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CHAPTER 1

INTRODUCTION

In many developing countries, decentralization of technology innovation is

creating new challenges for the business industries that few are able to meet.

Nowadays most businesses prefer to use technologies rather than manuals because it

makes their job easier and faster.

BACKGROUND OF THE STUDY

Today, Smart-phone plays a significant role in people’s daily lives. According to

previous research, it is found that the mobile activated space maintains steady growth.

In 2012, the range of mobile activated space is 8,448 activated pages, until 2013, the

range of mobile activated space increases to 13,088 activated pages.

(Nellymoser2013.)

There are many activities in mobile space, such as social networking and

shopping, therefore, the identification and payment methods are created. What kind of

thing can be replacing as an identity to visit a virtual store by their smart-phone If

consumers shopping online. Quick Response Code (hereinafter QR Code) as a new

identity is used in the world, it looks like a small box which includes a random series of

black and white pixels. Even though QR Code is a tiny symbol, a website address,

specifications of particular products or personal information can be included in this

symbol. In addition, the surprising news is that various information accesses can be
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done through smart-phones. (Speed & Nykamp & Heiser & Anderson & Nampalli 2013,

17-18.)

QR Code is becoming popular and extensive adoption in international. Especially

in Japan and Korea, people who are using QR Code scanning to visit Internet accounts

for 96%. The QR Code is often used on newspapers, magazines, journals, websites,

advertisement, and advertisement board to store websites‟ addresses, content

information and miscellaneous data. For instance, QR Code is used in advertisements 7

to guide people to visit their websites in business world. (Jin & Du 2014, 910-911.)

Additionally, QR Code becomes an official tool is utilized in governments and

companies (Speed & Nykamp & Heiser & Anderson & Nampalli 2013, 18). In 2011, the

Royal Dutch Mint announced QR Code embedded into the official coin that QR Code

would direct a user to a website about the Royal Mint‟s centennial. The world's largest

QR Code is created by Hacherspace and painted on the top of their company's building

in Charlotte, North Carolina in 2010 (MCNC, cited by Speed & Nykamp & Heiser &

Anderson & Nampalli 2013, 18.) In China, QR Code is used on the train tickets on the

corner of the right bottom and the names of passengers and relevant personal

information are included in this QR Code (TCHINASIA 2011, cited by Speed & Nykamp

& Heiser & Anderson & Nampalli 2013, 18).

Quick Response Code (QR Code) have the ability to store information both

vertically and horizontally. So more perfect and huge information can be stored in QR

codes. With the increasing popularity of camera-enabled smartphones, the QR codes

are increasing rapidly.

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In this area of both academic and commercial settings, this code has a broad range of

uses and is used by marketers to link customers for giving product and service related

information, promotion and selling product and service.

Larkin mentioned that marketers should use QR code because these codes enable a

superior connectivity level with customers. He also described that QR codes provide

superior tracking and traceability functions.

Narang et al. also noted that printing those codes on print advertising always offers

interactivity and enables tracking of consumers, such as the consumer’s browsing time

on the site; QR codes scanned frequency and the consumer’s geographical location.

Johnson & Qinn Inc. described that QR codes allow consumers to connect directly with

call to act and direct mail action. This ability of QR codes eliminates several barriers

such as time delay for response is one of the loss of interest causes.

Therefore, this study aimed to evaluate the effect of QTR code in business

industries. This study has great real implications in the field of internet shopping, online

marketing, retailing, marketing promotion and consumer behavior. To the best of our

knowledge, sharing information about QR code will influence customers to engage and

share information with other customers in the online community, which will help to

increase the volume of sales in the business industries rapidly.

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CONCEPTUAL /THEORETICAL FRAMEWORK

According to the Stimulus-Organism-Response (S-O-R) research framework,

stimulus is considered as an initial construct that affects the internal condition of the

individual. The effect of the stimulus components on response construct mediates by

the process of organism. Finally, response shows the impact of stimulus as a result,

such as satisfaction, dissatisfaction, or positive/avoidance behavior of customers. In the

smart shopping context, the number of QR code users is growing speedily for

usefulness, feasibility, and acceptability of QR codes. In this research, the usefulness,

feasibility, and acceptability of QR codes affect consumers’ internal state.

