Data Breaches and Consumer Buyer Behavior
Javelin Strategy & Research has published a new report on data breaches - examining consumer attitudes and the TJX security issue. The study concludes that "77% of consumers intend to stop shopping at merchants that suffer from data breaches. Retailers and merchants are viewed by 63% of consumers as the least secure when protecting consumer’s data, compared with processors (16%), card networks like Visa or MasterCard (5%) and issuers (5%). When little is known about a data breach, half of all consumers automatically consider the merchants where they shop to be at fault. However, 85% will reward merchants who are perceived as security leaders with increased purchases."
“Consumer are jumpy, and have served notice that they will steer profits to companies they perceive as security leaders,” according to Javelin President and Founder, James Van Dyke. “Merchants, payments companies and technology vendors should view PCI differently, from its ability to affect relationships and purchases and not just fines or fraud losses.”The study also shows how consumers pragmatically view security as a shared responsibility, which is very different than the simple “us vs. them” problem often characterized by observers. Building on numerous high-profile security incidents, accurate understanding of consumer behavior and the connection between threat and personal loss has never been more vital, especially as security experts, legislators (and now, marketing experts) weigh the impact of various significant and costly policy changes. As with FDIC branding at bank branches, greater consumer awareness of PCI compliance can provide a stronger return for companies that are the first to visibly improve customer safety.
For additional recommendations, a copy of the complete Data Breaches and Buyer Behavior report is available along with other Javelin reports and custom research by visiting www.javelinstrategy.com/research or by calling (925) 225-9100 x26.
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