Final answer:
New services in businesses can emerge from either additional offerings or radical changes in the delivery process, or a combination of both. A demand shift, such as the preference for digital messaging over traditional mail, can lead to the development of new services that reflect current consumer preferences. The answer to the question is 'Both 1 and 2'.
Step-by-step explanation:
New services can result from additional offerings, radical changes in the delivery process, or both. For instance, when technological improvements are made, a business could introduce new service features or products to meet evolving customer needs. Similarly, a significant shift in the way services are delivered, such as moving from traditional mail to digital messaging, can result in a new suite of services catering to the preferences of digital-age consumers.
In the context of the Postal Service, a change in consumer tastes away from snail mail towards digital messages affects demand. This demand shift would likely motivate the Postal Service to adapt its offerings and may lead to the development of new services that align with contemporary communication preferences.
The correct answer to the question is: Both 1 and 2.