The Influence of Customer Experience on Customer Loyalty with Customer Satisfaction as an Intervening Variable in Xing Fu
Tang Indonesia
Sherlica Safracia1*
1 School of Business and Management, Bandung Institute of Technology, Bandung, Indonesia
*Corresponding Author: [email protected]
Accepted: 15 September 2021 | Published: 1 October 2021
__________________________________________________________________________________________
Abstract: Many individuals, particularly millennials in Indonesia, have been more interested in boba tea beverages in recent years. Xing Fu Tang is one of the boba tea companies that has lately gained popularity in Indonesia. This is due to the fact that Xing Fu Tang has a great balance of boba sweetness and milk freshness. Furthermore, Xing Fu Tang provides a unique and original approach for its consumers to enjoy boba by giving a fresh experience. However, many customers continue to express dissatisfaction with the speed with which beverages are served, which may suggest that customers are dissatisfied and may lead to a decline in customer loyalty. The second point to examine is the discovery that customer satisfaction may function as a bridge between consumer experience and loyalty. As a result, the purpose of this study is to investigate the impact of customer experience on customer loyalty in Xing Fu Tang Indonesia, using customer happiness as an intervening variable. This study was carried out using a quantitative approach with 233 customers were approached via an online survey. Path Analysis is an analytical approach used by academics. Customer experience has a large impact on customer satisfaction, customer satisfaction has a big impact on customer loyalty, and customer satisfaction has a significant impact on customer loyalty, according to the findings of this study. Through customer satisfaction in Xing Fu Tang Indonesia, the researcher also examined customer satisfaction as an intervening variable, but was unable to demonstrate that customer experience had a substantial impact on customer loyalty. These insights should aid Xing Fu Tang Indonesia in better understanding the impact of customer experience on customer satisfaction and loyalty.
Keywords: Customer Experience, Customer Loyalty, Customer Satisfaction, Xing Fu Tang Indonesia
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1. Introduction
Business is an activity carried out by companies to consumers intending to make a profit (Afuah, 2004). The food and beverage business or popularly known as the culinary industry is one of the creative business sectors that continues to grow. The Central Statistics Agency also recorded that since 2015-2019, the culinary industry's growth has increased by 3.5% (BPS, 2015-2019). This growth indicates that the culinary business is a prospective and sustainable business model that is profitable both now and in the future (Long et al., 2018).
According to detikfood.com (2019), one of the food and beverage companies that have recently become quite popular is Xing Fu Tang originating from Taiwan. This happens because Xing Fu Tang offers a different way to its customers by providing a new experience in enjoying boba
tea so that customers will feel satisfied and make repeat purchases. In addition, according to Vancelia Wiradjaja, CEO of Xing Fu Tang Indonesia said that Xing Fu Tang is more than just a company that serves food and drinks as it creates strong emotional bonds with its customers.
Every grand launching of the Xing Fu Tang store, there will be a 'Happy Claw Machine' and merchandise (for the first 100 buyers) for customers to enjoy, so not only from the tongue side but also from the visual and emotional side (Cintya, 2019). Not only that, but Xing Fu Tang also provides a live kitchen concept in each of its outlets to display the production process.
This is an experience that they cannot find in similar competitors. Thus, the hope from this experience is that customers didn’t feel bored while waiting in the queue but they feel satisfied and loyal to Xing Fu Tang Indonesia.
However, based on an interview with Vancelia Wiradjaja, there are still many consumer complaints regarding their experience of making purchases at Xing Fu Tang, especially related to the speed of serving drinks. Unfortunately for the number of complaints, Xing Fu Tang Indonesia does not know for sure because so far they have never conducted a survey. This case is quite interesting for researchers because even though Xing Fu Tang has offered new experiences to its customers, but there are still many customer complaints which, according to Bhatti (2019), indicate that customers are not satisfied with that experience and have potential to decrease customer loyalty. This is also supported with Vancelia Wiradjaja's statement that Xing Fu Tang Indonesia has never conducted research on the relationship between customer experience, customer satisfaction, and customer loyalty. Based on that, researchers are interested in conducting this research with the hope that it can be used as a reference or input for marketing strategies and customer experience development in Xing Fu Tang Indonesia.
