A Management Overview of the "Focus Group Interview" Technique

Transcription

1 A Management Overview of the "Focus Group Interview" Technique Highlights of a lecture Presented By David M. Stander To The Graduate School of Business The University of Michigan Ann Arbor, MI Harper Avenue, St. Clair Shores, MI Ph (586) Fx (586) e: standerco@aol.com

2 Page 2 The "Focus Group Interview" Technique A Management Overview The Focus Group Interview is a powerful marketing tool, but it is also controversial. Many business executives consider it one of the most useful management information tools available, while some condemn it as a research method that should be totally ignored. Interestingly enough, both sides have convincing evidence to support their respective views. The central purpose of this paper is to present a balanced assessment of this research technique by describing fully its strengths as well as its weaknesses. The present document is addressed as much to top management as it is to marketing research professionals. What is The Focus Group Interview? The focus group is a psychological research tool that as been used widely by marketing research practitioners since the early sixties. It is based on the group therapy method used in modern psychiatry. Physically, the focus group involves an informal discussion with a small group of about six to ten people. The discussion is led by a research professional who acts as moderator. Typically, these discussions last between 1 1/2 and 2 hours. Total studies that utilize the focus group approach normally consist of anywhere from two to twenty group sessions. However, the average research assignment usually consists of three to six group interviews. To the casual observer, the typical focus group resembles a very informal discussion among a small number of people that is characterized by emotional outbursts. One minute the group participants may be laughing hysterically while the next moment they are engaged in a heated debate. Accordingly, the role of the moderator varies during the discussion. At times, the moderator merely sits back and listens passively while at other moments he or she may dominate the discussion by expressing certain ideas or raising controversial issues.

3 Page 3 Why Is The Focus Group Technique Used? Generally, there are four major reasons for using the focus group approach: 1) When it is important to understand consumer attitudes and motives as well as the reasons "why" they behave as they do. 2) When we want to discover unmet consumer needs that may exist in a particular product category. 3) When we want to generate or fine-tune new marketing ideas before we test them in the marketplace. 4) When we want to better understand consumer language and "mindsets" before designing a questionnaire for a large survey. The need to understand how consumers really think (and why they act as they do) is probably the single most important reason that marketing research adopted the focus group technique in the first place. Research professionals discovered years ago that the traditional large sample survey involving several hundred (or thousands) of respondents provides an extremely incomplete picture as to "why" a particular consumer segment behaves as it does. For example, it is relatively easy to determine that "72% of the market prefers Brand X over Brand Y." But, the reasons for this preference is often not entirely clear. Typically, the answers from the large sample survey come back as "they prefer the taste" or "this brand is more convenient than the other one." Unfortunately, these results do not always give sufficient insight into how the existing products or marketing strategies can be strengthened. The percentages and numerical tables that emerge still leave management with a very murky picture of the marketplace. Proper use of the focus group method, on the other hand, enables marketing management to concentrate on a specific segment of the population and probe the attitudes and thinking in considerable depth. For example, the focus group allows us to single out certain consumers (such as those who prefer Brand X over Brand Y) and force these people to discuss their feelings in great depth through extensive probing.

4 Page 4 The need to probe deeply into consumer motivations stems from this psychological fact of life: People do not always fully understand their true feelings or reasons for behaving a certain way. Furthermore, they are not always able to communicate their real feelings easily -- even if they do understand them. Indeed, if human beings were "super communicators," there would probably be little need to use the focus group approach. This is inability to communicate clearly within a few minutes is the main reason that large sample surveys often provide results that are difficult to understand. Why Is The Focus Group Controversial? One of the major reasons this tool meets with mixed reaction in some circles is because it is misunderstood. For example, some business executives reject focus groups on the basis that the sample is either "too small" or "not random." In short, they believe that in order for any research to yield valid results, the size of the sample must be in the hundreds or even thousands. This attitude is reflected in the kinds of critical questions directed toward the use of focus groups. For example, they may ask... "How can we believe anything that comes from three group discussions with a total 30 people (10 respondents in each of three focus groups)?"... or... "How do we know if the people were randomly selected to be representative of the total market?" Although these are very logical and sensible-sounding objections, they are surprisingly not even relevant to the types of questions that the focus group is designed to answer. To begin with, this technique is not intended to replace large sample research. Indeed, any responsible focus group study should adhere to the following principle: In most cases, focus group results should be verified by a large sample survey. This principle is especially critical when we find a situation where one or more marketing executives become so excited with the results that they wrongly believe that focus groups can be used as a substitute for large sample surveys.

