Chap 01 3e
Indicate whether the statement is true or false.
1. If the value ratio for a good or service is high, the good or service is perceived favorably by customers.
a. True
b. False
2. The higher the customer participation in service processes, the more certainty a firm has with respect to service
time and capacity.
a. True
b. False
3. Proportional increases or decreases in the perceived benefits and the price of a product result in no net change in
the value of the product.
a. True
b. False
4. The intangible nature of a service makes it difficult to keep a competitor from copying a service encounter
design.
a. True
b. False
5. Preproduction services of a value chain include warranty and claim services.
a. True
b. False
6. A pair of running shoes is an example of a durable good.
a. True
b. False
7. Big data analytics is intended to support service businesses such as virtual banking.
a. True
b. False
8. Vehicles, furniture, and dishwashers are examples of nondurable goods.
a. True
b. False
9. A process invariably resides within a department or traditional management function.
a. True
b. False
Page 1
, Chap 01 3e
Indicate the answer choice that best completes the statement or answers the question.
10. What type of good is one that is no longer useful once it's used or lasts for less than three years?
a. Heavy-duty
b. Nondurable
c. Hard
d. Slow-moving consumer
11. Which of the following statements is true of a value chain?
a. The pre- and postservice framework of a value chain emphasizes that service is a critical component of
traditional manufacturing processes.
b. The input-output framework of a value chain suggests that the value chain begins with inputs from
customers.
c. A value chain solely focuses on the operations function of an organization.
d. A value chain is narrower in scope than a supply chain.
12. Which of the following 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?
a. Product-process matrix
b. Product life cycle
c. Value chain
d. Business cycle
13. Which of the following can be classified as a support process in a business?
a. Product manufacturing
b. Technology acquisition
c. Human resource management
d. Order shipment
14. Which of these issues can best be described as a global supply chain concern?
a. Risks related to intellectual property
b. Rapid evolution of technology
c. Increase in peripheral goods
d. Perceived decline in value
15. Which of the following terms describes 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?
a. Value
b. Equity
c. Turnover
d. Revenue
Page 2
Indicate whether the statement is true or false.
1. If the value ratio for a good or service is high, the good or service is perceived favorably by customers.
a. True
b. False
2. The higher the customer participation in service processes, the more certainty a firm has with respect to service
time and capacity.
a. True
b. False
3. Proportional increases or decreases in the perceived benefits and the price of a product result in no net change in
the value of the product.
a. True
b. False
4. The intangible nature of a service makes it difficult to keep a competitor from copying a service encounter
design.
a. True
b. False
5. Preproduction services of a value chain include warranty and claim services.
a. True
b. False
6. A pair of running shoes is an example of a durable good.
a. True
b. False
7. Big data analytics is intended to support service businesses such as virtual banking.
a. True
b. False
8. Vehicles, furniture, and dishwashers are examples of nondurable goods.
a. True
b. False
9. A process invariably resides within a department or traditional management function.
a. True
b. False
Page 1
, Chap 01 3e
Indicate the answer choice that best completes the statement or answers the question.
10. What type of good is one that is no longer useful once it's used or lasts for less than three years?
a. Heavy-duty
b. Nondurable
c. Hard
d. Slow-moving consumer
11. Which of the following statements is true of a value chain?
a. The pre- and postservice framework of a value chain emphasizes that service is a critical component of
traditional manufacturing processes.
b. The input-output framework of a value chain suggests that the value chain begins with inputs from
customers.
c. A value chain solely focuses on the operations function of an organization.
d. A value chain is narrower in scope than a supply chain.
12. Which of the following 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?
a. Product-process matrix
b. Product life cycle
c. Value chain
d. Business cycle
13. Which of the following can be classified as a support process in a business?
a. Product manufacturing
b. Technology acquisition
c. Human resource management
d. Order shipment
14. Which of these issues can best be described as a global supply chain concern?
a. Risks related to intellectual property
b. Rapid evolution of technology
c. Increase in peripheral goods
d. Perceived decline in value
15. Which of the following terms describes 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?
a. Value
b. Equity
c. Turnover
d. Revenue
Page 2
