1.7-1. Describe the three forms of utility created through production.2.7-2. What are the major differences between goods-productionoperations and service operations?3.7-3. What are the major differences between high-contact andlow-contact service systems?4.7-4. What are the five major categories of operations planning?1. At the same time, itadds customer value by providing utility—theability of a product to satisfy a want or need—in terms of form, time, andplace:Production makes products available: By converting raw materialsand human skills into finished goods and services, productioncreatesform utility, as when Regal Cinemas combines buildingmaterials, theater seats, and projection equipment to create anentertainment venue.When a theater offers midday, afternoon, and evening shows sevendays a week, it createstime utility; that is, it adds customer value bymaking products available when consumers want them.When a theater offers a choice of 15 movies, all under one roof, at apopular location, it createsplace utility: It makes products availablewhere they are convenient for consumers.2.Although the creation of bothgoods and services involves resources,transformations, and finished products, service operations differ fromgoods manufacturing in several important ways. In service production, theraw materials are not things such as glass or steel, but rather people whochoose among sellers because they have unsatisfied needs or possessions Show 2 Copyright © 2017 Pearson Education, Inc. 4) Which term describes services that cannot be produced ahead of time? A) Transformed B) Low-contact C) Unstorable D) Intangible E) Consistent Answer: C Explanation: C) Unstorable services cannot be used at a later time. Difficulty: Moderate AACSB: Application of knowledge Objective: 7.1: Explain the meaning of operations and discuss the growth in the services and goods sectors of the U.S. economy. 5) Which of the following is critical to the success or failure of service operations? A) Provider-customer contact B) Internet exposure C) Supply chain D) Tangible services products E) Supplier-manufacture contact Answer: A Explanation: A) As a rule, managers in the service sector give more consideration to the human element in operations (as opposed to the equipment or technology involved), because success or failure depends often on provider-customer contact. Difficulty: Moderate AACSB: Application of knowledge Objective: 7.1: Explain the meaning of operations and discuss the growth in the services and goods sectors of the U.S. economy. 6) In a low-contact system, the customer must be a part of the system to receive the service. Answer: FALSE Explanation: An example of a low-contact system is mail delivery, where the customer need not be present to receive the service. Difficulty: Easy AACSB: Application of knowledge Objective: 7.1: Explain the meaning of operations and discuss the growth in the services and goods sectors of the U.S. economy. 7) By turning raw materials into finished goods, production creates form utility. Answer: TRUE Explanation: Form utility is created when raw materials and human skills are converted into finished goods and services. Difficulty: Moderate AACSB: Application of knowledge Objective: 7.1: Explain the meaning of operations and discuss the growth in the services and goods sectors of the U.S. economy.  Business Essentials, 11e (Ebert/Griffin) Chapter 7 Operations Management and Quality 1) When a company produces products when consumers want them, it creates which type of utility? A) Ownership B) Time C) Form D) Place E) Value Answer: B Explanation: B) Time utility is created when products are made available when customers want them, such as Halloween costumes or movie theater showings. Difficulty: Moderate AACSB: Application of knowledge Objective: 7.1: Explain the meaning of operations and discuss the growth in the services and goods sectors of the U.S. economy. 2) Which term refers to all the activities involved in making products—goods and services—for customers? A) Operations B) Processes C) Planning D) Scheduling E) Performance Answer: A Explanation: A) Operations and production refer to the same activities. Difficulty: Easy AACSB: Application of knowledge Objective: 7.1: Explain the meaning of operations and discuss the growth in the services and goods sectors of the U.S. economy. 3) In a business, whose job is it to draw up plans to transform resources into products and bring together basic resources, such as knowledge, physical materials, equipment, and labor? A) CEO B) Operations manager C) Quality manager D) Floor foreman E) Supply manager Answer: B Explanation: B) Operations managers are responsible for ensuring that operations processes create value and provide benefits to customers. Difficulty: Moderate AACSB: Application of knowledge Objective: 7.1: Explain the meaning of operations and discuss the growth in the services and goods sectors of the U.S. economy. 4) Which term describes services that cannot be produced ahead of time? Which type of utility is created when a company makes products available where consumers want them quizlet?Form utility is created by converting raw materials into finished products. Then its marketing function takes over to satisfy a number of customer needs. Time utility is created by making a product or service available when consumers want to purchase it.
What type of utility does production create?Form Utility: Production makes products available: By converting raw materials and human skills into finished goods and services, production creates form utility, as when Regal Cinemas combines building materials, theater seats, and projection equipment to create entertainment.
What is one example of a business creating or enhancing time utility?what is one action a business can take to create or enhance time utility? order or manufacture products before they're needed so that the goods and services are available when customers are ready to buy them.
How can businesses create or enhance possession utility?Possession Utility
You can also increase utility of possession by offering financing, which allows a consumer to enjoy the product or service immediately while paying little or no money for it. There are endless ways to market products and services to make them more appealing to consumers.
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When a company produces products when consumers want them, it creates which type of utility?
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