Human Systems Management 39 (2020) 219–232 219

DOI 10.3233/HSM-190564
IOS Press

The effect of experience quality on customer

perceived value and customer satisfaction
and its impact on customer loyalty
Andriani Kusumawati and Kharisma Sri Rahayu∗
Business Administration, Brawijaya University, Malang, Indonesia

Abstract.
BACKGROUND: There is limited research that uses experience quality variables on cafes and restaurants.
OBJECTIVE: To test the effect of experience quality on customer perceived value and customer satisfaction and its impact
on customer loyalty to the visitors of natural outdoor cafes in the hilly areas of Joyo Agung, Malang, Indonesia.
METHODS: This study uses four variables: Experience quality, customer perceived value, customer satisfaction, and cus-
tomer loyalty. The population used in this research were all customers or visitors who bought and enjoyed the products
and services provided by the natural outdoor cafes in Malang. This study used Structural Equation Modelling (SEM) as an
inferential statistical technique.
RESULTS: (1) Quality experience has a significant effect on customer perceived value, customer satisfaction, and customer
loyalty; (2) Customer perceived value has a significant effect on customer satisfaction and customer loyalty; and (3) Customer
satisfaction has a significant effect on customer loyalty.
CONCLUSIONS: This study provides some ideas for future research on customer perceived value, customer satisfaction
and customer loyalty.

Keywords: Experience quality, customer perceived value, customer satisfaction, customer loyalty

Andriani Kusumawati, S.Sos., Kharisma Sri Rahayu, Business

M.Sc., DBA. She currently works as Administration, Brawijaya Univer-
a lecturer at Brawijaya University, sity, Malang, Indonesia.
Malang. She obtained a bachelor
degree from Universitas Brawijaya,
Malang (1998), a master’s degree
from Brawijaya University (2001),
and a doctorate from University Of
Wollongong (2013).

∗ Corresponding author: Kharisma Sri Rahayu, Business Admi-

nistration, Brawijaya University, Malang, Indonesia. E-mail: karis

ma.ub@gmail.com.

