Never miss a story

Get subscribed to our newsletter


×
Easing fears in the wake of a data breach should be a priority, the researchers said. Pixabay

Once a data breach is reported, people who are fearful quickly become sensitive towards the size and scope of the breach than those who get angry, finds a study led by Indian-origin researchers.

The findings also extend to the stock market where a company’s stock price can be influenced by the size of the breach when the news coverage emphasizes fear, rather than anger.


“The emotions of fear and anger will elicit different reactions. In the wake of a data breach, we wanted to explore those different reactions and see if people acted to protect themselves or directed feelings toward those responsible,” said Subimal Chatterjee, distinguished professor in marketing at Binghamton University in New York.

Chatterjee partnered with Sumantra Sarkar, assistant professor of management information systems and others to conduct three studies to get to their findings. Two of the studies surveyed how consumers reacted to the scope of a data breach.


They found that only the customers who felt fear after a breach were sensitive to the size and scope of the breach, while scope didn’t matter to angry consumers. Pixabay

They found that only the customers who felt fear after a breach were sensitive to the size and scope of the breach, while scope didn’t matter to angry consumers. “Fearful consumers were sensitive to knowing, for example, if the breach only affected 100 customers or 10 million customers, and we found that the larger the scope, the larger the reaction,” said Chatterjee.

Meanwhile, angry consumers didn’t care if it was 10 customers or 10 million customers. “Their focus wasn’t on the scope. They were directing their focus and anger on the perpetrator,” Chatterjee added.

A third study examined 12,000 news stories about data breaches. Testing for keywords that suggested either a fearful or angry response in the coverage, the researchers then compared the findings to stock prices for affected companies at the time of the coverage.


They also recommend being extra careful about how you communicate the scope of the data breach, as fearful customers will be very sensitive to the size of breaches. Pixabay

They found that the stock market reacts similarly to how consumers react: Fear makes the stock market sensitive to the scope of a data breach, while anger makes the stock market insensitive to the scope of a data breach.

ALSO READ: Researchers Develop Way to Fight against Bacterial Infections using Electricity

Easing fears in the wake of a data breach should be a priority, the researchers said. They also recommend being extra careful about how you communicate the scope of the data breach, as fearful customers will be very sensitive to the size of breaches.

“If you have 500 million customers that were affected by a breach, but it only represents around 16 per cent of your customer base, you may want to focus on that smaller number in your communications to minimize the threat to fearful customers,” Chatterjee noted in the paper published in the Journal of Business Research. (IANS)


Popular

Pixabay

7th of December 1949, the Armed Force Flag Day

Since the 7th of December 1949, the Armed Forces Flag Day has been observed in India, annually. This one day is dedicated towards collection of funds from the citizens of India for the welfare of the ‘Indian Armed Forces personnel’. It has become a tradition to pay respect to the people who have served in the army, Navy and Airforce, on this day.

“The idea behind observing a Flag Day was to distribute small flags to the general population and in return collect donations.” The color-scheme of the flag is very similar to the ones used by fellow Commonwealth members like Cyprus, Kenya and Nigeria. The Flag Day signifies that it is the responsibility of the citizens of India to take care of the families and dependents of the armed forces personnel who fight for the country.

Keep Reading Show less
Unsplash

Indians seem convinced that social media is responsible for the increased gulf between the Hindu and Muslim communities.

A large majority of Indians seem convinced that social media is responsible for the increased gulf between the Hindu and Muslim communities in the country.

This was revealed by a nationwide poll conducted by IANS-CVoter with a sample size of 1942 using random sampling on December 5, one day before the beginning of the 30th anniversary of the demolition of Babri Masjid on December 6, 1992.

Keep Reading Show less
Wikimedia

Katrina Kaif and Vicky Kaushal are scheduled to reach Hotel Six Senses Fort Barwara located at Chauth Ka Barwara, by 9 p.m. on Monday.

Final preparations are in full swing at Six Senses Fort Barwara which will host the much talked about wedding of celebrity couple Vicky Kaushal and Katrina Kaif.

According to sources, the event company working for this wedding has procured crystal balls and chandeliers from abroad to give a royal look to the wedding. These will be installed in the hotel soon.

Keep reading... Show less