Why Focus Groups Fail for Test Marketing

I just read something about using focus groups to test products for the market that made a whole lot of sense to me. It was in Timothy Ferriss’s book The 4 Hour Work Week. Tim was talking about why focus groups fail to predict the market success of a product.

I have my own particular perspective on this because I participate in focus groups regularly. I have two marketing firms in the Twin Cities that contact me regularly to participate in focus groups. The money is lousy but I always learn something every time I participate.

Anyway, back to Tim Ferriss. Here’s what he says in his book about focus groups:

Ask ten people if they would buy your product. Then tell those who said “yes” that you have ten units in your car and ask them to buy. The initial positive responses, given by people who want to be liked and aim to please, become polite refusals as soon as real money is at stake. (See p. 166 for this quote)

To get an accurate indicator of commercial viability, don’t ask people if they would buy—ask them to buy. The response to the second is the only one that matters.

Having participated in many focus groups, I can honestly say he’s absolutely right. When you don’t have any skin in the game, your response is probably based more on your personality type than on whether you really would have an interest in the product.

Keep that in mind the next time a marketing firm wants to spend your hard-earned money on a “focus group.” By the way, I highly recommend the 4 Hour Work Week for anyone who wants a “nuts & bolts” approach to business and marketing.

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