INTRODUCTION

OF
CUSTOMER PERCEPTION TOWARDS
ACCEPTANCE AND BENEFITS OF QR CODE
FOR PAYMENT OPTIONS.

S U B M I T T E D T O : - P R O F. R A C H I TA J A I S WA L

S U B M I T T E D BY: - S A R A F D E V E N D R A

TA N V I R B A LO C H

POOJA AGHERA

What is a QUICK RESPONSE (QR) Code?

QR or Quick Response Codes are a type of two-dimensional barcode that can
be read using smartphones and dedicated QR reading devices, that link
directly to text, emails, websites, phone numbers and more! You may have
even got to this site by scanning a QR code!

QR codes are huge in Japan and across the East, and are slowly beginning to
become commonplace in the West. Soon enough you will see QR codes on
product packaging, shop displays, printed and billboard advertisements as
well as in emails and on websites. The scope of use for QR codes really is
huge, particularly for the marketing and advertising of products, brands,
services and anything else you can think of.

How is a QR Code different from a normal 1D UPC barcode?

Ordinarily we think of a barcode as a collection of vertical lines; 2D Barcodes

or QR Codes are different in that the data is stored in both directions and can
be scanned vertically OR horizontally.

Whilst a standard 1D Barcode (UPC/EAN) stores up to 30 numbers, a QR

Barcode can store up to a massive 7,089! It is this massive amount of data
that enables links to such things as videos, Facebook or Twitter pages or a
plethora of other website pages.

How do I scan a QR Code?

If you have a smartphone like an iPhone, Android or Blackberry then there a

number of different barcode scanner applications such as Red Laser, Barcode
Scanner and QR Scanner that can read and decode data from a QR code. The
majority of these are completely FREE, and all you have to do once you
install one is to use your phone's camera to scan the barcode, which will then
automatically load the encoded data for you.

What can be encoded into a QR Code?

In its simplest sense a QR Code is an 'image-based hypertext link' that can

be used offline any URL can be encoded into a QR Code so essentially any
webpage can be opened automatically as a result of scanning the barcode. If
you want to encourage someone to like your Facebook page have your
Facebook profile page as the URL. Want your video to go viral encode the
URL in your QR Code. The options are endless.
In addition to website URLs a QR Code can also contain a phone number so
when it is scanned it prompts the user to call a particular number. Similarly
you can encode an SMS text message, V-card data or just plain alphanumeric
text. The smartphone or 2D barcode reading device will automatically know
which application to use to open the content embedded within the QR Code.

Where can QR Codes be placed?

The answer to this is almost anywhere! QR Code printing can be done in

newspapers, magazines, brochures, leaflets and on business cards. Further
to this they can be put on product packaging or labels, or on billboards or
even walls. You could even tattoo a QR Code on your body now that would
be an interesting take on giving a girl/guy your number in a bar!

You can use QR Codes on a website but they should not generally be used as
a substitute for an old-fashioned hyperlink because obviously the user is
already online and doesn't really want to fiddle around with their phone only
to find a website they could have just clicked through to in half the time

What size does a QR Code have to be?

Generally speaking, the larger the QR Code, the easier it is for it to be

scanned, however most QR reading devices are able to scan images that are
small enough to fit on a business card for example. This of course assumes
that the quality of image is good.

Who invented the QR Code?

Denso-Wave - a subsidiary of the Toyota Group - are attributed with the

creation of the QR Code as far back as 1994. Originally it was designed to be
used to track parts in the vehicle manufacturing industry, but its use has
since grown tremendously.

Other 2D Barcode Formats.

QR Codes are just one type of 2D Barcode, although they are probably the
most popular. Other popular 2D Barcode formats are:

Microsoft Tag Microsoft have their very own 2D barcode format known as a
High Capacity Color Barcode, or 'Tag'. The main benefits of this are that you
can easily customize your tag adding color and making it match your
brand. You can also "dynamically change your data source" meaning that you
can change the URL that the tag directs to. The main drawback of Microsoft
Tag is that they can only be read using Microsoft's own tag reader.
Data Matrix This is probably the most similar format to the QR Code and is
commonly used on small electrical components because it can be read even
when only 2-3mm in size.

EZcode This system is a little different in that the data is not actually stored
within the code itself, but on the Scan buy server. A code index is sent from a
mobile device to the server, which queries a database and returns the
information. The problem with such a system is that it is wholly reliant upon
the Scan buy servers.

HOW YOU CAN USE QR CODES IN YOUR BUSINESS

We said QR codes can be found almost anywhere, but how can you make
them work for you?

