After reviewing the Sample Data Breach Notification letter from GlassWasherParts.com, I realized that both economic theories and psychological theories help explain the actions of the company and the outcomes for the consumer. To start, Marxian theory applies under an economic perspective because it points out that those with ownership of valuable resources, such as customer data, have power over individuals. When customer data is not used properly or is breached, it opens up an imbalanced situation where consumers can often take on the risk. Cost-benefit analysis theory also applies because the company has some costs incurred in adopting stronger cybersecurity measures, and it must assess whether the financial cost outweighs the risk of loss through breach, damage to reputation, and accountability to legal protocols.<\/p>\n\n\n\n
On the psychological and social sciences side, Social Trust Theory applies because the purpose of the company letter is to be transparent with their customers and reassure them about their fears, with the purpose of rebuilding a perception of trust and legitimacy. The letter also addresses issues concerning blame in the incident by referring to the unauthorized party at the third-party platform provider on which the company relies. Overall, the letter regarding the breach illustrates how economic motives and psychological behavior interconnect within the framework of organizational responses related to data breaches.<\/p>\n","protected":false},"excerpt":{"rendered":"
After reviewing the Sample Data Breach Notification letter from GlassWasherParts.com, I realized that both economic theories and psychological theories help explain the actions of the company and the outcomes for the consumer. To start, Marxian theory applies under an economic perspective because it points out that those with ownership of valuable resources, such as customer… <\/p>\n