The impact of information security failure on customer behaviors: A study on a large-scale hacking incident on the internet

  • Authors:

  • Minjae Lee;Jinkyu Lee

  • Affiliations:

  • College of Politics & Economics, Department of Int'l Business and Trade, Kyung Hee University, Seoul, Korea;MSIS, Spears School of Business, Oklahoma State University, Tulsa, USA 74106

  • Venue:
  • Information Systems Frontiers
  • Year:
  • 2012

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Abstract

This research examines the responses of online customers to a publicized information security incident and develops a model of retreative behaviors triggered by such a security incident. The model is empirically tested using survey data from 192 users of a recently compromised website. The results of the data analyses suggest that an information security incident can cause a measurable negative impact on customer behaviors, although the impact seems to be largely limited to that particular website. The tested model of retreative behaviors indicates that perceived damage and availability of alternative shopping sources can significantly increase retreative behaviors of victimized customers, while perceived relative usefulness and ease-of-use of the website show limited effects in reducing such behaviors.