Stimulus Organism Response

QR code Customer

Usefulness Satisfactio
Stimulus H1 Organism H2a Response
n
Acceptability Perceived
flow
Feasibility H2b
Purchase

Intention

Figure 1. Conceptual framework

The conception of QR codes in the framework of Rosario Raymundo has been

implemented for evaluating the impact of QR codes on purchase intention and customer

satisfaction. According to the basic framework (Figure 1), the impact of stimulus
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(usability, feasibility, and acceptability of QR codes) on purchase intention and

satisfaction of customers will be evaluated based on perceived flow. Usefulness is the

consumers own internal measurement about the need fulfillment capacity of specific

product or service. Functionality and usability of product are the component of

usefulness. Utility or functionality is determined by the need fulfillment capability of a

product. Functionality of product is often determined as “ease-of-use and joy-of-use” of

specific product or service. Both product usability and functionality are imperative in

marketing; they harmonize each other and together. Feasibility refers to the degree of

practicality involvement with the object or situation, that is, whether ample logistics and

resources are offered and whether psychosocial and/or physical contexts works

interfere for executing the situation or object.

Accelerated technological change has become a fact and will continue to

challenge industrial and societal development on this century. Anticipating this change

seems to be crucial for success in technology- based companies. For quick response

(QR) code, it is not yet that well known unlike other paying apps so its employees and

organizations have to be open to new ideas and able to realize them quickly so that

they can compete with other firms.

Business leaders and policy makers must keep track of a vast range of

technologies and philosophies affecting production systems today (Martin, Leurent,

2017). This applications or technologies are obliging companies to rethink and retool

everything they do internally and governments to reassess their national competitive

advantage and development strategies.

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Through quick response (QR) code, providing services will be easier especially in

accepting payments for customers, paying your bills and transferring of funds from other

banks. It is capable of storing many data, contains much more information than

standard bar codes.

Hence, the study was based on the aforementioned conceptual framework.

INDEPENDENT VARIABLE DEPENDENT VARIABLE

1.Level of effectiveness of QR
Effectiveness of QR code in
business industries. code in business industries.
DEPENDENT VAR
2. Factors affecting the

effectiveness of QR code in

business industries.

Figure 2. Paradigm of the Study

STATEMENT OF THE STUDY

This research aimed to know the impact of quick response (QR) Code in business

industries.

Specifically, the study sought answers to the following questions:

1. What is the level of effectiveness of the QR code in business industries?

2. How effective is the quick response (QR) code to people in business industries?
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OBJECTIVES OF THE STUDY

The study generally aimed to determine the impact of quick response (QR) code to

the business industries. The objectives are the following:

 To determine the impact of quick response (QR) code as a marketing strategy in

the business industries.

 To know the effectiveness when it comes to business.

HYPOTHESIS OF THE STUDY

The study was guided by the following hypothesis.

Retailers utilize QR codes to offer consumers a more enjoyable shopping experience

(non-utilitarian) as well as shopping information and convenience (utilitarian) via mobile

phones. We differentiate between the practical and experiential users of QR codes.

Practical users utilize QR codes for activities that are focused on the product such as

gathering information about the product or price. Experiential users are involved in

activities that are indirectly related to the product such as socializing and accessing

entertainment media.

H1: The usefulness, acceptability and feasibility of QR codes has a positive impact on

perceived flow.

H2: Perceived flow influences customer satisfaction and purchase intention positively.
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H3: In the online shopping context, customer satisfaction has positively impact on

purchase intention.

H4: Electronic device ownership has a positive relationship with QR codes using usage

rate.

SIGNIFICANCE OF THE STUDY

Impact of Quick Response (QR) code in business industries has the following

significance.

To Faculty, the results of the study contribute them more knowledge and ideas on

QR code. It provides them more effective in teaching through using QR code for learner

to understand the subject matter all about.

To community people, their awareness on the quick response (QR) code that is not

observable is significant to them for it is their instrument in paying. This also help them

to find a way on how to improve their way of paying because there are many challenges

that people are facing when it comes in paying since this is in line with their day to day

life.

To the researcher, results of the study will help them to understand the roles of

quick response code in business.

To future researchers, result of the study can be a source of reference in future

studies and research for those who have interest in quick response (QR) code and

related issues.
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CHAPTER 2

METHODOLOGY

This chapter presents the research design, population and locale of

the study, data collection procedure, data collection instrument and

treatment of data.

RESEARCH DESIGN

Descriptive survey approach was used in gathering, organizing and

presenting data. Primary data were generated using the survey

questionnaire. Secondary data were obtained from the internet, journals,

thesis and other printed materials.

POPULATION AND LOCALE OF THE STUDY

The respondents of the study were composed of the people who has

a store, shop (computer shop, bake shop, cafe shop etc.), including online

seller because they are the one who are directly involved in business

industries.