0167-2533/20/$35.00 © 2020 – IOS Press and the authors. All rights reserved
220 A. Kusumawati and K.S. Rahayu / The effect of customer experience on customer loyalty
1. Introduction
Consumer behavior can be predicted using the
Theory of Reasoned Action proposed by [1]. The the-
ory is an illustration of the integration of the overall
attitude component that is structured in order to obtain
an explanation of behavior [1]. Argued that behav-
ioral intention is a determinant of actual behavior that
the intention in behavior always refers to behavior in
the future and after making a purchase. Thus, it can be
concluded that behavioral intention is an action taken
by customers before the actual behavior, whereas, the
intention to behave is the intention of customers after
making a purchase [2]. Criticized the Theory of Rea-
soned Action developed by [1] by saying that attitudes
do not determine the purpose of behavioral actions
because in general, the relationship between goals
and behavior is conditioned by decision-making that
is related on achieving goals. Behavioral intention is
crucial to be taken into a study because it is the key
to the actual buying behavior [3].
In the field of marketing, the emergence of
technology (gadgets and Internet) has changed the
geographical condition and purchasing power. This
will slowly change the behavior, values, and culture
of the customers. The results from Alvara Research
Center in 2015 found that the “top searched” product
information on the Internet from millennials cus-
tomers was the information about prices, product
features, promotion programs, and customer reviews.
To date, gadgets and Internet are not merely a tech-
nology but also friends for millennials. One behavior
that changes from Gen-X to millennials is a lifestyle.
Initially, lifestyle is a secondary need for Gen-X but
now, along with the development of lifestyle, it has
turned into the millennials’ primary need [4].
Literally, the meaning of café is coffee but it
changes over time. Not just for coffee, the concept
of café has begun to develop into a place to drink,
eat, and socialize [5]. The strategic location of the
café, as well as the food and beverage presented,
are important to attract customers’ attention. Cur-
rently, the concept of cafés is not only focused on the
coffee variants but also on the menus of ice cream,
dairy products, yogurt, chocolate, brownies, cookies,
and others. Besides maintaining customer trust by
creating superior products and having international
standard quality, creating value that is unique in the
eyes of customers is one of the strategies imple-
mented by the company. According to Herlayanan,
millennials like material things. This trend is rein-
forced by the emergence of many cafés in Indonesian
regions including Malang [6].
The concept of experience according to [7] is an
aspect of consumer behavior that is related to multi-
sensory, fantasy, and emotive aspects of product
consumption. The concepts from experience include
visitor’s affective responses to the psychological ben-
efits they want from the visit [8]. Experience Quality
in the restaurant sector is their knowledge or observa-
tion of restaurant characteristics obtained through the
eating process [9]. Mowen and Minor [10] believed
that consumption experiences are formed by the
awareness and feelings of the customers through
the use of the products or services. Products or ser-
vices consumed will form an important stimulus for
the emotional behavior that is caused by the per-
sonal events experienced by the customers [11]. The
experience felt by customers is a determinant of the
long-term success of the outdoor café business. Cus-
tomers will have a positive experience if they get
what they expect. Generally, the aspects of experi-
ence from this consumption experience are accepted
as important elements for conceptualizing the per-
ceived values [12]. In addition, there are several other
factors in the marketing field that are used as the
determinant of success for long-term outdoor café
business such as studying more about customer per-
ceived values, customer satisfaction, and customer
loyalty.
Based on the results of previous research and the
phenomenon that has been described previously, the
research gaps found in this study are: (1) The rela-
tionship between experience quality and customers
perceived values. There are differences in the results
regarding the effect of experience quality on customer
perceived value; (2) There are differences in the rela-
tionship between experience quality and customer
satisfaction found in the research which examines
the effect of experience quality on customer loyalty;
(3) Experience quality and customer loyalty variables
still differ in the research concerning the effect of
experience quality on customer loyalty; (4) The influ-
ence of customer satisfaction and customer loyalty
is still different in the research results regarding the
effect of customer satisfaction on customer loyalty;
(5) There is still limited research that uses experi-
ence quality variables on café and restaurants. Some
previous studies used experience quality variables in
the tourism sector, the hospitality sector, and restau-
rant industry; (6) There is a change in millennials’
consumer behavior that they use the Internet as a
 A. Kusumawati and K.S. Rahayu / The effect of customer experience on customer loyalty
media for information and recommendation through