Then, the second consideration is the finding which shows that customer satisfaction can be used as an intervening variable between customer experience and customer loyalty. This is in accordance with Umar (2018) who said that customer satisfaction can be an intervening variable because customer satisfaction is considered the main determinant of loyalty so it is hoped that this research can be useful to increase knowledge and become a reference for similar research in the future. Based on the problems that have been explained above, the researcher wants to analyze whether the customer experience while visiting Xing Fu Tang could create customer satisfaction so it affects customer loyalty in choosing Xing Fu Tang Indonesia.
2. Literature Review
Customer Experience
According to Lemke et al. (2011), customer experience is a subjective customer response to the company after a relationship or interaction, including communication, service, and consumption relationships. This quality of customer experience can lead to other outcomes such as repeat purchase intentions. The quality of experience in question is the customers' superior experience (Kim and Ghoi, 2013). Furthermore, the same definition is also expressed by McColl-Kennedy et al. (2015) that customer experience is generally defined as a holistic nature, involving customers cognitively, affective, emotional, social, and physical towards direct or indirect contact with service providers, brands, or products, in multiple touchpoints during the entire customer journey.
Therefore, the experience felt by customers will arise after they interact with the company through the stimulation of the goods or services they consume. Through these interactions, the impressions felt by consumers on their experiences will often affect emotions and produce responses from consumers. This response can be referred to as the consumer's interpretation to
assess the level of satisfaction with the perceived experience. Schmitt (1999), Azhari et al.
(2015), and Prastyaningsih et al. (2014) state that there are three dimensions that can arise customer experience: sensory experience, emotional experience, and social experience.
Customer Satisfaction
There are several definitions that have been developed about customer satisfaction. The definition basically means the same thing. One of them states that consumer satisfaction is a comparison between the performance of products and services expected with the performance of products and services perceived by consumers (Suchánek et al., 2014). This theory is also supported by Minh, N.V., Huu, N. H. (2016), who argue that one of the main determinants of consumer satisfaction is consumer perception of service quality. These consumer perception usually can be formed through the customer experience (Lovelock & Wright, 2007).
Based on that, if the customers have a positive experience after consuming a product, it will certainly form a positive perception, which ultimately giving customer satisfaction.
Conversely, if a customer has a negative experience, it will certainly generate negative perceptions, ultimately leading to dissatisfaction. This is also supported by the several previous studies from Pateli et al. (2014), Azhari et al. (2015), Suandana et al. (2016) proved that customer experience has a significant effect on satisfaction. Furthermore, based on Peter &
Olson (2014) say that if the consumer's satisfaction has been fulfilled, then it will affect the consumer to do a repeat purchase and recommending company products to others.
According to the research of Ibzan et al. (2016), there are three main components that can be used as a measurement tool for total customers, namely: satisfaction with the product, satisfaction with the company, and satisfaction with salespeople.
Customer Loyalty
Having loyal customers is an important goal in the company. As Azis (2016) stated, loyalty is customers' willingness to continue subscribing to a company in the long term by repeatedly buying and using goods or services and voluntarily recommending the company and its products to friends and associates. Likewise, the opinion expressed by Kotler and Armstrong (2010), customer loyalty comes when a company can meet buyers’ expectations, while customers' expectations are typically based on previous purchasing experiences, recommendations from friends and family, and promises or information from marketers or competitors.
Loyal customers are an invaluable asset for the company because they provide a continuous income source over the years to the company. According to Logiawan and Subagio (2014), the indicators of strong loyalty are:
1) Saying positive things is conveying positive words about a service provider to others, usually in the form of a description of the experience.
2) Recommendation to friends is the process of one party inviting the other party to enjoy the service provider due to the positive experience that is felt.
3) Continued purchasing is an attitude to buy back continuously by consumers at a service provider so it can be interpreted as loyalty.
