IMPACT OF QR CODE IN SMALL BUSINESS IN KATHMANDU

Submitted by

Rohan Shrestha

A Project Work Report submitted to Pokhara University in partial fulfillment of the

requirements for the degree of

Bachelor of Business Administration in Banking and Insurance

Submitted to

Apex College

Pokhara University

Kathmandu

January, 2022
 DECLARATION

I hereby declare that the project work report entitled “Impact of QR code in small
business in Kathmandu” submitted for the BBA-BI is my original work and the
Project Work Report has not formed the basis for the award of any degree, diploma,
or other similar titles.

______________________
Signature
Rohan Shrestha
December, 2021

ii
 CERTIFICATE

This is to certify that the Project Work title “Impact of QR Code in Small Business in
Kathmandu” submitted by Rohan Shrestha, (Roll No. 19450149) for the partial
fulfillment of the requirements of BBA-BI embodies the bona fide work done by him
under my supervision.

___________________________
Signature of the Supervisor
Name: Govinda Khanal
Date:

____________________________
Signature of Program Head
Name: Dipak Adhikari
Date:

_____________________________
Signature of the External Examiner
Name:
Date:

iii
 ACKNOWLEDGEMENT

This research project entitled “Impact of QR Code in Small Business in Kathmandu ''
has been prepared to fulfill the partial requirement for Bachelor’s degree of Pokhara
University. The writing of this report has been one of the toughest and most
rewarding challenges of my academic career. It would have not been possible without
the help and dedication of several faculty members at Apex College.

I would like to express my deepest gratitude to my research Supervisor Mr. Govinda

Khanal for his support and guidance during the entire period. I would also like to
thank Mr. Anjan Jyakhwo for his guidance to perform data analysis successfully.
Also, I would like to thank all staff of the Apex library team for their support and
providing me with the necessary resources during the research.

I would also like to express my gratitude towards all the respondents who cooperated
in filing up my questionnaire and responding to my queries without any hesitation. I
am also very thankful and grateful toward my seniors, colleagues and authorities of
Apex College for their support, encouragement, and valuable suggestions as well as
for the generosity and co-operation for the completion of this project.

Last but not the least, I would like to express my sincere thanks to all my family and
friends for their immense support and best wishes throughout the project.

Thank You
Rohan Shrestha
December, 2021

iv
 TABLE OF CONTENTS

DECLARATION ii

CERTIFICATE iii

ACKNOWLEDGEMENT iv

TABLE OF CONTENTS v

LIST OF TABLE vii

LIST OF FIGURE viii

CHAPTER-I 1

INTRODUCTION 1

1.1 Background 1

1.2 Statement of Problem 2

1.3 Objectives of the Study 3

1.4 Significance of Study 3

1.5 Review of Literature 4

1.6 Research Design 7

CHAPTER-II 9

DESCRIPTIVE ANALYSIS 9

2.1 Respondents Demographic Profile 9

2.1.1 Business Ownerships 9

2.1.2 Business Types 11

2.1.3 Total Investments 12

2.1.4 Business Time-Frame 14

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2.1.5 Use of QR code Timescales 15

2.2 Descriptive Analysis 16

2.2.1 Preference of QR code 17

2.2.2 Sales Trend 18

2.2.3 Credit Trend 19

2.3 Major Finding and Discussion 20

CHAPTER-III 22

SUMMARY AND CONCLUSION 22

3.1 Summary of Findings 22

3.2 Conclusion 23

3.3 Recommendation for Future Researcher 24

REFERENCE 25

ANNEXURE 26

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LIST OF TABLE

Table 2. 1 Business Ownership of respondents 10

Table 2. 2 Business types of respondents 11

Table 2. 3 Total Investments of respondents 13

Table 2. 4 Business Time-Frame 14

Table 2. 5 Use of QR Code Timescales 15

Table 2. 6 Descriptive Statistics of Preference of QR code 17

Table 2. 7 Descriptive Statistics of Sales Trend 18

Table 2. 8 Descriptive Statistics of Credit Trend 19

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LIST OF FIGURE

Figure 2. 1 Business Ownership 10

Figure 2. 2 Business Types 12

Figure 2. 3 Total Investments 13

Figure 2. 4 Business Operation Time 14

Figure 2. 5 Use of QR Code Timescales 16

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 CHAPTER-I

INTRODUCTION

1.1 Background

A quick response (QR) code is a two-dimensional barcode that consists of black

squares arranged inside a square grid on a white background. The code is integrated
with machine readable information, which you can access through a QR code scanner
or a smart phone camera. Quick Response (QR) code payments are an alternative to
cash or debit/credit card payments. It is an excellent alternative to cash/ debit/ Credit
card payments.

