Commercial Applications
Why are services becoming important? Give three reasons.
OR
Explain any five reasons for the increasing importance of service.
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.