SECTION 1 (40 Marks)
MULTIPLE CHOICE (20 Marks)
I .Which ofthe following is not a key activity ofan operations manager?
a. Understanding the needs of customer
b. Continually learning
c. Managing cash flows
d. Exploiting technology to design goods and services
2. Which one of the following best represents a pure service?
a. Bank loans
b. Computer diagnosis and repair
c. Attending a play
d. Fast food restaurant
3. Which one of the following best represents a pure good?
a. Salt
b. Fast food
c. Attending a play
d. Automobile repair
4. Which of the following is not true regarding the differences between goods and services?
a. Demand for services is easier to forecast
b. Customers participate in many services
c. Services cannot be stored as physical inventory
d. Patents do not protect services
5. Regarding service encounters, which is not true?
a. May involve more than one moment of truth
b. Should be avoided
c. May involve a company store or building
d. Involves customer perceptions
6. In time sequence, which of the following needs to be accomplished first?
a. Understand customer wants and needs
b. Design and deliver customer benefit package
c. Build and leverage operational capabilities
d. Hire creative engineers
7. With regard to the three types of customer attributes in evaluating the quality of goods and services,
restaurant meals, health care and child care would best be classified as
a. High search
b. High experience
c. High in credence
d. High in competitive advantage
8. 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 results when buying services
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