social media in making decisions for products or ser-
vices; (7) [13] in his research suggested to conduct
a research on fast food restaurants as a consideration
for future research. This is recommended because the
results of his research only represent hedonic and util-
itarian categories and were conducted in one country
so that different results can be made in each country.
According to the phenomenon and previous studies
as explained above, the researcher of this study is
interested to test The Effect of Experience Quality on
Customer Perceived Value and Customer Satisfaction
and its Impact on Customer Loyalty to the visitors of
natural nuanced outdoor café in the hilly areas of Joyo
Agung, Malang.
2. Literature review and conceptual
framework
The conceptual framework of research is a frame-
work of relationships between concepts and other
concepts that will be measured or tested in the
research. This study uses four variables, namely expe-
rience quality, customer perceived value, customer
satisfaction, and customer loyalty. Those four vari-
ables have been determined by the researcher and
have been examined by previous researchers to test
a hypothesis. After that, the results of the hypothesis
will be drawn into conclusions. This study adopted
the attitude theory from [2] which includes cogni-
tive, affective, and behavioral results. The conceptual
framework of the research which adopts the attitude
theory from [2] can be seen as follows:
Customer loyalty can be formed through experi-
ence quality, customer perceived value, and customer
satisfaction. This can be seen from several previous
studies conducted by [13–18]. The results of previous
studies indicate several variables that can affect con-
sumer loyalty such as experience quality, customer
Customer Perceive
Value
Experience Quality
Customer
Satisfaction
Fig. 1. The conceptual framework.
221
perceived value, and customer satisfaction which also
show the relationship between each variable.
Based on the research concept, the hypotheses in
this study are as follows:
H1 = Experience quality has a significant effect
on customer perceived value
H2 = Experience quality has a significant effect
on customer satisfaction
H3 = Experience quality has a significant effect
on customer loyalty
H4 = Customer perceived value has a significant
effect on customer satisfaction
H5 = Customer perceived value has a significant
effect on customer loyalty
H6 = Customer satisfaction has a significant effect
on customer loyalty
3. Research methods
This research was carried out at the natural nuanced
outdoor cafés in Malang. The objects of the research
were customers or visitors of the cafés. Based on
the results of online media observations in Malang,
there are six natural nuanced outdoor cafés that can
be studied, namely Bukit Delight, Coklat Klasik,
Warung Nakamo, Green Barn Eatery, Soimah Barn
& Kichten, and Oikii café and resto [6] The reason
for choosing the natural nuanced outdoor cafés as the
research object was because this kind of place is the
first natural outdoor café in Malang and is an alter-
native to new culinary tourism as suggested by Dias
Satria who is an economist from Universitas Braw-
ijaya to become a new culinary tourism destination
in Malang [6]. Besides that, natural nuanced café is
also recommended as a café destination that must be
visited when in Malang (https://dolandolen.com).
The population used in this research was all cus-
tomers or visitors who buy and enjoy the products
and services provided by the natural outdoor cafés
Customer Loyalty
222 A. Kusumawati and K.S. Rahayu / The effect of customer experience on customer loyalty
in Malang. The characteristics of the population in
this study were: (1) The age of the respondents are at
least 18 years old, by considering that above 18 years
old already have a certain establishment based on a
clear pattern; (2) The respondents are visitors of natu-
ral nuanced outdoor cafés in Malang. By considering
the loyalty of the customers towards the products and
services in natural nuanced outdoor café, respondents
must buy the products and services at least twice. It
is expected that the respondents can remember the
experience that was felt before.
The design of the sample used in this study was
nonprobability sampling with a technique of pur-
posive sampling and judgment sampling. Purposive
sampling is a sampling that is based on certain con-
siderations [19]. Whereas, judgment sampling is the
selection of samples that is based on an assessment
of some sample characteristics that are customized
to the purpose of the study [20]. Based on the calcu-
lation of [21], a number of the samples amounting
to 167,182 respondents were obtained so that the
research sample is rounded to 168 respondents.
There are four research variables in this study. The
first is experience quality. This is the quality of the
overall consumer experience both in terms of prod-
ucts and services that are felt when visiting the natural
outdoor cafés in Malang. The indicators used in this
study followed the indicators from the research pro-
posed by [22] which consist of interaction quality,
physical environment quality, outcome quality, and
access quality.
Secondly, customer perceived value. This is a value
that is perceived by visitors. Customer value can be
formed if the value felt by visitors when visiting a
natural nuanced outdoor café is in accordance with
