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

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 customer 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.