5 Page 5 A second important fact that is sometimes misunderstood is that the focus group sample (regardless of its size) is not intended to be a statistical representation or projection of a larger universe. Instead, the small focus group sample is intended to contain different "attitude and behavioral" clusters that do exist in the larger universe. For example, if we are interested in understanding the various reasons why some people purchased a new food product and never bought it a second time, we can learn a great deal by including only these "rejecters" in a series of focus group sessions. What typically emerges is a "range" of different reasons, attitudes and perceptions that help explain the fundamental causes of this market rejection. Once again, we will not be able to determine the incidence of each attitude or reason from the focus groups, but we will be able to isolate these findings and obtain a thorough understanding of the causes and dynamics. The incidence of occurrence can be determined later in a larger sample study. In fact, our ability to obtain an incidence "count" on a specific attitude or reason often depends on our knowledge that this attitude exists in the first place. Thus, the focus group uncovers the attitudes or reasons while the large sample survey can measure their importance. When Should Focus Groups Be Used? A convenient rule of thumb is this: Use focus groups when faced with problems that require either an "understanding why" or "creative" effort, but use the large sample method when the problem requires a "counting" effort. When this is applied to the new product planning process, the need for creative insight is especially critical in the early stages, whereas, the need for a counting or forecasting type of insight is usually more important in the middle and later stages. Here, for example, are some typical problem situations where the focus group can serve as a powerful tool... 1) Uncovering consumer needs. 2) Identifying new consumer values and lifestyles. 3) Generating new product ideas and concepts. 4) Understanding "why" people think and act as they do.

6 Page 6 5) Transforming a crudely defined product idea into a concrete expression that may have genuine consumer appeal. 6) Developing a persuasive argument that is designed to influence a specific market segment. 7) Obtaining a preliminary indication of the appeal of a new idea among people who we believe are logical prospects. We purposely define the above activities as involving a "creative" effort. This is particularly important because it reflects the role of the focus group tool in relation to these kinds of problems. More specifically, the focus group can serve as an ideal catalyst for stimulating our own creative juices. Thus, while the efforts of "interviewing" people in small groups can yield a fair amount of direct information, its most important contribution is the effect is has on those marketing professionals who observe the discussions. Indeed, one of the most exciting things that can happen during a group interview is when either the moderator (or one of the client observers viewing the session) concludes: "Oh, if that's how they think, then maybe this is what we should be doing!" The excitement can then build during the research process if we inject these new thoughts into the next group discussion. This creative momentum can occur in most focus group studies when conducted by an experienced moderator. Yet, there are times when focus groups are the totally wrong research tool. Normally, these are situations that require the need to "count" the responses from a large number of people. Here are some typical examples when focus groups should not be used: 1) Measuring consumer awareness of a brand or advertising campaign. 2) Estimating the potential market size or acceptance of a new product idea. 3) Measuring the frequency of specific usage patterns. 4) Constructing a statistical profile of either demographic, psychographic or lifestyle characteristics.

7 Page 7 In many instances, the more complex marketing questions require the use of both small sample focus group studies as well as the large sample surveys. When administered properly, both of these research methods can complement each other exceedingly well. The outcome is a truly enlightened management that can decide from a clearly defined array of strategic alternatives. How Do We Ensure That The Focus Groups Work? Although use of the focus group method has achieved some truly dramatic results over the years, there have been some unfortunate disasters as well. It is, of course, a truism that any tool is only effective when it is used properly. This applies full to focus groups. In fact, this is one technique that can often expose incompetence, particularly when observed by professionals who are thoroughly familiar with the method. (Those unfamiliar with this method can have difficulty spotting a "poor" focus group moderator if they have never seen a "good" one.) Unfortunately in the marketing research profession (like every field), there are some individuals offering this service at a sub-standard level of quality. This explains, at least in part, why some business executives who have been "burned" by an inferior focus group study that they will never authorize the use this research method again. This reaction is unfortunate, but totally understandable. It is for this reason that management should have a set of "criteria" for evaluating the merits of a proposed focus group study. The parts that follow represent some of the key elements that are usually required to ensure that the focus group research will be conducted properly: 1) Planning -- Certainly one of the most important steps is to develop a clear-cut "plan" for the study. This must begin with a clear definition of the study's objectives. (It may well be that once this step is done it becomes obvious that the focus group approach is the wrong method. In that case, we have avoided wasting money on unnecessary research.) A clear definition of the problem and objectives also helps crystallize the types of people we should interview. It can also guide us toward the decision regarding the appropriate number of focus groups to conduct. (Normally, we need a minimum of two to three group interviews for each of the market segment or cell we are investigating.)