Based on the research framework that has been attached above, the hypothesis in this research to determine the relationship between customer experience, customer satisfaction, and customer loyalty in Xing Fu Tang Indonesia is:
H1: customer experience has a significant effect on customer satisfaction in Xing Fu Tang Indonesia.
H2: customer experience has a significant effect on customer loyalty in Xing Fu Tang Indonesia.
H3: Customer satisfaction has a significant effect on customer loyalty in Xing Fu Tang Indonesia.
H4: Customer experience has a significant effect on customer loyalty through customer satisfaction in Xing Fu Tang Indonesia.
Figure 1: Conceptual Framework
3. Methodology
In this study, the research design used was quantitative research. While the type of approach that researchers use is quantitative descriptive analysis with explanatory research (Kuncoro, 2007). Moreover, the research method used in this study is a survey method with the instrument of the questionnaire is 5-point Likert scale starting from Strongly Disagree (score 1) to Strongly Agree (score 5).
Based on the research objectives, the selected sample for this research is Xing Fu Tang Indonesia customers that have made purchases directly at least 2 times in the big cities (Bandung, Bekasi, DKI Jakarta, Medan, Surabaya, and Yogyakarta) at their productive age (around 15-64 years). This criterion was chosen because the respondents who have made a minimum purchase of 2 times are considered by Griffin (2005) to be repeat customers who have frequently made purchases. While the other sample selection is based on Vancelia Wiradjaja, who said that customers who have the highest number of purchases in Xing Fu Tang are in the age range of 15-64 years (personal communication, September 30, 2020) and the location selection is determined based on Xing Fu Tang outlets in Indonesia. Therefore, the sampling method that is used in this study is based on non-probability sampling with a purposive sampling procedure because of several considerations that focus on specific objectives (Sugiyono, 2018).
Then, before distributing the questionnaire to large sample size, the researcher conducted a pilot test on 30 respondents to check the validity and reliability of the questionnaire (Ardial, 2014). To measure the validity of the questionnaire, the researcher is checked using Pearson Product Moment, while to test the reliability is checked using Cronbach Alpha. The instrument
Customer Satisfaction
(Z) Customer
Experience (X)
Customer Loyalty
(Y)
H1 H3
H2
H4
: Direct Effect : Indirect Effect
can be declared valid if the r-value is greater than the 2-tailed r-table (0.361) and the variable is considered reliable if the Cronbach’s Alpha value is higher than 0.7 (Sekaran, 2003).
After the data has been collected, the researcher analyzes the data using descriptive and statistics analysis to determine the outcome from the questionnaire. Below are the method that researcher used to analyze the data. First, to describe the demographic data of the respondents and provide a summary of data collection, the researcher uses descriptive analysis. Next, because the analytical method used in this research is path analysis, therefore, before conducting path analysis to test the hypothesis, the method requires to perform a classical assumption test to get the best results (Ghozali, 2014). The classical assumption tests that were used in this study are the normality test, heteroscedasticity test, and linearity test. Last, to test the hypothesis in this research, the researcher used Path Analysis, T-test, and R-Square Test.
4. Discussion and Result
Respondent Profile
Based on the respondents' characteristics, Xing Fu Tang Indonesia customers are more dominated by females (21% male and 79% female). Then, as Xing Fu Tang is one of the trending boba milk teas, so the majority of the customer is aged 18-21 years old. This age is also in accordance with most respondents' monthly income, around IDR 0-500,000 and IDR 2,500,001-5,000,000 because they have not earned any salary. Even though they still have a limited monthly income, consuming Xing Fu Tang has become a lifestyle for college students based on the survey above. It happens because they are satisfied and feeling worth it if they compare it with the price and quality. This satisfaction can be seen from the half of the respondents who fill out this questionnaire have bought Xing Fu Tang in Indonesia at least two times and return to buy the item or called customer loyalty. Furthermore, most of Xing Fu Tang Indonesia's customers (27% of the respondents) are domiciled outside the big cities where Xing Fu Tang opened its outlets, while the majority of outlets where customers make purchases of Xing Fu Tang Indonesia are located in Jakarta area with 44% from the total of the respondents.