Here are five ways QR codes can benefit your business:

1) QR your business card: Give your customers more than a bland business
card with basic contact information; let them get to know you. Use a QR code
on your business card to include more than just the standard name, title,
phone number, address and email. Because QR codes can store much more
data than a traditional barcode, add links to your website, blog, social media
accounts, photo and other professional profiles. QR codes also show potential
clients and others that you understand and appreciate how busy they are
and you want to make things easier for them one scan with a smartphone
and all your information can be saved instantly in their contacts.

2) QR your print advertisements: Promote more than just your latest sales
and specials: Show your companys dedication to reducing waste. Instead of
printing a multipage circular, shrink the size to just a few pages, highlight a
few special offers, and include a QR-coded URL that links customers to
product videos, spec sheets or Buy Now pages. Assigning a URL specific to
the QR code in the ad with a re-direct is also great way to track how much
traffic came to that page through your print ads.
3) QR your business stationery and invoices: Mistakes happen and you want
to make the correction process as painless as possible for you and the
consumer. Include a QR code on items such as your business stationery and
invoices that leads directly to your customer service site for such helpful
information as contact numbers, user guides, and (if needed) return labels.

4) QR your events: Use a QR code on event materials that leads to a virtual

version of your event packet and allows attendees to travel light. Include an
e-ticket, travel directions, map, handouts and any other relevant information
your guests may need.

5) QR your inventory: Dont forget that QR codes and other 2D barcodes are
important tools for inventory management and manufacturing and allow you
to track more than just name and price of a product. The codes can also
include information such as serial numbers, part numbers, lots and dates and
other data points.

HISTORY OF QR CODE
In the 1960s when Japan entered its high economic growth period,
supermarkets selling a wide range of commodities from foodstuff to clothing
began to spring up in many neighborhoods.

Cash registers that were then used at checkout counters in these stores
required the price to be keyed in manually. Because of this, many cashiers
suffered from numbness in the wrist and carpal tunnel syndrome.

"Cashiers desperately longed for some way to lighten their burden."

The invention of barcodes provided a solution to this problem. Subsequently

the POS system was developed, in which the price of an item of merchandise
was displayed on the cash register automatically when the barcode on the
item was scanned by an optical sensor, and information on the item was sent
to a computer at the same time.

As the use of barcodes spread, however, their limitations became apparent

as well. The most prominent was the fact that a barcode can only hold 20
alphanumeric characters or so of information.
Users contacted DENSO WAVE INCORPORATED (then a division of DENSO
CORPORATION) who were developing barcode readers at that time to ask
them whether it was possible to develop barcodes that could hold more
information, saying, We'd like the capability to code Kanji and Kana
characters as well as alphanumeric ones.

Encouraged by these enthusiastic requests, a development team at DENSO

WAVE embarked on the development of a new two-dimensional code, all out
of their sincere desire to accommodate users' needs.

Development team made up of just two members

Masahiro Hara

Looking back on those days, Masahiro Hara in charge of the development of

the QR Code then remembers that people who were developing 2D codes at
other companies were all obsessed with packing as much information as
possible into their codes.

With barcodes, information is coded in one direction (one dimension) only.

With 2D codes, on the other hand, information is coded in two directions:
across and up/down., Out of a strong desire to develop a code that could be
read easily as well as being capable of holding a great deal of information,
Hara set out to develop a new 2D code. He dared to try this with only one
other person as his team member.

The greatest challenge for the team was how to make reading their code as
fast as possible. One day, he hit on the idea that their problem might be
solved by adding positional information indicating the existence of a code to
be read.

This was how the position detecting pattern made up of square marks came
into being. By incorporating these marks into their code, high-speed reading
became possible.

*Usually, position detection pattern is black.

So far so good, but why did the marks have to be squares rather than any
other shape?

According to Hara this was because it was the pattern least likely to appear
on various business forms and the like.
If a position detection pattern is used in a code and there is a similar-looking
mark nearby, the code reader may mistake it for the position detection
patterns. To avoid this type of erroneous reading, their position detection
patterns had to be truly unique. After mulling over this problem thoroughly,
they decided to do an exhaustive survey of the ratio of white to black areas
in pictures and symbols printed on fliers, magazines, cardboard boxes and so
on after reducing them to patterns with black and white areas. They
continued the task of surveying innumerable examples of printed matter all
day long for days on end. Eventually, they came up with the least used ratio
of black and white areas on printed matter. This ratio was 1:1:3:1:1. This was
how the widths of the black and white areas in the position detection
patterns were decided upon. In this way, a contrivance was created through
which the orientation of their code could be determined regardless of the
angle of scanning, which could be any angle out of 360, by searching for
this unique ratio.

A year and a half after the development project was initiated and after
innumerable and repeated trial and error, a QR Code capable of coding about
7,000 numerals with the additional capability to code Kanji characters was
finally created. This code could not only hold a great deal of information, but
it could also be read more than 10 times faster than other codes.

