Focus groups

The use of focus groups is one tool used in market research.

A focus group usually consists of a representative group of consumers who agree to provide data on a continuous basis about a particular product or service or marketing element, such as price and advertising. This group of people are asked about their attitude towards the product, service, idea, concept, advertisement, packaging or price in an interactive group setting where participants are free to talk with other group members.

In the world of marketing, focus groups are seen as an important tool for acquiring feedback regarding new products, and changes to the marketing mix. In particular, focus groups allow a panel of consumers of a company wishing to develop, name, package, price, promote or test market a new product, to view, test and discuss the new product before it is made available to the public. This can provide invaluable information about the potential market acceptance of the product.

In a typical focus group, a number of respondents gather in the same room. They have already been selected to ensure that they are part of the relevant target market and that the group is a representative subgroup of this market segment. There are usually 6 to 10 members in the group, and the session lasts for 1 to 2 hours. A moderator guides the group through a discussion that probes about the company's (client's) proposed products or services. The discussion is loosely structured, and the moderator encourages the free flow of ideas. The moderator is typically given a list of objectives or an anticipated outline. He/she will generally have only a few specific questions prepared prior to the focus group. These questions will serve to initiate open-ended discussions.
Usually, a video camera records the meeting so that it can be seen by others who were not able to travel to the site. Transcripts can be created from video tape.
If the participants speak different languages a simultaneous interpreter may be used.

Knowledge of the use of focus groups is part of both ACCA Paper F5 and Paper P3, both of which are covered by the tony.surridge.co.uk ACCA e-books which cover exam text, diagnostic questions and answers, mnemonics and charts in selected subjects for the ACCA syllabuses.