Efficiency of Data Breach Recovery Actions on Consumers’ Trust

Purpose The main purpose of the study is to explore the difference in efficiency of two recovery actions: apology and compensation’s impact on consumer’s trust in privacy policy of firm and one’s willingness to share personal information with the firm, which consumers were affected by the data breach. In this study we focus on consumer’s previous experience of data breach, and the way it shapes consumers’ intentions and behavior. Design/Methodology/Approach Based on previous studies, this paper explores the efficiency of recovery actions in context of data breach. Based on prior research we set perceived severity as a main measure of consumers’ data breach experience. Findings This study is made in effort to predict possible behavior and intention of consumers in case of data breach. Regarding to the way consumers perceive their data breach experience, in case of repeated data breach, there are differences in accepting and evaluating the efficiency of recovery actions, trust and willingness to share personal information. Research Implications This study made effort and contributed new theoretical implications on Data Breach study, in hope to provide references for future research.