Validity and Reliability Test
The validity test is used to evaluates the questionnaire's validity by comparing the r-value with the r-table (0.5 levels of significance), which is based on the results of the pilot test obtained from 30 respondents. Thus, if the r-statistic is greater than 0.361 (r-table), the questionnaire's attributes will be declared valid. According to the result of the validity test, it is shown that every question from each variable in the questionnaire which are customer experience, customer satisfaction, and customer loyalty exceeds the r-table score (0.361). Therefore, every question from each variable in the questionnaire is considered valid.
While, the reliability test is conducted to show the consistency of the questionnaire and the stability of the answers to the questions on each valid questionnaire (Sekaran & Bougie, 2016).
Each variable is considered reliable if the Cronbach’s Alpha value is higher than 0.7 and if the value is lower than 0.7, the variable is considered not reliable. According to the result of the reliability test, it is shown that all of the three variables which are customer experience, customer satisfaction, and customer loyalty have exceeded Cronbach's Alpha critical point (0.7). So, it considered the variables as reliable.
In conclusion, based on the result of the validity test and reliability test, the questionnaire in this research is considered valid and reliable which means that each variable's questions are accepted and used in the questionnaire.
Classical Assumption Test
The analytical method used in this research is path analysis. Therefore, before conducting path analysis to test the research hypothesis, the method requires performing a classical assumption test to get the best results (Ghozali, 2014). The classical assumption tests that were used in this study are the normality test, heteroscedasticity test, and linearity test.
Normality Test
The normality test in this research uses the Kolmogorov Smirnov Test. The basis for decision- making is if the result of the Asymptotic Significance test (2-tailed) is > 0.05, then the regression model meets the normality distribution (Santoso, 2004). Based on the Kolmogorov Smirnov test, it is shown that the Asymp. Sig. (2-tailed) value for Customer Experience - Customer Satisfaction, and Customer Experience & Customer Satisfaction - Customer Loyalty is 0.200, which means it is greater than α (0.05), so it can be concluded that the data used in this research is normally distributed.
Heteroscedasticity Test
The heteroscedasticity test in this research was carried out by using the Glejser test. The presence or absence of heteroscedasticity can be seen by looking at the level of significance for alpha (α) 5%. If the significance value is greater than alpha (α), heteroscedasticity does not occur. Based on the Heteroscedasticity test for Customer Experience - Customer Satisfaction, it is found that the independent variable Customer Experience has a value of Sig. greater than 0.05, which is 0.256. Therefore, it can be concluded that the independent variable in model 1 is considered free from heteroscedasticity and passes the heteroscedasticity test. Then, based on the Heteroscedasticity test for Customer Experience and Customer Satisfaction - Customer Loyalty, it is found that the independent variable Customer Experience and Customer Satisfaction has a value of Sig. greater than 0.05, namely 0.554 and 0.350. Therefore, it can be concluded that the independent variable in model 2 is also considered as free from heteroscedasticity and passes the heteroscedasticity test.
Linearity Test
The linearity test in this research is used to see whether the specifications of the model used are correct or not. The basis for decision-making is if the value of Sig. deviation from linearity
> 0.05, then there is a linear relationship between the independent variable and the dependent variable (Ghozali, 2016). Based on the Linearity test for Customer Experience - Customer Satisfaction, it is found that the value of Sig. Deviation from linearity is 0.413 > 0.05, it can be concluded that there is a linear relationship between Customer Experience and Customer Satisfaction. Then, based on the Linearity test for Customer Experience - Customer Loyalty, it is found that the value of Sig. Deviation from linearity is 0.261 > 0.05, so it also can be concluded that there is a linear relationship between Customer Experience and Customer Loyalty. Last, based on the Linearity test for Customer Satisfaction - Customer Loyalty, it is also found that the value of Sig. Deviation from linearity is 0.298 > 0.05, so it can be concluded that there is a linear relationship between Customer Satisfaction and Customer Loyalty.