The QR code system was invented in 1994 by Masahiro Hara from the Japanese
company Denso Wave. The initial design was influenced by the black and white
piece on a Go board. Its purpose was to track vehicles during manufacturing, It was
designed to allow high speed component scanning. QR codes are now used in a broad
context, including both commercial tracking applications and convenience-oriented
applications aimed at mobile phone users. QR codes may be used to display text to
the user, to open webpage on the user’s device, to add a vCard contact to the user’s
device, to open a Uniform Resource Identifier (URI), to connect to a wireless
network, or to compose an email or text message. There are a great many QR code
generators available as software or as online tools that are either free, or require a paid
subscription. The QR code has become one of the most used types of two-dimensional
codes.

The definition of small business has changed over time. It used to be a domestic
business struggling to stay open in an increasingly competitive market place. The
expanding soft power of global and technology businesses has made small businesses
compete with larger businesses and made good profits. In a developing country like
Nepal, Small business is the backbone of Nepalese economy. In Nepal there are so
many especially backward classes women who are running most of the micro-
enterprises. Nowadays, we can see how a small size business can play a crucial role in

1
the future growth of the business industry. QR codes are now used in large
supermarkets, hotels, and restaurants which will be imminently used in small grocery
stores, drug stores, meat stores, stationeries, and snack shops. In fact, many places are
using it right now.

1.2 Statement of Problem

In the payment industry, a change can be observed in consumer behaviour: the

payments landscape in Nepal is shifting gears from cash to Digital mode. A digital
payment brings in ease and convenience to the consumer and is therefore responsible
for its growth and adoption. The new age Start-ups and Fin Techs are largely
responsible for popularizing the Digital payment trend. These entities have identified
many industries' needs and provided innovation solutions. One such payment
innovation trending in the retail space is QR payment. Quick Response (QR) code
payments are alternatives to cash or debit/ credit card payments.

The Covid-19 pandemic has immensely boosted the scan and pay service through the
QR code in Nepal. People being concerned with their hygiene are supporting the
contactless payment system. Evolving digital payment service providers like Fonepay,
IME Pay, Khalti, QPay, and Smart QR also encourage QR code payment by offering
their users Scan and Pay services. According to a report by the Nepal Rastra Bank, the
number of QR-based transactions from mid December 2020 to mid January 2021 was
372,176. Similarly, the transaction amount was Rs 1.245 billion. The next month, the
number of transactions increased to 535,790 and the amount to Rs 1.712 billion,
suggesting a clear rise in the use of QR code payment. QR codes are now used in
large supermarkets, hotels, and restaurants which will be imminently used in small
grocery stores, drug stores, meat stores, stationeries, and snack shops. In fact, many
places are using it right now. Most of the shops, shopping malls, and other places
have made arrangements to pay using QR codes, but when making such payments, the
lack of Wi-Fi in most places has led to problems such as having to open data on
mobiles and payment being interrupted when data is slow. Therefore, access to the
Internet is vital for the business. So, It is essential that a merchant who provides the

2
QR code facility can also be a person to provide internet services to make
transactions.

1.3 Objectives of the Study

The objectives of this proposed study are to:

1. To identify the preference of using QR code on business.

2. To identify the sales trend through QR code.

3. To find out the credit trend because of QR code

1.4 Significance of Study

This study provides an understanding of the impact of Quick Response(QR) code on a

small business. You can find QR codes in various goods and service sectors like
departmental stores and small shops, and many banks and financial institutes (BFIs).
You can make payments in supermarkets via a QR code scanner using a digital wallet.
Local vendors and shops are also using QR codes for quick payment. Fruits and
vegetable markets also feature QR code payments for grocery shopping. Another
major usage of the QR codes is found at restaurants and cafeterias. It can be used to
access the food menu and place your orders directly from your phone. This avoids
using a physical menu, which can act as a transmission agent of diseases due to
person to person use. You can clear your bill with contactless payment via a QR code.
Likewise, many online food delivery services like Foodmandu have started accepting
payments via QR codes. Fonepay has been playing a pioneering role to establish the
QR payment system in Nepal, and its scheme to provide exciting gifts to its customers
and merchants alike will surely boost up the number of QR transactions in the 6
months span.

QR code serves instant gratification and when used in the right way, your business
can reap all its benefits. Here’s how: By incorporating QR code into your business,
you can successfully line-bust, keep your customers happy, and give them a reason to
keep coming back. They can easily make their payments even if they have left their

3
wallets at home. Another benefit is that it reduces paper carbon footprint, cash,
menus, brochures, receipts, the list goes on. The amount of paper waste that that QR
can supersede is staggering. Adapting contactless payment, you will no longer need
manpower on site to physically handle all of the unnecessary paper wastes. Likewise,
setting up a QR payment system is not rocket science. All you need is to sign up for
QR code and you’re done!

