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ASRB NET and ARS / SMS / STO recruitment Rural Marketing: practice questions

ASRB NET and ARS / SMS / STO recruitment · India · Agricultural Scientists Recruitment Board (ICAR)

Original practice questions written to the published syllabus · not past papers
10worked here, free
53written to this exam in this subject
10syllabus units

What this subject covers

Marketing to rural consumers and farmers: their environment, behaviour, and the products, prices, channels and media that reach them.

In the exams: agribusiness management PhD entrance and fellowship examinations (present); light in agricultural master's entrance examinations

Where the 53 questions fall

How our questions for ASRB NET and ARS / SMS / STO recruitment spread across the units of Rural Marketing. Difficulty: 1 easy, 48 medium, 4 hard.

Rural distribution: haats and mandis8
Rural retail6
Concept and scope of rural markets5
Socio-cultural and demographic environment5
Rural consumer behaviour5
Farmer behaviour as a buyer5
Product strategy for durables and non-durables5
Rural pricing5
Media planning and rural communication5
Rural finance and purchasing power4

10 practice questions, worked

Choose an answer, then open the working. Each explanation says why the right answer is right and why the others are not.

1 · Rural consumer behaviour · easy

Which is NOT one of Rogers' five attributes of an innovation that affect its rate of adoption?

  1. price elasticity
  2. relative advantage
  3. trialability
  4. observability
Answer and working

A. price elasticity

Rogers' five are relative advantage, compatibility, complexity, trialability and observability. Price elasticity is an economic measure of demand response, not one of the five.

2 · Rural consumer behaviour · medium

A rural buyer asks for a detergent by describing 'the yellow packet with the picture of a bucket'. What does this most suggest for the brand owner?

  1. the brand name is unimportant and can be dropped from the pack entirely, leaving only the colours and picture
  2. the buyer is not loyal to any product
  3. the pack should be changed often to attract attention
  4. pack colours and visuals act as the brand, so they must stay consistent and be protected from look-alikes
Answer and working

D. pack colours and visuals act as the brand, so they must stay consistent and be protected from look-alikes

Low-literacy buyers recognise brands by sight, so visual identity carries the brand and makes imitation a real threat. Changing the pack often would confuse such buyers.

3 · Farmer behaviour as a buyer · medium

In the purchase of a tractor by a farm family, the dealer who advises on models and arranges finance, the son who compares specifications online, and the father who decides together form

  1. a buying centre
  2. a distribution channel
  3. a reference price
  4. a market segment
Answer and working

A. a buying centre

Several people with different roles (influencer, information gatherer, decider) make up a buying centre, a concept from organisational buying that fits high-value farm purchases.

4 · Product strategy for durables and non-durables · medium

Why do refill pouches sell well in rural markets for products normally sold in rigid containers?

  1. they cost less than a new container, so the price point is lower for the same product
  2. they carry a higher margin for the consumer
  3. they are required by law in villages
  4. they always last longer on the shelf than any other pack, so retailers prefer stocking them
Answer and working

A. they cost less than a new container, so the price point is lower for the same product

Pouches save on container cost, lowering the price the buyer must pay. There is no legal requirement, and shelf life depends on the product and material.

5 · Rural distribution: haats and mandis · medium

In a hub-and-spoke rural distribution system, the 'spokes' are best described as

  1. the firm's factories
  2. sub-stockists, wholesalers or vans carrying goods from a town stockist to nearby villages
  3. national advertising campaigns that radiate outward from the firm's head office to rural viewers
  4. the firm's head-office sales team
Answer and working

B. sub-stockists, wholesalers or vans carrying goods from a town stockist to nearby villages

The hub is the town stockist or depot; spokes are the links that carry goods out to smaller towns and villages. Factories and head office sit upstream.

6 · Media planning and rural communication · medium

In DAGMAR, the communication stages through which the audience is moved are

  1. attention, interest, desire, action
  2. knowledge, persuasion, decision, implementation, confirmation
  3. awareness, interest, evaluation, trial, adoption
  4. unawareness, awareness, comprehension, conviction, action
Answer and working

D. unawareness, awareness, comprehension, conviction, action

DAGMAR (Defining Advertising Goals for Measured Advertising Results) sets measurable objectives along these stages. AIDA is attention-interest-desire-action; the other two are Rogers' innovation-decision and older adoption stages.

7 · Rural retail · medium

In East Africa, the mobile-money model that spread after its launch in Kenya in 2007 relies on

  1. bank branches opened in every village, with salaried tellers who convert cash into mobile balances
  2. smartphones with high-speed data
  3. networks of local agents, such as small shops, who convert cash to mobile balances and back
  4. paper cheques issued by cooperatives
Answer and working

C. networks of local agents, such as small shops, who convert cash to mobile balances and back

Cash-in and cash-out agents in shops let people without bank accounts use money on basic phones. The model does not need bank branches or smartphones.

8 · Rural pricing · medium

Pay-as-you-go solar lighting sold to rural households in East Africa makes the product affordable mainly by

  1. giving the product free with no payment
  2. letting buyers pay small mobile-money instalments, with the device locking if payments stop
  3. selling only to urban households
  4. requiring full payment in advance, with the price cut by a government subsidy paid to each household
Answer and working

B. letting buyers pay small mobile-money instalments, with the device locking if payments stop

Small, frequent mobile payments match irregular incomes, and remote locking secures repayment. It is a pricing and payment innovation, not a giveaway.

9 · Rural distribution: haats and mandis · medium

The tianguis of Mexico is best described as

  1. a regulated grain exchange
  2. a supermarket chain format
  3. a cooperative bank
  4. a traditional periodic open-air market
Answer and working

D. a traditional periodic open-air market

Tianguis are periodic markets with pre-colonial roots, comparable to haats. They are not exchanges, supermarkets or banks.

10 · Rural finance and purchasing power · medium

Large conditional cash-transfer programmes in countries such as Brazil and Mexico mattered for rural marketers mainly because they

  1. raised the cash incomes of poor rural households, and hence local demand
  2. banned sales of branded goods to recipients
  3. replaced all rural retail with government stores
  4. fixed consumer prices
Answer and working

A. raised the cash incomes of poor rural households, and hence local demand

Transfers add cash to rural economies and increase spending power. They did not ban brands, replace retail or fix prices.

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Read the subject

Rural MarketingThe full study manual, free ASRB NET and ARS / SMS / STO recruitmentFormat, sections and how it has changed

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