Influence of Firms Recovery Endeavors upon Privacy Breach on Online Customer Behavior

Author List: CHOI, BEN C.F.; Kim, Sung S.; Jiang, Zhenhui (Jack);
Journal of Management Information Systems, 2016, Volume 33, Issue 3, Page 904-933.
The soaring number of privacy breaches has prompted affected firms to learn how to effectively recover damaged customer relationships. In this study we develop and test a model that explains how online customer behavior is influenced by a firm's recovery endeavors when privacy breaches occur. Drawing on a service recovery perspective, we integrate the notions of justice perceptions and psychological responses into a theoretical framework. The proposed model was tested against data collected from 1,007 online customers based on a hypothetical scenario. Results show that three types of justice perceptions, distributive, procedural, and interactional justice, jointly affect psychological responsesÑthat is, perceived breach and feelings of violation. In addition, psychological responses were shown to be important in shaping postincident outcomes such as post-word of mouth and post-likelihood of switching. The study gives researchers and practitioners a useful conceptual tool for analyzing the effectiveness of organizational practices in recovering customer relationship after privacy breaches. > >
Keywords: online customer behavior; privacy ;privacy breaches; psychological responses; security; structural equation modeling
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#75 0.197 behavior behaviors behavioral study individuals affect model outcomes psychological individual responses negative influence explain hypotheses expected theories consequences impact theory
#108 0.160 model research data results study using theoretical influence findings theory support implications test collected tested based empirical empirically context paper
#186 0.144 security information compliance policy organizations breach disclosure policies deterrence breaches incidents results study abuse managed isp violations based comply protection
#288 0.139 customer customers crm relationship study loyalty marketing management profitability service offer retention it-enabled web-based interactions operations sales strategy channels set
#162 0.077 structural modeling scale equation implications economies large future framework perspective propose broad scope resulting identified leading analyzed second interviews analysis
#92 0.068 equity conventional punishment justice wisdom focus behavior fairness compliance suggest theory significant certainty misuse reward settings behavioral mandatory drawing widely
#96 0.065 errors error construction testing spreadsheet recovery phase spreadsheets number failures inspection better studies modules rate replicated detection correction optimal discovering
#239 0.060 privacy information concerns individuals personal disclosure protection concern consumers practices control data private calculus regulation risk individual legislation government sensitive