Transient Customer Response to Data Breaches of Their Information

• 成果类型: Article; Early Access
• 署名作者: Agarwal, Sumit; Ghosh, Pulak; Ruan, Tianyue; Zhang, Yunqi
• 署名单位: National University of Singapore; Indian Institute of Management (IIM System); Indian Institute of Management Bangalore; Nankai University
• 刊物名称: MANAGEMENT SCIENCE
• ISSN/ISSBN: 0025-1909
• DOI: 10.1287/mnsc.2021.01335
• 发表日期: 2024
• 关键词: cybersecurity breach; unexpected data breach; digital payment; cash payment; convenience; payment security; Digital economy; INDIA

摘要

Cybersecurity breaches pose a substantial concern in the digital era. We investigate how customers respond to multiple unexpected data breaches of their information in India. Difference -in -differences estimates show that digital payments declined by 9% relative to cash payments immediately after an unexpected data breach in a food delivery platform, but the gap disappeared three months later. Customer entry and exit also exhibit weak, short-lived changes. Additional analyses on bank and online grocery data breaches uncover even weaker effects of data breaches. Our findings imply that the perceived benefits of convenience outweigh the costs of payment security risks.