Tut 2_IOM

What is the primary characteristic that distinguishes a "good" from a "service"?

• Goods are created by machines, while services are performed by people.

• Goods are tangible items, while services are intangible acts.

• Goods have high customer contact, while services have low customer contact.

• Goods are always standardized, while services are always customized.

In which stage of the product life cycle are production costs typically at their highest?

• Introduction

• Growth

• Maturity

• Decline

Which of the following best defines "standardization" in product design?

• The process of creating a unique product for every customer.

• A strategy of producing goods with a high degree of variety.

• The extent to which there is an absence of variety in a product or service.

• The final stage of the product life cycle before it is discontinued.

What is "modular design"?

• A design strategy where products are created to be used for a limited time.

• A form of standardization where component parts are grouped into interchangeable modules.

• A process of postponing the final completion of a product until customer preferences are known.

• The use of computer software to create and test product designs before production.

What is the main idea behind the "Goods-Services Continuum"?

• All companies must choose to offer either a pure good or a pure service.

• Services are always more profitable to offer than goods.

• Most business offerings are not pure goods or pure services but a mixture of both.

• The quality of goods is easier to measure than the quality of services.

What is "delayed differentiation"?

• The process of introducing a new product to the market later than competitors.

• A tactic of producing a standard product but postponing final customization.

• A design flaw that is not discovered until the product is in the maturity stage.

• The use of modules to create a wide variety of final products.

During the "growth" phase of the product life cycle, what is the primary focus of design strategy?

• To introduce a new product with high production costs.

• To reduce the number of product variations and lower costs.

• To enhance the product design and improve forecasting accuracy.

• To discontinue the product and replace it with a new version.

Which of the following is a key advantage of standardization?

• It appeals to customers who desire unique and customized products.

• It allows for high production volumes and reduced production costs.

• Design changes are easy and inexpensive to implement at any time.

• It increases the level of creativity and innovation in the design process.

What is "mass customization"?

• A strategy to produce standardized goods with a degree of customization.

• The process of selling the same product to all customers globally.

• A production system that relies entirely on manual labor instead of machines.

• The marketing of a single, standardized product to a mass audience.

"Uniformity of output" is a typical characteristic of what?

• Service delivery

• Goods production

• The introduction stage of the product life cycle

• A mass customization strategy