In 1994, DENSO WAVE (then a division of DENSO CORPORATION) announced

the release of its QR Code. The QR in the name stands for quick response,
expressing the development concept for the code, whose focus was placed
on high-speed reading. When it was announced, however, even Hara, one of
the original developers of the code, could not be sure whether it would
actually be accepted as a two-dimensional code to replace barcodes. He had
confidence in the performance of the code, however, and was eager to make
the rounds of companies and industry organizations concerned to introduce
it in the hope that it would become known and used by as many people as
possible.

As a result of his efforts, the QR Code was adopted by the auto industry for
use in their electronic Kanban*, and it contributed greatly to making their
management work efficient for a wide range of tasks from production to
shipping to the issuing of transaction slips. Also, in response to a newly-
emerging societal trend where people demanded that the industries'
production processes be made transparent partly to make products
traceable, food, pharmaceutical and contact lens companies began to use
the code to control their merchandise. Particularly, after incidents such as
the BSE problem* that threatened food safety, the industry had to respond to
consumers' demands that the whole processes of production and logistics for
the foods that ended up on their dining tables be made completely
transparent. The QR Code became an indispensable medium that could store
a great deal of information on these processes.

There was still another factor that contributed greatly to spreading the use of
the code, and that was DENSO WAVE's decision to make the specifications of
the QR Code publicly available so that anyone could use it freely.

Although DENSO WAVE would retain the patent rights to the QR Code, it
declared that it would not exercise them. This policy was in place from the
very beginning of the code development, honoring the developers' intent
that the QR Code could be used by as many people as possible. Thus the QR
Code, which could be used at no cost and without worrying about potential
problems, grew into a public code used by people all over the world.

It was in 2002 that use of the code became widespread among the general
public in Japan. What facilitated this trend was the marketing of mobile
phones with a QR Code-reading feature. These phones make it possible for
people to access a website or obtain a coupon by just scanning a strange,
eye-catching pattern. The sheer convenience helped to rapidly heighten the
popularity of the code among the general public. And now, it is an
indispensable tool for businesses and in people's daily lives, used in all sorts
of ways including for issuing name cards and electronic tickets and in flight
ticket issuing systems implemented at airports.

GLOBAL EXPANSION OF QR CODE

Since the QR Code is an open code that anyone is allowed to use, it is used
not only in Japan, but also in countries all over the world. As rules for its use
were stipulated and the code was standardized, its use spread further. In
1997, it was approved as an AIM standard* to be used in the automatic
identification industry. In 1999, it was approved as a standard 2D code by the
Japan Industrial Standards* and made a standard 2D symbol on the Japan
Automobile Manufacturers Association's EDI standard transaction forms*. Still
more, in 2000 it was approved by the ISO* as one of its international
standards. At present, the use of the QR Code is so widespread that it is no
exaggeration to say that it is used everywhere in the world.
While use of the QR Code spread globally, new types of QR Code to meet
more sophisticated needs were created one after another. A micro QR Code
was created to meet the need for smaller codes. This is so small that it can
be printed in a small space and it was made a JIS standard in 2004. In 2008,
the iQR Code, which has a small footprint despite its large coding capacity
and which allows the use of rectangular code modules, was released. The
code also evolved into use of rectangular code modules, was released. Also,
a type of QR Code that implements reading restrictions was developed to
meet users' demands for an enhanced level of privacy and the like as the
times changed. "FrameQR" was introduced in 2014. FrameQR can enhance
the design of your code by freely combining illustrations and photos.

As has been described, evolutionary improvements have constantly been

made to QR Codes, based on the technological expertise accumulated at
DENSO WAVE, so that any of a wide range of varieties can be chosen to meet
a specific need.

CREATORS PASSION FOR QR CODE

In 2012, the QR Code won a prize in the Media for Industry category of the
Good Design Award* established in Japan to comprehensively promote
industrial design. The reason that the QR Code received this award is
described as follows: Its developers took on the challenge of developing a
variety of codes through designing, had the foresight to place its
technologies in the public domain from the early stages of development and
designed a system that has allowed natural uses of the code in people's daily
lives. Eighteen years after the creation of the QR Code, this was the first
time that, apart from the QR Codes inherent functionality, the design of
methods for spreading the code's use and ways in which the code can be
used was acknowledged and honored publicly.

Hara goes on to say, Black and white codes have become so mundane now.
Id like to create more spectacular QR Codes that can stimulate people.

In reply to a question asking him what kind of people he hopes will use the
QR Code, he says: I dont dare specify what kind of people will use it. I just
want to let a lot of people use the code, come up with new ways of using it
with them, and put these ideas into practice. This is the way, Id like to think,
that evolutionary improvements have been made to the QR Code.

And he concludes this interview by saying, This is my policy.

