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In the aftermath of data breaches, many firms offer compensation to affected customers to recover from damaged customer sentiments. To understand the effectiveness of such…
In the aftermath of data breaches, many firms offer compensation to affected customers to recover from damaged customer sentiments. To understand the effectiveness of such compensation offerings, Goode et al. (2017) examined the effects of compensation offered by Sony following the PlayStation Network breach in 2011. Although Goode et al. (2017) present key insights on data breach compensation, it is unclear whether their findings generalize beyond the context of subscription-based gaming platforms whose customers are young and experience substantial switching costs. To address this issue, we conducted a methodological replication in a retail context with low switching costs.
In our replication, we examine the effects of compensation offered by Home Depot in the aftermath of its data breach in 2014. Home Depot is the largest home improvement retailer in the US and presents a substantially different context. Data were collected from 901 participants using surveys.
Our results were consistent with the original study. We found that in retail breaches, effective compensation needs to meet customers' expectations because overcompensation or undercompensation leads to negative outcomes, such as decreased repurchase intention.
Our study provides insights into the effectiveness of compensation in the retail context and confirms the findings of Goode et al. (2017).
Consumer adoption of online shopping continues to increase each year. At the same time, online retailers face intense competition and few are profitable. This suggests…
Consumer adoption of online shopping continues to increase each year. At the same time, online retailers face intense competition and few are profitable. This suggests that businesses and researchers still have much to learn regarding key antecedents of online shopping adoption and success. Based on extensive past research that has focused on the importance of various online shopping antecedents, this work seeks to provide an integrative, comprehensive nomological network.
The authors employ a mixed-methods approach to develop a comprehensive model of consumers online shopping behavior. To that end, in addition to a literature review, qualitative data are collected to identify a broad array of possible antecedents. Then, using a longitudinal survey, the model of consumer shopping intentions and behaviors is validated among 9,992 consumers.
The authors identified antecedents to online shopping related to culture, demographics, economics, technology and personal psychology. Our quantitative analysis showed that the main drivers of online shopping were congruence, impulse buying behavior, value consciousness, risk, local shopping, shopping enjoyment, and browsing enjoyment.
The validated model provides a rich explanation of the phenomenon of online shopping that integrates and extends prior work by incorporating new antecedents.