Question 1

When your favourite restaurant prepares your favourite meal, they are creating
A) form utility.
B) price utility.
C) time utility.
D) place utility.
E) ownership utility.

Accepted Answer

Form utility refers to the value created by transforming raw materials into finished goods or services that are useful to consumers. In this scenario, the restaurant is creating form utility by preparing the customer's favourite meal.

Question 2

One of the key differences between service and manufacturing operations is
A) manufacturing products are characterized by intangibility and customization.
B) manufacturing operations feature a unique link between process and outcome.
C) manufacturing operations are less storable.
D) services are performed, but goods are produced.
E) services focus on the outcome of the production process.

Accepted Answer

The key difference between service and manufacturing operations is that services are performed, while goods are produced in manufacturing operations. Services are intangible and perishable, while manufacturing operations involve the production of tangible goods which can be stored and transported. The link between process and outcome is not unique to manufacturing operations as it is also present in service operations. Customization and focus on the outcome are also characteristics of service operations, but not key differences between service and manufacturing operations.

Question 3

When a company uses an intensive distribution strategy, it is facilitating ________ utility.
A) ownership
B) form
C) place
D) interval
E) time

Accepted Answer

Intensive distribution strategy refers to making the product available in as many outlets as possible, therefore, facilitating the place utility which is the utility created by making the product available at a convenient location for consumers. Ownership utility refers to the satisfaction consumers feel by owning the product, form utility refers to making the product in a desired form, interval utility refers to providing the product at the right time and time utility refers to providing the product at the right time of the day, month or year.

Question 4

Suppose that you have no clean clothes, but you have a job interview tomorrow. You normally never use any other type of laundry detergent other than your regular brand. You find that it is currently sold out at your local convenience store, so you decide to buy the store brand because it best satisfies your need for
A) possession utility.
B) place utility.
C) time utility.
D) interval utility.
E) ownership utility.

Accepted Answer

Time utility is created when goods or services are made available at the time they are needed or desired. In this scenario, buying the store brand detergent provides the utility of being able to wash your clothes in time for the job interview, despite your preferred brand being unavailable.

Question 5

The term service operations refers to
A) production activities that yield tangible products.
B) production activities that yield tangible and intangible service products.
C) firms that make tangible products.
D) service activities that yield intangible products.
E) service activities that yield tangible products.

Accepted Answer

Service operations refer to production activities that yield both tangible and intangible service products.

Question 6

Which of the following is not a form of utility?
A) Form utility
B) Price utility
C) Place utility
D) Time utility
E) Ownership utility

Accepted Answer

Price utility is not a form of utility. The other four are considered important types of utilities in marketing. Form utility refers to the benefit provided by the physical transformation of raw materials into finished goods. Place utility is the benefit provided by making a product available in a convenient location for customers. Time utility is the benefit provided by making a product available at a specific time when customers need or want it. Ownership utility is the benefit provided by transferring ownership or title of a product to a customer, giving them the ability to use it as they see fit.

Question 7

The quality of a product that satisfies a human need during its consumption is known as
A) ownership utility.
B) place utility.
C) need utility.
D) form utility.
E) time utility.

Accepted Answer

The answer of The quality of a product that satisfies...

Question 8

By making a product available for consumers to use, ________ is created.
A) price utility
B) place utility
C) ownership utility
D) time utility
E) form utility

Accepted Answer

Ownership utility refers to the satisfaction consumers derive from owning a good or service. By making a product available for consumers to use, they have the opportunity to purchase and take ownership of it, therefore creating ownership utility.

Question 9

In many parts of the world, public washrooms are available on a pay per use basis. What form of utility does this service maximize most to its users?
A) Place utility
B) Form utility
C) Interval utility
D) Time utility
E) Ownership utility

Accepted Answer

Place utility is maximized because the service provides convenience by being available at specific locations where users need them.

Question 10

By making a product that customers can take pride in having, production creates
A) resale value utility.
B) form utility.
C) time utility.
D) operational utility.
E) ownership utility.

Accepted Answer

Ownership utility is the value that a customer receives from the feeling of pride and satisfaction that comes from owning a product. Therefore, creating a product that customers can take pride in having adds ownership utility.

Question 11

By accepting major credit cards, a retail outlet has created
A) price utility.
B) time utility.
C) ownership utility.
D) form utility.
E) place utility.

Accepted Answer

By accepting major credit cards, a retail outlet has created ownership utility. Ownership utility is created when the product or service is made available for purchase or use by the customers. Acceptance of major credit cards is one way to make the product or service available to a wider range of customers, as not everyone carries cash on hand. Accepting credit cards also helps customers manage their purchases since they can pay for them later rather than having to carry large sums of cash or pay by other means. Therefore, accepting credit cards adds value to the customer's experience and creates ownership utility.

Question 12

If an Air Canada flight from Toronto to Calgary has 20 empty seats, this illustrates the unique service characteristic of
A) intangibility.
B) unstorability.
C) demand.
D) customization.
E) oversupply.

Accepted Answer

Unstorability is a unique characteristic of services, indicating that services cannot be stored for later use or sale. In this case, the empty seats on the Air Canada flight represent a lost opportunity for revenue that cannot be recovered, as the service (the flight) cannot be stored and sold at a later time.

