In the September 1977 issue (vol. 4) of Journal of Consumer Research« we published an article "Model of Consumer Reaction to Product Characteristics." The June 1979 issue (vol. 6) of this same journal contained an article "Operationalizing Economic Models of Dnand for Product Characteristics" by Brian T. Ratchford that criticized our paper and presented an alternative approach. The June 1979 issue also contained a brief Comment by us on the Ratchford paper. A requirement for brevity imposed by the editor made it impossible for us to present our position in full. This report presents more detail on our arguments. All references to literature in this paper refer to one of the three articles cited previously or to references cited in one of the June 1979 articles.'