Global Journal of Management and Business Research, A: Administration and Management, Volume 23 Issue 7

Factors Affecting QR Code usage in Nepal Devendra Prasad Luitel Author: e-mail: devendraluitel0@gmail.com C hapter O ne I. I ntroduction a) Context Information uick Response (QR) codes are two-dimensional and machine-readable matrix bar codes created by Hara Masahiro, an engineer for Denso Wave Incorporated, a Toyota subsidiary, in 1994 for accurate and fast inventory checks. QR-code was first used in Japan’s Kanban, a type of electronic communication tool used in the automotive industry (Stein, 2020). QR code was used in manufacturing and expanded to the logistics and retailing industry. In the marketing field, QR-code had been used widely to understand consumer behavior, market research, retailing, and marketing communication (Tolliver-Walker, 2011). QR codes can be read by any smartphone, tablet, or laptop with a camera, using freely available software. Conventional one-dimensional bar codes can store information only in a horizontal manner, while QR codes can store information both vertically and horizontally. So more perfect and huge information can be stored in QR codes than in one-dimensional conventional bar codes (Cheong et al., 2017). The stored information can be encoded as a URL, text, or other various types of data, which can be easily read by the cameras of mobile devices. The widespread use of mobile devices extended the use of QR Codes to many business areas, such as trade, retail, marketing, logistics, education, tourism, and entertainment. (Kan et al., 2009). Driven by increasing income levels in Nepal, both online and offline transactions have been experiencing rapid growth, with customers seeking more efficient and technologically advanced payment methods to meet their needs (Tamang et al., 2021). The Covid-19 pandemic has further accelerated the adoption of digital payment methods, as people have become more concerned with reducing the risk of infection by avoiding close contact with others (Zhong & Moon, 2022). As a result of this trend, many retailers and online food delivery services in Nepal have made digital payments mandatory, including through the use of mobile wallets, online banking, and contactless transfer, in order to accelerate the digitization of the payment system (Widayat, 2020). This has led to a significant increase in the use of QR code payments, as customers are able to make purchases with ease and convenience by simply scanning a QR code. According to a report from Nepal Rastra Bank (2021), the number of QR-based transactions from mid- December 2020 to mid-January 2021 was 372,176, with a transactional amount of Rs 1.245 billion. In the following month, the number of transactions increased to 535,790 and the amount to Rs 1.712 billion, indicating a clear increase in the usage of QR code payments. The growing demand for more efficient and technologically advanced payment methods, coupled with the increasing awareness of the benefits of digital payments and the acceleration of the digitization of the payment system during the Covid-19 pandemic, has led to a significant increase in the use of QR code payments in Nepal. This has greatly improved the shopping experience, making purchases much easier and more convenient for customers. Thus, QR codes gained popularity in Nepal during the Covid-19 pandemic as an alternative to cash payment. This new technology allowed customers to make payments in a convenient and easy manner simply by scanning the QR code, and thus upgraded the shopping experience. The popularity of QR codes not only impacted the payment system but also affected the way businesses adopted the technology as a marketing tool. Tiwari (2016) posits that with consumers becoming more and more attached to their smartphones and carrying them everywhere, including when they go shopping, marketers will have to come up with new ideas and methods to reach consumers effectively. Pozin (2021) sees the QR Code as a cost- effective, yet powerful marketing tool that can enhance the relationship between a brand and its consumers. One of the latest marketing trends is the use of smart packaging that incorporates QR Codes, as it offers a promising way to provide consumers with more information and influence their purchasing behavior (Rotsios et al., 2022). The flexibility of QR codes makes it possible to place them in various areas, such as point- of-purchase displays and publications, product packaging, business cards, television ads, ticket stubs, or direct mail, providing marketers with a valuable tool for communicating with consumers. Hossain et al. (2021) argue that QR Codes can provide valuable information about consumer behavior, demographics, and response rates, helping businesses understand their target audience better. In addition to these benefits, QR codes can also be easily customized to fit the brand image and Q 35 Global Journal of Management and Business Research Volume XXIII Issue VII Version I Year 2023 ( ) A © 2023 Global Journals