The Home Depot entered the market as a store for professional and amateur plumbers,electricians,and carpenters.Then it introduced its garden centers.Next came its home design center that provides help with all kinds of interior decorating problems.Now it is enlarging its garden centers and hiring knowledgeable gardeners to staff these centers.The addition of more amenities and greater assortment can be best explained by which of the following?
A)the 80/20 rule of retailing
B)the success of off- price retailers
C)the wheel- of- retailing hypothesis
D)the interconnectedness of the retail life cycle
E)the trend toward disintermediation

Question

Quizplus · Accepted Answer

The wheel-of-retailing hypothesis suggests that retailers start with low prices and few services, then gradually add more services and amenities, increasing prices over time. This aligns with Home Depot's strategy of expanding its offerings and services.

The Home Depot Entered the Market as a Store for Professional