In the breach notification letter, economic theories such as information asymmetry are evident as the company possesses critical information about the breach, creating a disparity in knowledge between the company and its customers, impacting trust dynamics. Additionally, game theory can be applied to analyze strategic responses, where customers must decide whether to continue business based on the company’s response, while the company strategizes to retain customer trust. On the other hand, social science theories like social identity theory are reflected as the company emphasizes its commitment to customer privacy, leveraging shared identity to mitigate negative reactions and preserve loyalty. Furthermore, crisis communication theory is evident in the letter’s transparent, accountable, and reassuring communication strategies, aiming to minimize reputational damage and demonstrate customer welfare prioritization.