Question 13

Which of the following statements regarding production operations is accurate?
A) The first industrial revolution occurred in England in the 1800s and the second in China during the 1990s.
B) The factory is no longer the centrepiece for manufacturing.
C) The development of 3-D printing illustrates the third industrial revolution.
D) Production operations remain environmentally unfriendly.
E) All of these statements are true.

Accepted Answer

The development of 3-D printing is an example of the third industrial revolution, also known as Industry 4.0, which emphasizes the use of advanced technology such as automation, artificial intelligence, and the Internet of Things. A is false, as the first industrial revolution occurred earlier in England. B is not entirely accurate as factories still play an important role in manufacturing, but there is a trend towards more flexible and decentralized production systems. D is also not entirely accurate as there is a growing emphasis on sustainable and environmentally-friendly production operations.

Question 14

The clerk at the 7-Eleven store and the morning radio announcer are examples of people who work in ________, while companies that make things like radios and automobiles are engaged in ________.
A) minimum wage operations; maximum wage operations
B) goods production; service operations
C) service operations; goods production
D) high-contact operations; low-contact operations
E) none of these

Accepted Answer

The clerk at the 7-Eleven store and the morning radio announcer are engaged in service operations while companies that make things like radios and automobiles are involved in goods production. Thus, option C is the correct choice.

Question 15

The so-called third industrial revolution emphasizes
A) greater productivity in services operations than in manufacturing operations.
B) a decreasing emphasis on manufacturing in North America and an increasing emphasis on manufacturing in China.
C) trade deficits in the advanced industrial countries and trade surpluses in developing countries.
D) new technologies, software, robots, and miniaturization.
E) movement of industrial facilities away from downtown areas and toward suburban areas.

Accepted Answer

The third industrial revolution is based on the use of new technologies such as software, robots, and miniaturization to increase productivity and efficiency in manufacturing and other industries. This revolution is also characterized by a shift towards the service sector and away from traditional manufacturing.

Question 16

A soft drink manufacturer who has many outlets for its product is providing
A) place utility.
B) ownership utility.
C) form utility.
D) price utility.
E) time utility.

Accepted Answer

Place utility refers to the convenience of having a product available where customers want to buy it. In this case, the soft drink manufacturer has many outlets for its product, providing customers with easy access to the drink. Therefore, the best choice is A) place utility. The other options are not applicable in this context.

Question 17

Which of the following are unique aspects that separate services from goods?
A) Intangibility and warranties
B) High-contact and low-contact
C) Time and place utility
D) Intangibility and unstorability
E) Form and time utility

Accepted Answer

Intangibility and unstorability are unique aspects that separate services from goods. Services cannot be touched, tasted, or seen like goods, and they also cannot be stored for later use in the same way that goods can. The other options listed are important aspects of services, but are not unique to them. For example, goods can also have warranties, and both goods and services can provide time and place utility.

Question 18

When comparing manufacturing and service operations, it is correct to say that
A) only manufacturing operations transform raw materials into finished products.
B) most service operations are pure service.
C) service operations are more complex than goods production.
D) quality considerations are defined and managed in a similar way in both the service sector and in manufacturing operations.
E) all of these statements are correct.

Accepted Answer

The answer of When comparing manufacturing and service operations, it...

Question 19

When steel is turned into a finished good like a car, ________ utility has been created.
A) place
B) time
C) interval
D) ownership
E) form

Accepted Answer

When steel is turned into a car, it undergoes a transformation and a change in physical characteristics, giving it a completely different form. This transformation adds value to the steel and creates form utility.

Question 20

________ utility deals with when a product is provided, whereas ________ utility deals with where a product is provided.
A) Time; possession
B) Place; time
C) Time; place
D) Form; time
E) Ownership; form

Accepted Answer

Time utility deals with when a product is provided, such as offering seasonal products in the appropriate time frame. Place utility deals with where a product is provided, such as having multiple retail locations to make it convenient for customers to purchase the product.

Quiz 10: Operations Management, Productivity, and Quality

When your favourite restaurant prepares your favourite meal, they are creating

One of the key differences between service and manufacturing operations is

When a company uses an intensive distribution strategy, it is facilitating ________ utility.

The term service operations refers to

Which of the following is not a form of utility?

The quality of a product that satisfies a human need during its consumption is known as

By making a product available for consumers to use, ________ is created.

In many parts of the world, public washrooms are available on a pay per use basis. What form of utility does this service maximize most to its users?

By making a product that customers can take pride in having, production creates

By accepting major credit cards, a retail outlet has created

If an Air Canada flight from Toronto to Calgary has 20 empty seats, this illustrates the unique service characteristic of

Which of the following statements regarding production operations is accurate?

The clerk at the 7-Eleven store and the morning radio announcer are examples of people who work in , while companies that make things like radios and automobiles are engaged in .

The so-called third industrial revolution emphasizes

A soft drink manufacturer who has many outlets for its product is providing

Which of the following are unique aspects that separate services from goods?

When comparing manufacturing and service operations, it is correct to say that

When steel is turned into a finished good like a car, ________ utility has been created.

utility deals with when a product is provided, whereas utility deals with where a product is provided.