Impact of Customer Compensation Strategies on Outcomes and the Mediating Role of Justice Perceptions: A Longitudinal Study of Target's Data Breach

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dc.contributor.authorHoehle, Hartmuten
dc.contributor.authorVenkatesh, Viswanathen
dc.contributor.authorBrown, Susan A.en
dc.contributor.authorTepper, Bennett J.en
dc.contributor.authorKude, Thomasen
dc.date.accessioned2022-06-03T14:55:18Zen
dc.date.available2022-06-03T14:55:18Zen
dc.date.issued2022-03-01en
dc.date.updated2022-05-08T23:40:55Zen
dc.description.abstractData breaches are a major threat to organizations from both financial and customer relations perspectives. We developed a nomological network linking post-breach compensation strategies to key outcomes, namely continued shopping intentions, positive word-of-mouth, and online complaining, with the effects being mediated by customers’ justice perceptions. We conducted a longitudinal field study investigating Target’s data breach in 2013 that affected more than 110 million customers. We examined customers’ expectations toward compensation immediately after the breach was confirmed (survey 1) and their experiences after reparations were made (survey 2). Evidence from polynomial regression and response surface analyses of data collected from 388 affected customers showed that customers’ justice perceptions were influenced by the actual compensation provided as well as the type and extent of compensation an organization could and should have provided (i.e., customers’ compensation expectations). Interestingly, both positive and negative expectation disconfirmation led to less favorable justice perceptions compared to when expectations were met. Justice perceptions were, in turn, associated with key outcomes. We discuss implications for research on data security, information systems, and justice theory.en
dc.description.versionPublished versionen
dc.format.extentPages 299-340en
dc.format.extent42 page(s)en
dc.format.mimetypeapplication/pdfen
dc.identifier.doihttps://doi.org/10.25300/MISQ/2022/14740en
dc.identifier.eissn2162-9730en
dc.identifier.issn0276-7783en
dc.identifier.issue1en
dc.identifier.orcidVenkatesh, Viswanath [0000-0001-8473-376X]en
dc.identifier.urihttp://hdl.handle.net/10919/110418en
dc.identifier.volume46en
dc.language.isoenen
dc.publisherSociety for Information Managementen
dc.relation.urihttp://gateway.webofknowledge.com/gateway/Gateway.cgi?GWVersion=2&SrcApp=PARTNER_APP&SrcAuth=LinksAMR&KeyUT=WOS:000785872600008&DestLinkType=FullRecord&DestApp=ALL_WOS&UsrCustomerID=930d57c9ac61a043676db62af60056c1en
dc.rightsIn Copyrighten
dc.rights.urihttp://rightsstatements.org/vocab/InC/1.0/en
dc.subjectData security breachen
dc.subjectcompensationen
dc.subjectjusticeen
dc.subjectTargeten
dc.subjectWORD-OF-MOUTHen
dc.subjectPERSON-ENVIRONMENT FITen
dc.subjectMIXED-METHODS RESEARCHen
dc.subjectORGANIZATIONAL JUSTICEen
dc.subjectPROCEDURAL JUSTICEen
dc.subjectINFORMATION-SYSTEMSen
dc.subjectSERVICE FAILUREen
dc.subjectEXPECTATION CONFIRMATIONen
dc.subjectFAIRNESS PERCEPTIONSen
dc.subjectPERCEIVED JUSTICEen
dc.titleImpact of Customer Compensation Strategies on Outcomes and the Mediating Role of Justice Perceptions: A Longitudinal Study of Target's Data Breachen
dc.title.serialMIS Quarterlyen
dc.typeArticle - Refereeden
dc.type.dcmitypeTexten
dc.type.otherArticleen
dc.type.otherJournalen
pubs.organisational-group/Virginia Techen
pubs.organisational-group/Virginia Tech/Pamplin College of Businessen
pubs.organisational-group/Virginia Tech/Pamplin College of Business/Business Information Technologyen
pubs.organisational-group/Virginia Tech/All T&R Facultyen
pubs.organisational-group/Virginia Tech/Pamplin College of Business/PCOB T&R Facultyen

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