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Showing papers in "Journal of Marketing in 2004"


Journal ArticleDOI
TL;DR: The authors argue that service provision rather than goods is fundamental to economic exchange and argue that the new perspectives are converging to form a new dominant logic for marketing, one in which service provision is fundamental for economic exchange.
Abstract: Marketing inherited a model of exchange from economics, which had a dominant logic based on the exchange of “goods,” which usually are manufactured output The dominant logic focused on tangible resources, embedded value, and transactions Over the past several decades, new perspectives have emerged that have a revised logic focused on intangible resources, the cocreation of value, and relationships The authors believe that the new perspectives are converging to form a new dominant logic for marketing, one in which service provision rather than goods is fundamental to economic exchange The authors explore this evolving logic and the corresponding shift in perspective for marketing scholars, marketing practitioners, and marketing educators

12,760 citations


Journal ArticleDOI
TL;DR: In this article, the authors present a unified strategic framework that enables competing marketing strategy options to be traded off on the basis of projected financial return, which is operationalized as the change in a firm's customer equity relative to the incremental expenditure necessary to produce the change.
Abstract: The authors present a unified strategic framework that enables competing marketing strategy options to be traded off on the basis of projected financial return, which is operationalized as the change in a firm’s customer equity relative to the incremental expenditure necessary to produce the change. The change in the firm’s customer equity is the change in its current and future customers’ lifetime values, summed across all customers in the industry. Each customer’s lifetime value results from the frequency of category purchases, average quantity of purchase, and brand-switching patterns combined with the firm’s contribution margin. The brand-switching matrix can be estimated from either longitudinal panel data or cross-sectional survey data, using a logit choice model. Firms can analyze drivers that have the greatest impact, compare the drivers’ performance with that of competitors’ drivers, and project return on investment from improvements in the drivers. To demonstrate how the approach can be implemented in a specific corporate setting and to show the methods used to test and validate the model, the authors illustrate a detailed application of the approach by using data from the airline industry. Their framework enables what-if evaluation of marketing return on investment, which can include such criteria as return on quality, return on advertising, return on loyalty programs, and even return on corporate citizenship, given a particular shift in customer perceptions. This enables the firm to focus marketing efforts on strategic initiatives that generate the greatest return.

1,939 citations


Journal Article
TL;DR: The authors in this article argue that the new perspectives are converging to form a new dominant logic for marketing, one in which service provision rather than goods is fundamental to economic exchange, and explore this evolving logic and the corresponding shift in perspective for marketing scholars, marketing practitioners, and marketing educators.
Abstract: Marketing inherited a model of exchange from economics, which had a dominant logic based on the exchange of “goods,” which usually are manufactured output. The dominant logic focused on tangible resources, embedded value, and transactions. Over the past several decades, new perspectives have emerged that have a revised logic focused on intangible resources, the cocreation of value, and relationships. The authors believe that the new perspectives are converging to form a new dominant logic for marketing, one in which service provision rather than goods is fundamental to economic exchange. The authors explore this evolving logic and the corresponding shift in perspective for marketing scholars, marketing practitioners, and marketing educators.

1,657 citations


Journal ArticleDOI
TL;DR: In this paper, the authors report the results of four studies designed to replicate and extend these findings and provide evidence that perceived corporate social responsibility affects not only customer purchase behavior through customer-corporate identification but also customer donations to corporate-supported nonprofit organizations.
Abstract: Both theory and recent research evidence suggest that a corporation’s socially responsible behavior can positively affect consumers’ attitudes toward the corporation. The effect occurs both directly and indirectly through the behavior’s effect on customer–corporation identification. The authors report the results of four studies designed to replicate and extend these findings. Using a field survey design, Study 1 provides evidence that perceived corporate social responsibility affects not only customer purchase behavior through customer–corporate identification but also customer donations to corporate-supported nonprofit organizations. Using experimental designs, Studies 2 and 3 replicate and extend the Study 1 findings by providing additional evidence for the mediating role of customer–corporate identification on the relationship between corporate social responsibility and customer donations. However, the combined results of Studies 2 and 3 also show that because of a “perceived opportunity to d...

