Data Breaches

Abstract

Recent events have shown that online booking is vulnerable to hacking incidents such as data breaches. The primary purpose of this study is to investigate the effect of the risky decision-making factors on consumer post breach behavior. After a data breach, most of the companies offer monitoring services to restore customer trust and encourage them for future purchases. However, little research has been done to understand the impact of these monitoring services on consumer behavior. In this study, we examine whether monitoring services can mitigate the impact of risk perception on online booking. We utilized the Marriott data breach of November 2018 as the context. We manipulate data breach severity in our vignettes. The research model was tested using data gathered from 298 Mechanical Turk respondents. Our vignette-based survey design allowed us to incorporate situational details thought to be important in risky decision-making in a data breach context. We found strong support for our research model including the positive moderating effect of company suggested monitoring on online booking intention. The findings of this study could help firms in developing more influential post-breach monitoring services.