Descriptive Analysis
The descriptive statistics analysis in this research explains the quantitative description and summary of a data collection, including the minimum, maximum, mean, and standard deviation of the questionnaire result. In conducting this research, the researcher used a five-point Likert Scale, thus the Mean of the data for this research is 3. If the Mean of each variable values is higher than 3, therefore, the respondents are considered to agree about the statement. However, if the Mean of each variable values less than 3, it means that the respondents are considered to
disagree about the statement. According to the descriptive analysis test result, the respondents generally already agree to the statement of each variable since the Mean values are higher than 3. Furthermore, the standard deviation of each variable value is less than its Mean, implying that the questionnaire results in this study are normal and not biased.
Path Analysis
Regression of Customer Experience (X) towards Customer Satisfaction (Z)
Based on the regression result using the SPSS program, the first substructure equation is obtained which can be seen in Table 1 below:
Table 1: First Substructure Regression Result
Coefficientsa
Model
Unstandardized Coefficients
Standardized Coefficients
t Sig.
B Std. Error Beta
1 (Constant) 2,494 ,641 3,890 ,000
Customer
Experience (X) ,158 ,009 ,742 16,840 ,000
a. Dependent Variable: Customer Satisfaction (Z) Model Summaryb
Model R R Square
Adjusted R Square
Std. Error of the Estimate
1 .742a ,551 ,549 ,970
a. Predictors: (Constant), Customer Experience (X) b. Dependent Variable: Customer Satisfaction (Z)
Referring to the Regression Model I output in Table 1, the direct influence given by Customer Experience (X) on Customer Satisfaction (Z) is 0.742 and for the value of Ɛ1 (other factors that affect the dependent variable that are not explained by independent variable) can be searched by formula e = √1 − 0.551 = 0.6701.
Regression of Customer Experience (X) and Customer Satisfaction (Z) towards Customer Loyalty (Y)
Based on the regression result using the SPSS program, the second substructure equation result can be seen in Table 2 below:
Table 2: Second Substructure Regression Result
Coefficientsa
Model
Unstandardized Coefficients
Standardized Coefficients
t Sig.
B Std. Error Beta
1 (Constant) 5,013 1,764 2,842 ,005
Customer
Experience (X) ,163 ,037 ,345 4,361 ,000
Customer
Satisfaction (Z) ,652 ,175 ,294 3,719 ,000
a. Dependent Variable: Customer Loyalty (Y)
Model Summaryb
Model R R Square
Adjusted R Square
Std. Error of the Estimate
1 .596a ,355 ,350 2,586
a. Predictors: (Constant), Customer Satisfaction (Z), Customer Experience (X) b. Dependent Variable: Customer Loyalty (Y)
Based on the output of Regression Model II, the direct influence given by Customer Experience (X) to Customer Loyalty (X) is 0.345, and the direct influence given by Customer Satisfaction (Z) to Customer Loyalty (X) is 0.294. Furthermore, for the value of Ɛ2 (other factors that affect the dependent variable that are not explained by independent variable) can be searched by formula e = √1 − 0.355 = 0.8031.
Based on the output of Regression Models I and II, the final results of the path diagram in this study can be illustrated as Figure 1 below:
Figure 2: Path Diagram Results of the Two Substructure
The direct influence of Customer Experience (X) on Customer Loyalty (Y) is 0.345.
Meanwhile, the value of the indirect effect of Customer Experience (X) through Customer Satisfaction (Z) on Customer Loyalty (Y) is through the multiplication of the beta value of Customer Experience (X) on Customer Satisfaction (Z) with the beta value of Customer Satisfaction (Z) on Customer Loyalty ( Y), that is 0.742 x 0.294 = 0.218. Then the total effect given by Customer Experience (X) on Customer Loyalty (Y) is a direct effect plus an indirect effect, namely: 0.345 + 0.218 = 0.563. Based on the results of the calculation above, it is known that the direct influence value is 0.345 and the indirect effect is 0.218, which means that the indirect effect value is smaller than the direct influence value. These results indicate that indirectly Customer Experience (X) through Customer Satisfaction (Z) does not have a significant effect on Customer Loyalty (Y).