DATA COLLECTION PROCEDURE

The researcher sought permission to administer the questionnaire to

the target respondents. A cover letter explaining the nature and purpose of

the research and assuring them of the confidentiality and anonymity of their
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identity accompanied with the survey questions. The respondents were

requested to answer the questionnaire. The researcher was also available to

answer queries and clarification from the respondents during the survey

questions. The completed questionnaires were collected from each of the

respondents personally by the researcher.

DATA COLLECTION INSTRUMENT

This research used a survey questionnaire as a primary tool in

gathering data which was constructed based on the information needed by

the researcher's that are related to the topic and specific problems of the

study.

Table one elicited data on the level of effectiveness of quick response

code in business industries. There are 10 items provided. Table two elicited

the effectiveness of the quick response code in business industries. There

are 15 items provided.

TREATMENT OF DATA

The data information collected from the questionnaire were

undertaken according to accepted quantitative methods. Percentage tables

were constructed and results were subjected to computation such as

percentage wherein responses fall in different categories. The data has

numbers that continue from one point to the last point. The percentage were
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calculated by taking the frequency in the categories divided by the total

number of the respondents and multiply to 100.

CHAPTER III: RESULTS AND DISCUSSION

This chapter presents the findings, discussions, analysis and interpretation of the

data. It includes the discussions on the level of effectiveness of quick response code in

business industries.

This table presents the level of effectiveness of quick response code in the business

industries.

Indicators Strongl Agre Disagre Strongly

y e e disagree
agree % % %
%

1. Quick response code helps to promote information 28% 50 18% 4%

product. %
2. It was easy and safe to use. 40% 56 4% 0
%
3. It helps to pay and transfer faster. 54% 42 4% 0
%
4. It is very difficult to use. 0 18 68% 14%
%
5. It is very confusing to use. 0 34 60% 6%
%
6. Users are not that so familiar with quick response code. 8% 60 26% 6%
%
7. Quick response code will not work upon its expiration. 2% 54 34% 10%
%
8. Quick response code can hack phones. 6% 44 44% 6%
%
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9. Mobile phones cannot access quick response code. 22% 42% 22% 14%
10. Quick response code contains random patterns of square 14% 60 22% 4%
boxes that users cannot adopt. %

Table 1: What is the level of effectiveness of quick response code in business

industries?

The indicator number one in the table show that out of 50 respondents there are

50% of the respondent agreed that quick response code is more helpful to promote

information product.

The indicator number two has a 56% agree, 40% strongly agree and 4% disagree,

which show that 56% of the respondent agreed that information was easy to access via

quick response code.

The indicator “It helps to pay and transfer faster”, it shows that out of 50

respondents there is 54% who strongly agreed, 42% Agreed and 4% Disagreed.

The indicator number 4, shows that out of 50 respondents there is 18% who

agree, 68% Disagree and 14% strongly disagree in it is very difficult to use.

Out of 50 respondents there is 34% who Agree, 60%Disagree and 6% strongly

Disagree in its very confusing to use.

User are not that so familiar with quick response code, shows that out of 50

respondents there is 8% who strongly agree, 60% Agree, 26% Disagree and 6%

Strongly disagree.
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The indicator number 7, shows that out of 50 respondents there is 2% who

Strongly agree, 54% agree, 34% disagree and 10% Strongly disagree in quick response

code will not work upon its expiration.

Quick response code can hack phones that out of 50 respondents there is 6%

who Strongly agree, 44% agree, 44% Disagree and 6% Strongly 3Disagree.

Out of 50 respondents there is 22% who Strongly agree, 42 agree, 22% Disagree

and 14% Strongly agree in mobile phones cannot access quick response code.

The indicator number 10, shows that out of 50 respondents there is 14% who

strongly agree, 60% agree, 22% disagree and 4% strongly agree.

This table present on how effective of the quick response code in the business

industries.

Table 2: How effective of the quick response code in the business industries?