their expectations. The indicators used in this study
referred to previous studies conducted by [15, 23, 24]
which include: Price, Benefit, and Sacrifice.
Besides experience quality and customer perceived
value, there is customer satisfaction. Customer sat-
isfaction is a feeling of satisfaction experienced by
visitors to what extent the benefits of a product and
service provided by the cafés exceed the hopes and
expectations of the visitors. The indicators used in
this study adopted the previous research from [15,
24] which used happiness, contentedness, and overall
satisfaction.
Last but not least, there is customer loyalty. This
is a commitment that is held firmly by visitors to
repurchase the products and services provided by the
cafés as well as the willingness of visitors to give
positive reviews and to recommend the cafés to oth-
Table 1
Research operational definition
No Response Indication Likert Scale Value
Strongly Agree 5
Agree 4
Neutral 3
Disagree 2
Strongly Disagree 1
ers based on their experiences. The indicators in this
study referred to previous studies conducted by [15,
25] as follows: (a) Revisit intention, (b) Positive word
of mouth, and (c) Recommendation.
The measurement of the variable in this research
is using attitude scale. The type of the attitude scale
used in this research is the Likert scale with the value
of 1–5 (1 = to acquire the strongly disagree up to the
value of 5 = for the opinion of strongly agree). The
Likert scale is a scale that is based on the total number
of respondents’ attitudes in responding to a question
related to the indicators of variables being measured
(Sanusi, 2017). The measuring scale of this research
is elaborated in Table 1.
In more details, the operational definition of the
variables can be seen in Table 2.
This study used Structural Equation Modeling
(SEM) as inferential statistical techniques. The rea-
son for choosing this technique is because Structural
Equation Modeling (SEM) is one type of multivari-
ate analysis in social science and a general statistical
model that is widely used in a variety of sciences.
Structural Equation Modeling (SEM) has two main
advantages such as able to test complex research
models simultaneously and able to analyze variables
that cannot be measured directly as well as to mea-
sure the errors in measurement [26]. SEM is divided
into two types: covariance-based SEM and variance-
based SEM or partial least square (PLS). Based on
the research objectives in this research, the type of
SEM analysis used is PLS. The SEM-PLS is a causal
model approach that is aimed to maximize the vari-
ance of latent variables which can be explained by
predictor variables.
4. Results and discussion
4.1. Measurement model evaluation
The evaluation of the measurement model in this
study consists of the outer model and inner model.
 A. Kusumawati and K.S. Rahayu / The effect of customer experience on customer loyalty
Variable
Experience Quality (X1)
Customer Perceive Value (Y1 )
Customer Satisfaction (Y2 )
Outer model is used to evaluate the results of the
validity test and reliability test. Meanwhile, the inner
model is used to measure the relationship between
223
Table 2
Research operational definition
Indicator Item
Interaction Quality My interaction quality with the cafe’s employees is very good
Friendly service by the employees
The cafe’s employees have good skills
Physical Environment Quality The cafe’s physical environment is very good
This cafe has a very good quality standard of physical environment.
The cafe’s physical environment gives comfort
Outcome Quality Feeling happy by all aspects given by the outdoor cafe with natural
nuances
Have an extraordinary experience when visiting the outdoor cafe
with natural nuances
The overall service in the outdoor cafe with natural nuances is quite
good
Access Quality Feeling free at the outdoor cafe with natural nuances because all
spots can be accessed by the visitors
The access to the outdoor cafe with natural nuances is very easy to
be visited
The location of the outdoor cafe with natural nuances is very easy
to be found
Price The price is cheap and affordable
The product price in this cafe is suitable with the quality of the
products
Benefit The value experienced after visiting is suitable to the expectation
The products provided are acceptable to the consumers
The services provided can be received well
Sacrifice The value experienced gives an experience of enjoying the products
and services
The value experienced gives an experience of enjoying the products
and services
Happiness Feeling happy and satisfied when visiting the outdoor cafe with
natural nuances
Feeling satisfied by the products of the outdoor cafe with natural
nuances
Feeling satisfied by the services given by the outdoor cafe with
natural nuances
Contentedness Feeling satisfied by the policies applied to visit the outdoor cafe
with natural nuances
Feeling satisfied by the existence of the outdoor cafe with natural
nuances
Overall satisfaction Overall satisfied by all aspects at the outdoor cafe with natural
nuances
Experiencing satisfaction at the outdoor cafe with natural nuances
compared to others
Feeling satisfied by the experience of visiting the outdoor cafe with
natural nuances
variables through the value of R square. The results
of the research measurement model evaluation are
described in this following section:
224 A. Kusumawati and K.S. Rahayu / The effect of customer experience on customer loyalty

