Name: _________________________ Date: ______________

Section: ________________________ Score: _____/20

OPERATIONS MANAGEMENT IN TOURISM AND HOSPITALITY

QUIZ

I. Encircle the letter that corresponds to the best answer.

1. What are the subcomponents of inconvenience in a customer utility function?

A. Location and Price C. Location and Fit

B. Location and Timing D. Location and Performance

2. Custom built windows are design and produced for the unique needs of a particular building. Which
dimension of the customer utility function is particularly emphasized with the concept of "custom
built"?

A. Performance C. Fit

B. Time D. Location of the windows

3. A national restaurant chain has just opened a sit-down location at Ninoy Aquino International Airport.
Next to the sit-down location, it has also established a "to-go" section where travelers can purchase pre-
made sandwiches and salads, as well as drinks and snacks. Which customer utility function is particularly
emphasized with the "to-go" section?

A. Performance C. Price

B. Fit D. Timing

4. Car manufacturer has designed a "special edition" version of its popular two-door coupe. This special
edition has increased its horsepower compared to the standard model and a sports suspension. Which
dimension of the customer utility function is particularly emphasized with the special edition coupe?

A. Performance C. Price

B. Fit D. Timing

5. Which of the following operational decisions correspond to the price component of the customer
utility function?

A. When will the demand be fulfilled?

B. What are the shipping charges to the customers?

C. What is the product or service to be delivered to the customers?

D. Where will the demand be fulfilled?

6. Which of the following operational decisions correspond to the consumption utility component of the
customer utility function?

A. How efficiently will the products or services be delivered?

B. What are the products or services to be delivered?

C. Both A and B

D. None of the above

7. Which of the following operational decisions correspond to the inconvenience component of the
customer utility function?

A. How efficiently will the products or services be delivered?

B. What are the products or services to be delivered?

C. Both A and B

D. None of the above

8. Understanding how customers derive utility from products or services is at the heart of ___.

A. Operations Management C. Marketing

B. Customer Utility D. All of the above

9. Another term for the inconvenience of obtaining a product or service.

A. Inconvenience C. Transaction Costs

B. Convenience D. Performance

10. The dimension of the customer utility a firm is able to satisfy.

A. Capabilities C. Preferences

B. Performance D. Fit

II. Write TRUE if the statement(s) is/are correct and FALSE if incorrect.

__________11. The reason why we have different market segments is because of the homogeneous
preference of the customers.
__________12. Market Segments are your loyal customers. It varies in size and in dynamics. They can
either make the company flourish or fluctuate.

__________13. In a perfect world, what the company wants to give to its customers are products with
low price but has the highest quality. However, trade-offs hinder to make it possible.

__________14. I had this suit tailored for me, but now I realize that the shoulders are too wide. This is
an example of a customer complaint relating to inconvenience.

__________15. Operations management is giving the customers want they want while making good use
of inputs and resources so that the costs are low enough to yield a profit.

III. Analyzing problems and tables about Efficient Frontier and Pareto Dominated situations.

16-18. You have choice between five restaurants that differ from each other with respect to their food
quality [as measured by the number of stars (*) the restaurants received in customer reviews; this
ranges from 1 to 5 stars, with 5 being the best] as well as their price.

RESTAURANT QUALITY PRICE

1 *** P100

2 ** P75

3 ***** P150

4 *** P50

5 * P30

Which of these restaurants are on the efficient frontier? Which are on the Pareto Dominated side?

18-20. Draw the conceptual framework of consumer utility and its components and subcomponents.