This book, first published in 1996, presents a collection of papers by Gordon Foxall charting the development of the Behavioural Perspective Model (BPM) which he devised in the early 1980s and subsequently developed. The model offers a unique and original behaviour-based theory of consumer choice. In seeking to answer the question ‘where does consumer choice take place?’ by drawing upon behavioural psychology, Foxall presents an exciting challenge to previous theories whose emphasis has been on the internal working of the consumer’s mind in reaching rational decisions and choices. Bringing alive the important subject of economic consumption, this seminal volume will be of great interest to students and researchers in consumer research.

This book is about marketing models and the process of model building. Our primary focus is on models that can be used by managers to support marketing decisions. It has long been known that simple models usually outperform judgments in predicting outcomes in a wide variety of contexts. For example, models of judgments tend to provide better forecasts of the outcomes than the judgments themselves (because the model eliminates the noise in judgments). And since judgments never fully reflect the complexities of the many forces that influence outcomes, it is easy to see why models of actual outcomes should be very attractive to (marketing) decision makers. Thus, appropriately constructed models can provide insights about structural relations between marketing variables. Since models explicate the relations, both the process of model building and the model that ultimately results can improve the quality of marketing decisions. Managers often use rules of thumb for decisions. For example, a brand manager will have defined a specific set of alternative brands as the competitive set within a product category. Usually this set is based on perceived similarities in brand characteristics, advertising messages, etc. If a new marketing initiative occurs for one of the other brands, the brand manager will have a strong inclination to react. The reaction is partly based on the manager's desire to maintain some competitive parity in the mar keting variables.

This is the first of two volumes of Dale Jorgenson's empirical studies of consumer behaviour. It focuses on an econometric model of demand obtained by aggregating over a population of consumers with heterogeneous preferences.