The effect of perceived error stability,brand perception,and relationship norms on consumer reaction to data breaches |
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| Institution: | 1. School of Hotel and Tourism Management, The Hong Kong Polytechnic University, 17 Science Museum Road, TST East, Kowloon, Hong Kong Special Administrative Region;2. The School of Hospitality Business, Michigan State University, 241 Eppley Center, East Lansing, MI, 48824, USA;3. Rose College of Hospitality Management, University of Central Florida, Orlando, FL, 32819, USA;1. ESSEC Business School, 95021, Cergy Pontoise Cedex, France;2. NYU School of Professional Studies, Jonathan M. Tisch Center of Hospitality, New York, NY, 10003, United States;1. Mugla, Turkey;2. Institute of International Business and Governance, Lee Shau Kee School of Business and Administration, The Open University of Hong Kong, 30 Good Shepherd St, Ho Man Tin, Kowloon, Hong Kong Special Administrative Region;3. Faculty of Administrative Science, Abdullah Gul University, Kayseri, Turkey;4. School of Hotel and Tourism Management, The Hong Kong Polytechnic University, Hong Kong;1. Gabelli School of Business, Fordham University, 140 W. 62nd Street, New York, NY, 10023, United States;2. Koppelman School of Business, Brooklyn College of the City University of New York, 2900 Bedford Ave, Brooklyn, NY, 11210, United States;1. Faculty of Business Administration, Centre for Cognitive and Brain Sciences, University of Macau, E22-3037, Avenida da Universidade, Taipa, Macau SAR, China;2. Faculty of Business Administration, University of Macau, E22-G031, Avenida da Universidade, Taipa, Macau SAR, China;3. School of Hotel & Tourism Management, The Hong Kong Polytechnic University, 17 Science Museum, TST East, Kowloon, Hong Kong Special Administrative Region;4. School of Tourism Management, South China Normal University, Guangzhou, China;1. Department of Hospitality and Tourism Management, University of North Texas (UNT), United States;2. Department of Tourism, Event and Sport Management, Indiana University-Purdue University Indianapolis (IUPUI), United States |
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| Abstract: | The issue of data breaches has received increasing attention in the hospitality industry. Companies’ efforts to fix such errors affect consumers’ evaluations and behavioral intentions toward those companies. This study investigates the impact of perceived error stability on hotel guests’ intentions to spread positive word-of-mouth (WOM) about a hotel. The findings reveal that when a data breach occurs, consumers are likely to spread positive WOM about a company that is typically considered competent if the consumers perceive the error stability to be low rather than high. Consumers have similar reactions to companies with which they have communal relationships. This research suggests that hotels should strategically allocate their resources on the basis of brand perception in the minds of their target consumers as well as their relationships with their target markets. |
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| Keywords: | Error stability Brand perception Relationship norms Data breach Word-of-mouth |
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