AMC Analysis (2/2)

Awareness Motivation Capability Awareness Motivation Capability

Medium Low High High Medium High
Post the market
Before the product P&G with its P&G with its
share loss, P&G is
launch, P&G got P&G had little superior product P&G will be highly superior product
not only now
samples of Simply motivation to and the strength motivated to and the strength
aware of the
White to test it make a of its portfolio, retaliate against of its portfolio,
Sept.
product but also
out. So it was countermove had both financial, Colgate since they had both financial,
how the market
aware of the since it expected marketing, armed
Sept. responded to it.
directly attacked marketing, armed

2002
impending attack. quality as the with the quality their markets and with the quality
Through Concept
But it wasn’t primary driver of test, was perfectly took away their test, was perfectly
2002 Test, they also
aware how the this market and capable of 50% of market capable of
understand price
market will not price retaliating against share retaliating against
sensitiveness of
respond to it. Colgate Colgate
market
Since P&G couldn’t comprehend the Based on the existing market stabilization
convenience and price drivers of the trend (2003), future returns, it doesn’t
Likelihood Low market, it wasn’t likely to retaliate against Likelihood Medium make much sense for P&G to retaliate
Colgate against Colgate

Speed Low Speed will be less due to low motivation Speed Low Speed will be less due to low motivation

Decision Making: Behavioral Theory

Confirmation Theory: P&G seeks out information that confirms their belief
about their superior quality