One of the methodologies employed to conduct pretests is focus groups, in which the management of a company makes budgeting decisions. participants freely discuss the meaning they get from ads

True

Explanation:

Focus groups can be very useful, but the researchers must be aware that people generally tend to lie or not tell the truth during focus groups. The major disadvantage of focus groups over individual surveys (and even those are not 100% correct) is that people sometimes feel ashamed of admitting to do certain things. E.g. according to focus groups all mothers agree that eating healthy food is the best they can do for their children, but McDonald's is the number one selling restaurant chain in the world. And the chains that follow them are all fast food, i.e. unhealthy.

Researchers need to interpret what happens during focus groups, because once an idea has been established, e.g. the ad was great because of some reason, then no one will contradict that general group knowledge.