Too generous to be fair? Experiments on the interplay of what, when, and how in data breach recovery of the hotel industry
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Date
2022
Journal Title
Journal ISSN
Volume Title
Publisher
Elservier
Abstract
Although data breaches have become increasingly common, few studies have examined data breach recovery.
Thus, this study aims to examine when (i.e., reactive versus passive) and how (i.e., public versus private) to
conduct data breach recovery in the hotel industry, using different types of compensations. Based upon the
fairness heuristic theory and the prospect theory, two experiments were conducted with university students as
the samples. The results show that consumers’ perceived justice with economic and social compensation is not
significantly higher than that with either economic compensation or social compensation, under the public mode
or the private mode. Furthermore, under the reactive mode participants’ perceived justice with economic and
social compensation is lower than that with just economic compensation. Our study expands the literature on
service recovery to data breach recovery in the hotel industry. It also provides important practical guidelines for
travel industry managers.
Description
Tourism Management 88 (2022) 104420
Keywords
Service recovery,Data breach,Recovery mode,Compensation,Perceived justice