Outer evaluation model of this study evaluates the
relationship of latent variables with the research indi-
cators. There are four latent variables used in this
study including experience quality, customer per-
ceived value, customer satisfaction, and customer
loyalty. The measurements made in evaluating the
outer model of this research are Convergent Reliabil-
ity, Discriminant Validity, and Composite Reliability
which will be discussed in detail as follows:
a. Convergent validity
Convergent validity aims to evaluate the results
of the validity test in each latent variable with its
indicators. Based on the rule of thumb evaluation of
the SEM measurement model, the value of the load-
ing factor is expected to be >0.7 [27]. Ghozali and
Latan [28] argued that for the initial development of
research, the measurement scale of the loading factor
is 0.5 to 0.6. That number is considered sufficient so
that the value of the loading factor used as a refer-
ence to evaluate the measurement model in this study
is >0.5. The results showed that the overall loading
factor of the items is >0.5. Therefore, the value of
the loading factor can be said to be valid and each
indicator can be used as a measurement tool for the
variables such as experience quality (X1), customer
perceived value (Y1), customer satisfaction (Y2), and
customer loyalty (Y3). For more details, the loading
factor value of this research can be seen in Table 3.
b. Composite reliability
Composite Reliability is the evaluation of mea-
surement results that are obtained by comparing the
AVE value with the correlation value between the
constructs. The AVE value used in this study is at
least 0.5. After that, the evaluation is done by look-
ing at the composite reliability value and Cronbach’s
alpha to assess the reliability of the variables. The
constructions of the variables are declared reliable
if the composite reliability value is above 0.70. The
detailed Composite Reliability results are presented
in Table 4.
Based on the table above, it can be concluded
that the evaluation of the measurement model has
good discriminant validity. This can be seen that the
overall AVE value is not less than 0.5. The value of
Composite Reliability in each variable also has good
reliability. It is known that the value of Composite
Reliability in experience quality (X1) is 0.923 fol-
lowed by 0.880 in customer perceived value (Y1),
0.914 in customer satisfaction (Y2), and 0.890 in cus-
tomer loyalty (Y3). Therefore, it can be said that each
variable has high reliability because it is bigger than
0.70.
4.2. Structural model evaluation (Inner Model)
The evaluation of the structural model (Inner
Model) is aimed to measure the relationship between
one variable and one another. This is also used
to determine the size of the information that can
be explained by the relationship of each variable.
Based on the results of the SEM-PLS model, the
overall goodness of fit assessment can be known
from the Q2 value (predictive relevance). The test
of goodness of fit model is done by using the total

