Focus Group Discussion
A Product Validation Tool
The FGD
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A qualitative tool, the FGD will help the user
gather information on what potential clients
like or dislike about the features of a new
product, and what changes are needed to
make the product more acceptable to clients.
To validate the design of a new product, the
FGD is used after a product has been
designed based on the results of the market
survey, and immediately prior to the pilot
testing stage.
Purpose of FGD

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Gather information on the
acceptability to target clients of
specific features and policies of a
product, and its competitiveness
with similar products in the
market.
Identify what specific product
elements may need to be
modified or improved.
Selecting the FGD Participants
Guidelines
Standard number of groups

There is no standard number of
groups or percentage of the client
population that should be interviewed
How many FGDs
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Client characteristics

For the product design validation
exercise, hold at least one FGD per
branch or per major location the bank
wants to reach.
Choose client characteristics that are
most important in defining your target
markets and what you want to know.
Selecting the FGD Participants
Guidelines
Where to draw FGD
Participants
Size of Group
Should include both men and
women
 Should include both urban &
rural clients, if branch will
cover both areas
 Should conduct FGD by
branch
 Should include participants
representing the major types
of business in the target area

Recommended : 8 – 12
participants

Selecting the FGD Participants
Guidelines
Qualities of
Participants
Can articulate specific
knowledge
Feel comfortable in sharing
that knowledge in a small
group setting
Can engage in a discussion
on aspects of this knowledge
Can demonstrate mutual
respect in allowing others to
speak

Preparing for the FGD
Steps
Activity
1
Know the product features, policies and
procedures
2
Know the population of clients to be
interviewed
3
Logistical arrangements for conduct of
FGD
• Issue invitations
• Select time convenient to majority of the
participants
• Arrange for venue and transportation to
the venue
• Plan to offer refreshments or give
incentives
Managing the FGD Process
You will need a FACILITATOR and a RECORDER
• Facilitator makes the clients feel
comfortable in voicing their opinions in
a group environment;
• Facilitator gets everyone to
participate;
• Facilitator keeps the discussion
flowing; and
• Obtain the information needed in a
limited time (usually one hour or less).
How to conduct the FGD
What to do
Step 1
Introduce the session
Step 2
Warm up
 Introduce yourself and the recorder
 Ask the participants to introduce
themselves
 Explain the purpose of the session
How to conduct the FGD
What to do
Step 3
Define the topic for discussion
Product Features What I LIKE
Borrower Criteria
Loan Purpose
Loan Size
Loan Term
What I DO
NOT LIKE
Recommended
changes
How to conduct the FGD
What to do
Step 4
Discussion Process
Step 5
Recording and keeping track of
opinions
Step 6
Take a break! Serve
refreshments
How to conduct the FGD
What to do
Step 7
Summarize
End the Session Thank the participants. If they need
transportation to go back to their
place of residence or business, be
sure that prior arrangements have
been made to transport them back,
or to refund their transportation
expense
Analyzing the results of the
FGD
Step 1
Transcribe the data from the individual
matrices to the summary of client
satisfaction reporting matrices
Step 2
Study the summary of client satisfaction
reporting matrices. If a voting was
conducted (an optional process), tabulate
the results.
Step 3
Write the analysis
Step 4
Report the findings. Read through the
findings to verify that others agree with
you and to ensure that nothing is left out
How to use the Data
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Evaluate whether there is a need to
modify any of the product
features/elements
If modifications have to be made,
consider the impact of the same on
(1) Risk Management, (2) Cost
Management, and (3) Cost-covering
interest rates.
Words of Caution!!!
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Avoid raising the FGD participants’
expectations that they are assured of a loan
from the bank when it starts to offer its new
loan product.
Avoid raising expectations that all their
suggestions would be adopted.
During the discussion process, the facilitator
or other bank staff observing the process
should not defend the bank’s policies when
participants criticize them. Note the issues
raised and respond to them after the FGD.
Client Satisfaction Matrix
Product Features
What I LIKE
Initial Loan Size
Repeat Loan Size
Loan amount based on capacity to pay
Interest Rate
Service Charge
Loan Term
Contractual Savings
Loan Security
Loan Application procedure
Collection Method
Penalty Charges
What I DON”T
LIKE
Client’s
Recommendation
Why?
% Voting for
Change