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The following article was published in our article directory on March 21, 2010.
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Why Conduct Focus Groups

Article Category: Business

Author Name: Amanda Tschoepe

Consumers are utility-maximizers. They would always seek to get the most satisfaction in purchasing goods and availing of services. The goal of any business is to cater to the needs of the people. This is the generation of a customer-centered growth advocacy of organizations.

People are very opinionated when it comes to goods they buy. If they find flaws in a brand, they become prejudiced and easily changes brand. Since people's tastes and preferences changes constantly, how does a company make sure that they still capture the taste and choice of consumers?

Any firm can look at existing or previous trends on people's demands to best identify with their needs and wants and know what's in and out. There are many surveys and researches conducted to provide such information that a company can use. Although these are very informative it provides only general, dead-end topics, some of which may not be specific to any organization. It is preeminent that companies conduct their own research to make an analysis of different market forces.

This is where focus groups enter the picture.

A focus group is a qualitative research method with groups of participants being asked or discussing their opinions, beliefs and perception about a product, service, organization or any other market issue and entity. An effective focus group gives a clear kaleidoscope of the views of people themselves.

Focus groups are increasing in use as a tool for market research It is deemed ideal by companies who need comprehensive information about the consumers and the market. Focus groups facilitate the discovery of new product ideas and marketing strategies. What advertising techniques are most appealing to the people? All their needs are provided in the market, what more do they need? It enables a company to evaluate acceptability and marketability of existing products by learning of consumer's feedback, comments and suggestions for improvement. Furthermore, it enables one to understand consumer behavior and factors that affect their decision to purchase a good. This is very important since it can give information as to how people values a service or a good and reflects how much they are willing to pay for it. Companies would know what price should they set for its products Because of that, it becomes a good venue for product test before releasing it to the market. It can also give information about the competitors and other brands patronized by the majority.

Conducting focus groups require 8-12 participants, although there can be mini-groups delegated by only 4 or 5 persons. It is lead by a moderator who guides the flow of conversation and ensures all topics be covered. It is essential that the moderator is skilled in speech so that he/she can stimulate the real feelings and belief of the participants. There are rooms which are equipped for the purpose of focus groups where a large, one-way mirror is placed and participant's behavior and reactions are studied. However, it can be conducted in any place with pleasant surroundings. Documentation may be kept through video and audio recorders. Today, technology made it possible for focus groups to be conducted online .

Keywords: Qualitative, Market Research, Focus Groups, Surveys

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