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

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  • MinJae Lee

    (Kyung Hee University)

  • JinKyu Lee

    (Oklahoma State University)

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.

Suggested Citation

  • MinJae Lee & JinKyu Lee, 2012. "The impact of information security failure on customer behaviors: A study on a large-scale hacking incident on the internet," Information Systems Frontiers, Springer, vol. 14(2), pages 375-393, April.
    • Handle: RePEc:spr:infosf:v:14:y:2012:i:2:d:10.1007_s10796-010-9253-1
    DOI: 10.1007/s10796-010-9253-1
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    Cited by:

    1. Robert E. Crossler & France Bélanger & Dustin Ormond, 2019. "The quest for complete security: An empirical analysis of users’ multi-layered protection from security threats," Information Systems Frontiers, Springer, vol. 21(2), pages 343-357, April.
    2. Tao Zhou & Yaobin Lu & Bin Wang, 2016. "Examining online consumers’ initial trust building from an elaboration likelihood model perspective," Information Systems Frontiers, Springer, vol. 18(2), pages 265-275, April.
    3. A. F. Salam & Hua Dai & Lei Wang, 2022. "Online Users’ Identity Theft and Coping Strategies, Attribution and Sense of Urgency: A Non-Linear Quadratic Effect Assessment," Information Systems Frontiers, Springer, vol. 24(6), pages 1929-1948, December.
    4. Davit Marikyan & Savvas Papagiannidis & Eleftherios Alamanos, 2023. "Cognitive Dissonance in Technology Adoption: A Study of Smart Home Users," Information Systems Frontiers, Springer, vol. 25(3), pages 1101-1123, June.
    5. Xing Gao & Weijun Zhong & Shue Mei, 2015. "Security investment and information sharing under an alternative security breach probability function," Information Systems Frontiers, Springer, vol. 17(2), pages 423-438, April.
    6. Jae Kyu Lee & Younghoon Chang & Hun Yeong Kwon & Beopyeon Kim, 2020. "Reconciliation of Privacy with Preventive Cybersecurity: The Bright Internet Approach," Information Systems Frontiers, Springer, vol. 22(1), pages 45-57, February.
    7. Chulhwan Chris Bang, 2015. "Information systems frontiers: Keyword analysis and classification," Information Systems Frontiers, Springer, vol. 17(1), pages 217-237, February.
    8. David Chavanne, 2018. "Generalized Trust, Need for Cognitive Closure, and the Perceived Acceptability of Personal Data Collection," Games, MDPI, vol. 9(2), pages 1-18, April.
    9. Gianfranco Walsh & Edward Shiu & Louise Hassan & Patrick Hille & Ikuo Takahashi, 2019. "Fear of Online Consumer Identity Theft: Cross-Country Application and Short Scale Development," Information Systems Frontiers, Springer, vol. 21(6), pages 1251-1264, December.
    10. Obi M. Ogbanufe & Corey Baham, 2023. "Using Multi-Factor Authentication for Online Account Security: Examining the Influence of Anticipated Regret," Information Systems Frontiers, Springer, vol. 25(2), pages 897-916, April.
    11. Kweku-Muata Osei-Bryson, 2015. "A hybrid decision support framework for generating & selecting causal explanatory regression splines models for information systems research," Information Systems Frontiers, Springer, vol. 17(4), pages 845-856, August.
    12. Feng Xu & Xin (Robert) Luo & Hongyun Zhang & Shan Liu & Wei (Wayne) Huang, 2019. "Do Strategy and Timing in IT Security Investments Matter? An Empirical Investigation of the Alignment Effect," Information Systems Frontiers, Springer, vol. 21(5), pages 1069-1083, October.
    13. Jinlou Zhao & Hongyu Gao & Yongli Li & Jiaguo Liu, 2017. "Which factors affect the duration of hot topics on social media platforms?," Quality & Quantity: International Journal of Methodology, Springer, vol. 51(5), pages 2395-2407, September.
    14. Xing Gao & Weijun Zhong, 2016. "A differential game approach to security investment and information sharing in a competitive environment," IISE Transactions, Taylor & Francis Journals, vol. 48(6), pages 511-526, June.

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