Table 3
Outer model of loading convergent validity

Variables Indicators Loading factor Result

Experience Quality (X1) Interaction Quality (X1.1) 0.850 Valid
Physical Environment Quality (X1.2) 0.863 Valid
Experience Quality (X1) Outcome Quality (X1.3) 0.890 Valid
Access Quality (X1.4) 0.832 Valid
Customer Perceived Value (Y1) Price (Y1.1) 0.786 Valid
Benefit (Y1.2) 0.888 Valid
Sacrifice (Y1.3) 0.850 Valid
Customer Satisfaction (Y2) Happiness (Y2.1) 0.895 Valid
Contendness (Y2.2) 0.903 Valid
Overall satisfaction (Y2.3) 0.879 Valid
Customer Loyalty (Y3) Revisit intention (Y3.1) 0.883 Valid
Positive word of mouth (Y3.2) 0.913 Valid
Recommendation (Y3.3) 0.839 Valid
 A. Kusumawati and K.S. Rahayu / The effect of customer experience on customer loyalty 225

Table 4 Table 5
Composite reliability Table of path coefficient for hypothesis testing

Variable and indicators Cronbach’s Composite AVE Variable Original Standard T P Desc.
alpha reliability sample (O) deviation statistics values
Experience Quality (X1 ) 0.908 0.923 0.500 EXQ -> CPV 0.772 0.037 20.682 0.000 Sig.
- Interaction Quality 0.787 0.876 0.702 EXQ -> CS 0.527 0.074 7.124 0.000 Sig.
- Physical Environment Quality 0.773 0.868 0.688 EXQ -> CL 0.225 0.084 2.682 0.008 Sig.
- Outcome Quality 0.695 0.831 0.622 CPV -> CS 0.330 0.076 4.363 0.000 Sig.
- Access Quality 0.796 0.880 0.710 CPV -> CL 0.261 0.081 3.229 0.001 Sig.
Customer Perceived Value (Y1 ) 0.840 0.880 0.512 CS -> CL 0.425 0.072 5.923 0.000 Sig.
- Price 0.733 0.882 0.789
- Benefit 0.677 0.823 0.609
- Sacrifice 0.765 0.895 0.809
The t-count value shows a greater value than the
Customer Satisfaction (Y2 ) 0.894 0.914 0.543
t-table which is equal to 1,960 whereas the p-value
- Happiness 0.734 0.849 0.653
is less than 0.05. Referring to these results, it can be
- Contendness 0.787 0.876 0.702
concluded that if experience quality is increased, cus-
- Overal Satisfaction 0.778 0.871 0.693
tomer perceived value will also increase. The average
Customer Loyalty(Y3 ) 0.858 0.890 0.503
value of the overall experience quality indicators is
- Revisit Intetion 0.674 0.821 0.605
3.75 which means that the answers from customers
- Positive Word of Mouth 0.717 0.841 0.639
about the research items are positive. In other words,
- Recommendation 0.609 0.836 0.719
customers have good experiences and are impressed
when visiting the natural nuanced outdoor cafés.
On the other hand, the average value of the over-
determination coefficient where the test results can all customer perceived value indicators is 3.78. This
illustrate the size of the path model to represent the means that the answers from customers concerning
observed data. Based on the calculation of Q2 value, it the research items are positive. It can be said that the
can be seen that the value of Q2 is 0.959. This means prediction of the customers exceeds their expectation
that the data diversity from the structural equation when visiting the cafés.
model is 95.9% while the remaining 4.1% is defined The results of this test are in accordance with the
by other factors outside the research model. By that, opinion from [13] that experience quality is used as
the structural model in this research can be said to an affective and cognitive aspect generated from the
have good goodness of fit because the value of Q2 is services in the visit so as to produce values that can
ranging from 0 < Q2 < 1; if the value is closer to 1, it be felt by customers in accordance with the benefits
means that the model is getting better. obtained. Gentile et al. [29] emphasized that expe-
rience quality comes from the interactions between
4.3. Hypothesis testing and discussion customer and products, companies, or part of the
organization that triggers customer involvement. This
The hypothesis testing is done to examine the effect is in accordance with the findings of the research that
of relationships between research variables. The test the experience of the customers comes from the qual-
was carried out by using SmartPLS 3.0 application ity of the products and services provided by the cafés
with the bootstrapping method. so that it can lead to customer involvement such as
The explanation for Table 5 above can be seen in the value of benefits received by customers. This is
this following section: also in line with the attitude theory developed by [2]
that customer perceived value is the result of affec-
4.3.1. The effect of experience quality on tive attitudes formed by cognitive attitudes, namely
customer perceived value experience quality.
According to the results of the hypothesis test, it The findings of this research also confirm the
can be known that experience quality (X) has a posi- equity theory proposed by [30] that there is a relation-
tive and significant influence on customer perceived ship between perceived value and sacrifices expected
value (Y1) with path coefficient value as much as by customers in terms of time, cost, and effort so as
0.772, t-count value by 20.682, and p-value by 0.000. they will feel satisfied after receiving the benefits.
226 A. Kusumawati and K.S. Rahayu / The effect of customer experience on customer loyalty
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 per-
ceived 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 prod-
ucts 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 perfor-
mance 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 qual-
ity 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 per-
ceived value in the objects of tourist attractions and
restaurants. This is an empirical study which can sup-
port 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 Fan-
cyworld Janfusan Tourism Park in Yun-Lin County
Taiwan.
In addition to literature reviews and several pre-
vious 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 cur-
rent trend that the emergence of technology (gadgets
and the internet) has made changes in terms of geo-
graphical 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 infor-
mation, 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 cus-
tomers 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 experi-
ence 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 cus-
tomer satisfaction. This confirms the opinion of [35]
that customer satisfaction is formed on the results of
evaluating the overall experience quality in purchas-
ing 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 cogni-
tive 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 qual-
ity and customer satisfaction are also supported by
several previous studies. According to [16], experi-
ence quality has a positive relationship with customer
satisfaction on guesthouse travelers in Ghana. Thus,
 A. Kusumawati and K.S. Rahayu / The effect of customer experience on customer loyalty
the research can be used by the guesthouse own-
ers as an evaluation material to always improve the
quality of their places so that customers will be sat-
isfied 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 influ-
ence 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 con-
ducted 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 experi-
ence 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 expe-
rience obtained from the visit and purchase on the
cafés. Most of the respondents are willing to recom-
mend 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 signif-
icant influence on customer loyalty (Y3). The value
227
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 The-
ory 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, affec-
tive connections, and conative processes that direct
customers to the products or services. In this study,
