Remember how in the story of The Three Bears, Goldilocks samples the porridge and one is too hot, the other – too cold, and the third is just right?  We feel that video focus groups may frequently be the “just right” method between in-person focus groups and online bulletin board focus groups, offering the benefits of both.

As you may know, online bulletin board focus groups offer the convenience of respondents being able to participate from their own locations at times of their choosing throughout the day.  We also find they’re less influenced by others’ opinions when they’re participating from the psychological safety of their home or office.  And of course, we’re able to get geographically dispersed respondents and not spend any time or money on travel.

However, participants in online bulletin board focus groups do tend to interact less than they would in regular focus groups.  And we miss the body language and spontaneity that we see in traditional groups.

Now that video focus groups have overcome their technical hurdles, they offer the best of both worlds.  They offer the visual benefits of seeing spontaneous reactions in real-time, but also provide the psychological safety, geographical dispersion and travel savings (they can even be used for overseas research).  In the past, video was slow, sound quality was questionable and respondents had to download special software.  But, nowadays, with the use of Flash, we can easily conduct small groups of 4-5 respondents with great audio and video.

With today’s decreased travel budgets and overworked executives, video focus groups are something most companies will want to consider.  Give us a call at (818) 752-7210 and we can discuss the best method or methods to answer your research questions.

We all know that most consumers are concerned about spending in the current recessionary atmosphere.  But how does that concern affect their shopping habits?  In some cases, consumers are buying cheaper items, but more of them, spending the same amount of money as before.  For example, the Herald Tribune reported that at wine.com, the average price of a bottle of wine purchased in December was 17% below the average of the year before, but the number of bottles sold was 15% higher than a year ago.  Similarly, at 9 Mile Schoolhouse Christmas Market in Montana, customers tended toward the smaller and less expensive Christmas decorations, but total revenue per customer was 18% higher than the previous year.

We’re not ignoring the fact that revenue and profits are indeed down for many retailers in this recession.  But is there anything marketers can learn from the sales of wine and Christmas ornaments?  We think those examples may represent a trend toward small indulgences.  That is, consumers are forgoing some luxuries and trading down, but then compensating themselves with a small reward. 

Marketers can benefit by repackaging products and services to fit this trend.  This can work at different ends of the economic spectrum.  For example, companies that offer high-end Baltic cruises might want to also offer a weekend getaway in the United States.  Note that high-end customers don’t want ostentatious displays of wealth right now: consider offering less flashy destinations.  Perhaps a quiet pampered getaway including gourmet food and wine. 

And companies appealing to more mainstream customers may want to consider offering less expensive options.  For example, a company offering activities for kids may have a full-day option that costs $75, which might scare away many parents at the moment.  But a three-hour workshop for $40 could seem very appealing, especially when that alternative is presented alongside the $75 option.

What are the best options to offer your prospects?  We are able to find the answer to this question by conducting market research that asks about trade-offs.  “Which would you prefer: option A for X dollars or option B for Y dollars?”  We then discuss the options further with respondents, and sometimes it turns out they actually prefer some other combination that hadn’t initially been considered!  To discuss how to uncover the most appealing offers for your prospects, give us a call at (818) 752-7210.

Sources: “Buying less expensive wine, and more of it,” International Herald Tribune, January 1, 2009; 9 Mile Schoolhouse, www.9mileschoolhouse.com