1.5 Review of Literature

The QR code technology is new and it has received very little research. Early research
into QR codes has been on the utilization of the technology in various alternative
scenarios including, but not limited to, academic libraries and museums, and these
studies generally explored the innovation uses of the technology for enriching and
facilitating visitor experience, utilization for visually impaired and blind people and
application in augmented reality applications and classroom environments. Later
research included using QR codes in mobile advertising, especially integrating mobile
devices into multi-channel or cross media campaigns and retailing.

The literature reports consistent growth in the use of QR codes over the past 10 years.
Heltman reported that by the second quarter of 2011 the use of QR codes in the
United States jumped 9840 percent from the second quarter in 2010. Use and adoption
on the continent jumped 120 percent in the last six months of 2010 (Source: Research
and Markets). The Forrester report indicates that only 5 percent of American
consumers scanned a QR code during a three-month period in mid 2011. Nonetheless,
these early adopters- mostly younger, more affluent males and among them, nearly 20
percent made a purchase after scanning one of these codes, according to research
firm Chandwick Martin Bailey.

Pearson and Young (2002) noted that business organizations gain competitive
advantage by early adoption of technology. Technology adoption posts many
advantages to organizations and people, who use them, such as, reduction costs,
availability, timelessness, usefulness, and ease of use. At the end of every decade, a
new technology has thrust us into the next era. Quick Response (QR) code radically

4
ousted the barcode era. QR code is a classic example of technology advancement,
which transformed the way consumers interact with sellers and service providers.
Internet-enabled mobile phones have become an increasingly popular platform for use
of quick response codes. These small codes are changing the way we interact with
products whether it is with magazines, books, advertisements, signage or even
disposable cups at fast food restaurants. The QR codes changed how the contents are
created and delivered to users. The present paper is an attempt to examine the
application of quick response codes in different industries and the paper also presents
the limitations of using quick response codes and provides future direction of
research.

Sapkota (2021) explained that QR code payment can be a vital factor in uplifting
Nepal’s digital economy. The government giving more priority to digital payment
systems can be a head start for QR code payment. Mass awareness campaigns and
promotional events can also influence this transaction. Infrastructural development
like high speed internet connection and wider user accessibility must be considered .
Payment service providers, payment service operators, bank and financial institutes,
and traders should work together to bring interoperability to their digital payment
services. The ultimate goal should be offering a one stop solution for the consumers to
access all sorts of e-payment services, including QR code payment.

Shamim (2018) gave an overview in implementing QR codes in marketing activities a

great deal in modern business because QR codes have great impact for online
usefulness, feasibility and acceptability. QR code’s usefulness refers to very easy to
use, easily connected with shopping site, very effective for online purchase, and user
friendly design; acceptability refers to graphics matched with texts, usable, providing
information, cost is minimize, and very suitable for the user and feasibility refers to
facilitate appropriate and timely information and practically works properly that work
in physical and online context.

Shamim, Xiaoyan, and Farjana (2018) have shared their views on the vast growth of
information and communication technologies and the knowledge based economic
evolution are driving organizations to implement technical approaches to business

5
activities. Implementing QR codes in marketing activities is a great deal in modern
business because QR codes have great impact for online marketers; they can easily
increase sales volume because of QR code’s usefulness, feasibility, and acceptability.
QR code’s usefulness refers to very easy to use, easily connect with shopping site,
very effective for online purchase and user friendly design; acceptability refers to
graphics matched with texts, usable, providing information, cost is minimum, and
very suitable for the user; and feasibility refers to facilitate appropriate and timely
information and practically works properly that work in physical and online context.
This study showed that QR codes are used for their usefulness, feasibility and
acceptability, which influence the perceived flow that indicates consumers felt totally
captivated, felt very quickly time passing and nothing seemed to matter to them while
using the QR codes, which then again influence online shoppers’ satisfaction and
finally purchase intention, so online marketers should share their advertisement with
QR codes that will influence customer satisfaction and purchase intention. Sharing
information with QR codes will influence customers to connect and share information
with other customers in the online community. Also QR codes have been considered
as tools of communication that can be conveniently executed by customers to obtain
information and benefit from real-time transactions. Additionally, QR codes facilitate
that two-way communication via shopping websites can also be considered as a strong
medium to manage and coordinate customer relationships. This finding of this study
is practically significant for both marketers and customers. Marketers should use QR
codes as an embedded advertising tool with particular URLs that will lead to more
profitability for shopping agencies. In addition, customers can learn more profitability
for shopping agencies. In addition, customers can learn their behavior regarding QR
codes in the online shopping context.