1,410 citations


Journal ArticleDOI
TL;DR: In this paper, the authors develop a theoretical framework that specifies how customer satisfaction affects future customer behavior and, in turn, the level, timing, and risk of future cash flows.
Abstract: In this article, the authors develop a theoretical framework that specifies how customer satisfaction affects future customer behavior and, in turn, the level, timing, and risk of future cash flows. Empirically, they find a positive association between customer satisfaction and shareholder value. They also find significant variation in the association across industries and firms.

1,255 citations


Journal ArticleDOI
TL;DR: In this paper, the authors identify research issues and gaps in existing knowledge on buyers' perceptions of price fairness, and conclude with guidelines for managerial practice for price fairness in the context of pricing.
Abstract: Recent news coverage on pricing portrays the importance of price fairness. This article conceptually integrates the theoretical foundations of fairness perceptions and summarizes empirical findings on price fairness. The authors identify research issues and gaps in existing knowledge on buyers’ perceptions of price fairness. The article concludes with guidelines for managerial practice.

1,217 citations


Journal ArticleDOI
TL;DR: In this paper, the mediating role of creativity between market orientation and new product development and marketing programs was examined. And the authors found that the meaningfulness dimension, rather than the novelty dimension, was of greater importance in explaining the link between market or market or...
Abstract: The ability to generate and market creative ideas in new products (NPs) and related marketing programs (MPs) in response to changing market needs is key to the success of a firm. This research examines the mediating role of NP and MP creativity between market orientation and NP success. The authors investigate (1) whether market orientation facilitates or inhibits creativity, (2) whether creativity influences NP performance, and (3) how to define and measure creativity in the NP development and launch contexts. They use a two-stage sampling frame to collect 312 sets of responses from managers and NP team leaders and thereby address the potential for common method bias in measures of creativity and NP performance. The findings indicate that NP and MP creativity mediates the relationship between market orientation and NP success. The authors also show that the meaningfulness dimension, rather than the novelty dimension, of creativity is of greater importance in explaining the link between market or...

1,031 citations


Journal ArticleDOI
TL;DR: For too long, marketers have not been held accountable for showing how marketing expenditures add to shareholder value as mentioned in this paper, and this lack of accountability has undermined marketers' credibility, threatened the standing of the marketing function within the firm, and even threatened marketing's existence as a distinct capability.
Abstract: For too long, marketers have not been held accountable for showing how marketing expenditures add to shareholder value. As time has gone by, this lack of accountability has undermined marketers’ credibility, threatened the standing of the marketing function within the firm, and even threatened marketing’s existence as a distinct capability within the firm. This article proposes a broad framework for assessing marketing productivity, cataloging what is already known, and suggesting areas for further research. The authors conclude that it is possible to show how marketing expenditures add to shareholder value. The effective dissemination of new methods of assessing marketing productivity to the business community will be a major step toward raising marketing’s vitality in the firm and, more important, toward raising the performance of the firm itself. The authors also suggest many areas in which further research is essential to making methods of evaluating marketing productivity increasingly valid,...

1,026 citations


Journal ArticleDOI
TL;DR: In this article, the authors draw on the strategy and marketing literature to develop an integrative theory of the antecedents of export venture performance, and empirically assess predicted relationships using survey data from 287 export ventures.
Abstract: Both the size and the rapid growth of global exporting have focused the attention of marketing researchers on the factors associated with firms’ export performance. However, knowledge of this increasingly important domain of marketing activity remains limited. To address this knowledge gap, the authors draw on the strategy and marketing literature to develop an integrative theory of the antecedents of export venture performance. The interplay among available resources and capabilities, competitive strategy decisions, and competitive intensity determines export venture positional advantages and performance outcomes in the theoretical model. The authors empirically assess predicted relationships using survey data from 287 export ventures. Results broadly support the theoretical model, indicating that resources and capabilities affect export venture competitive strategy choices and the positional advantages achieved in the export market, which in turn affect export venture performance outcomes. In c...

911 citations


Journal ArticleDOI
TL;DR: In this article, the authors evaluate the usefulness of customer lifetime value (CLV) as a metric for customer selection and marketing resource allocation by developing a dynamic framework that enables managers to maintain or improve customer relationships proactively through marketing contacts across various channels and to maximize CLV simultaneously.
Abstract: The authors evaluate the usefulness of customer lifetime value (CLV) as a metric for customer selection and marketing resource allocation by developing a dynamic framework that enables managers to maintain or improve customer relationships proactively through marketing contacts across various channels and to maximize CLV simultaneously. The authors show that marketing contacts across various channels influence CLV nonlinearly. Customers who are selected on the basis of their lifetime value provide higher profits in future periods than do customers selected on the basis of several other customer-based metrics. The analyses suggest that there is potential for improved profits when managers design resource allocation rules that maximize CLV. Managers can use the authors’ framework to allocate marketing resources efficiently across customers and channels of communication.

