Commercial Applications
Why are services becoming important? Give three reasons.
OR
Explain any five reasons for the increasing importance of service.
Markets & Marketing
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Answer
Five reasons for the increasing importance of services are:
Rising Standard of Living: As income levels rise, people spend more on services like travel, entertainment, education and healthcare. They are willing to pay for convenience and comfort.
Growing Urbanisation and Working Population: With more people living in cities and more women joining the workforce, the demand for services such as restaurants, courier services, beauty parlours, child care, dry cleaning and house-help has increased significantly.
Technological Advancement: New technologies in communication, transport and IT have created entirely new service industries — internet services, mobile telephony, online banking, e-commerce, software services and so on.
Increasing Complexity of Products: As products become more complex (cars, computers, electronics), specialised after-sale services like installation, repair and maintenance become increasingly important. Customers depend on expert service providers.
Globalisation and Trade Liberalisation: Globalisation has expanded markets and created huge demand for services such as banking, insurance, transportation, logistics, tourism, consultancy and outsourcing services.
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