Cata, Patal, and Sakaguchi (2013) stated that using QR code marketing strategy, while
it is simple, will add value to the firm. QR codes provide companies an effective way
to advertise their products that a printing page or a billboard cannot replicate. QR
codes can engage customers much better than traditional printed advertisements.
Based on Ye’s MMS framework. We can notice that QR code best fits the Hybrid
Channel technology implementation. Marketers need to better integrate the mobile

6
devices and networks to a mobile internet platform in order to provide an easy and
pleasant experience to smoothly move from one network to another. Furthermore, a
Type A communication, which includes a hybrid approach with an Interaction Intense
communication, can lead to best results of using QR code for marketing purposes.
Type B implementation should be used for information only purposes in High
Involvement products, since consumers need more information in order to make their
purchasing decision. Despite some of the drawbacks, QR codes can be a resourceful
tool for marketers. It’s the matter of coming up with simple but strategic techniques.
Inventors create the products but it’s the industrialists who created value out of that
invention. Hence, it is up to marketers and business professionals to use the QR code
to its best and gain success through it.

Camarce (2021) states that it’s pretty obvious that QR Codes are back in vogue. With
so much more functionality than the early 2010s, QR Code trends show creative and
diverse ways of applying this technology to engage your audience. Whether you’re
trying to perk up a lifeless museum tour, streamline payments, or follow changing
health standards, QR Codes get customers from A to B quickly, simply, and with
limited contact.

1.6 Research Design

Research design is a planned structure or procedural strategy that a researcher adopts

in order to obtain answers to the research problems or questions. It is an action plan
that is developed by making decisions that reflect four aspects of research such as the
research paradigm, the research purpose, the technique to be used, and the situation
for observation. A survey research design was adopted for this study because of the
descriptive and exploratory nature of the study. The researcher formulates the
research objectives, the primary and secondary data collection methods were
determined, the population of the study and the sample to be studied were determined.
The sample size of the study was 54. The researcher also selected the instrument for
primary data collection. The data collected was processed and analyzed using excel
and the result of the findings is reported by the researcher. The data collected
represents the mean, standard deviation, minimum and maximum values of individual

7
questions of the questionnaire. Given that the aim of the study was to obtain complete
and correct data for the study, the researcher adopted a survey research design since it
takes into account all steps involved in a survey concerning a phenomenon to be
studied.

8
 CHAPTER-II

DESCRIPTIVE ANALYSIS

The collected data has been statistically analyzed using software such as Microsoft
Excel. Microsoft Excel is analytical and scientific software used to organize the data,
determine significant relationships and identify differences, similarities with and
between different categories of respondents. The purpose of data analysis is to
analyze and present the result of the questionnaire survey. The main objective of this
research study is expected to be fulfilled with the outcomes derived from the analysis
of the data.

2.1 Respondents Demographic Profile

Demographic analysis is done to find out the basic information about the respondents.
Demographic analysis of the sample respondents taken for the study is described in
this part. This section deals with the demographic analysis and interpretation of
primary data collected through questionnaires. This helps to get insight into the
demographic characteristics of the respondents under study. The demographic profile
of the respondents in this study includes business ownerships, types, total
investments, business operation time, and QR code used time.

2.1.1 Business Ownerships

The business ownerships of the respondents consists of sole proprietorship,

partnership and company. The frequency and percentage of business ownership of
respondent is depicted in Table 2.1

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 Table 2. 1 Business Ownership of respondents

Business Ownership Frequency

Company 6

Partnership 15

Sole Proprietorship 33

Grand Total 54

Business Ownership

11%

Company
28% Partnership
Sole Proprietorship
61%

Figure 2. 1 Business Ownership

Table 2.1 and Figure 2.1 shows the business ownership of the respondents. Out of
total respondents of 54, there were 33 sole proprietorship, 15 partnership, and 6
companies comprising the percentage of 61%, 28% and 11% respectively which
shows that the participation of sole proprietorship respondents were more than that of
partnership and company respondents in the sample size of 54.

10
2.1.2 Business Types

The business types of the respondents are categorized into 6 groups as Retail shop,
Vegetable shop, Cloth store, Shoe shop, Pharmacopoeia and others. The frequency
distribution and percentage composition of respondents business types is depicted in
table 2.2 and figure 2.2
Table 2. 2 Business types of respondents

Business Types Frequency

Cloth store 14

Others 4

Pharmacopoeia 9

Retail shop 15

Shoe shop 8

Vegetable shop 4

Grand Total 54

11
 Business Types

7%

26% Cloth store

15%
Others
Pharmacopoeia
Retail shop
7%
Shoe shop
28% Vegetable shop
17%

Figure 2. 2 Business Types

Among Six mentioned business types of the respondents, large groups of

respondents were Retail shops. There were 15 Retail shops, 14 Cloth shops, 9
Pharmacopoeia, 7 Shoe shops, 4 Vegetable shops, and 4 other businesses. There
were 28% of Retail shops, 26% Cloth shops, 17% Pharmacopoeia, 15% Shoe shops,
7% Vegetable shops and 7% other businesses.