818 citations


Journal ArticleDOI
TL;DR: This article developed and tested a model that explains how service-worker customer orientation affects several important job responses, including perceived job fit, job satisfaction, commitment to the firm, and organizational citizenship behaviors.
Abstract: Implementation of the marketing concept in service firms is accomplished through individual service employees and their interactions with customers. Although prior research has established a link between service-worker customer orientation and performance outcomes, little research has addressed other potentially important outcomes of customer orientation. Drawing from the literature on person‐situation interaction and fit theory, the authors develop and test a model that explains how service-worker customer orientation affects several important job responses, including perceived job fit, job satisfaction, commitment to the firm, and organizational citizenship behaviors. Across three field studies in two distinct services industries, the results indicate that the positive influence of customer orientation on certain job responses is stronger for service workers who spend more time in direct contact with customers than for workers who spend less time with customers. The authors discuss the implications of the results for services marketing managers and researchers.

Journal ArticleDOI
TL;DR: The three key ad elements (brand, pictorial, and text) each have unique superiority effects on attention to advertisements, which are on par with many commonly held ideas in marketing practice.
Abstract: The three key ad elements (brand, pictorial, and text) each have unique superiority effects on attention to advertisements, which are on par with many commonly held ideas in marketing practice. This is the main conclusion of an analysis of 1363 print advertisements tested with infrared eye-tracking methodology on more than 3600 consumers. The pictorial is superior in capturing attention, independent of its size. The text element best captures attention in direct proportion to its surface size. The brand element most effectively transfers attention to the other elements. Only increments in the text element’s surface size produce a net gain in attention to the advertisement as a whole. The authors discuss how their findings can be used to render more effective decisions in advertising.

Journal ArticleDOI
TL;DR: In this paper, the authors take a cost-benefit approach to the decision to boycott and present a conceptualization of motivations for boycott participation, and test their framework during an actual boycott of a multinational firm that was prompted by factory closings consumers who viewed the closures as egregious were more likely to boycott the firm.
Abstract: Although boycotts are increasingly relevant for management decision making, there has been little research of an individual consumer’s motivation to boycott Drawing on the helping behavior and boycott literature, the authors take a cost–benefit approach to the decision to boycott and present a conceptualization of motivations for boycott participation The authors tested their framework during an actual boycott of a multinational firm that was prompted by factory closings Consumers who viewed the closures as egregious were more likely to boycott the firm, though only a minority did so Four factors are found to predict boycott participation: the desire to make a difference, the scope for self-enhancement, counterarguments that inhibit boycotting, and the cost to the boycotter of constrained consumption Furthermore, self-enhancement and constrained consumption are significant moderators of the relationship between the perceived egregiousness of the firm’s actions and boycott participation The

Journal ArticleDOI
TL;DR: In this paper, the authors apply multivariate time-series models to the automobile industry, in which both new product introductions and promotional incentives are considered important performance drivers, and they investigate the short and long-term impact of such marketing actions on financial metrics, including top-line, bottom-line and stock market performance.
Abstract: Year after year, managers strive to improve financial performance and firm value through marketing actions such as new product introductions and promotional incentives. This study investigates the short- and long-term impact of such marketing actions on financial metrics, including top-line, bottom-line, and stock market performance. The authors apply multivariate time-series models to the automobile industry, in which both new product introductions and promotional incentives are considered important performance drivers. Notably, whereas both marketing actions increase top-line firm performance, their long-term effects strongly differ for the bottom line. First, new product introductions increase long-term financial performance and firm value, but promotions do not. Second, investor reaction to new product introduction grows over time, indicating that useful information unfolds in the first two months after product launch. Third, product entry in a new market yields the highest top-line, bottom-l...

