User Compensation as a Data Breach Recovery Action: An Investigation of the Sony PlayStation Network Breach

MIS Quarterly, Vol. 41, No. 3, pp. 703-727, 2017

42 Pages Posted: 16 Oct 2020

See all articles by Sigi Goode

Sigi Goode

Australian National University (ANU) - College of Business and Economics

Hartmut Hoehle

University of Arkansas - Department of Information Systems

Viswanath Venkatesh

Virginia Polytechnic Institute and State University - Pamplin College of Business

Sue A. Brown

University of Arizona - Department of Management Information Systems

Date Written: September 27, 2017

Abstract

Drawing on expectation confirmation research, we develop hypotheses regarding the effect of compensation on key customer outcomes following a major data breach and consequent service recovery effort. Data were collected in a longitudinal field study of Sony customers during their data breach in 2011. One hundred forty-four customers participated in the two-phase data collection that began when the breach was announced and concluded after reparations were made. Using polynomial modeling and response surface analysis, we demonstrate that a modified assimilation-contrast model explained perceptions of service quality and continuance intention and a generalized negativity model explained repurchase intention. The results of our work contribute to research on data breaches and service failure by demonstrating the impacts of compensation on customer outcomes. We discuss theoretical and practical implications.

Keywords: Data Breach, Security, Service Recovery, Compensation, Sony

Suggested Citation

Goode, Sigi and Hoehle, Hartmut and Venkatesh, Viswanath and Brown, Sue A., User Compensation as a Data Breach Recovery Action: An Investigation of the Sony PlayStation Network Breach (September 27, 2017). MIS Quarterly, Vol. 41, No. 3, pp. 703-727, 2017, Available at SSRN: https://ssrn.com/abstract=3681686

Sigi Goode (Contact Author)

Australian National University (ANU) - College of Business and Economics

Canberra
Australia

Hartmut Hoehle

University of Arkansas - Department of Information Systems ( email )

United States

Viswanath Venkatesh

Virginia Polytechnic Institute and State University - Pamplin College of Business ( email )

VA
United States

HOME PAGE: http://vvenkatesh.com

Sue A. Brown

University of Arizona - Department of Management Information Systems ( email )

AZ
United States

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