2.1.3 Total Investments

The total investments of the respondents is categorized into four groups as less than 3
lakhs, 3 - 5 lakhs, 5 - 10 lakhs and more than 10 lakhs. The frequency distribution and
percentage composition of respondents total investments is depicted in table 2.3 and
figure 2.3.

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 Table 2. 3 Total Investments of respondents

Total Investments Frequency

3 - 5 lakhs 10

5 - 10 lakhs 17

Less than 3 lakhs 12

More than 10 lakhs 15

Grand Total 54

Total Investments

19%
28%
3 - 5 lakhs
5 - 10 lakhs
Less than 3 lakhs
More than 10 lakhs
31%
22%

Figure 2. 3 Total Investments

Among four mentioned total investments of the respondents, only 22% have
investment less than 3 lakhs, 19% have 3 - 5 lakhs, 31% have 5 - 10 lakhs and 28%
have more than 10 lakhs of investments. This shows that the majority of the
respondents have an investment of 5 - 10 lakhs.

13
 2.1.4 Business Time-Frame

The business time-frame of the respondents is categorized into four groups as less
than 1 years, 1 - 3 years, 3 - 5 years, and more than 5 years. The frequency
distribution and percentage composition of respondents business operation time is
depicted in Table 2.4 and figure 2.4
Table 2. 4 Business Time-Frame

Business Time-Frame Frequency

1 - 3 years 18

3 - 5years 8

Less than 1 year 13

More than 5 years 15

Grand Total 54

Business Time-Frame

28%
33%
1 - 3 years
3 - 5years
Less than 1 year
More than 5 years

24% 15%

Figure 2. 4 Business Operation Time

14
Among four mentioned business time-frames of the respondents, 24% have the
business time frame less than 1 year, 33% have 1 - 3 years, 15% have 3 - 5 years and
more than 5 years of time-frame. This shows that the majority of the respondents have
the time-frame of 1 - 3 years.

2.1.5 Use of QR code Timescales

The use of QR code timescales of the respondents is categorized into four groups as
less than 3 months, 3 - 6 months, 6 months - 1 years, and more than 1 years. The
frequency distribution and percentage composition of respondent’s use of QR code
time-frame is depicted in Table 2.5 and Figure 2.5
Table 2. 5 Use of QR Code Timescales

Use of QR Code Timescales Frequency

3 - 6 months 9

6 months - 1 year 18

Less than 3 month 6

More than 1 years 21

Grand Total 54

15
 Use of QR Code Timescales

17%

39% 3 - 6 months
6 months - 1 year
Less than 3 month
More than 1 years
33%

11%

Figure 2. 5 Use of QR Code Timescales

Among four mentioned uses of QR code timescales of the respondents, only 11%
have less than 3 months use of QR code timescales, 16% have 3 - 6 months, 6 months
- 1 year, and 39% have more than 1 years.

2.2 Descriptive Analysis

This section deals with the descriptive analysis of the data collected through the
questionnaire during the research process. Descriptive analysis incorporates
calculation of statistical measures such as means, standard deviation. These values
help researchers to analyze the data with respect to frequencies and aggregation
relating to research questions and variables. For this purpose “ Five Point Likert
Scale” questions were assigned to the respondents which were scaled from 1
(Strongly Disagree), 2 (Disagree), 3 (Slightly Disagree), 4 (Slightly Agree), 5
(Agree), 6 (Strongly Agree). Number of respondents in each question item was 54.

Here impact of QR Code in small business in Kathmandu has been measured through
its three objectives are preference of QR code, Sales trend and Credit trend. Questions
related to each objective and their descriptive statistics are shown below:

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2.2.1 Preference of QR code
Table 2. 6 Descriptive Statistics of Preference of QR code

Code Preference of QR Code Mean Standard Min. Max.

deviation

P1 QR code payments are easier to use. 4.70 1.7225 1 6

P2 QR code is the safe way of payment. 4.59 1.6197 1 6

P3 Customers are more interested in QR 4.5 1.0595 1 6

payment.

P4 QR code is a trending payment method 4.7 1.6782 1 6

among youngsters.

P5 The QR scanner has made monetary 4.56 1.7662 1 6

transactions easy and faster.

P6 By using the QR code of the product more 3.96 1.7152 1 6

information about the product can be
obtained.

P7 QR codes can be used for marketing and 4.28 1.5950 1 6

promotion in a variety of settings.

