OPMA 3306 - EXAM 1 Questions with complete solution 2026
1.Utility A measure of the strength of customer preferences.
Customers buy products that maximize their utility. Meaures
your desire for a product.
2.Consumption
Utility A measure of how much you like a product; ignoring price or
inconvenience. Performance and Fit are subcomponents.
3. Three 1.Consumption Utility
Compo-nents 2.Price
of Utility
3.Inconvenience
4. Performace How much an average consumer desires a product.
5. Fit How well product matches unique characteristics of given consumer.
6. Heterogeneou Not all consumers have same utility function.
s
Preferences
Sacrifice one capability to increase another. Responsiveness vs. costs.
7. Strategi
c Trade-
Off A firm's product or service is inferior to competitors on all
dimensions of the customer utility function.
8. Pareto
Dominat-ed
9. Efficient Frontier Firms that are not Pareto dominated.
10. How to
increase 12. Process
efficiency:
11. Three System
In-hibitors
1/
7
, Make
trade-
otts
amon
g
dimen
sions
of
perfor
manc
e.
Redu
ce
ineflci
encie
s.
Innovate and improve
operations.
1. Waste
2. Variability
3. Inflexibility
2/
7
1.Utility A measure of the strength of customer preferences.
Customers buy products that maximize their utility. Meaures
your desire for a product.
2.Consumption
Utility A measure of how much you like a product; ignoring price or
inconvenience. Performance and Fit are subcomponents.
3. Three 1.Consumption Utility
Compo-nents 2.Price
of Utility
3.Inconvenience
4. Performace How much an average consumer desires a product.
5. Fit How well product matches unique characteristics of given consumer.
6. Heterogeneou Not all consumers have same utility function.
s
Preferences
Sacrifice one capability to increase another. Responsiveness vs. costs.
7. Strategi
c Trade-
Off A firm's product or service is inferior to competitors on all
dimensions of the customer utility function.
8. Pareto
Dominat-ed
9. Efficient Frontier Firms that are not Pareto dominated.
10. How to
increase 12. Process
efficiency:
11. Three System
In-hibitors
1/
7
, Make
trade-
otts
amon
g
dimen
sions
of
perfor
manc
e.
Redu
ce
ineflci
encie
s.
Innovate and improve
operations.
1. Waste
2. Variability
3. Inflexibility
2/
7