QR PAYMENTS
So far QR code payments are only made possible by and online banking
account known as PayPal. PayPal has made purchasing items over the
Internet much easier and now is incorporating itself in QR codes. With smart
phones and QR codes, you can store you banking account information into
your phone, so instead of carrying a bunch of cards around with you, all you
will need is your cell phone. You will be able to go into a store, pick out an
item, and instantly scan it's barcode to check out. As for receipts, I am sure
there is a way that it can be stored in your phone for a 30 day period.
Eventually over time, everything will be able to be purchased using our cell
phones. All our credit card and bank account information with be able to be
shared simply through scanning a QR code.

Not only can the codes be used for purchasing items but also for paying bills!
What a great way to save time and money, not have to buy checks anymore,
or taking the time to sit down and pay bills. Bill comes in the mail, open it up,
and scan the code, paid. For myself, this technology will certainly help me
make sure I am not late on my bills. QR code are making it possible to pay
my dues instantly instead of having to set time aside to write a check,
balance my account, and mail the check, Although this technology capability
seems incredible, there are some disadvantages. For one, any information
sharing can be dangerous and has the potential of being stolen or hacked.
QR code creators still have yet to hack-proof codes so that people cant
hijack codes and steal every single scanner's personal information. Aside
from the flaws, QR codes are offering consumers a quick, simple, and
paperless way of making purchasing and paying bills.

RETAIL QR CODES

Everyone gets excited about new technology and even more excited when it
can save them money! QR codes in retail allows shoppers to have a more
satisfying buying experience by letting them explore the products through
the use of QR codes.
The QR codes are meant to provide the consumer with more information on
the product before they make their purchase, as well as allow them to make
the purchase right from their phone. How satisfying is avoiding long lines on
Black Friday and the Holidays? Exactly.

Some of the ways retailers use QR codes are to prompt new products, offer
coupons, compare prices in other stores, and allow direct online shopping.
Not only a marketing tool but enhances customer service too! Some QR
codes scanners are linked to the store inventory and can actually tell you the
quantity, size and color currently in stock of the product scanned. Every time
you scan a product it is stored in your phones internal memory and in you QR
app history. This allows the QR code app to recommend certain stores and
products relating to your scanned history. If a particular style is scanned
multiple times by the same consumer, most retails stores offer suggestions
or recommendations related to that product.

We have all had those times when we feel indecisive about the quality of a
product before making the purchase. QR Codes in retail allow customers to
interact with each other online. When scanned, QR Codes bring up the
product and its customer reviews. Reading positive reviews about a product
from a third party is going to increase the likelihood that the customer is
going to make the purchase. When in doubt, scan the code and indulge in
the second opinions.

Making the effort to scan a QR code definitely comes with its benefits.
Rewarding customers with coupons and special offers every time they scan
one of your QR codes, creates a sense of loyalty between them and your
brand. Feeling satisfied with your service and their purchase will make them
more likely to buy from you in the future and recommend your brand to
people they know.

QR codes are not another cheesy one-sided marketing tactic used by stores.
The codes are used to benefit both parties and create all around product and
service satisfaction.
QR CODE PAYMENT ADVANTAGES

FAST TRANSACTIONS

Its easy as 1,2 and 3 choose, scan and confirm to finalize transaction.

ALWAYS AVAILABLE

You just need your smartphone to pay, no further devices and processes.

RELIABILITY

Payment details, title and amount are automatically filled in there are no
mistakes.

Our Strong Points I pad

SECURITY

Bank mobile apps offer the highest standards of security and safety.

NO ADDITIONAL CHARGES

You dont have to pay any additional fees or charges for using QR code
payment.

INNOVATION

Learn about all QR code possibilities and make full use of your smartphone.
SWOT ANALYSIS OF QUICK RESPONSE CODE

STRENGTHS WEAKNESS
Pricing Power Only in Smart phone
Efficiencies Cannot use without
camera
Updated Technologies
Easily Acquired
Online Presence
Strong Management
Innovative Culture

OPPORTUITIES THREATS

Financial leverage Intense Competition

Online Market Change Tastes
Innovation Substitute Products
New technology
New Products
New Markets
International Expansion

PORTERS FIVE FORCCE MODEL

Porters five force model gives us the idea regarding five major forces of
market that are useful in managing the competition of each and every fir in
the market. They are as under

1 Power of supplier
2 Power of buyer
3 Threats of substitutes
4 New entrants
5 Internal competition
1. Power of Supplier
Supplier to the business remain same as used in traditional commerce

2. Power of buyer
Most of the products are similar
low switching cost

3. Threats of substitutes
Traditional commerce practices are the substitutes
Traditional practices are capital intensive and risky
Quality of offering may also be hampered

4. Threat of new entry

Small capital requirement, low switching cost
Low customer loyalty
access to the technology is uniform

5. Internal competition
In each space of function.
Gape of offering are filled by niche service providers
High rivalry because of small switching cost