You are here: Home Contents V12 N3 V12N3_Simon.html
Personal tools

An Analysis of Data Breach Induced Trauma: An Exploratory Study

 

 

Full text
View
Purchase

Source
Journal of Information System Security
Volume 12, Number 3 (2016)
Pages 151176
ISSN 1551-0123
Authors
Steven Simon — Mercer University, USA
Robert Perkins — University of West Florida, USA
Publisher
Information Institute Publishing, Washington DC, USA

 

 

Abstract

Data breaches - security incidents - have become an everyday occurrence with hundreds of millions of consumers having their lost personal identification information (PII), had their credit and debit card numbers stolen, and their credit compromised. Despite the risk, consumers continuously swipe their cards and share their personal information regularly. This study examines the impacts of trust and distrust on consumer intentions in this environment. More than 1000 consumers involved in technology-driven transactions comprise the data sample. Trust, distrust, and their antecedents are investigated to determine if the trauma induced by data breaches on consumers has an impact on the levels of trust and distrust and consumer behaviors. 

 

 

Keywords

Trust, Distrust, Trauma, Consumer Behavior, Consumer Intentions, Security, Data Breach, Hacks

 

 

References

Alba, J. W. and Hutchinson, J. W. 1987. Dimensions of Consumer Expertise. Journal of Consumer Research, 411–454.

Abimbola and Vallaster. 2007. Brand, Organization Identity and Reputation: SMEs as Expressive Organizations. Qualitative Market Research: An International Journal, 10:4, 416- 430.

Alastair, N., Lawrence, S., and Ruff, M. (2013). A Forensic Analysis and Comparison Of Solid State Drive Data Retention With Trim Enabled File Systems. Proceedings of the 11th Australian Digital Forensics Conference. Perth, Western Australia: SRI Security Research Institute, Edith Cowan University.

Albarracin, D. and Wyer, R. S. 2000. The Cognitive Impact of Past Behavior: Influences on Beliefs, Attitudes, and Future Behavioral Decisions. Journal of Personality and Social Psychology, 79:1, 5-22.

Bloom, H. S. and Price, H. D. 1975. Voter Response to Short-Run Economic Conditions: The Asymmetric Effect of Prosperity and Recession. American Political Science Review, 64:4, 1240-1254.

Ba, S. and Pavlou, P. A. 2002. Evidence of the Effect of Trust Building Technology in Electronic Markets: Price Premiums and Buyer Behavior. MIS Quarterly, 26:3, 243-268.

Barber, N., Taylor, C., and Strick, S. 2009. Wine Consumers’ Environmental Knowledge and Attitudes: Influence on Willingness to Purchase. International Journal of Wine Research, 1:1, 59–72.

Benamati, J. and Serva, M. A. 2007. Trust and Distrust in Online Banking: Their Role in Developing Countries, 13:2, 161-175.

Benamati, J., Serva, M. A., and Fuller, M. A. 2010. The Productive Tension of Trust and Distrust: The Coexistence and Relative Role of Trust and Distrust in Online Banking. Journal of Organizational Computing and Electronic Commerce, 20, 328-346.

Bettman, J. R., and Park, C. W. 1980. Effects of Prior Knowledge and Experience and Phase of the Choice Process on Consumer Decision Processes: A Protocol Analysis. Journal of Consumer Research, 7:3, 234-248.

Bhattacherjee, A. 2002. Individual Trust in Online Firms: Scale Development and Initial Test. Journal of Management Information Systems, 19:1, 211-241.

Brucks, M. 1985. The Effects of Product Class Knowledge on Information Search Behavior. Journal of Consumer Research, 12:1, 1-16.

Cave, J. 2005. The Economics of Cyber Trust Between Cyber Partners. Trust and Crime in Information Societies. (Chelteham:Edward Elgar), 380-427.

Chau, P.Y., Ho, S.Y., Ho, K.K., and Yao, Y. 2013. Examining the Effects of Malfunctioning Personalized Services on Online Users’ Distrust and Behaviors, 56, 180-191.

Conlon, E. J. and Mayer, R. C. 1994. The Effect of Trust on Principal-Agent Dyads: An Empirical Investigation of Stewardship and Agency. Academy of Management Presentation, Dallas, TX.

Connelly, B .L., Miller, T, and Devers, C.E. 2012. Under A Cloud of Suspicion: Trust, Distrust, and Their Interactive Effect in Interorganizational Contracting. Strategic Management Journal, 33, 820-833.