T-test (Partial Test)
T-test in this research aims to measure whether there is a significant influence between independent variable and the dependent variable partially (Ghozali, 2016).
Customer Experience (X)
Customer
Satisfaction (Z) Customer
Loyalty (Y) 0.8031
0.294
0.345 0.670 1 0.742
T-test of Customer Experience (X) towards Customer Satisfaction (Z)
Table 3: T-test (Partial Test) results of Customer Experience (X) towards Customer Satisfaction (Z)
Coefficientsa
Model
Unstandardized Coefficients
Standardized Coefficients
t Sig.
B Std. Error Beta
1 (Constant) 2,494 ,641 3,890 ,000
Customer
Experience (X) ,158 ,009 ,742 16,840 ,000
a. Dependent Variable: Customer Satisfaction (Z)
Referring to the T-test in Table 3, it can be seen that the significance value of the Customer Experience (X) variable is 0.000, which means Sig. value 0.000 < probability 0.05, so it can be said that H1 is accepted. These results conclude that Customer Experience (X) partially has a significant effect on Customer Satisfaction (Z).
T-test of Customer Satisfaction (Z) towards Customer Loyalty (Y)
Table 4: T-test (Partial Test) results of Customer Satisfaction (Z) towards Customer Loyalty (Y)
Coefficientsa
Model
Unstandardized Coefficients
Standardized Coefficients
t Sig.
B Std. Error Beta
1 (Constant) 8,567 1,625 5,273 ,000
Customer
Satisfaction (Z) 1,220 ,122 ,550 10,000 ,000
a. Dependent Variable: Customer Loyalty (Y)
Referring to the T-test in Table 4, it can be seen that the significance value of the Customer Satisfaction variables is 0.000, which means Sig. value 0.000 < probability 0.05, so it can also be said that H2 is accepted. These results conclude that Customer Satisfaction (Z) partially has a significant effect on Customer Loyalty (Y).
T-test of Customer Experience (X) towards Customer Loyalty (Y)
Table 5: T-test (Partial Test) of Customer Experience (X) towards Customer Loyalty (Y)
Coefficientsa
Model
Unstandardized Coefficients
Standardized Coefficients
t Sig.
B Std. Error Beta
1 (Constant) 6,640 1,756 3,782 ,000
Customer
Experience (X) ,265 ,026 ,563 10,346 ,000
a. Dependent Variable: Customer Loyalty (Y)
Referring to the T-test in Table 5, it can be seen that the significance value of the Customer Experience (X) variables is 0.000, which means Sig. value 0.000 < probability 0.05, so it can
also be said that H2 is accepted. These results conclude that Customer Experience (X) partially has a significant effect on Customer Loyalty (Y).
R-Square Test
In this section, the R-Square test is used to determine how the independent variable influences the dependent variable (Ghozali, 2005).
R-Square Test of Customer Experience (X) towards Customer Satisfaction (Z)
Table 6: R-Square test results of Customer Experience (X) towards Customer Satisfaction (Z)
Model Summaryb
Model R R Square
Adjusted R Square
Std. Error of the Estimate
1 .742a ,551 ,549 ,970
a. Predictors: (Constant), Customer Experience (X) b. Dependent Variable: Customer Satisfaction (Z)
According to the result contained in Table 6, the value of the R-Square is 0.551, this shows that the influence of Customer Experience (X) on Customer Satisfaction (Z) is 55.1%. While the remaining 44.9% is a contribution from other variables not included in this study.
R-Square Test of Customer Satisfaction (Z) towards Customer Loyalty (Y)
Table 7: R-Square test results of Customer Satisfaction (Z) towards Customer Loyalty (Y)
Model Summaryb
Model R R Square
Adjusted R Square
Std. Error of the Estimate
1 .550a ,302 ,299 2,684
a. Predictors: (Constant), Customer Satisfaction (Z) b. Dependent Variable: Customer Loyalty (Y)
According to the result contained in Table 7, the value of the R-Square is 0.302, this indicates that the contribution of Customer Satisfaction (Z) to Customer Loyalty (Y) is 30.2%. While the remaining 69.8% is a contribution from other variables that are not investigated in this study.
