Question 1

In regard to ways customers evaluate services compared to their evaluation of goods, which of the following is not true?
A)For services, customers seek and rely more on personal sources of information.
B)Customers normally adopt innovations in services faster.
C)Customers perceive greater risk when buying services.
D)Dissatisfaction with services is often the result of a customer's inability to properly perform or co-produce their part of the service.

Accepted Answer

This statement is not true. Customers generally adopt innovations in goods faster than in services because goods are more tangible and easier to evaluate compared to services.

Question 2

Which of the following would not constitute an element of operations infrastructure?
A)Market segmentation
B)Workforce
C)Quality control
D)Learning and innovation systems

Accepted Answer

Market segmentation is a marketing strategy and does not fall under the domain of operations infrastructure. Operations infrastructure includes the systems, processes, and resources required for the efficient and effective functioning of the operations function. Workforce, quality control, and learning and innovation systems are all essential elements of operations infrastructure.

Question 3

How do customers evaluate services differently from manufacturing, and what implications do these have for operations?

Accepted Answer

The answer of How do customers evaluate services differently from...

Question 4

Families of goods or services having similar characteristics or methods of creation are called
A)Core competencies
B)Corporate strategy
C)Strategic business units
D)Functional strategy

Accepted Answer

Strategic business units (SBUs) are families of goods or services that have similar characteristics or methods of creation. SBUs are often used as a way to organize a company's various business lines or products, and they typically have their own strategies, goals, and management teams. Core competencies (A) refer to a company's unique strengths or advantages in the marketplace, while corporate strategy (B) is the overall plan for how a company will achieve its goals and objectives. Functional strategy (D) refers to the strategies employed by different functional areas within a company, such as marketing, human resources, or operations.

Question 5

Which one of the following statements best represents McDonald's approach to global business?
A)One brand cannot be all things to all people.
B)Extensive use of outside trainers
C)Using alternative technologies to make French fries
D)Use of primarily manual information systems

Accepted Answer

McDonald's approach to global business is based on adapting to local cultures and tastes, while still maintaining the core brand image. This is reflected in their menus which offer a mix of globally consistent items as well as locally relevant products. Therefore, option A is the best choice. The other options do not accurately reflect McDonald's global business approach.

Question 6

With regard to the Lawn Care Company case study, explain how the (a) physical product (i.e., grass seed and fertilizer) and (b) lawn application service life cycles are related? What are the implications? You might also want to use a graph.

Accepted Answer

The answer of With regard to the Lawn Care Company...

Question 7

Explain the difference between an order qualifier and an order winner.Provide some examples.

Accepted Answer

The answer of Explain the difference between an order qualifier...

Question 8

With regard to the three types of customer attributes in evaluating the quality of goods and services, those associated with the features of a new laptop computer such as processor speed and hard disk capacity would best be classified as
A)search attributes
B)experience attributes
C)credence attributes
D)reflect attributes

Accepted Answer

Search attributes are those that can be easily evaluated before purchase, such as processor speed and hard disk capacity of a laptop, which can be compared and contrasted easily by the customer before making a purchase decision. Experience attributes are those that are only evaluated after purchase and usage, such as the ease of use of software on the laptop, whereas credence attributes are those that are difficult or impossible to evaluate even after purchase, such as the security features of the laptop. Reflect attributes are not a recognized category of customer attributes in evaluating the quality of goods and services.

Question 9

Professor Terry Hill has presented a four-loop framework for operations strategy through an iterative and integrated process.The initial loop is
A)Operations evaluates the implications of competitive priorities in terms of process choices and infrastructure
B)Operations determines if process choice decisions and capabilities are consistent with infrastructure capabilities
C)Operations input into corporate and marketing strategy
D)Ties together corporate strategy and marketing strategy

Accepted Answer

The answer of Professor Terry Hill has presented a four-loop...

Question 10

Considering the work force component of infrastructure, which term does not fit with the others in a service environment?
A)Customer contact skills
B)Cross-training
C)Task-oriented
D)Empowered

Accepted Answer

The other three terms are all related to customer service and empowering employees to handle customer interactions effectively. "Task-oriented" does not necessarily relate to customer service skills, and may instead refer to specific job requirements or duties.

Question 11

Regarding quality, which statement is not true?
A)Businesses offering premium quality goods usually have larger market share and are early entrants into their market.
B)Quality is positively and significantly related to higher return on investment for almost all kinds of market situations.
C)A strategy of quality improvement usually leads to increased market share but at a cost in terms of reduced short-run profits.
D)High goods quality producers can usually excel by charging low prices.

Accepted Answer

High quality goods usually come at a higher price point, so it is unlikely that producers can excel by charging low prices. This statement goes against the basic principles of economics and the law of supply and demand.

Question 12

The ____ of a firm defines the strengths that are unique to that organization.
A)strategy development
B)strategic mission
C)vision statement
D)core competencies

Accepted Answer

Core competencies are the unique strengths or capabilities of a firm that give it a competitive advantage in the marketplace. They are typically developed over time and are difficult for competitors to replicate. Strategy development is the process of creating a plan for achieving a company's goals, while a strategic mission is a statement of the purpose of the company. A vision statement is a statement about where the company aims to be in the future. While all of these elements are important for a company's success, none specifically defines the firm's unique strengths like core competencies do.