Average of all 4.47 1.5938

The descriptive statistics of the individual item and as a whole for preference of QR
code on small business in Kathmandu shows that the aggregate mean of preference of
QR code is 4.47 with standard deviation of 1.5938 which is represented by table 2.6.
This shows that the small businesses in Kathmandu have a preference for QR code.
Mean of all items are above 4 except code P6 which is 3.96. It means that respondents
slightly agree on all the statements. The highest mean 4.7 shows that the respondents
slightly agree with the statement “ QR code payments are easier to use” and “ QR
code is a trending payment method amongst youngsters”. Since all the statements
have mean greater than 4 except one which means the result is showing the slightly
agreed side. The lowest standard deviation 1.0595 observed for statement code P3
reflects the lowest difference of opinion among the respondents in the statement “
Customers are more interested in QR payment”.

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2.2.2 Sales Trend
Table 2. 7 Descriptive Statistics of Sales Trend

Code Sales Trend Mean Standard Min. Max.

Deviation

S1 After using the QR code payment 4.37 1.2483 1 6

system, sales of products and services are
increasing.

S2 QR codes can be used to promote online 4.43 1.6778 1 6

shopping websites.

S3 QR code provides detailed information 4.31 1.7137 1 6

about the name, products, and location of
the business.

S4 QR code changes the buying and selling 4.46 1.6565 1 6

behavior.

S5 QR code saves all the sales transactions. 4.39 1.6416 1 6

S6 QR codes can be used to provide special 4 1.6253 1 6

discounts to increase trust and loyalty
amongst customers.

S7 QR code helps in advance payment for 4.09 1.7832 1 6

placing an order.

S8 QR code enables customers to give 3.74 1.6732 1 6

feedback on services and products.

S9 QR code is an error-free payment system. 4.06 1.4461 1 6

S10 Customers are willing to buy more 3.94 1.5347 1 6

products because of online payment.

Average of all 4.18 1.6001

The descriptive statistics of the individual item and as a whole for sales trend on
impact of QR code in small business in Kathmandu shows that the aggregate mean of
sales trend is 4.18 with standard deviation of 1.6001 which is represented by the table
2.7. This shows that the QR code of small businesses in Kathmandu gives importance
to sales trends. Mean of all items are above 4 except code S8 and S10 and lowest
mean is 3.74. It means that respondents slightly agree on almost all the statements.

18
The highest mean of 4.46 shows that the respondents slightly agreed with the
statement “ QR code changes the buying and selling behavior”. This states that the
impact of QR code in the small business in Kathmandu has a positive impact of QR
code on sales trends in the business. Since all statements have mean greater than 4
which means the result is showing the slightly agreed side. The lowest standard
deviation 1.2483 observed for statement code S1 reflects the lowest difference of
opinion among the respondents in the statement “After using the QR code payment
system, sales of products and services are increasing”.

2.2.3 Credit Trend

Table 2. 8 Descriptive Statistics of Credit Trend

Code Credit Trend Mean Standard Min. Max.

Deviation

C1 Credit sales among the customers are 4.09 1.6399 1 6

declining.

C2 Customers can snap the photo of the QR 4.48 1.7017 1 6

code and can pay directly at any time.

C3 QR code helps in declining the credit 4.39 1.6531 1 6

time.

Average of all 4.32 1.6649

The descriptive statistics of the individual item and as a whole for credit trend on
impact of QR code in small business in Kathmandu shows that the aggregate mean of
sales trend is 4.32 with standard deviation of 1.6649 which is represented by table 2.8.
This shows that the small business in Kathmandu gives importance to the sales trend
on impact of QR code. Mean of all items are above 4 and lowest mean is 4.09. It
means that respondents slightly agree on all the statements. The highest mean of 4.48
shows that the respondents slightly agreed with the statement “Customers can snap
the photo of the QR code and can pay directly at any time”. Since all the statements
have mean greater than 4 which means the result is showing the slightly agreed side.
The lowest standard deviation 1.6399 observed for statement code C1 reflects the

19
lowest difference of opinion among the respondents in the statement “Credit sales
among the customers are declining”.

2.3 Major Finding and Discussion

The availability of existing knowledge and the reference of the research questions as
well as the finding of the research is the main body of this section. The main purpose
of this section is to elucidate the main research questions and to answer them with the
findings of the research along with discussing the said finding with the findings of the
other researches.

For preference of QR code, the mean for each of the means of seven statements was
found to be 4.47 with standard deviation of 1.5938, which falls between sometimes,
and frequently in spectrum respondent. Among the businesses, sole proprietorship
businesses have preference of QR code. Most businesses responded that the use of QR
code payments are easier, safer and youngsters are interested. It saves monetary
transactions and promotes the business among customers. As per the existing research
from Shamim (2018), QR code usefulness refers to very easy to use, easily connect
with shopping sites, very effective for online purchase and user friendly design. For
each statement the scores the means were 4.7, 4.59, 4.5, 4.7, 4.56, 3.96, and 4.28
respectively.

