is formed by affective attitudes, namely customer perceived value.

On the other hand, the results of this study are not consistent with the research conducted by [43] which found that customer perceived value does not have a direct influence on customer loyalty in Australia’s outdoor public aquatic center. In this study, it is found that there is a positive and significant relationship between customer perceived value and customer loyalty [23] believed that customer perceived value has a positive relationship with customer loyalty in the Indonesian tourism and hospitality industry. The research from [15] also mentioned that customer perceived value is one of the important things in influencing customer loyalty in the Indonesian aviation industry.

Lai et al. [45] added that customer perceived value has a positive relationship on customer loyalty in the telecommunication service users in China. Based on some theories and previous research that support this study, it can be concluded that customer perceived value is one of the determinants of customer loyalty in terms of service in the field of hospitality and tourism. The novelty of this study lies in the object of the research that is the café culinary industry, particularly the natural nuanced outdoor cafés. It is found that customer perceived value is one of the determinants of customer loyalty. The value of benefits obtained when visiting and making purchases at the café can directly make customers to become loyal through a positive word of mouth communication to influence other people to visit the natural outdoor cafés in Malang.

Not only literature reviews and several previous studies, but there are also several characteristics of respondents that support the research findings. Most of the respondents who visited and made purchasing decisions are students, 18 to 29 years old, a high school graduate and/or a bachelor. Based on that matter, the reason why the respondents chose to become a loyal customer is because of its suitability to the value received. Some respondents got information about the cafés from friends and social media. This shows that loyal customers will give positive reviews. Most of the respondents visit the cafés for more than 2 times with the intensity of visit 1 to 3 times a week. It can be concluded that customers who get the expected value will immediately become loyal customers by making repeat purchases and by making a recommendation about the café to others.

4.3.6 The effect of customer satisfaction on customer loyalty

Seen from the test of the hypothesis, it is known that customer satisfaction (Y2) has a positive and significant influence on customer loyalty (Y3). The value of path coefficient is 0.425 with a t-count value as much as 5.923 and a p-value that is equal to 0.000. The value of t-count is greater than t-table (1.960) whereas the p-value is less than 0.05. Therefore, if the experience quality is increased, customer loyalty will also increase. The average value of the overall indicators of experience quality is 3.75 meaning that the answers from customers about the research items are positive. This clarifies that customers have good experiences and are impressed when visiting the natural nuanced outdoor café. The average value of the overall indicators of customer perceived value is 3.71. This indicates that the answers from customers about the research items are positive. In other words, customers will be loyal to the cafés.

Stated that customer satisfaction is one of the goals of marketing activities. This is in accordance with the opinions expressed by [46] that satisfaction is the overall evaluation of the products or services purchased based on the previous experience. In this case, the main purpose of the café is to get customer satisfaction so that customers will get experience from the entire products and services provided. The results of this study are in line with the research from [47] that customer loyalty is a condition where customers have a positive attitude seen from the positive communication (word of mouth) about the feelings felt towards the products and services provided. This is similar to the attitude theory from [2] that customer loyalty is the result of behavior formed by affective attitudes, namely customer satisfaction. Besides that, this study also confirms the theory of customer’s behavior that is the theory of reason action developed by [1] that satisfaction can be used to predict customer loyalty.

In regards to the positive and significant relationship of customer satisfaction and customer loyalty, [48] explained that there is a positive relationship between customer satisfaction and customer loyalty to local and foreign tourists in Malaysian tourist villages. Also found a positive relationship between customer satisfaction and customer loyalty to Garuda Indonesia airline passengers. Not only that, (49) conducted a study on 250 members of the performing arts audience and revealed that customer satisfaction has a very strong impact on customer loyalty and is positively and significantly related.

The research conducted by [17] highlighted that customer satisfaction is a predictor of customer loyalty at the amusement parks in Kuala Lumpur and Selangor, Malaysia. Based on several theories and previous research that support the results of these findings, it can be drawn into conclusion that customer satisfaction is one of the determinants of customer loyalty in the field of hospitality, tourism, and aviation services. The novelty of this study lies in the object of the research that is the café culinary industry, particularly the natural nuanced outdoor cafés. By that, it can be said that customer satisfaction is one of the determinants of customer loyalty in the natural nuanced outdoor cafés in Malang. The satisfaction felt by customers when visiting and making purchases can shape customer loyalty to have a positive word of mouth communication.

Besides the literature reviews and several previous studies as mentioned above, there are several characteristics of respondents that support the research findings. Most of the respondents who visited and made purchasing decisions are students, ranging from 18 to 29 years old, a high school graduate and/or a bachelor. Thus, the reason why the respondents are willing to be loyal customers is that they are satisfied with all of the products and services offered. Some respondents got information about the cafés from friends and social media. This means that customers who experience satisfaction will become loyal customers by giving positive reviews. The majority of the respondents in visiting the cafés are more than 2 times with the intensity of visit 1 to 3 times a week. This can be said that customers who are satisfied with all the things given by the cafás will immediately become loyal customers by making repeat purchase and willing to recommend the cafés to others.