Kiyun Kim (General Insurance Association of Korea)
Beomsoo Kim (Professor, Graduate School of Information, Yonsei University)
Yunmo Koo (Research Professor, Barun ICT Research Center, Yonsei University)
A recent increase of personal data breach accidents is causing much trouble for businesses in terms of creating and sustaining amicable relationships with customers. With adopting a multi-theoretic approach that encompasses a service recovery perspective, justice theory, and psychological contract theory, this study examines how preventive actions and post-personal data breach procedures of businesses affect customers' psychological responses. An empirical analysis of 195 cases of survey results, collected through online experiments, revealed ensuing actions (i.e., proper personal data breach notification) following personal data breach accidents have a meaningful impact on reducing customer’s negative psychological (i.e., cognitive and emotional) responses. Furthermore, an improvement in information security appeared to have significant interaction effects in the relationship between proper personal data breach notification and customers' cognitive response, while the relationship with customers' emotional responses showed no such effects. We conclude with some implications and directions for future studies.
The Journal of Internet Electronic Commerce Research 19(4), 2019.8, 59-79