Recent trends in the service sector suggest that:
A) the Internet is unlikely to become a major force in retailing because most customers are unwilling to buy services online.
B) services can only improve productivity by reducing the quality of the service they provide.
C) technological change is less likely to boost productivity in services than in manufacturing.
D) services have increased consumer satisfaction by becoming increasingly interactive.

Question

Quizplus · Accepted Answer

The statement "services have increased consumer satisfaction by becoming increasingly interactive" suggests that recent trends in the service sector have focused on increasing interactivity and improving customer satisfaction. This trend is likely driven by technological change, which has enabled services to become more personalized and interactive. Option A is incorrect because the internet has already become a major force in retailing, and online sales continue to grow. Option B is incorrect because reducing the quality of service will not improve productivity, as customers are unlikely to return to low-quality service providers. Option C is incorrect because technological change has the potential to boost productivity in both services and manufacturing.

Recent Trends in the Service Sector Suggest That