ACCA Performance Management (F5) Certification Practice Exam

What might be a barrier for small companies when conducting focus groups?

1. Availability of participants

2. Cost considerations

3. Expertise in moderation

4. Time constraints

The correct answer is: Cost considerations

Cost considerations can pose a significant barrier for small companies when conducting focus groups, as these groups often require financial resources that may be limited. Small companies typically operate with tighter budgets compared to larger organizations, making it more difficult to allocate funds for conducting focus groups, which involves expenses such as participant recruitment, venue rental, incentive payments for participants, and possibly hiring skilled moderators. While other factors like availability of participants, expertise in moderation, and time constraints may also impact the feasibility of conducting focus groups, they often do not present as significant a hurdle as cost does for smaller businesses. Cost plays a fundamental role in overall strategic decision-making, and minimizing expenditures is crucial for small firms trying to maintain profitability and cash flow. Thus, the financial implications of conducting focus groups can lead small companies to opt for less resource-intensive research methods, which may not provide the depth of insight that focus groups can deliver.