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Reacting to the scope of a data breach: The differential role of fear and anger

Author

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  • Chatterjee, Subimal
  • Gao, Xiang
  • Sarkar, Sumantra
  • Uzmanoglu, Cihan

Abstract

We investigate how fearful and angry consumers react to the scope (number of customers affected) of a data breach. In two laboratory studies, we show that whereas fear makes consumers scope sensitive such that their intentions not to purchase from the affected retailer increases with scope, anger makes consumers scope insensitive and their repurchase intentions scope invariant. Process tests show that whereas scope indirectly affects the repurchase intentions of fearful consumers by making the mental image of the breach more vivid to them, scope does not affect how angry consumers imagine the breach nor their repurchase intentions. We find similar results in a field study, analyzing approximately 12,000 news stories of data breaches, showing that scope affects stock market reactions when the stories stress fear over anger but not when they stress anger over fear.

Suggested Citation

  • Chatterjee, Subimal & Gao, Xiang & Sarkar, Sumantra & Uzmanoglu, Cihan, 2019. "Reacting to the scope of a data breach: The differential role of fear and anger," Journal of Business Research, Elsevier, vol. 101(C), pages 183-193.
    • Handle: RePEc:eee:jbrese:v:101:y:2019:i:c:p:183-193
    DOI: 10.1016/j.jbusres.2019.04.024
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    Citations

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    Cited by:

    1. Artur Strzelecki & Mariia Rizun, 2022. "Consumers’ Change in Trust and Security after a Personal Data Breach in Online Shopping," Sustainability, MDPI, vol. 14(10), pages 1-17, May.
    2. Tran, Lobel Trong Thuy, 2021. "Managing the effectiveness of e-commerce platforms in a pandemic," Journal of Retailing and Consumer Services, Elsevier, vol. 58(C).
    3. Foo Nin Ho & Nga Ho-Dac & J. Sonia Huang, 2023. "The Effects of Privacy and Data Breaches on Consumers’ Online Self-Disclosure, Protection Behavior, and Message Valence," SAGE Open, , vol. 13(3), pages 21582440231, July.
    4. Benoit, Ilgım Dara & Miller, Elizabeth G., 2022. "Enhancing creativity perception through fear," Journal of Business Research, Elsevier, vol. 139(C), pages 1084-1098.
    5. Shilpa Madan & Krishna Savani & Constantine S. Katsikeas, 2023. "Privacy please: Power distance and people’s responses to data breaches across countries," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 54(4), pages 731-754, June.
    6. Sumantra Sarkar & Anthony Vance & Balasubramaniam Ramesh & Menelaos Demestihas & Daniel Thomas Wu, 2020. "The Influence of Professional Subculture on Information Security Policy Violations: A Field Study in a Healthcare Context," Information Systems Research, INFORMS, vol. 31(4), pages 1240-1259, December.

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