For sales trend, the total mean for each of the means of ten statements was found to be
4.18 and standard deviation of 1.6001, which falls in between sometimes, and
frequency in the spectrum employed. The means for each statement were 4.37, 4.43,
4.31, 4.46, 4.39, 4, 4.09, 3.74, 4.06, 3.94, and 3.94 respectively. Out of these metrics,
the results for the impact of QR code in sales of small businesses are positive. Most
of the businesses have slight disagreement on the use of QR code on getting feedback
from customers about their products and their willingness to buy more products
because of the online payment system. In the overall review of respondents, most of
the businesses ensure that QR code helps in increasing the sale volume. This aligns
with the existing literature of Shamim, Xiaoyan, and Farjana (2018).

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For credit trend, the total means for each of the means of three statements was found
to be 4.32 with the standard deviation of 1.6649, which falls in between sometimes,
and frequently in the spectrum employed. The means for each statement were 4.09,
4.48, and 4.39 respectively. As per the responses the small business have declined the
credit sales of the business and also decline the time taken by customers to pay the
credit. But most of the customers snap the photo of QR code so that they can pay
directly at any time. This has a huge impact on small businesses in circulation of
money in the business.

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 CHAPTER-III

SUMMARY AND CONCLUSION

This chapter presents the overview of findings and conclusion of the study. Findings
and the conclusion of the study is based upon the data analysis and hypothesis testing
which was done in the previous chapter. The first section of this chapter includes a
summary of findings, the second section includes the conclusion part.

3.1 Summary of Findings

The aim of this research was to examine the impact of QR code in small businesses in
Kathmandu. This study was conducted in different small businesses in Kathmandu
among the 54 respondents.

The main objective of this research is to analyze the impact of QR code in small
business in Kathmandu i.e. preference of QR code in business, sales trend, and credit
trend. The research was mainly focused on small businesses in Kathmandu. The
instrument that was used to gather data was a self-structured questionnaire. The
population for the study was limited. Almost above 54 questionnaires were distributed
personally and through emails among various small businesses to different types of
business. All the questionnaires were filled and returned and they were all relevant for
data analysis. Among the 54 respondents, a majority of the business respondents were
owners of the business rather than the employees. Respondents were taken from
different small businesses of Kathmandu and among them were the majority of the
respondents sole proprietorship and majority of them have invested between 5 to 10
lakhs. Respondents of many businesses were using the QR code on the business for
more than 6 months and less than 1 years.

To meet the objectives, at first literature review was carried out to find out the major
findings of other researchers and understand the importance of QR code in business
around the world. Based on the literature review, a conceptual framework and three
hypotheses were made by taking into account the impact of QR code in small business

22
in Kathmandu i.e. preference of QR code, sales trend and credit trend as independent
variables and impact of QR code in small business as dependent variables.

The descriptive findings showed that the preference of QR code had the highest mean
of 4.70 among three independent variables (i.e. sale trend and credit trend). This
shows that the impact of QR code in small businesses has given importance to the
preference of QR code and consider it as vital in influencing the positive impact of
QR code in small businesses. Similarly, the dependent variable impact of QR code in
small business had the aggregate mean of 4.3 and standard deviation of 1.6076. This
shows that the impact of QR code in small businesses in Kathmandu is positive.

3.2 Conclusion

In a world where we expect everything at our fingertips, QR codes provide instant

interaction between businesses and customers. QR codes were steadily growing in
popularity. The impacts of QR code on payment systems and information services are
remarkable. However, the pandemic escalated businesses and marketers' appetite for
them, and it’s not hard to see why. QR codes help to drive traffic to landing pages,
share important information and increase engagement with customers. QR code uses
are many and impactful. They encode anything from simple business cards to more
complex touch less payment systems. They power Wi-Fi authentication, event check-
in, and ordering system, too.

From the conceptual, theoretical and empirical findings, the impact of QR code in
small businesses in Kathmandu appears to be positively significant. The objectives of
the study have been achieved and the research questions have been fully answered by
the analysis conducted.

Overall we can say that QR codes have a significant impact on increasing the sales
trend, customers preference and credit trends in small businesses. The result clearly
indicates that it is important for most of the business in this modern business world.
The result specifically indicates that QR codes are taken highly positively by both
customers and business with variables such as preference of QR code, sales trends and

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credit trends. Therefore, business organizations should start realizing the needs and
importance of QR code, such as the easy and fast excess of payment systems and
information service in order to stay ahead of their competitors. The use of QR code
also leads business organizations to have a lead on digital marketing and increases
innovative and creative ways for marketing and promotions of the business house and
also enhances the competitiveness and the level of sales in the business.