Question 13

____ attributes are most likely to be experienced by the customer when using estate planning services.
A)Search attributes
B)Experience attributes
C)Credence attributes
D)Order winners

Accepted Answer

Credence attributes are those that are difficult for customers to evaluate even after consumption, such as the quality of estate planning services, which often require specialized knowledge to assess.

Question 14

Which of the following does not describe how customers evaluate services in a manner that differs from the way they evaluate goods?
A)Customers rely on more information from personal sources.
B)Customers perceive greater risks.
C)Customers cannot form a priori expectations of expected service quality.
D)Dissatisfaction often results from a customer's inability to properly co-produce the service.

Accepted Answer

Customers can form a priori expectations of expected service quality based on past experiences, marketing, and word-of-mouth, similar to how they evaluate goods.

Question 15

Which one of the following statements is true with respect to McDonald's operations and strategy?
A)The #1 competitive priority is demand flexibility.
B)Prof.Terry Hill's strategy framework cannot be applied to services such as McDonald's.
C)There is only one standardized way (process) to make French fries in over 30,000 stores worldwide.
D)McDonald's vision is to produce the world's best hamburger.

Accepted Answer

McDonald's operations are highly standardized, with a uniform menu and processes, such as the method for making French fries, that are consistent across all its stores worldwide. This standardization enables the company to achieve efficiency and quality control while delivering consistent customer experiences. The company's competitive priorities include cost, speed, and quality, but not demand flexibility. Prof. Terry Hill's strategy framework can be applied to McDonald's and any other service organization. While McDonald's offers various products, including hamburgers, it does not have a stated vision of producing the world's best hamburger.

Question 16

With regard to the three types of customer attributes in evaluating the quality of goods and services, those associated with having a meal in a restaurant such as taste of the food and courtesy of the server would best be classified as
A)search attributes
B)experience attributes
C)credence attributes
D)reflect attributes

Accepted Answer

The taste of the food and courtesy of the server are experience attributes, which can only be evaluated during or after consumption of the service. Search attributes are those that can be evaluated before the purchase or consumption of the service, such as price or location. Credence attributes are those that are difficult to evaluate even after consumption, such as the safety of a medication. Reflect attributes are those that are perceived differently by different customers, such as the prestige of a brand.

Question 17

What do managers need to understand in order to create a sustainable competitive advantage?

Accepted Answer

The answer of What do managers need to understand in...

Question 18

Explain the concept of search, experience, and credence attributes.

Accepted Answer

The answer of Explain the concept of search, experience, and...

Question 19

Operations design choices include all of the following except
A)Operating plans and controls
B)Type of processes
C)Value chain integration and outsourcing
D)Inventory and service capacity

Accepted Answer

The answer of Operations design choices include all of the...

Question 20

The text uses McDonald's to exemplify Professor Terry Hill's Generic Strategy Framework.The operating design choices of resource scheduling, inventory placement and control and standardized operational and job procedures relate best to the corporate objective of
A)Profitable growth
B)Operational excellence
C)Leverage strengths through innovation and technology
D)Diversity

Accepted Answer

The operating design choices mentioned (resource scheduling, inventory placement and control, and standardized operational and job procedures) are all related to achieving operational excellence. McDonald's has focused on standardization and efficiency as a means of providing consistent products and services across their locations, which is in line with the objective of achieving operational excellence.

Quiz 4: Operations Strategy

In regard to ways customers evaluate services compared to their evaluation of goods, which of the following is not true?

Which of the following would not constitute an element of operations infrastructure?

How do customers evaluate services differently from manufacturing, and what implications do these have for operations?

Families of goods or services having similar characteristics or methods of creation are called

Which one of the following statements best represents McDonald's approach to global business?

With regard to the Lawn Care Company case study, explain how the (a) physical product (i.e., grass seed and fertilizer) and (b) lawn application service life cycles are related? What are the implications? You might also want to use a graph.

Explain the difference between an order qualifier and an order winner.Provide some examples.

With regard to the three types of customer attributes in evaluating the quality of goods and services, those associated with the features of a new laptop computer such as processor speed and hard disk capacity would best be classified as

Professor Terry Hill has presented a four-loop framework for operations strategy through an iterative and integrated process.The initial loop is

Considering the work force component of infrastructure, which term does not fit with the others in a service environment?

Regarding quality, which statement is not true?

The ____ of a firm defines the strengths that are unique to that organization.

____ attributes are most likely to be experienced by the customer when using estate planning services.

Which of the following does not describe how customers evaluate services in a manner that differs from the way they evaluate goods?

Which one of the following statements is true with respect to McDonald's operations and strategy?

With regard to the three types of customer attributes in evaluating the quality of goods and services, those associated with having a meal in a restaurant such as taste of the food and courtesy of the server would best be classified as

What do managers need to understand in order to create a sustainable competitive advantage?

Explain the concept of search, experience, and credence attributes.

Operations design choices include all of the following except

The text uses McDonald's to exemplify Professor Terry Hill's Generic Strategy Framework.The operating design choices of resource scheduling, inventory placement and control and standardized operational and job procedures relate best to the corporate objective of