University of Twente Student Theses


Customer’s Perceptions of an Online Service Failure with Application of the CIA Model

Storteler, Thom (2023) Customer’s Perceptions of an Online Service Failure with Application of the CIA Model.

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Abstract:As companies are more and more steering their operations based on the acquired data of their customers, the value of this data is on the rise. The arrival of the internet is underlying to this change in doing business. Nowadays, companies acquire data of their customers, and this makes it possible to make the best suitable offer. This might seem as a very good method as the companies can make a personalized offer for each of their customers. However, the downside of this is that a data breach can expose all the valuable and classified data of customers while customers trusted the company. This research aims to discover how customers will react after a Data Breach Announcement (DBA). This study derived important literature by executing a systematic literature review. The derived literature was helpful in order to determine constructs that can be measured by executing the questionnaire whereafter the results could be analysed. The empirical research has been conducted, resulting in 135 valid responses. The valid responses were then used for data analysis. The data was analysed in a quantitative way as exploratory factor analysis and regression analysis has been conducted. The results expose a direct effect of the types of data breaches on the reactions of the customers. Because the introduction of the DBA (IV) influences customer reactions (DV’s). For example, the outcome of the statistical software shows a decrease in trust after the Data Breach Announcement has been made. Another example is the decrease in customer satisfaction after the introduction of the DBA. The DBA is something negative so it was also expected that it will affect some reactions in a negative way. Next to the direct effects, the moderation effect has also been studied. Apology as a service recovery action shows a moderation effect as it softens the reaction a customer has after a DBA occurred.
Item Type:Essay (Master)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:Business Administration MSc (60644)
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