1.

Give an example and explain a government policy that has stimulated the transformation of a service industry.

2. Describe the possible differences in customer choice criteria between car rentals and outright purchases. When it comes to outright purchasing of car, the customer wants to know about the cars features, how much the gasoline will the car eat up, the price and the model of a car and its capacity. On renting, the customer wants to know, how much per is the rental fee per hour, how fast does the car goes, its capacity and the amount of gas that will be used.

3.How do operations and human resources functions contribute to meeting the needs of service customers? - Human resources must identify key value events of a business, transform behavior which is related to those events and build a new culture through improved performance. HR must evolve and provide real insight to the organization, transforming the business via behavioral change. While the challenge for business leaders is what they require from the HR team, and encourage HR to sit at the top table in order to influence decision making. 4.Explain a distinctive characteristics about export services and what it requires to service exporters. A distinctive characteristics about export services is iintangibility, unlike physical products, services cant be seen, tasted, felt, heard or smelled before they are bought. Inseparability is services that are typically produced and consumed simultaneously. Variability is the services depended on who provides them and when and where they are provided, they are highly variable and Perish ability is the services that cannot be stored.

5. A service is rented rather than owned. Explain what this statement means, and use examples to support your explanation. A service is rented rather than owned means that the Customers are rented, never owned. The common definition of rent is to pay something that you borrowed like the apartment. In economics, rent is the yearly value of a piece of land. It is a return to capital goods and labor services. Owned is to own something but it dont return capital goods and labor services. Its true that its better to own something than to rent but it depends on how the situation is. For example buying a house. buying a house costs more than to rent on a monthly basis. For the owners, rent is more important because they get income and capital.