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State agricultural university MBA admission Rural 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
31written 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 31 questions fall

How our questions for State agricultural university MBA admission spread across the units of Rural Marketing. Difficulty: 23 easy, 8 medium, 0 hard.

Product strategy for durables and non-durables4
Rural distribution: haats and mandis4
Concept and scope of rural markets3
Socio-cultural and demographic environment3
Rural consumer behaviour3
Farmer behaviour as a buyer3
Rural pricing3
Media planning and rural communication3
Rural retail3
Rural finance and purchasing power2

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 · Concept and scope of rural markets · easy

In the Indian Census, a rural area is defined as

  1. any settlement with fewer than 10,000 people
  2. any area where most households own farmland
  3. any area that is not classified as urban
  4. any area governed by a village council, whatever its size
Answer and working

C. any area that is not classified as urban

The Census defines urban areas (statutory towns and census towns) and treats the remainder as rural. There is no separate positive definition of rural, so population cut-offs or landownership are not the test.

2 · Rural finance and purchasing power · medium

A district has 240,000 rural households. Market research suggests 35% of households will use a shampoo sachet, and each user household will buy 6 sachets a month. What is the annual market potential in sachets?

  1. 17,280,000
  2. 504,000
  3. 1,008,000
  4. 6,048,000
Answer and working

D. 6,048,000

Chain ratio: households x penetration x sachets per month x 12 = 240,000 x 0.35 x 6 x 12 = 6,048,000. Forgetting penetration gives 17,280,000; forgetting to annualise gives 504,000 (a monthly figure). 1,008,000 assumes one sachet a month per user household.

3 · Rural finance and purchasing power · easy

The Kisan Credit Card scheme, introduced in India in 1998, mainly provides farmers with

  1. a subsidy for buying tractors
  2. free crop insurance with no premium
  3. a debit card linked to a government pension paid to farmers over sixty
  4. a revolving credit limit for crop production and related needs
Answer and working

D. a revolving credit limit for crop production and related needs

The KCC gives a revolving short-term credit limit for crop and allied needs. It is not a machinery subsidy or a pension card, and while insurance has been linked to crop loans, the card itself is a credit product.

4 · Farmer behaviour as a buyer · medium

Compared with a household buying soap, a farmer buying pesticide is more likely to

  1. buy on impulse at the counter
  2. choose purely on pack colour
  3. judge the purchase by the expected return on the crop and the risk of crop loss
  4. ignore the dealer's advice
Answer and working

C. judge the purchase by the expected return on the crop and the risk of crop loss

Farm inputs are business purchases judged by expected return and risk, often with dealer advice. Impulse buying and colour-based choice fit low-involvement consumer goods.

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

A rural buyer purchases a pack that copies a well-known brand's colours and design but carries a slightly different name. This is an example of

  1. a private label
  2. a co-brand
  3. a line extension
  4. a look-alike or spurious product
Answer and working

D. a look-alike or spurious product

Look-alike or spurious products imitate the visual identity of an established brand to mislead buyers who recognise packs by sight. Private labels, co-brands and line extensions are legitimate branding strategies.

6 · Product strategy for durables and non-durables · easy

Before competing for brand share in a rural category such as packaged tea, a firm often has to first

  1. win the urban premium segment
  2. reduce the number of pack sizes
  3. convert households from loose or unbranded products to packaged ones
  4. stop selling through village shops
Answer and working

C. convert households from loose or unbranded products to packaged ones

Category development, moving households from unbranded or home-made alternatives, usually comes before brand competition in rural markets.

7 · Rural pricing · medium

A biscuit pack sells at a price point of 5. To offset higher costs, the maker keeps the price at 5 but cuts the contents from 60 g to 50 g. By how much has the price per gram risen?

  1. 16.7%
  2. 10%
  3. 0%
  4. 20%
Answer and working

D. 20%

Price per gram rises from 5/60 = 0.0833 to 5/50 = 0.1000; ratio 1.20, a rise of 20%. The fall in grams, 10/60 = 16.7%, is the tempting slip; 0% ignores that less product is sold for the same price.

8 · Rural distribution: haats and mandis · easy

In parts of South India, a weekly rural market is commonly called a

  1. shandy
  2. mandi
  3. mela
  4. kirana
Answer and working

A. shandy

Shandy is the South Indian term for a periodic market. A mandi is a wholesale produce market, a mela a large fair, and a kirana a general store.

9 · Rural distribution: haats and mandis · medium

Why do consumer-durable and input dealers cluster in mandi towns?

  1. farmers come there with cash after selling their produce
  2. mandis are legally required to sell consumer goods alongside farm produce
  3. mandi towns have no competition
  4. rural buyers never visit other towns
Answer and working

A. farmers come there with cash after selling their produce

The mandi is where farm produce is sold, so farmers have cash on hand there, especially in the arrival season. There is no legal requirement and competition is often intense.

10 · Media planning and rural communication · easy

Areas that are not reached by conventional mass media are called

  1. media-saturated areas
  2. media-dark areas
  3. prime-time viewing areas
  4. high-GRP target areas
Answer and working

B. media-dark areas

Media-dark areas have little television, radio or print reach, so non-conventional and interpersonal methods such as vans, wall paintings and folk media are used.

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Read the subject

Rural 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 ManagementManagement of Agricultural Input MarketingMarketing ManagementProject Management, Appraisal & Agri-EntrepreneurshipAgri Infrastructure & WarehousingManagerial (Applied Agribusiness) EconomicsFood Retail & Agri-food Retail ManagementPrinciples of Management & Organisational BehaviourAgri Value Chain ManagementSector-specific Agribusiness ElectivesAgri Supply Chain & Logistics Management

Rural Marketing for other exams

ICAR AICE-JRF/SRF · IndiaASRB NET and ARS / SMS / STO recruitment · IndiaICAR AIEEA-PG · India

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