Question 1

North Zone Bank gives all its customers a complimentary credit card along with a custom-made wallet when they open an account with the bank. The credit card and the wallet are examples of _____ offered by the bank.

Accepted Answer

The credit card and wallet are not essential or core offerings of the bank, but rather peripheral goods that are given as an additional benefit to customers who open an account.

Question 2

__________is a key activity performed by operations managers that involves deciding the best way to assign people to work tasks and responsibilities.

Accepted Answer

Job design is the activity that involves deciding the best way to assign people to work tasks and responsibilities. This includes determining what tasks should be performed, how they should be performed, and by whom. Job design aims to create jobs that are efficient, effective, and satisfying for workers. Operations managers need to carefully consider the skills and abilities of their employees when making job assignments to ensure that they are able to perform their work duties to the best of their abilities.

Question 3

In the context of the pre- and postproduction services perspective of a value chain, which of the following statements is true of preproduction services

Accepted Answer

Preproduction services focus on activities that happen before a sale is made, such as market research, advertising, and lead generation. These services are aimed at gaining a new customer or prospect. On-site installation and application services would fall under postproduction services, which happen after the sale has been made. Recycling and remanufacturing initiatives may be part of postproduction services, but are not necessarily included in preproduction services.

Question 4

Which of the following is an example of a primary service

Accepted Answer

A primary service refers to the essential or core service provided by a product or service. In the given options, the cooling provided by an air conditioner is the primary service as it is the main function of an air conditioner. The other options provide additional services or products along with the main product or service.

Question 5

_____ is defined as the perception of the benefits associated with a good, service, or bundle of goods and services in relation to what buyers are willing to pay for them.

Accepted Answer

Value refers to the perception of benefits in relation to the price paid for a product or service. It is the worth that customers attribute to a product or service, based on the benefits they receive compared to the cost of acquisition. Value is a critical concept in marketing, as it helps organizations to develop products that meet customers' needs and preferences while maximizing their revenue and profitability.

Question 6

In order to increase value, an organization must:

Accepted Answer

The best choice is to decrease price or cost while holding perceived benefits constant. This will increase the perceived value of the product or service, making it more attractive to customers without reducing the benefits they receive. This can lead to increased sales and profitability for the organization. Increasing perceived benefits while decreasing actual benefits (A) or decreasing both perceived benefits and price or cost proportionally (C) will likely have negative effects on customer satisfaction and overall success. Increasing both perceived benefits and price or cost proportionally (B) may work in some cases, but it could also make the product or service less accessible to certain customers.

Question 7

Service encounter design is a key activity performed by operations managers that involves:

Accepted Answer

Service encounter design involves planning and designing the interaction between the customer and the service provider, and determining how to recover from service upsets is a key aspect of this. This includes anticipating potential problems and designing solutions to address them, as well as developing strategies for effective service recovery when things go wrong. The other answer choices are related to other aspects of operations management but are not directly related to service encounter design.

Question 8

__________are warehouses that act as intermediaries between factories and customers, shipping directly to customers or to retail stores where products are made available to customers.

Accepted Answer

Distribution centers are specifically designed to ensure that products can be shipped directly to customers or retail stores, allowing for more efficient and effective delivery of products to end consumers. Production centers, cost centers, and business recovery centers have different functions and are not typically involved in the distribution of products directly to customers.

Question 9

Which of the following can be classified as a support process in a business

Accepted Answer

The answer of Which of the following can be classified...

Question 10

Which of the following is an example of a general management process in a business

Accepted Answer

Human resource management is a general management process that involves recruiting, hiring, training, developing, and managing employees. It is an essential function that directly contributes to the success of a business. Research and development, inventory management, and technology acquisition are all important aspects of business operations, but they do not fall under the umbrella of general management.

Question 11

A__________is a network of facilities and processes that describes the flow of materials, finished goods, services, information, and financial transactions from suppliers, through the facilities and processes that create goods and services, and those that deliver them to the customer.