3.3 Recommendation for Future Researcher

Some of the suggestions here will be given as a result of the limitation faced in the
cause of carrying out this study.

1. It is suggested that researchers need to make this same study be conducted

again but on a wider scope. This will provide a deeper understanding on the
importance of QR code in business. That is, it should include other varieties of
small businesses and increase the population size.
2. It is suggested that this type of research is less conducted because QR code is
a new concept in the business section.
3. It is suggested that interviews with focus groups will allow owners to express
in their own words about their perception toward the impact of QR code in
businesses. The results were based on the knowledge of the use of QR code
mostly as a means of payment system and not based on the importance of
internet availability and information services. Therefore, the study
recommends future researchers to go deeper in this area.
4. The findings of the study addressed preference of QR code, sales trends and
credit trends. So, future researchers could include other impacts of QR code on
businesses that can promote marketing and information services provided in
different large sized businesses.

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 REFERENCE

Adhikari, S. ( 2021, Mar 3). QR Merchant, Services and Tips. Khalti. Retrieved from
https://blog.khalti.com/tips/qr-merchant/khalti-qr-code-payment-in-nepal/

Aryal, M. (2020, Dec 14). Use of QR code for Payment Increasing in Nepal. ICT
Frame. Retrieved from https://ictframe.com/qr-code-for-payment-increasing-in-nepal/

Bashir, I., Naik, J., & Madhavaiah, C. (2013). Potential Business Applications of
Quick Response (QR) Codes. Prajnan, 41(4).

Hossain, M. S., Zhou, X., & Rahman, M. F. (2018). Examining the impact of QR
codes on purchase intention and customer satisfaction on the basis of perceived
flow. International Journal of Engineering Business Management, 10,
1847979018812323.

Nepal Rastra Bank Payment Systems Department. (2077). NRB Retrieved from
https://www.nrb.org.np/contents/uploads/2021/01/QR-Code-Guidelines-and-
Framework-and-Specifications.pdf

Sapkota, N. (2021, May 13).QR code payment is getting popular in Nepal. How does
it work? Is it secure? Online Khabar. Retrieve from
https://english.onlinekhabar.com/qr-code-payment-is-getting-popular-in-nepal-how-
does-it-work-is-it-secure.html

QR code. Wikipedia. Retrieved from https://en.wikipedia.org/wiki/QR_code

25
 ANNEXURE

Dear Respondents,

I am Rohan Shrestha, an undergraduate student of Apex College undertaking an

Undergraduate Research Project as partial fulfillment of the academic requirement of
the university.

I will really appreciate it if you spend a few minutes of your time on the questions in
the accompanying Questionnaire. Your action will be kept private and confidential
and used solely for academic study purposes only. Your honest opinion is extremely
valuable for completing this research.

1. How long have you been in this business?

● Less than 1 year
● 1 - 3years
● 3 - 5 years
● More than 5 years

2. What kind of business ownership do you have?

● Sole Proprietorship

● Partnership

● Company

3. What type of business are you running?

● Retail shop
● Vegetable shop
● Cloth store
● Shoe shop
● Pharmacopoeia
● Others

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 4. How much have you invested in your business?
● Less than 3 lakhs
● 3 - 5 lakhs
● 5 - 10 lakhs
● More than 10 lakhs

5. How long have you been using QR codes?

● Less than 3 month
● 3 - 6 months
● 6 - 1 year
● More than 1 years

Please Tick mark the most appropriate response as per the scale below. (1) = Strongly
Disagree, (2) = Disagree, (3) = Slightly Disagree, (4) = Slightly Agree, (5) = Agree,
(6)= Strongly Agree

S.N Statement 1 2 3 4 5 6

1 QR code payments are easier to use.

2 QR code is the safe way of payment.

3 Customers are more interested in QR payment.

4 QR code is a trending payment method among

youngsters.

5 The QR scanner has made monetary transactions

easy and faster.

6 By using the QR code of the product more

information about the product can be obtained.

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7 QR codes can be used for marketing and
promotion in a variety of settings.

8 After using the QR code payment system, sales of

products and services are increasing.

9 QR codes can be used to promote online shopping

websites.

10 QR code provides detailed information about the

name, products, and location of the business.

11 QR code changes the buying and selling behavior.

12 QR code saves all the sales transactions.

13 QR codes can be used to provide special

discounts to increase trust and loyalty amongst
customers.

14 QR code helps in advance payment for placing an

order.

15 QR code enables customers to give feedback on

services and products.

16 QR code is an error-free payment system.

17 Customers are willing to buy more products

because of online payment.

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18 Credit sales among the customers are declining.

19 Customers can snap the photo of the QR code and

can pay directly at any time.

20 QR code helps in declining the credit time.

Thank You for your cooperation

29