Transient Customer Response to Data Breaches of Their Information

Sumit Agarwal (), Pulak Ghosh (), Tianyue Ruan and Yunqi Zhang ()
Additional contact information
Sumit Agarwal: NUS Business School, National University of Singapore, Singapore 119245
Pulak Ghosh: Decision Sciences & Public Policy, Indian Institute of Management Bangalore, Bangalore 560076, India
Yunqi Zhang: School of Finance, Nankai University, Tianjin 300350, China

Management Science, 2024, vol. 70, issue 6, 4105-4114

Abstract: Cybersecurity breaches pose a substantial concern in the digital era. We investigate how customers respond to multiple unexpected data breaches of their information in India. Difference-in-differences estimates show that digital payments declined by 9% relative to cash payments immediately after an unexpected data breach in a food delivery platform, but the gap disappeared three months later. Customer entry and exit also exhibit weak, short-lived changes. Additional analyses on bank and online grocery data breaches uncover even weaker effects of data breaches. Our findings imply that the perceived benefits of convenience outweigh the costs of payment security risks.

Keywords: cybersecurity breach; unexpected data breach; digital payment; cash payment; convenience; payment security; digital economy; India (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://dx.doi.org/10.1287/mnsc.2021.01335 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:inm:ormnsc:v:70:y:2024:i:6:p:4105-4114

Access Statistics for this article

More articles in Management Science from INFORMS Contact information at EDIRC.
Bibliographic data for series maintained by Chris Asher ().