Accepted Answer

The definition provided matches the concept of a value chain, which refers to the sequence of activities involved in creating and delivering a product or service to customers. The other options are not related to this definition. The product-process matrix is a tool for analyzing the relationship between product variety and process flexibility, the product life cycle describes the stages of a product's commercial life, and the business cycle represents the fluctuation of economic activity over time.

Question 12

A__________is one that is no longer useful once it's used, or lasts for less than three years.

Accepted Answer

A nondurable good is defined as a product that is consumed or used up in a short period or that has a lifespan of less than three years, such as food or clothing. A heavy-duty good is typically a durable good designed to withstand heavy use or wear and tear, such as industrial machinery or construction equipment. A hard good refers to any tangible product, while slow-moving consumer goods are products that have low demand or sales volume.

Question 13

Jason and his friend went to a coffee shop. They ordered two cappuccinos and received a complimentary chocolate waffle and cookie along with their order. In the context of a customer benefit package (CBP), the chocolate waffle and the cookie are _____.

Accepted Answer

The chocolate waffle and cookie are peripheral goods, which are additional items offered by the business as a complementary benefit. They are not core offerings (such as the cappuccinos) or primary goods (such as coffee beans) and they are not intangible products (such as customer service or brand image).

Question 14

Which of the following is a similarity between goods and services

Accepted Answer

Both goods and services can be customized to cater to individual needs, or they can also be standardized for the mass market. This is a similarity between the two. Option B is not correct because inventory is not something that all services have. Option C is incorrect because not all services require extensive participation from customers. Option D is not correct because only goods can be patented since they have a tangible nature.

Question 15

Which of the following statements is true of operations management (OM)

Accepted Answer

Operations management is a critical function in any organization, as it involves managing the processes, systems, and resources needed to deliver value to customers and other stakeholders. Effective OM can directly affect the value provided to all stakeholders, including customers, employees, suppliers, and shareholders. While OM is commonly associated with manufacturing and production, it is applicable to a wide range of industries, including services, healthcare, and technology.

Question 16

Which of the following statements is true of goods

Accepted Answer

Goods-producing industries rely on machinery and equipment to manufacture products. This is often referred to as hard technology, which includes tools, facilities, and machines.

Answer: N/A
 None of the statements match the characteristics of goods correctly.

Answer: D
 Durable goods are those that are designed to last at least three years with normal use, such as appliances, furniture, and electronics. Once they are used up, they are no longer useful.

Question 17

Ensuring consumer safety in using goods and services is an example of _____.

Accepted Answer

Social sustainability refers to the ability of society to meet the basic needs of its members while ensuring their safety, health, and well-being. Ensuring consumer safety in using goods and services is an example of social sustainability. Economic sustainability relates to the ability of systems to generate economic value over the long term, political sustainability refers to the stability of political systems, and environmental sustainability refers to the ability of environments to maintain biodiversity and support life.

Question 18

Which of the following statements is true of a value chain

Accepted Answer

A value chain includes both preservice and postservice activities, which highlights the importance of service in the traditional manufacturing process. Option B is incorrect because the value chain begins with inputs from suppliers rather than from customers. Option C is incorrect as a value chain typically includes all the functions within an organization. Option D is incorrect as a supply chain is a type of value chain that is broader in scope as it includes all the companies involved in the entire process of bringing a product or service to the market.

Question 19

Which of the following statements is true of service facilities

Accepted Answer

Service facilities need to be in close proximity to customers because customers cannot bring their service needs to the facilities. The facilities have to be accessible to customers. The other options are incorrect as service facilities do not store their services as physical inventory, require employees with a mix of technical and behavioral skills, and use more soft technology than hard technology.

Question 20

Purchasing is a key activity performed by operations managers that involves:

Accepted Answer

Purchasing involves coordinating the acquisition of materials, supplies, and services, which aligns with option C. Option A is referring to resource allocation, which is a different activity from purchasing. Option B is referring to technology utilization, which can facilitate purchasing but is not a comprehensive definition of it. Option D is a broader activity that encompasses purchasing but also includes other aspects of operations management.

Quiz 1: Operations Management and Value Chains