Why is service becoming more important than a product? Give five reasons.

Five reasons why services are becoming more important than products are:

1. Rising Income and Standard of Living: As income levels rise, people allocate a larger share of their spending on services such as travel, healthcare, entertainment and education rather than on basic products.

2. Changing Lifestyle and Urbanisation: Urban living, dual-income families and time-pressed lifestyles have raised the demand for services like restaurants, online food delivery, courier services, beauty salons, gyms and child care.

3. Technological Progress: Technology has given rise to new service sectors such as internet, mobile telephony, online banking, e-commerce, OTT platforms and IT services.

4. Increased Complexity of Products: Modern products are more complex, requiring specialised installation, repair and maintenance services (e.g., after-sale service of cars and electronics).

5. Globalisation and Growth of Service Sector: With global trade and liberalisation, the service sector — including banking, insurance, logistics, tourism, BPO and consultancy — has grown rapidly. In countries like India, services contribute over half the GDP.