Consumers Reward or Punish Businesses Based on Security Practices
Javelin Strategy & Research has announced results of a new study showing there is a strong relationship between a consumer's perception of a retailer's reputation for safeguarding card account data and the consumer's willingness to shop at that retailer. The study also found that consumers believe retailers share an equal responsibility with banks, credit card companies, processors, and cardholders themselves for protecting their credit and debit card account information - and - no surprise given the litany of retailer data breaches - that they believe that retailers are lagging in their responsibility to keep their credit or debit card information out of the hands of criminals
"Clearly, companies with poor data security practices are placing their reputation with their customers at risk," said James Van Dyke, President of Javelin Strategy & Research. "Consumers hold businesses accountable for securing credit and debit information in their care and will take their business elsewhere if they perceive that responsibility is not being upheld.""The good news for store owners in this study is that consumers indicate they will reward them with their business for providing strong card security," Van Dyke said. "By focusing on card security, retailers can help protect their reputations from harm and potentially attract more business."
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