Indicators Strongl Agree Disagree Strongly

y agree % % disagree
% %
1. It provides unique performance in business. 40% 60% 0 0
2. It easily scans the price of the product 50% 50% 0 0
3. It lessens the laziness of each individual. 26% 46% 26% 2%
4. It helps to increase customer interactivity. 24% 56% 20% 0
5. It saves time to each individual in terms of 50% 48% 0 2%
paying and transferring information.
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6. Information easily detected because of quick 44% 48% 6% 2%

response code.
7. It gives more promotion about the product. 30% 36% 28% 6%
8. It gives a benefit to the customer. 28% 68% 4% 0
9. Customer has enough time in purchasing. 30% 52% 18% 0
10. Quick response code can be hassle free. 48% 46% 6% 0
11. Some user cannot track quick response 18% 42% 32% 8%
code when they are in journey.
12. Users of quick response code must be 22% 70% 8% 0
equipped with a cameras phone to scan the
image of QR code.
13. Transferring of data between devices can 28% 46% 26% 0
always lead to security issues.
14. QR code is often expensive and costly. 10% 52% 32% 6%
15. Quick response code has limited uses. 14% 60% 24% 2%

The indicator number one show that 60% of the respondents agreed that quick

response code provide unique performance in business and 40% were strongly agree.

The indicator number 2 show that 50% of respondents agree and 50% disagree

in it easily scan the price of the product.

The indicator number 3 shows that 46% agreed that quick response code lessen

the laziness of each individual, 26% of the respondents strongly agree, 26% disagree

and 2% strongly disagree.

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Among the 50 respondents there are 56% agree and 24% strongly agree that

using QR Code can help to increase customer interactivity while there are 20% of the

respondents disagree that QR Code can increase interactivity of the customer.

The indicator number 5 shows that 50% of the respondent strongly agree that

QR Code save time to each individual in terms of paying and transferring information,

48% agree and 2% disagree.

The indicator number 6 show that 48% agree, 44% strongly agree, 6% disagree

and 2% strongly disagree that information can be easily detected because of quick

response code.

The indicator number 7 show that 36% agreed that quick response code give

more promotion about the product, 30% strongly agree, 28% disagree and 6% strongly

disagree.

The indicator number 8 quick response code can give a benefit to the customer

has a percentage of 68% agree, 28% strongly agree and 4% disagree.

The indicator number 9 “customer has enough time in purchasing” has 68% of

the respondent agree, 30% strongly agree and 18% of the respondents disagree.
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The indicator number 10 “quick response code can be hassle free” has a

percentage of 48% strongly agree, 46% agree and 6% disagree.

The indicator number 11 “some user cannot track quick response code when

they are in journey” has a 42% of respondent agree, 32% disagree, 18% strongly agree

and 8% strongly disagree.

The indicator 12 show that users of quick response code must be equipped with

a cameras phone to scan the image of QR Code has the percentage of 70% agree,22%

strongly agree and 8% disagree.

The indicator number 13 “transferring data between devices can always lead to

security issue” has a percentage of 46% agree, 28% strongly agree and 26% disagree.

The indicator number 14 show that 52% of the respondents agree,32%

disagree,10% strongly agree and 6% strongly disagree that quick response code is

often expensive and costly.

The indicator number 15 “quick response code has limited uses shows that out of

50 respondents there are 60% who agree,24% disagree, 14% strongly agree and 2%

strongly disagree.
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CHAPTER IV: SUMMARY, CONCLUSION AND RECOMMENDATION

This chapter presents the summary, conclusions and recommendations derived from

the study.

Summary

The respondents of this study consists of 50 individuals who have business from the

municipality of La Trinidad, Benguet.

The quick response code shows an importance to every individual who have

business in La Trinidad, Benguet. Quick response code is very helpful and useful not

only to business but to all individual for them to reach out their respected customers and

clients. In addition, to provide the satisfaction of everyone. The respondents were asked

for the level of effectiveness of the quick response (QR) code in the business industries,

which they agree with the it. Quick response (QR) code is not only easy and safe but

gives faster time to every business in managing their time especially to customers. They

were asked also how effective the quick response (QR) code in the business industries,

which they agree that quick response code has a positive effect to people in business.

Conclusions

Based on findings of the study, the following conclusions are drawn:

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1. The findings show that respondents agreed of quick response code. It also

shows that once the quick response code is adapted in a business it has a

potential to make great strides towards the advancement of technology.

2. Quick response code influence customers to engage and share information with

other customers in the online community, which helps in increasing the volume of

sales rapidly. The use of quick response code ensures that customer have

valuable information’s all the time. Being simple, easy, cost effective and

technologically advanced respondents agree to this quick response code.

Recommendations

Based on the conclusions, the following statements are the recommendations:

1. Business industries must adopt quick response code as a tool market to its

product, services, and helps to improve services for users.

2. Marketers need to develop and maintain well-designed database for evaluating

needs and wants of customers from customers browsing behavior.

3. Business organization who uses quick response code must use a direct mail

piece, business cards or post cards to provide discounts.

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