customer loyalty can be formed from customers expe-
rience 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 repeat-
edly. Customer loyalty, in this study, is a behavioral
impulse obtained from the experience of the cus-
tomers to do positive word of mouth. According to
[13], experience quality is the affective and cogni-
tive 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 rela-
tionship between experience quality and customer
loyalty, [18] believed that there is a direct rela-
tionship 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 environ-
ment 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
228 A. Kusumawati and K.S. Rahayu / The effect of customer experience on customer loyalty
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 vis-
iting 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 charac-
teristics of respondents that support this study. Most
of the respondents who visited and made purchas-
ing decisions are students aged ranging from 18 to
29 years old, a high school graduate and/or a bache-
lor. 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 pur-
chase that is based on the experience gained during
the visit and purchase at the cafés. Most of the respon-
dents 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 satisfac-
tion (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 indica-
tors 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. Mean-
while, 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 cus-
tomers 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 cus-
tomers 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 rela-
tionship between customer perceived value and
customer satisfaction, there are other studies which
support this study [15, 25] wrote that customer per-
ceived 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 sat-
isfaction 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 cus-
tomers 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 restau-
rants. The value of benefits obtained by customers
when visiting and making purchases can form a feel-
ing of satisfaction if it is in accordance with customers
desires and expectations.
In addition to the literature reviews and pre-
vious 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 respon-
dents got information about the cafés from friends
and social media. This shows that customers who
are satisfied with their expectations will give posi-
tive 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.
 A. Kusumawati and K.S. Rahayu / The effect of customer experience on customer loyalty
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 sig-
nificant 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 experi-
ences and are impressed when visiting the café. On
the one hand, the average value of the overall indica-
tors 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 cus-
tomer 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 empha-
sizes 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 relation-
ship 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 influ-
encing 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
229
value is one of the determinants of customer loy-
alty 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 indus-
try, particularly the natural nuanced outdoor cafés. It
is found that customer perceived value is one of the
determinants of customer loyalty. The value of ben-
efits obtained when visiting and making purchases
at the café can directly make customers to become
loyal through a positive word of mouth communi-
cation 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 purchas-
ing decisions are students, 18 to 29 years old, a high
school graduate and/or a bachelor. Based on that mat-
ter, 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 signif-
icant 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 over-
all 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
230 A. Kusumawati and K.S. Rahayu / The effect of customer experience on customer loyalty
the opinions expressed by [46] that satisfaction is the
overall evaluation of the products or services pur-
chased based on the previous experience. In this case,
the main purpose of the café is to get customer satis-
faction 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 communica-
tion (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 relation-
ship 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 vil-
lages. Also found a positive relationship between
customer satisfaction and customer loyalty to Garuda
Indonesia airline passengers. Not only that, (49) con-
ducted 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 loy-
alty 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 cus-
tomer 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 satisfac-
tion is one of the determinants of customer loyalty
in the natural nuanced outdoor cafés in Malang. The
satisfaction felt by customers when visiting and mak-
ing 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 char-
acteristics 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 satis-
fied with all of the products and services offered.
Some respondents got information about the cafés
from friends and social media. This means that cus-
tomers 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.
4.4. Research limitations
Based on the description above, this study has sev-
eral limitations including (a) the criteria for natural
nuanced outdoor café is still not available so that it
cannot be used as the literature of outdoor concept; (b)
this research only focuses on natural outdoor cafés in
Malang thus the results cannot be generalized into the
wider sector of culinary industry, especially to cafés
in other places although it has a semi-outdoor con-
cept because there is no clear definition of outdoor;
(c) the demographic classification of the community
in Indonesia is divided into 4 generations, namely:
baby boomer, Generation X (Gen-X), Generation Y
(Millennials), and Generation Z. Each of the respon-
dents’ criteria is not grouped in that generation. This
study does not address the different results which are
generated from different generations.
5. Conclusions and suggestions
The conclusions of this research are: (1) Qual-
ity experience has a significant effect on customer
perceived value, customer satisfaction, and customer
loyalty; (2) Customer perceived value has a signif-
icant effect on customer satisfaction and customer
loyalty; and (3) Customer satisfaction has a signif-
icant effect on customer loyalty. Some suggestions
that are proposed for future research and for the
management of natural nuanced outdoor cafés are as
follows: (1) Further research can develop the exist-
ing research model by adding other variables such as
destination image and change the measurement indi-
cators to expand the results of the study based on the
theme of the research objects; (2) Further research
can choose new customers as respondents so that the
results of the study can be described further that the
 A. Kusumawati and K.S. Rahayu / The effect of customer experience on customer loyalty
new customers and old customers can be compared.
(3) Further research can be carried out on differ-
ent research objects such as hospitality and culinary
cafés. In regards to café as the research object, the
next study requires accuracy in focusing on the char-
acteristics of the cafés because each café has different
concept and characteristics. Besides that, to enrich the
research findings, further research can broaden the
scope of the research to a wider area such as Malang
Raya and other regional areas.
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