Court, D., Elzinga, D., Mulden, S., and O. J. Vetvik.O.J. 2009 The Consumer Decision Journey. The McKinsey Quarterly, June.

Daft, R. L., Sormunen, J., and Parks, D. 1988. Chief Executive Scanning, Environmental Characteristics, and Company Performance: An Empirical Study. Strategic Management Journal, 9:2, 123-139.

Data Breach Investigation Report. Verizon. 2015. http://verizonenterprise.com.

Dirks, K. T. and Ferrin, D. L. 2001. The Role of Trust in Organizational Settings. Organizational Science, 12:4, 450-467.

Elenkov, D. S. 1997. Strategic Uncertainty and Environmental Scanning: The Case for Institutional Influences on Scanning Behavior. Strategic Management Journal, 18:4, 287-302.

Fein, S. 1996. Effects of Suspicion on Attributional Thinking and the Corresponding Bias. Journal of Personality and Social Psychology, 70, 1164-1184.

Fogg, B. 2002. Persuasive Technology: Using Computers to Change What We Think and Do.

Fombrun, C. and Rindova, V. P. 2000. The Road to transparency: Reputation Management at Royal Dutch/Shell. The Expressive Organization. Oxford University Press, Oxford, U.K.

Fombrun, C. 2005. The Leadership Challenge of Building Resilient Corporate Reputations. Handbook on Responsible Leadership and Governance in Global Business. Edward Elgar, Northampton, MA.

Gambetta, D.G. 1988. Can we Trust Trust? In Trust, 213-237. (New York: Blackwell).

Ganesan, S. 1998. Determinants of Long-Term Orientation in Buyer-Seller Relationships. Journal of Marketing, 58:2, 1-19.

Garbarino, E. and Johnson, M. S. 1999. The Different Roles of Satisfaction, Trust and Commitment in Customer Relationships. Journal of Marketing, 63:2, 70-87.

Gefen, D. 2000. E-Commerce: The Role of Familiarity and Trust. Omega: The International Journal of Management Science, 28, 725-737.

Gefen, D., Karahanna, E., and Straub, D. W. 2003. Trust and TAM in Online Shopping: An Integrated Model. MIS Quarterly, 27:1, 51-90.

Gefen, D. 2004. What Makes an ERP Implementation Relationship Worthwhile: Linking Trust Mechanisms and ERP Usefulness. Journal of Management Information Systems, 21:1, 263-288.

Hadar, L., Sood, S. and Fox, C. 2013. Subjective Knowledge in Consumer Financial Decisions. Journal of Marketing Research, 50:3, 303-316.

Hall, R. 1993. A Framework Linking Intangible Resources and Capabilities to Sustainable Competitive Advantage. Strategic Management Journal, 14:8, 607- 618

Hennig-Thurau, T., Gwinnet, R. P and Gremier, D. D. 2002. Understand Relationship Marketing Outcomes: An Integration of Relational Benefits and Relationship Quality. Journal of Science Research, 4:3, 230- 247.

Ho, S. Y. and Chau, P. Y. 2013. The Effects of Location Personalization on Integrity Trust and Integrity Distrust in Mobile Merchants. International Journal of Electronic Commerce, 17:4, 39-71.

Hoffman, D. L., Novak, T.P., and Peralta, M. 1999. Building Consumer Trust Online. Communications of the ACM, 42:4, 80-85.

Jarvenpaa, S.L. and Tractinsky, N. 1999. Consumer Trust in an Internet Store: A Cross-Cultural Validation. Journal of Computer-Mediated Communication, 5:2.

Jarvenpaa, S.L., Tractinsky, N., and Vitale, M. 2000. Consumer Trust in an Internet Store. Information Technology and Management, 1:12, 45-71.

Javelin Strategy and Research. 2015. $16 Billion Stolen from 12.7 Million Identity Fraud Victims in 2014. https://www.javelinstrategy.com/news/1556/92/16-Billion-Stolen-from-12-7-Million-Identity-Fraud-Victims-in-2014-According-to-Javelin-Strategy-Research/d,pressRoomDetail.

Jeng, J., and Fesenmaier, D.R. 2002. Conceptualizing the Travel Decision-Making

Hierarchy: A Review of Recent Developments. Tourism Analysis, 7:1, 15-32.

Johnson, D. S. 2007. Achieving Customer Value From Electronic Channels Through Identity Commitment, and Trust in Technology. Journal of Interactive Marketing, 21:4, 2-22.

Johnson, E. J., and Russo, J. E. 1984. Product Familiarity and Learning New Information. Journal of Consumer Research, 11:1, 542-550.

