Conducting insightful, effective, and worthwhile market research requires a deep understanding of the strengths and limitations of data collection methods. While companies have long used focus groups and surveys to gather consumer insights, these traditional techniques face significant challenges in today's rapidly evolving marketplace.

​Problem 1: Inherent Bias in Group Settings

Focus groups are highly susceptible to several forms of bias. In a classic study by Dr. Solomon Asch (1958) at Swarthmore College, groups of college students were shown three lines of different lengths and asked to choose the line that had the same length as a reference card (Age of the Sage, 2025). However, everyone but one person was an actor who gave the incorrect answer. Independently, the non-actor got the correct result. However, when placed in a group of actors, the non-actor conformed and gave the wrong answer in over 1/3 of cases. In groups, participants may provide responses they believe are expected or align with the consensus rather than their genuine opinions.

Despite efforts to mitigate and address these issues, this limitation is intrinsic to the group setting. Emerging approaches, such as adaptive interviews with AI agents, reduce these biases by engaging customers in one-on-one, dynamic conversations to provide authentic responses with insightful feedback.

Problem 2: Lack of Contextual Relevance

Traditional focus groups remove consumers from the context in which they make purchasing decisions. Real-world buying behavior is often spontaneous and influenced by immediate circumstances, not by prolonged reflection in a controlled environment. Indeed, in today's digital marketplace, business owners need to understand consumer preferences as they are formed: online and in real-time.

​AI-driven adaptive conversational surveys can engage consumers within the context of their interactions with your products or services, providing relevant, genuine, and actionable insights that are not removed from their natural interactions with the product or service.​

Problem 3: High Costs

​Focus groups require a significant investment of both time and money. For traditional focus groups, expenses can include:

• $600-1,000 for facility costs

• $1,500 for moderation services

• $1,800-$2,000 for viewing, streaming, and interactive processes

• $300 per participant for recruitment and outreach

• $100-$200 per group for refreshments

• $150 per participant

At scale, these costs become burdensome and can be prohibitive for smaller organizations. These costs are accompanied by considerable limitations and barriers to accessing authentic insights and feedback. Even modern, comprehensive studies may cost up to $17,000 for 500 interviews, with additional recruitment fees of up to $20,000 for specialized demographics.

Modern software solutions, such as those developed by Terac, offer scalable and cost-effective alternatives, enabling businesses to gather high-quality insights at a fraction of the cost. In today's digital landscape, companies must adapt by leveraging innovative tools that address the shortcomings of traditional focus groups. AI-powered adaptive interviewing techniques not only reduce bias and costs but allow businesses to access the 99% of thoughts that never surface on the internet, unlocking deeper, more actionable insights from the customers who matter most.

If you're interested in exploring your options for accessing cutting-edge market research technologies that allow you to connect better with your customers, consider exploring a partnership with Terac through a free consulting meeting at your convenience.