Journal ArticleDOI
TL;DR: In this article, a typology of exchange relationship mechanisms and a model of relationship dynamics is presented to provide guidelines for customer portfolio management. But the model does not capture the trade-offs between scale economies and lifetime customer value.
Abstract: Management of an entire portfolio of customers who are at different relationship stages requires a dynamic theory of exchange relationships that captures the trade-offs between scale economies and lifetime customer value. This article contributes to the understanding of relationship management by developing a typology of exchange relationship mechanisms and a model of relationship dynamics and by simulating the model to provide guidelines for customer portfolio management. An important insight from the research is that a key to the creation of value through closer relationships lies in bringing weaker relationships into a portfolio in the first place. Another insight is that firms that position themselves toward offerings with low economies of scale, such as personal services, must build closer relationships to create value.

Journal ArticleDOI
TL;DR: In this article, the authors examine how a firm's strategy in a (downstream) customer relationship is contingent on how a related relationship outside of the focal dyad is organized.
Abstract: The authors examine how a firm’s strategy in a (downstream) customer relationship is contingent on how a related relationship outside of the focal dyad is organized. Drawing on emerging perspectives on interfirm governance and networks, the authors propose that the ability to show flexibility toward a (downstream) customer under uncertain market conditions depends on the governance mechanisms that have been deployed in an (upstream) supplier relationship. The governance mechanisms take the form of (1) supplier qualification programs and (2) incentive structures based on hostages. The authors develop a set of contingency predictions and test them empirically in the context of vertical supply chain networks in the apparel industry. The tests show good support for the hypotheses. The authors discuss the implications of the findings for marketing theory and practice.

Journal ArticleDOI
TL;DR: In this article, the authors investigate the relationship between three types of branding strategies: corporate branding, house of brands, and mixed branding, and find that mixed branding strategy is associated with lower values of Tobin's q, after controlling for the effects of several important and relevant factors.
Abstract: Firms exhibit or “manifest” three types of branding strategies: corporate branding, house of brands, or mixed branding. These strategies differ in their essential structure and in their potential costs and benefits to the firm. Prior research has failed to understand how these branding strategies are related to the intangible value of the firm. The authors investigate this relationship using five-year data for a sample of 113 U.S. firms. They find that corporate branding strategy is associated with higher values of Tobin’s q, and mixed branding strategy is associated with lower values of Tobin’s q, after controlling for the effects of several important and relevant factors. The relationships of the control variables are consistent with prior expectations. In addition, most of the firms would have been able to improve their Tobin’s q had they adopted a branding strategy different from the one their brand portfolios revealed. The authors also discuss implications and future research directions.

Journal ArticleDOI
TL;DR: In this article, the authors develop a nomological network to identify organizational actions that enable effective implementation of the customer knowledge development process, the characteristics of new product development projects that moderate the effects of these actions, and the outcomes that are generated by the process.
Abstract: By enhancing the fit between new product features and customer preferences, the customer knowledge development process fosters new product success. Despite this significant benefit, there is considerable variance in the extent to which firms engage in this process in their new product development projects. This is because not all firms can meet the resource, strategic flexibility, and motivational requirements of the process. In this research, the authors develop a nomological network wherein they identify (1) the organizational actions that enable effective implementation of the customer knowledge development process, (2) the characteristics of new product development projects that moderate the effects of these actions, and (3) the outcomes that are generated by the process. The results from a survey of 165 marketing managers who had recently participated in new product development projects provide substantial support for the nomological network. The authors explore the theoretical and manageria...

Journal ArticleDOI
TL;DR: In this paper, the authors use a field investigative approach to study the evolution of three industrial buyer-seller relationships in mature industrial markets and find that weaker firms can structure and thrive in long-term relationships with powerful partners because initial asymmetries are subsequently redressed through the development of high levels of interpersonal trust across the dyad, which in turn leads to increased levels of interorganizational commitment.
Abstract: Empirical research in relationship management has tended to take a snapshot of a relationship at a given time and attempt to project its trajectory, despite agreement among researchers that a longitudinal perspective focused on process models advances the implications for practice. The authors use a field investigative approach to study, over time, the evolution of three industrial buyer–seller relationships in mature industrial markets. The relationships are characterized by various degrees of initial asymmetry and have evolved in dramatically different ways over time. Their findings suggest that weaker firms can structure and thrive in long-term relationships with powerful partners because initial asymmetries are subsequently redressed through the development of high levels of interpersonal trust across the dyad, which in turn leads to increased levels of interorganizational commitment.