Jogartnam, G. and Wong, K. F. 2009. Environmental Uncertainty and Scanning Behavior: An Assessment of Top-Level Hotel Executives. International Journal of Hospitality and Tourism Administration, 10, 44-67.

Keen, P.G. 2000. Ensuring e-trust. Computerworld, 34:11, 46.

Kim, E. and Tadisina, S. 2007. A Model of Customers’ Trust in E-Business: Micro-Level Inter-Party Trust Formation. Journal of Computing Information Systems, 48:1, 88-104.

Kim, H. W., Xu, Y., and Koh, J. 2004. A Comparison of Online Trust Building Factors between Potential Customers and Repeat Customers. Journal of the Association for Information Systems, 5:10, 392-420.

Kim, J. B. 2012. An Empirical Study on Consumer First Purchase Intention in Online Shopping: Integrating Initial Trust and TAM. Electronic Consumer Research, 12, 125-150.

Klink, R. R. and Smith, D .C. 2001. Threats to the External Validity of Brand Extension Research. Journal of Marketing Research, 38, 326-335.

Komiak, S. Y. and Benbassat, I. 2008. A Two-Process View of Trust and Distrust Building in Recommendation Agents: A Process-Tracing Study. Journal of the Association for Information Systems, 9:12, 727-747.

Kramer, R. M. 1999. Trust and Distrust in Organizations: Emerging Perspectives, Enduring Questions. Annual Review of Psychology, 50:1, 569-598.

Lee, M. K. and Turban, E. 2001. A Trust Model for Consumer Internet Shopping. International Journal of Electronic Commerce, 6:1, 75-92.

Lewicki, R. J., McAllister, D. J, and Bies, R. J. 1998. Trust and Distrust: New Relationships and Realities. Academy of Management Review, 23:3, 438-458.

Liu, C. T., Marchewka, J., and Yu, C. 2005. Beyond concern: A privacy trust-behavioral intention model of electronic commerce. Information and Management, 42:2, 289-304.

Luhmann, N. 1979. Trust and Power, (Chichester: John Wiley and sons).

Macintosh, G. and Lockshin, L. S. 1997. Retail relationships and store loyalty: A multi-level perspective. International Journal of Research in Marketing, 14:5, 478-497.

Maheswaran D., Sternthal B., and Zeynap, G. 1996. Acquisition and Impact of Consumer Expertise. Journal of Consumer Psychology, 5:2, 115-133.

Malhotra, N. K. 1983. On Individual Differences in Search Behavior for a Nondurable. Journal of Consumer Research 10, 125–131.

Mayer, R. C., Davis, J. H., Schoorman, F. D. 1995. An Integrative Model of Organizational Trust. The Academy of Management Review, 20:3, 709-734.

McKnight. D. H., Cummings, L. L., and Chervany, N. L. 1998. Initial Trust Formation in New organizational Relationships. Academy of Management Review, 23:3, 437-490.

McKnight. D. H. and Chervany, N. L. 2001-2002. What Trust Means in E-Commerce Customer Relationships: An Interdisciplinary Conceptual Typology. International Journal of Electronic Commerce, 6:2, 35-59.

McKnight, D. H., Choudhury, V., and Kacmar, C. 2002. Developing and Validating Trust Measures for e-Commerce: An Integrative Typology. Information Systems Research, 13:3, 334-359.

McKnight, D. H., Kacmar, C., Choudhury, V. 2004. Dispositional Trust and Distrust Distinctions in Predicting High- and Low-Risk Internet Expert Advice Site Expectations. E-Service Journal, 35-58.

Merritt, S. M. and Ilgen, D. R. 2008. Not all Trust is Created Equal: Dispositional and History-Based Trust in Human-Automation Interactions. Human Factors, 50:2, 194-210.

Merritt, S. M., Heimbaught, H., LaChapell, J, and Lee, D. 2013. I Trust It, but I Don’t Know Why: Effects of Implicit Attitudes Toward Automation on Trust in an Automated System. Human Factors, 55:3, 520-534.

Mitchell, A. A. and Dacin, P. A. 1996. The Assessment of Alternative Measures of Consumer Expertise. Journal of Consumer Research, 23 (December), 219-239.

Moody, G. D., Galletta, D. F., and Lowry, P. B. 2014. When Trust and Distrust Collide Online: The Engenderment and Role of Consumer Ambivalence in Online Consumer Behavior. Electronic Commerce Research and Applications, 13, 266-282.

Ou, C. X., and Sia, C. L. 2010. Consumer Trust and Distrust: An Issue of Website Design. International Journal of Human-Computer Studies, 68, 913-934.

