Spillover effects of data breach on consumer perceptions: evidence from the E-commerce industry
研究电商平台数据泄露如何影响消费者对竞争对手的隐私风险感知和购物意愿,并发现竞争对手的网络安全声明能有效避免负面溢出效应。
Purpose This study aims to explore the spillover effects of data breaches from a consumer perspective in the e-commerce context. Specifically, we investigate how an online retailer’s data breach affects consumers’ privacy risk perceptions of competing firms, and further how it affects shopping intention for the competitors. We also examine how the privacy risk contagion effect varies depending on the characteristics of competitors and their competitive responses. Design/methodology/approach We conducted two scenario-based experiments with surveys. To assess the spillover effects and the moderating effects, we employed an analysis of covariance. We also performed bootstrapping-based mediation analyses using the PROCESS macro. Findings We find evidence for the privacy risk contagion effect and demonstrate that it negatively influences consumers’ shopping intention for a competing firm. We also find that a competitor’s cybersecurity message is effective in avoiding the privacy risk contagion effect and the competitor even benefits from it. Originality/value While previous studies have examined the impacts of data breaches on customer perceptions of the breached firm, our study focuses on customer perceptions of the non-breached firms. To the best of the authors’ knowledge, this study is one of the first to provide empirical evidence for the negative spillover effects of a data breach from a consumer perspective. More importantly, this study empirically demonstrates that the non-breached competitor’s competitive response is effective in preventing unintended negative spillover in the context of the data breach.