Journal ArticleDOI
TL;DR: The study tests a use-diffusion model in the context of home technology use and shows that user segments vary on the basis of social context and technological makeup of the household as well as personal factors and external influences.
Abstract: The study tests a use-diffusion model in the context of home technology use. The authors combine two constructs, variety and rate of use, to yield four user segments. The results show that user segments vary on the basis of social context and technological makeup of the household as well as personal factors and external influences. Furthermore, user segments differ with regard to users’ satisfaction with technology and interest in acquiring future technologies.

Journal ArticleDOI
TL;DR: In this paper, the authors develop and test a model of the key determinants of margins that retailers earn on national brands and store brands and particularly focus on the impact of store-brand share on percentage margin, dollar margin per unit, and total dollar margin of the retailer.
Abstract: The authors develop and test a model of the key determinants of margins that retailers earn on national brands and store brands. They particularly focus on the impact of store-brand share on percentage margin, dollar margin per unit, and total dollar margin of the retailer. The authors find not only that percentage retail margins on store brands are higher than on national brands but also that high store-brand share enables retailers to earn higher percentage margins on national brands. However, the dollar margin per unit may be smaller for store brands because of their lower retail price. Furthermore, heavy store-brand users contribute much less to the total dollar profit of the retailer than do light store-brand users. The authors conclude that it is important for retailers to retain a balance between store brands and national brands to attract and retain the most profitable customers.

Journal ArticleDOI
TL;DR: In this article, the authors examine the effects of interactional, functional, and environmental knowledge stores on relationship quality and relationship portfolio effectiveness, and suggest that the knowledge stores affect the outcome variables differently and that the effects vary by levels of industry turbulence.
Abstract: Drawing on the notions of relational capabilities and absorptive capacity, the authors examine the effects of interactional, functional, and environmental knowledge stores on relationship quality and relationship portfolio effectiveness. The results suggest that the knowledge stores affect the outcome variables differently and that the effects vary by levels of industry turbulence.

Journal ArticleDOI
TL;DR: In this article, the authors develop a theoretical framework to understand the relationships among strategic responses to new technologies, organizational resources, and firm performance, which can be categorized according to the dimensions of magnitude, domain, and speed.
Abstract: Modern corporations must adopt and assimilate new technologies to build and sustain competitive advantage. The authors develop a theoretical framework to understand the relationships among (1) strategic responses to new technologies, (2) organizational resources, and (3) firm performance. Specifically, they theorize that a strategic response can be categorized according to the dimensions of magnitude, domain, and speed, and they conceptualize organizational resources as tangible and intangible. The authors operationalize this framework for the adoption of the Internet by traditional store-based retailers, for which they posit strategic responses as the speed of (1) adopting the Internet as a communications channel, (2) adopting the Internet as a sales channel, and (3) forming e-alliances. In addition, they use resource slack to represent organizational resources. Results from nine years (1992–2000) of data on 106 firms establish the influence of strategic responses on firm performance (i.e., mark...

Journal ArticleDOI
TL;DR: In this article, a conceptualization of health care services in which customer compliance outside of the service organization is necessary for successful health outcomes is provided and empirically tested, using data from service providers and customers in a weight-loss clinic.
Abstract: This research provides and empirically tests a conceptualization of health care services in which customer compliance outside of the service organization is necessary for successful health outcomes. Using data from service providers and customers in a weight-loss clinic, the authors examine the provider’s role in gaining customer compliance. They find that provider expertise and attitudinal homophily play a role in bringing about customer role clarity, ability, and motivation. This study demonstrates that compliance leads to goal attainment, which results in satisfaction. More important, compliance also leads to satisfaction directly; consumers who comply with program requirements have greater satisfaction with the program.

Journal ArticleDOI
TL;DR: In this article, the authors developed empirically based guidelines to help managers select typefaces that affect strategically valued impressions, and discussed the potential trade-offs among the impressions created by typeface (e.g., pleasing, engaging, reassuring, prominent).
Abstract: This article develops empirically based guidelines to help managers select typefaces that affect strategically valued impressions. The authors discuss the potential trade-offs among the impressions created by typeface (e.g., pleasing, engaging, reassuring, prominent). The selection of typeface can be simplified with the use of six underlying design dimensions: elaborate, harmony, natural, flourish, weight, and compressed.

