Online shopping intention in the context of data breach in online retail stores: An examination of older and younger adults

Rajarshi Chakraborty, Jaeung Lee, Sharmistha Bagchi-Sen, Shambhu Upadhyaya, H. Raghav Rao

Research output: Contribution to journalArticlepeer-review

65 Scopus citations

Abstract

Data breaches through hacking incidents have become a significant phenomenon in the world of online shopping. These breaches can result in loss of personal data belonging to customers. This study builds a research model to examine people's intention to engage in e-commerce in the context of a significant data breach (the Target breach in December 2013). In addition, this paper focuses on the difference in responses regarding post-breach online shopping intent among younger adults (below 55 years) and older adults (senior citizens - A bove 55 years). Our findings show the importance of internal (self) monitoring of bank transactions in reducing the effect of perceptions of severity of data breaches on post-breach online shopping intent particularly for senior citizens. The study also demonstrates that perceptions of severity of a hacking incident are significant drivers of perceived online shopping risk for both age groups. Further, perceptions of severity of a hacking incident are significant drivers of post-breach online shopping intent but only marginally significant for younger adults. Trusting beliefs in online shopping services and attitude toward e-commerce are significant for the older generation for post-breach online shopping intentions and also for younger adults. Gender is significant for seniors while it is not significant for younger adults. The impact of perceived online shopping risk on post-breach online shopping is significantly different between the two age groups. The implication of this research lies in informing shopping websites the need to prepare better plans for notifying customers about not only data breaches but also their proposed mitigation steps so as to increase trust and reduce perceived risks associated with online shopping.

Original languageEnglish (US)
Pages (from-to)47-56
Number of pages10
JournalDecision Support Systems
Volume83
DOIs
StatePublished - Mar 1 2016
Externally publishedYes

Keywords

  • Age
  • Data breach
  • Internal monitoring
  • Online shopping
  • Perceived risk
  • Trust

ASJC Scopus subject areas

  • Management Information Systems
  • Information Systems
  • Developmental and Educational Psychology
  • Arts and Humanities (miscellaneous)
  • Information Systems and Management

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