Question

Topic: Research/Metrics

Focus Group Or Research Project?

Posted by marcom on 7/20/2011 at 11:04 AM ET 250 Points
We are interested in gathering feedback of both existing and former customers to gauge the appeal of a new communication bundle that is targeted at cell phone users that have disconnected their landline phone service but still want high-speed internet.

Would you suggest a traditional set of formal focus groups be conducted or a mixture of telephone and online surveys instead? Why? Any suggestions for do it yourself online survey tools?
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  • Posted by marcom on 7/20/2011 at 11:30 AM Author
    Thanks Randall. You definitely understand that multiple classes of current, former, and never customers need to be considered in order to create a successful bundle. I agree that it is imperative that the bundle be designed in such a way that all of the groups you highlighted are integrated.

    Would you suggest conducting separate or inclusive groups?
  • Posted by mgoodman on 7/20/2011 at 7:56 PM Accepted
    It depends on your objective and the expected use of results from your research. The goal isn't just "gathering feedback." Would you really make an important business decision based on input from a dozen people?

    The expected use of results should determine the methodology. What you might want to do is get a market research professional to spend an hour or two to help you think through the issues and point you to the most cost-effective way to get what you need.

    An online survey tool might or might not be appropriate. Don't just go there because it looks easy. The most expensive research is bad research ... because you might actually act on information that isn't what you think it is, and learn too late that your decision was exactly wrong as a result.

    With all due respect to Randall (and I am serious about the "due respect" part), I don't know how he can conclude that face-to-face focus groups are the solution based solely on the information you've provided.
  • Posted by peg on 7/20/2011 at 8:24 PM Member
    Phone use is a highly personal, and often complex, decision; for this reason, focus groups are very important because you'll learn about factors that impact your opportunities and sales, but which an online survey alone could never tell you.

    Also, you can videotape focus group sessions to share later with decision makers and program managers who cannot be at the focus group session(s). This humanizes the research and makes it "real" for those who may not be marketing experts.

    There may be regional diversity at play with cell phone decisions -- i.e., attitudes/behaviors/adoption rates in the Northwest may be different than those in the Southeast -- and these regional differences are much easier to identify and parse in personal encounters.

    Focus groups can be outstanding indicators -- but they are only indicators. They provide insight, but not a scientifically valid measure. So, a mix of both focus groups and online research (or other controlled, mass audience research) will provide the deeper, more useful understanding necessary in a highly competitive category such as yours. The combination will help your company make good, solid, confident and profitable decisions, free of internal assumptions that may no longer be valid. Use both.
  • Posted by mgoodman on 7/20/2011 at 10:02 PM Accepted
    Peg got it right. Focus groups can be very useful, but they are not sufficient if you're making an important decision.

    You need to think through the objective and expected use of your research results before you do anything else.

    It may well be that you need a combination of qualitative and quantitative research, and the studies need to be conducted right, or you risk getting flawed results that can mislead you.
  • Posted by marcom on 7/21/2011 at 8:43 AM Author
    Thanks to everyone up to this point for excellent perspectives from all.

    The objective is to design a bundle that increases penetration of broadband subscriptions to the base of access lines. Therefore, it is important to create a bundle that is appealing to prior subs that have disconnected for cell only but need a reasonable cost internet connection that is robust enough to meet their needs. The internet connectivity and basic local landline connection are inherent to the bundle. The secondary additive is the “safety net” of now having a landline connection once again. Our concern is finding a sweet spot for bundle value. How much is too much // too little of other features, calling minutes, etc. to add to create broad appeal?

    At this point I am leaning toward performing an online survey. We will invite current subscribers with an email invite. We will also post the survey address on our website and blog site and post facebook and twitter posts in order to sample a larger group beyond our market. I am also thinking of loading the survey onto a tablet or iPad and going into our communities to perform some face-to-face sampling. Questions will be limited to 10-15 questions designed to solicit age and general communications purchasing habits. Questions about what services they currently lack but would like, pricing, and needs will be the focus.
  • Posted by Jay Hamilton-Roth on 7/21/2011 at 9:15 AM Member
    Are you more focused on the price point or the features of the bundle? Is there a way to have customers build their own bundle? Do you have a way to guarantee people a great price for an introductory phase (to get them to "buy into" your full range of services)?

    The problem with focus groups and surveys is that people often say one thing yet do another.
  • Posted by marcom on 7/21/2011 at 9:36 AM Author
    Although it seems like we may have reversed the order of the cart and horse, I think we are fairly certain of a competitive price point. Now, we are concerned with how much to include in the bundle to make it compelling and illustrate value.
  • Posted by mgoodman on 7/21/2011 at 10:45 AM Accepted
    There's a whole issue about how you recruit respondents to your survey. The approach you describe doesn't ensure that the respondents will be representative of the universe to which you want to appeal.

    You might want to consider a concept test in which you show carefully-selected respondents a bundle and a price, and then ask them how likely they would be to purchase, what questions they have, what they like about it, what else they wish were included, etc.

    You could have 3 or 4 different concepts (i.e., different bundles), and expose them monadically to your target audience. (Each respondent would only see one concept.) Then you can compare measured intent-to-purchase not only to an arbitrary standard, but also across the concepts you test.

    We've used that approach several times in different categories, and it has worked quite well for us.
  • Posted by zebozephyr on 7/21/2011 at 10:58 AM Accepted
    Two critical factors to take into consideration. Mgoodman already alluded to one:
    1) An online survey will likely be much faster to create and execute that planning for and holding focus groups.
    2) What budget have you allocated to gather this information? Again, online will likely save you money. Think about the investment - how much is the information worth to you?
  • Posted by marcom on 7/28/2011 at 9:49 AM Author
    Thanks to everyone for the terrific insight. Your thoughts have given me a lot of additional points to consider and have helped me to focus our research strategy.
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