8 Page 8 2) Recruiting Respondents -- Generally, the best recruiting philosophy is one that attempts to select those people who represent the most "logical prospects" for whatever we are trying to sell. For example, if a company has developed a new soft-moist dog food that it hopes will attract canned dog food users (and still hold onto their present soft-moist customers), then both of these consumer types should be included in the sample. One possible design would be a six group study that includes three group interviews with canned dog good buyers and three group sessions with the company's current soft-moist dog food customers. It is also important to avoid recruiting anyone who is a "professional" respondent. This refers to people who have already participated in many group interviews or are known to have been a frequent respondent in focus groups, such as every few weeks or months. 3) Informal Atmosphere -- This refers to the fact that the group interview should be conducted in a relaxed, informal setting. Respondents should be encouraged to "let their hair down" and discuss the topics very much the way they might do it in the comfort of their own home. 4) Highly-Skilled Moderator -- The moderator is clearly the single most important element in making the focus group work. The moderator must be someone who is a seasoned professional and has been trained in a number of skills. First, the moderator must completely understand the dynamics of interviewing as well as interrogation and in-depth probing. In addition, the moderator should be highly competent in two other areas. One of these is "creative, spontaneous thinking." This is extremely important because the moderator will often be called upon to generate and describe a new idea during the interview and let the respondents react to it. Another important quality is one we call "acting ability." This is a theatrical quality that relates in a way to stage presence. It is especially useful in terms of keeping respondents actively involved in the discussion and also when it is necessary to "dramatize" an idea to the group in a way that is both clear and engaging.

9 Page 9 5) Applying Stress -- The people who must be interviewed often have some feelings that are deep-seated. Consequently, it is necessary to apply different kinds of "stress" that will help force these true emotions to emerge. One kind of stress is humor. It is well known that people in the midst of hysterical laughter will blurt out the truth -- even when the truth is painful. Another type of stress that can be used is anger. The moderator can get the respondents to debate with him or her or with each other. The more heated the debate becomes, the greater chance we have of getting at the whole truth. Once again, people in real life often reveal sensitive, but honest feelings to each other in the heat of a freewheeling argument. This kind of emotional encounter can be created quite easily in the focus group format. 6) Stimulus Materials -- In addition to the use of stress, a great deal can be learned when people are forced to "react" to specific ideas, messages or physical objects. One of the most effective stimulus materials that used in focus groups is the "concept statement" (also known as "concept boards"). Normally, this is a written statement (of one or more paragraphs) that contains two basic elements: a clear definition of a specific product or service and a clear set of benefits that help explain its "reason-for-being" to the potential buyer. How the respondents react to a particular concept statement usually provides key insights into consumer needs, attitudes, perceptions and future purchase intentions. Since the different consumer reactions are probed extensively by the moderator, the dynamic interaction that occurs provides a deep, meaningful glimpse of the "mind" of the market segment being investigated. Of course, the written concept statement is only one of several different stimulus materials that can be utilized in a focus group interview.

10 Page 10 7) Management Involvement -- A productive focus group study should include a personal and dedicated involvement from senior marketing management. Since this research method is designed to allow hidden observation through a one-way mirror, members of management can (and should) view the results as they occur. This can heighten the outcome of the entire effort because it allows the client to actively participate in the creative process. It also helps to keep the research on a practical, strategic track by concentrating on those aspects of the problem that can be dealt with in a feasible way by the client company. Furthermore, this more intimate involvement can provide senior management with a view of its market that it may have rarely seen before. In fact, the higher up the management ladder we go, the more likely the executives will be "startled" from what they learn. It is not uncommon for senior executives to observe their customers via the focus group interview and then exclaim afterward, "Why I've learned more about how our customers think in these two days than I've learned in twenty years of managing this company!" What Influences The Cost Of A Focus Group Study? The cost of a focus group study depends on several factors, including the complexity of the problem, the availability of respondents and the quality of the research people (especially the moderator) assigned to the study. These three factors can impact on the cost of a total study (complete with recruiting, incentives, moderating, analysis and report) in terms of hundreds and at times thousands of dollars. For example, a group of retired seniors is usually far easier and much less costly to recruit than a group of physicians. Or, a group study conducted in New York City or Los Angeles will often be more costly than one conducted in a smaller city in Missouri or Arkansas. One factor in the cost equation that is sometimes difficult to appreciate has to do with the quality and experience of the focus group moderator. If, for example, an inexperienced moderator is assigned to the study, the research firm can reduce its price per group by several hundred dollars and still make a reasonable profit. However, with many studies (and particularly the more complex ones), it is usually better to use a more experienced moderator even though this requires a higher budget.

11 Page 11 Deciding on whether to use a less experienced moderator or a more experienced moderator can get pretty tricky. For instance, if the marketing problem requires an unsophisticated use of the focus group technique, then the less experienced moderator may be the correct choice. Unfortunately, this cannot always be predicted beforehand. Sometimes, we get involved in what appears to be a fairly "simple" study and discover in midstream that it has many complex aspects. Thus, the danger of selecting the inexpensive group moderator is clear: If the problem is more complicated that we had anticipated, it is almost certain that a less experienced moderator will overlook these more subtle, but critical aspects of the problem. Thus, in this case, the use of the more experienced moderator will be more expensive, but also far more productive. The Future Of The Focus Group In spite of its controversial reputation, the focus group method continues to gain respect from an increasing number of marketing professionals. Naturally, it must never be viewed as a research panacea. Yet, when combined with well-conceived, large sample surveys along with solid business thinking, it can provide management with outstanding direction on a variety of tough marketing problems.