Service security breaches: the impact of comparative optimism

The main purpose of this research is to examine the joint effects of error management, error locality, and individuals’ comparative optimism on consumers’ attitudes and intentions to spread negative word-of-mouth. To explore consumers’ reactions, a 2 (Error management: Yes vs. No) x 2 (Error locality: Focal vs. Competitor) x 2 (Comparative optimism: High vs. Low) experiment was employed. Results indicated that when the focal hotel is breached, individuals who are high on comparative optimism exhibit more positive attitudes and a lower level of intentions to spread negative word-of-mouth when error management is presented (vs. no error management). When a competitor is breached, people show similar levels of attitudes and behavioral intentions regardless of the conditions of error management. Findings of this research contribute to strategic planning and policymaking regarding information security.