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State agricultural university MBA admission Management of Agricultural Input Marketing: practice questions

State agricultural university MBA (ABM) admission · India · State agricultural universities via ICAR AIEEA-PG Group 19

Original practice questions written to the published syllabus · not past papers
10worked here, free
56written to this exam in this subject
10syllabus units

What this subject covers

Selling to farmers: how demand for seed, fertiliser, pesticides and machinery behaves, how those markets are structured and regulated, and how dealer networks work.

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

Where the 56 questions fall

How our questions for State agricultural university MBA admission spread across the units of Management of Agricultural Input Marketing. Difficulty: 24 easy, 24 medium, 8 hard.

Promotional media for input marketing9
Dealer and distributor networks9
Nature of demand for agricultural inputs8
Fertiliser market structure6
Farmer buying behaviour for pesticides6
Seed marketing: policy and trade practices5
Pesticide market profile5
Tractor and farm machinery market segments and shares5
Regulatory controls on inputs2
Input credit1

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 · Nature of demand for agricultural inputs · easy

A profit-maximising farmer uses a variable input up to the point where

  1. its average product is at a maximum, where the input is used most efficiently
  2. the value of its marginal product equals its price
  3. its marginal product is zero
  4. total output is at a maximum, whatever the input's price
Answer and working

B. the value of its marginal product equals its price

Profit is maximised where VMP = input price. Using the input until marginal product is zero (or total output is maximum) ignores the input's cost; that is the technical, not economic, optimum.

2 · Promotional media for input marketing · medium

A field day for a new rice fungicide is best timed

  1. when treated and untreated plots differ most visibly
  2. before the product has been applied, so farmers see the untreated crop
  3. immediately after sowing
  4. after harvest when the field is bare
Answer and working

A. when treated and untreated plots differ most visibly

The purpose of a field day is to let farmers see the result. Holding it before application or on a bare field shows nothing; for a fungicide the contrast is clearest some days after treatment during disease pressure.

3 · Promotional media for input marketing · medium

For launching a genuinely new crop-protection molecule among smallholders, which promotional method is generally most effective in creating trial?

  1. On-farm demonstrations with host farmers who are local opinion leaders
  2. National television advertising alone, with no field contact with farmers
  3. Price discounts to distributors alone
  4. Billboards on highways
Answer and working

A. On-farm demonstrations with host farmers who are local opinion leaders

New products need farmers to see results on local fields, which demonstrations with respected hosts provide. Mass advertising builds awareness but seldom creates trial of an unproven product; distributor discounts move stock into the channel, not into farmers' fields.

4 · Farmer buying behaviour for pesticides · hard

A farmer's pesticide 'failed' last season. Which explanation is LEAST likely to be solved by switching to another brand of the same active ingredient?

  1. A counterfeit product with little active ingredient
  2. An expired product bought from one dealer
  3. Pest resistance to that mode of action
  4. Incorrect advice on dose from one dealer
Answer and working

C. Pest resistance to that mode of action

Resistance is to the mode of action, so another brand of the same active will also fail; the remedy is rotation to a different group. Counterfeit, expired stock or poor advice may be fixed by changing brand or source.

5 · Tractor and farm machinery market segments and shares · easy

In India, the tractor horsepower band that has for many years accounted for the bulk of sales is

  1. below 20 hp
  2. above 75 hp
  3. 31 to 50 hp
  4. 21 to 30 hp
Answer and working

C. 31 to 50 hp

The 31–40 and 41–50 hp segments together have long made up most Indian tractor sales, suiting mid-sized holdings and haulage. Very small and very large tractors are niche segments in India.

6 · Tractor and farm machinery market segments and shares · medium

Tractor sales typically fluctuate more than farm output from year to year because

  1. a tractor is a large durable purchase that farmers postpone or advance
  2. tractors are consumed within one season and must be replaced every year by most farmers
  3. tractor prices are fixed by government
  4. tractor demand does not depend on credit
Answer and working

A. a tractor is a large durable purchase that farmers postpone or advance

Durable purchases respond to income and credit expectations: good years bring purchases forward, bad years postpone them, magnifying swings. Tractors are not consumed in a season, prices are not generally fixed, and credit matters a great deal.

7 · Dealer and distributor networks · medium

An area manager reports record primary sales to distributors in May, but dealer-to-farmer sales in the season are low. The most likely consequence next season is

  1. a shortage of product in the market
  2. higher dealer margins without any scheme
  3. high channel stocks, overdue dealer credit and price cutting
  4. automatic growth in farmer demand
Answer and working

C. high channel stocks, overdue dealer credit and price cutting

Liquidation, not primary sales, is the real measure. Stock pushed into the channel without farmer offtake returns as carryover, unpaid credit and discounting. A shortage would follow the opposite situation.

8 · Regulatory controls on inputs · easy

Which of the following is NOT a standard principle of input regulation?

  1. Registration of products before sale
  2. Fixing a single brand for each input nationally
  3. Licensing of manufacturers and dealers
  4. Sampling and testing by inspectors
Answer and working

B. Fixing a single brand for each input nationally

Input laws commonly rest on registration, licensing, quality standards, labelling, inspection and enforcement. Mandating a single brand for an input is not a general regulatory principle.

9 · Tractor and farm machinery market segments and shares · medium

Which of the following is the most important non-price determinant of tractor demand in countries where most tractors are bought on loan?

  1. Availability and terms of institutional and non-bank finance
  2. The colour of the tractor
  3. The number of pesticide dealers
  4. World prices of potash
Answer and working

A. Availability and terms of institutional and non-bank finance

Where most tractors are financed, down-payment requirements, interest rates and lenders' willingness to lend decide whether a purchase happens. The other options have no direct link.

10 · Farmer buying behaviour for pesticides · easy

When comparing pesticide prices, a well-informed farmer should compare

  1. price per litre only
  2. price per pack only
  3. price of the cheapest pack in the shop
  4. cost per hectare of the recommended dose
Answer and working

D. cost per hectare of the recommended dose

Products differ in concentration and dose, so cost per hectare at the label dose is the right basis. Price per litre ignores that a more concentrated product needs less per hectare.

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Read the subject

Management of Agricultural Input MarketingThe full study manual, free State agricultural university MBA admissionFormat, sections and how it has changed

More State agricultural university MBA admission practice

Agriculture & Food Systems (bridge)Agribusiness Law & EthicsBusiness CommunicationFood Processing & Technology ManagementComputer Applications & MISAgricultural Marketing & Price AnalysisInternational Agri Trade & Export ManagementMarketing ManagementProject Management, Appraisal & Agri-EntrepreneurshipAgri Infrastructure & WarehousingManagerial (Applied Agribusiness) EconomicsRural MarketingFood Retail & Agri-food Retail ManagementPrinciples of Management & Organisational BehaviourAgri Value Chain ManagementSector-specific Agribusiness ElectivesAgri Supply Chain & Logistics Management

Management of Agricultural Input Marketing for other exams

ICAR AICE-JRF/SRF · IndiaICAR AIEEA-PG · IndiaIBPS SO Agricultural Field Officer, CRP SPL-XVI · India

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