R-Square Test of Customer Experience (X) towards Customer Loyalty (Y)
Table 8: R-Square test of Customer Experience (X) towards Customer Loyalty (Y)
Model Summaryb
Model R R Square
Adjusted R Square
Std. Error of the Estimate
1 .563a ,317 ,314 2,656
a. Predictors: (Constant), Customer Experience (X) b. Dependent Variable: Customer Loyalty (Y)
According to the result contained in Table 8, the value of the R-Square is 0.317, this indicates that the contribution of Customer Experience (X) to Customer Loyalty (Y) is 31.7%. While the remaining 68.3% is a contribution from other variables that are not investigated in this study.
According to the analysis result above, it is shown that customer experience has a significant effect on customer satisfaction in Xing Fu Tang Indonesia, customer experience has a significant effect on customer loyalty in Xing Fu Tang Indonesia, and customer satisfaction has a significant effect on customer loyalty in Xing Fu Tang Indonesia. However, in this research, the researcher fails to prove that customer experience has a significant effect on customer loyalty through customer satisfaction because the direct influence value (0.345) is higher than the indirect effect value (0.218). Thus, the H4 is not accepted.
5. Conclusion
This research is conducted in order to provide more insight and knowledge related to the influence of customer experience on customer loyalty with customer satisfaction as an intervening variable in Xing Fu Tang Indonesia. Based on the research result, it shows that customer experience has a significant effect on customer satisfaction and customer loyalty.
This shows that the new and fun customer experience that Xing Fu Tang Indonesia has provided already makes customers feel satisfied and get loyalty from the customer. This happens because their services already meet or exceed customers' expectations and customers cannot find that experience or innovative service in similar competitors. Thus, based on that result, the researcher suggests Xing Fu Tang Indonesia to maintain that customer experience and improve the customer experience to be a more unique experience compared to those that have been implemented by other similar competitors in order to maintain customer satisfaction that customers have felt and the loyalty that customers give to Xing Fu Tang in Indonesia.
Then, regarding customer satisfaction has a significant effect on customer loyalty. This means that customer satisfaction has the potential to make customers loyal. However, the research fails to prove that customer experience has a significant effect on customer loyalty through customer satisfaction. This shows that customer satisfaction is not the only factor to make customer loyalty in Xing Fu Tang Indonesia. Cheng et al., (2008) said that there are several factors that influence customer loyalty, namely customer satisfaction, switching costs, and price perception. Thus, even though Xing Fu Tang has presented something different from the other similar competitors in Indonesia in order to get satisfaction and effects to customer loyalty, Xing Fu Tang Indonesia should still analyze and pay attention again to the other factors that can build and increase customer loyalty in order to win the tense competition between the similar competitors in Indonesia.
Furthermore, besides Xing Fu Tang Indonesia should still analyze and pay attention again to the other factors that can build and increase customer loyalty, Xing Fu Tang also still has to maintain the satisfaction that the customer currently feels from the experience that has been given in order to keep getting some of the factors that form customer loyalty.
Implementation
The implication in this research is divided into two parts, which are practical implementation and theoretical implementation.
Practical Implementation
The findings of this research can be used for Xing Fu Tang Indonesia to maintain the customer experience that has been provided and pay attention again to the other factors that can form customer loyalty in Xing Fu Tang Indonesia, such as service quality, customer satisfaction, trust, corporate image, communication, commitment, switching cost, and price perception in order to make the customer constantly satisfied and loyal to Xing Fu Tang Indonesia.
Theoretical Implementation
Based on the findings, this research contributes to Xing Fu Tang Indonesia in order to make the customer constantly satisfied and loyal by knowing customer satisfaction is not only the one factor that can form customer loyalty in Xing Fu Tang Indonesia and the influence of customer experience on customer loyalty with customer satisfaction as an intervening variable in Xing Fu Tang Indonesia.
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