Journal ArticleDOI
TL;DR: In this article, the authors develop a conceptual framework that explains the consequences of different portfolio descriptors for radical innovation, incremental innovation, and profitability in the pharmaceutical industry, and an empirical test shows strong support for the developed theory.
Abstract: Despite the high relevance of firms’ portfolios of upstream interfirm agreements in technology-intensive markets, little is known about their impact on innovative success. The authors develop a conceptual framework that explains the consequences of different portfolio descriptors for radical innovation, incremental innovation, and profitability. An empirical test in the pharmaceutical industry shows strong support for the developed theory.

Journal ArticleDOI
TL;DR: The American Marketing Association and the Marketing Science Institute formally agreed to cosponsor the Special Section on Linking Marketing to Financial Performance and Firm Value (LMLV) as discussed by the authors.
Abstract: In January 2002, Donald R. Lehmann, Executive Director of the Marketing Science Institute, submitted a proposal for a JM Special Section, “Linking Marketing to Financial Performance and Firm Value.” The proposal included activities to promote interactions among marketing academics and practitioners, designed to advance research on this topic. I was excited about the opportunity to stimulate and publish new research, and after extensive discussions, the American Marketing Association and the Marketing Science Institute formally agreed to cosponsor the Special Section. Authors submitted their manuscripts through a paper competition as well as directly through JM. Donald R. Lehmann, the Consulting Editor, and a panel of distinguished scholars reviewed every submission. The panel included Tim Ambler, Gregory S. Carpenter, Robert Jacobson, V. Kumar, Roland T. Rust, and Rajendra K. Srivastava. All submissions underwent JM’s standard double-blind review process under my editorship, and members of JM’s E...

Journal ArticleDOI
TL;DR: In this article, the authors study the effects of network externalities in conjunction with other product and firm characteristics on the survival of pioneers and find evidence that network externality has a negative main effect on survival duration of pioneers.
Abstract: Network externalities are playing an increasingly important role in the economy, and they have significant implications for firms’ marketing strategies. The authors study the effects of network externalities in conjunction with other product and firm characteristics on the survival of pioneers. They apply an accelerated failure time model to data on 45 office products and consumer durables. The authors find evidence that network externalities have a negative main effect on the survival duration of pioneers. However, for more radical products and for technologically intense products, increases in network externalities are associated with increased survival duration. The larger the pioneer, the more network externalities increase its survival duration, whereas incumbent pioneers experience a decrease in survival duration compared with nonincumbents. The findings of this article contribute to theory in marketing strategy and have important implications for firms that are developing market entry stra...

Journal ArticleDOI
TL;DR: The authors empirically explore the revenue impact of marketing-mix variables and their interactions and find that pharmaceutical direct-to-consumer advertising and detailing (sales force) affect demand synergistically, detailing raises price elasticity, and detailing has a higher return on investment than does direct to consumer advertising.
Abstract: The authors empirically explore the revenue impact of marketing-mix variables and their interactions. The findings include the following: pharmaceutical direct-to-consumer advertising and detailing (sales force) affect demand synergistically, detailing raises price elasticity, and detailing has a higher return on investment than does direct-to-consumer advertising. The authors also discuss other implications and provide future research directions.

Journal ArticleDOI
TL;DR: Bolton and Lusch as discussed by the authors observed that an evolution is underway toward a new dominant logic for marketing, which has important implications for marketing theory, practice, and pedagogy, as well as for general management and public policy.
Abstract: In the preceding article, Vargo and Lusch (VL 2004) observe that an evolution is underway toward a new dominant logic for marketing. The new dominant logic has important implications for marketing theory, practice, and pedagogy, as well as for general management and public policy. Thus, their observations are likely to resonate with a broad cross-section of the business community. With the goal of stimulating discussion and debate, I invited some distinguished scholars to write brief commentaries on different aspects of V&L’s article. I was delighted to receive a thoughtful and diverse set of comments. The ideas expressed in the article and the commentaries will undoubtedly provoke a variety of reactions from readers of Journal of Marketing. I hope you will enjoy reading, and thinking, about these scholars’ views on the fundamental premises of marketing as much as I did. —Ruth N. Bolton