OPM 3000 - EXAM 1 | QUESTIONS AND ANSWERS |
WITH COMPLETE SOLUTION
Consumption utility measures how much you like a product or service, ignoring
the effects of price and the inconvenience of obtaining the product or service.
What are the two subcomponents of "consumption utility"? Answer -
Performance and Fit
What are the two subcomponents of inconvenience? Answer - Location and
Timing
: A fast-food restaurant promising a meal in two minutes or less attempts to
cater to which dimension of the customer utility function? Answer - Timing
Which of the following indicates that a car manufacturing company is
prioritizing "fit" dimension of customer utility? Answer - It sells cars in several
different colors -- from very popular to very obscure
: Panos' Pizza shop prepares standard pizzas for its customers even before
customers place order, whereas at Julie's Pizza shop customers order pizzas by
specifying all the toppings they want in the pizza. At Julies's Pizza shop there is
usually a line of customers waiting for their orders, whereas as Panos' Pizza
shop customers do not have to wait much. This example illustrates the
following strategic trade-off: Answer - Fit vs Timing
A mattress manufacturing company sells its mattresses only online through a
website at "shockingly low" prices as compared to mattress retail stores. It is
able to achieve such low prices by selling directly to customers rather than
, through a retailer. The company is sacrificing __________ dimension of the
utility to better serve ___________ dimension Answer - Time, Price
Subway promises its customers highly customized and freshly prepared
sandwiches. Which of the following changes align with Subway's strategy?
Answer - Offering to toast vegetables along with toasting bread and cheese
McDonalds promises to offer its customers fast delivery of inexpensive food
items (such as burgers). The change of offering custom made burgers is not
aligned with this strategy because of which of the following reasons? Answer -
Custom made burgers will increase time and cost
Efficient frontier is characterized by: Answer - All the companies that are more
profitable than other companies
Hotel Price Reviews (1 = worst . . . 5 = best)
H1 $100 2
H2 $250 5
H3 $200 4
H4 $150 2 Answer - H4 is Pareto dominated by H1
Which of the following is a resource in pizza making process at a Pizza
restaurant?
A. Pizza boxes B. Oven C. Pizza D. Customer orders Answer - Oven
An example of a flow unit at a fast-food restaurant is: Answer - the customers
Arrivals and departures to an UrgentCare clinic are collected and reported
below:
WITH COMPLETE SOLUTION
Consumption utility measures how much you like a product or service, ignoring
the effects of price and the inconvenience of obtaining the product or service.
What are the two subcomponents of "consumption utility"? Answer -
Performance and Fit
What are the two subcomponents of inconvenience? Answer - Location and
Timing
: A fast-food restaurant promising a meal in two minutes or less attempts to
cater to which dimension of the customer utility function? Answer - Timing
Which of the following indicates that a car manufacturing company is
prioritizing "fit" dimension of customer utility? Answer - It sells cars in several
different colors -- from very popular to very obscure
: Panos' Pizza shop prepares standard pizzas for its customers even before
customers place order, whereas at Julie's Pizza shop customers order pizzas by
specifying all the toppings they want in the pizza. At Julies's Pizza shop there is
usually a line of customers waiting for their orders, whereas as Panos' Pizza
shop customers do not have to wait much. This example illustrates the
following strategic trade-off: Answer - Fit vs Timing
A mattress manufacturing company sells its mattresses only online through a
website at "shockingly low" prices as compared to mattress retail stores. It is
able to achieve such low prices by selling directly to customers rather than
, through a retailer. The company is sacrificing __________ dimension of the
utility to better serve ___________ dimension Answer - Time, Price
Subway promises its customers highly customized and freshly prepared
sandwiches. Which of the following changes align with Subway's strategy?
Answer - Offering to toast vegetables along with toasting bread and cheese
McDonalds promises to offer its customers fast delivery of inexpensive food
items (such as burgers). The change of offering custom made burgers is not
aligned with this strategy because of which of the following reasons? Answer -
Custom made burgers will increase time and cost
Efficient frontier is characterized by: Answer - All the companies that are more
profitable than other companies
Hotel Price Reviews (1 = worst . . . 5 = best)
H1 $100 2
H2 $250 5
H3 $200 4
H4 $150 2 Answer - H4 is Pareto dominated by H1
Which of the following is a resource in pizza making process at a Pizza
restaurant?
A. Pizza boxes B. Oven C. Pizza D. Customer orders Answer - Oven
An example of a flow unit at a fast-food restaurant is: Answer - the customers
Arrivals and departures to an UrgentCare clinic are collected and reported
below:
