MWAIS 2021 Proceedings

Abstract

This research in progress paper examines e-commerce company trust impairment after a data breach announcement and the subsequent restoration of trust through various actions taken by the e-commerce company. Specifically, this study examines the effect of the data breach announcement and different trust restoration actions on the underlying relationship with consumer trust's various dimensions. With the initial announcement of a data breach, we expect to see the largest effect on trust in the ability dimension of trust. Where actions involve compensation awarded to affected users, changes in the benevolence dimension will be associated with the largest differences between impaired trust and restored trust. The study results will contribute to an improved understanding of consumer trust and provide insights that will be useful to e-commerce companies in restoring consumer trust after a data breach.

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