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This study examines how the different dimensions of a privacy policy separately influence perceived effectiveness of privacy policy, as well as the mediating mechanisms behind these effects (i.e. vulnerability, benevolence). In addition, this study considers privacy concern as a significant moderator in the research model, to examine if the relative influences of privacy policy content are contingent upon levels of users' privacy concern.

The survey experiment was conducted to empirically validate the model. Specifically, three survey experiments and six scenarios were designed to manipulate high and low levels of the three privacy policy dimensions (i.e. transparency, control and protection). The authors totally distributed 450 copies of the questionnaire, of which 407 were valid.

This paper found that (1) all the three privacy policy dimensions directly influence perceived effectiveness of privacy policy; (2) all the three privacy policy dimensions indirectly influence perceived effectiveness of privacy policy by enhancing perceived corporate benevolence, whereas control also affects perceived effectiveness of privacy policy by reducing perceived vulnerability; and (3) individuals with high-privacy concern are much more impacted by privacy policy contents than individuals with low-privacy concern.

The findings could provide website managers with guidelines on how to design privacy policy contents by reducing user perceptions of vulnerability and enhancing user perceptions of corporate benevolence. The managers need to focus on customers' perceived vulnerability and corporate benevolence when launching or updating privacy policies. Furthermore, the managers also need to attend to users' privacy concerns, especially for multinational companies or companies with specific consumer groups.

This study extends the current privacy policy literature by articulating the separate influences of the three privacy policy dimensions and their impact mechanisms on perceived effectiveness of privacy policy. It also uncovers privacy concerns as a boundary condition that influence the effects of privacy policy contents on users' privacy perceptions.

This study aims to examine the relative effectiveness of functional and financial remedies in influencing customers' negative coping responses in the event of a data breach. It also uncovers the different mediating roles played by customers' feelings of anger and fear in the process of data breach recovery. This study thus differs from the literature, which has primarily focused on the impact of financial compensation and apologies for service failures in face-to-face environments.

Two scenario-based experiments were conducted to empirically validate the model. The authors received 302 copies of the questionnaire, of which 269 were valid.

This study finds that functional remedies are more effective than financial remedies when sensitive information has been compromised, but there is no significant difference between the effectiveness of the two remedies when nonsensitive information has been compromised. In addition, functional remedies influence negative coping behaviors directly and indirectly; the indirect effect is achieved through the reduction of fear and anger. Contrary to the authors' expectation, financial remedies do not have a direct effect on negative coping behaviors; they can indirectly affect negative coping behaviors by reducing anger but do not affect negative coping behaviors by reducing fear.

This study provides key insights into how to manage customer reactions in the event of a data breach, suggesting the use of carefully designed recovery strategies. Companies must attend to customers' specific emotional responses to manage their negative coping behaviors.

This study extends the limited literature on data breach recovery actions by investigating the different effectiveness of functional and financial remedies in the event of a data breach. It also uncovers how functional and financial recovery strategies affect customers' negative coping behaviors by revealing the different mediating effects of fear and anger.