Park, C. W., and Moon, B. J. 2003. The Relationship between Product Involvement and Product Knowledge: Moderating Roles of Product Type and Product Knowledge Type. Psychology and Marketing, 20:11, 977-997.

Pavlou, P. A. 2003. Consumer Acceptance of Electronic Commerce: Integrating Trust and Risk with the Technology Acceptance Model. International Journal of Electronic Commerce, 7:3, 101-134.

Pavlou, P. A. and Gefen, D. 2005. Psychological Contract Violation in Online Marketplaces: Antecedents, Consequences, and Moderating Role. Information Systems Research, 16:4, 372-399.

Ratchford, B. T. 2001. The Economics of Consumer Knowledge. The Journal of Consumer Research, 27:4, 397-411

Riegelsberger, J., Sasse, M. A., and McCarthy, J. D. 2005. The Mechanics of Trust: A Framework for Research and Design. International Journal of Human-Computer Studies, 62:3, 381-422.

Rotter, J. B. 1971. Generalized Expectancies for Interpersonal Trust. American Psychology, 26:5, 443-452.

Rousseau, D. M., Sitkin, S.B., Burt, R. S., Camerer, C. 1998. Not so Different After All: A Cross-Discipline View of Trust. Academy of Management Review, 23:3, 393-404.

Schmidt, J. B., and Spreng, R. A. 1966. A Proposed Model of External Consumer Information Search. Journal of the Academy of Marketing Science 24, 246–256.

Schoorman, F. D., Mayer, R. C., and Davis, J. H. 2007. An Integrative Model of Organizational Trust: Past, Present, and Future. Academy of Management Review, 32:2, 344-354.

Schul, Y., Mayo, R. and Burnstein, E. 2004. Encoding Under Trust and Distrust: The Spontaneous Activation of Incongruent Cognitions. Journal of Personality and Social Psychology, 86:5, 668-679.

Seckler, M., Heinz, S., Forde, S., Tuch, A. N., and Opwis, K. 2015. Trust and Distrust on the Web: User Experiences and Website Characteristics. Computers in Human Behavior, 45, 39-50.

Selnes, F. and Howell, R. 1999. The Effect of Product Expertise on Decision Making and Search for Written and Sensory Information. Advances in Consumer Research, 26:1, 80-89.

Shapiro, S. P. 1987. The Social Control of Interpersonal Trust. American Journal of Sociology, 93:3, 623-658.

Sitkin, S. B. and Roth, N. 1993. Explaining the Limited Effectiveness of Legalistic Remedies for Trust/Distrust. Organizational Science 4:3, 367-392.

Slovic, P. 1993. Perceived Risk, Trust, and Democracy. Risk Analysis, 13:6, 675-682.

Sujan, M. 1985. Consumer Knowledge: Effects on Evaluation Strategies Mediating Consumer Judgments. Journal of Consumer Research, 12:1, 31-46.

The Impact of Target’s Data Breach on Consumer Trust. Bizrate Insights. May 12, 2014. http://connexity.com/blog/2014/05/the-impact-of-targets-data-breach-on-consumer-trust/.

Thornhill, T. 2014. Nearly half of South Koreans have their bank details stolen (including the President) as anti-fraud worker arrested. Daily Mail. January 21, 2014. http://www.dailymail.co.uk/news/article-2543167/Data-100MILLION-South-Korean-credit-cards-stolen-scam-affecting-40-population-including-President-Park-Geun-hye.html#ixzz3ge2rKCmY

Vogt, C. A., and Fesenmaier, D. R. 1998. Expanding the Functional Information Search Model. Annals of Tourism Research, 25:3, 551-578.

Williamson, O. E. 1985. The Economic Institutions of Capitalism. (New York: Free Press).

Winn, J. and Jondet, N. 2008. A “New Approach” to Standards and Consumer Protection. Journal of Consumer Policy, 31:4, 459-472.

Wu, J. J. and Tsang, A. S. 2008. Factors affecting members’ trust belief and behavior intention in virtual communities. Behaviour and Information Technology, 27:2, 115-125.

Zhou, M. and Tian, D. 2010. An Integrated Model of Influential Antecedents of Online Shopping Initial Trust: Empirical Evidence in a Low-Trust Environment. Journal of International Consumer Marketing, 22, 147-167.

Zucker, L. G. 1986. Production of Trust: Institutional Sources of Economics Structure, 1840-1920. In Research and Organizational Behavior. (Greenwich: JAI Press).