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Create focus group with 3 subjects on purchasing a big ticket item

1.Put together a structured focus group of 3 people who have in common the recent purchase of a similar big-ticket item (ex. house, vehicle, television, higher education). (PLEASE REMEMBER, A FOCUS GROUP IS DIFFERENT THAN A GENERAL SURVEY)

2. Find out about the purchase through the focus group.

3. You'll want to base your questioning on the Maslow Theory Model (see Maslow Theory below)

4. Compile the findings in tabular format and analyze them along with pertinent demographic information about the participants.

5. Report how their experiences apply to the Model. Be sure to list the structured questions used in the focus group.

MASLOW THEORY MODEL (after recognition of the need for the product)

a. Search for Alternatives
b. Evaluation of Alternatives
c. Purchase and Use of the Product
d. Evaluation of the Consumption Experience
e. Feedback
f. End of the Consumption Experience

Solution Preview

Focus group is defined by Burns and Bush (2003) as a small group of people brought together and guided by a moderator through an unstructured, spontaneous discussion about a topic. It is called focus group because the moderator serves to focus the discussion on the topic and does not let the group to deviate from the issue.
1. Composition of the group. A structured focus group of 6 people who have in common, the recent purchase of a house. A group of 6 (instead of 3) was chosen because according to Burns and Bush, the optimal size of FG is 6 to 12 people. Smaller than this, an effective group dynamics may not be facilitated. With a very small group, there may be a tendency for one of the participants to monopolize the discussions. The 6 people were chosen on the basis of common characteristics to ensure that they are homogenous in certain aspects. The six are all faculty members of a particular university, they are of the same age bracket ( 41 to 45) , they have 2 to 4 children with at least 1 in college, have an intact family status ( husband and wife are not separated), and with an estimated monthly income of $10,000 to $15,000. It is important that they have the above-mentioned characteristics because such variables are important determinants of a purchase decision on a house.
2. The purchase made by the focus group
All the members of the group were able to buy a house and lot through a financing company that is partly owned by the government. The process involved is as follows:

A. Search for Alternatives
It took the group almost one year in their search for alternatives. Of course, the primary consideration was the price and the financing scheme, along with their financial capabilities and future financing needs.
B. Evaluation of Alternatives
In the evaluation of alternatives, it turned out that ...

Solution Summary

The expert creates a focus group with three subjects on purchasing big ticket items.