This form of research encompasses focus groups and depth interviews.

Focus Groups

Focus groups are usually conducted in a special group facility equipped with a separate one-way mirror viewing area. This enables clients to personally observe group dynamics: members stimulating other members in their own environment.

Sessions are tape-recorded (audio/video) to facilitate an accurate and comprehensive analysis of the proceedings. Qualified individuals are normally offered a cash incentive to guarantee attendance.

The group approach is ideal for ascertaining interest in and acceptance of new products. A major benefit is that analysis of the discussions allows for enhancement of product offerings so they more accurately match customer needs.

Homogeneous groups, composed of decision-makers - or those who at least contribute to the purchasing decision - in the same target market, with similar needs and interests, work best. Customers and non-customers are always put in separate groups. Groups typically number 8 to 10 persons; working with more participants can easily become unwieldy.

Participants are encouraged to talk freely without any fear of disapproval, but with the moderator maintaining control. The objective is to look for consistencies in, for example, behavior, perceptions or purchase intent.

Focus groups are particularly suited to motivational research: examining the influences of attitudes and perceptions on buying behavior ... and interpreting the responses from members when they are presented with new information or products.

So as not to lead group members, a non-structured approach is taken at the beginning of the session: e.g. "Tell me about the last time .... Later, to solicit their reactions, specific alternatives are presented in order to have individuals trade-off, for example, features versus benefits, versus value.

Anticipate Respondent Rationalization

The motivations of participants usually involve a multitude of factors, some of which may not be thoroughly understood even by themselves. Sometimes members try to rationalize their behavior, obscuring perhaps sensitive issues ... such as a reluctance to admit to a lack of knowledge, or economic factors.

In these situations, it is necessary for the moderator to delve below apparent motives to reveal how decisions are actually made. Only real needs and interests must emerge from the discussion.

Usually a second research phase is undertaken. When this occurs, the qualitative findings (from focus groups or depth interviews) are used to design a quantitative phase (often structured telephone interviews).

Use of the results from the qualitative round ensures a functional questionnaire in terms of phrasing, placement of the questions in a judicious order, and the elimination of (as much as possible) open-ended questions.

After learning to speak the customer's language in the first phase, and armed with a better understanding of their perceptions, tentative conclusions are then rigorously tested via a larger, statistically valid, sample.

Once completed, questionnaires are coded and tabulated, providing a detailed breakout of responses for the entire sample, and for meaningful cross-tabulations such as demographic characteristics or business classifications.)