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2012 Review Questions in Agricultural Marketing

Celso Cabahug Tautho, PhD
Ehime University, Japan 1993

1. Which of the following does not support and complement our definition of a market?
a) a place where buyers and sellers meet to exchange goods and services
b) buyers and sellers may use telephone, mails and other communication facilities to transact
c) a market has three elements: buyers, sellers and consumers
d) in order for a market transaction to be completed both buyer and seller must agree
at a particular price
2. Which of the following are activities or functions that include finding buyers, buying and
selling, and risk taking:
a) transactional functions c) facilitating function
b) logistical functions d) none of the above
3. Which of the following factors can help farmers decide what to produce, when and how to
price their products and how to handle them efficiently?
a) adequate marketing support services
b) adequate market information
c) knowledge of traditional marketing practices
d) knowledge of entry points of agricultural marketing
4. Which of the following approaches to agricultural marketing gives primary emphasis to
human element?
a) commodity approach c) market structure, conduct and performance approach
b) functional approach d) institutional approach
5. What represents the point at which price determination enters into the study of marketing ?
a) exchange function c) physical function
b) facilitating function d) market intelligence function
6. Which of the following deals with the organization of a market influencing the nature of
competition and pricing within the market?
a) market structure b) market conduct c) market performance d) market intelligence
7. This study covers the characteristics of the product, market demand and supply situation
at domestic and international levels, the behavior of consumers in relation to a specific
product and prices at the farm, wholesale and retail level:
a) functional approach c) institutional approach
b) commodity approach d) market structure, conduct and performance approach
8. What is the most common pricing method used in agricultural products?
a) penetration pricing c) unit pricing
b) competitive pricing d) psychological pricing
9. Which of the following is considered as indirect marketing?
a) producer to consumer c) wholesaler to retailer
b) retailer to consumer d) producer to middlemen to consumer
10. Which of the following refers to making the right products available at the right place at
the right time?
a) promotion b) advertisement c) distribution d) pricing
11. A group of men are moving vegetables from their farms to consumers in the city. Which
activity best describes what this group of men are performing?
a) marketing b) processing c) transporting d) distributing
12. Which of the following functions is primarily concerned with making goods available at
the proper place?
a) storage function c) processing function
b) transportation function d) standardization
13. What marketing function is responsible for the job of collecting, interpreting and disse-
minating the large variety of data necessary to the smooth operation in the marketing process:
a) Financing b) Standardization c) Market intelligence d) Risk-bearing
14. Which of the following is the aim of risk bearing function?
a) establishes and maintains uniform measurement
b) advances money to carry on the various aspects of marketing
c) accepts the possibility of loss in the marketing of product
d) makes goods available for sale
15. It is a part or component of the marketing system which includes the climatic/physical,
socio-cultural, economic/ technological and legal/political factors that affects the
the marketing system?
a) Consumer subsystem c) Environment subsystem
b) Functional subsystem d) Channel subsystem
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16. Those individuals or business concerns that specialize in performing the various
marketing functions involved in the purchase and sale of goods as they moved from
producers to consumers:
a) Middlemen b) Processors c) Farmers d) Consumers

17. They are considered the “actors” in the system who perform vital functions but
sometimes they get the ire of the producers, consumers and the government:
a) Producer subsystem c) Channel subsystem
b) Environment subsystem d) Functional subsystem
18. Putting or establishing of infrastructures will effect faster movement of products from:
a) Deficient to sufficient areas
b) Sufficient to deficient areas
c) Sufficient to other sufficient areas
d) Deficient to other deficient areas
19. This function involves in solving the problems of when, what and where in marketing:
a) Exchange function c) Facilitating function
b) Physical function d) Marketing function
20. Jose and Mario depended solely on butchering live animals into meat for livelihood. In
this case what function are they performing?
a) Storage function c) Standardization function
b) Transportation function d) Processing function
21. Ramon is one of the many farmers producing rice. He wants to sell his produce but the
price is low. If he is going to demand for a higher price, no one will buy his produce. In
what type of market does he belong?
a) Perfect competition b) Monopoly c) Oligopoly d) Monopolistic competition
22. Which of the following terms best applies to a single seller market?
a) monopsony b) monopoly c) oligopoly d) oligopsony
23. Which term best applies to a market with a single buyer?
a) monopoly b) oligopoly c) monopsony d) oligopsony
24. Which of the following forces in marketing determines the market price of agricultural
products?
a) Law of comparative advantage c) Forces of supply
b) Forces of demand d) Law of supply and demand
25. Which of the following items is a technique of forcasting price of a product?
a) Time series analysis c) Trial and error analysis
b) Statistical analysis d) None of these
26. What should be done before pinpointing a target market?
a) Assess the market c) Identify priority needs
b) Segment first the total market d) None of the above
27. Which of the following is not included among the reasons why branding is not commonly
observed in agriculture?
a) Farmers could not afford to brand their product
b) Agricultural products are perishable
c) Lack of differentiation
d) None of the above
28. Firm A produces product X with a total cost of production of P15/unit. The said firm
desires to have a profit of P8/unit. How much is the mark up price of the product?
a) P20 b) P23 c) P7 d) P25
29. In market A two sellers are selling the same product. Seller A sells his product at P5/piece
while seller B sells his product at 2 for P8.99. What pricing strategy does seller B use?
a) Psychological pricing c) Unit pricing
b) Price lining d) Tie in pricing
30. Which of the marketing channel options is best described by the activities concerned
with changes in ownership like negotiation, buying and selling, and risk taking?
a) Transactional c) Logistical
b) Facilitating d) Financial
31. Which of the following terms is defined as the personal and impersonal process of
assisting a prospective customer to buy a commodity?
a) Advertisement c) Promotion
b) Distribution d) None of the above
32. It refers to any paid form of non personal presentation or promotion of the products?
a) Personal selling c) Sales promotion
b) Advertising d) Publicity
33. It is the oral presentation of the product wherein the marketer sometimes goes from
house to house to influence prospective customers to buy his products:
a) Advertising c) Sales promotion
b) Publicity d) Personal selling
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34. What term best applies to activities concerned with the physical supply of the
products including transportation, storage and physical distribution?
a) Logistical c) Facilitating
b) Transactional d) Financial
35. It refers to a route along which a product and its ownership flow from production to
consumption:
a) Marketing channel c) a and b
b) Distribution channel d) None of the above
36. If a retailer purchased a kilo of potato for P20 per kilogram and sold it for P25 per
kilogram , the percentage margin could be:
a) 20 % b) 80 % c) 25 % d) 30 %
37. If a retailer purchased tomatoes from a wholesaler at P15 per kilogram and sold them
to household consumer at P20 per kilogram, the percentage mark up could be:
a) 75 % b) 133 % c) 33 % d) 25 %
38 – 43. Given the following information: b = 3.14 Y = 10 X = 2
38. The estimated intercept (a) is:
a) 6.28 b) 3.72 c) 16.28 d) 8.14
39. The resulting trend equation for potato using the above information is:
a) Y = 6.28 + 3.14 X c) Y = 13.72 + 3.14 X
b) Y = 3.72 + 3.14 X d) Y = 12.80 + 6.86 X
40. Using the equation, the projected or predicted average farm price for potato in year
2015 where 2001 = 1, 2002 = 2, 2003 = 3 :
a) 35.12 b) 50.82 c) 66.52 d) 102.9
41. The intercept (a) refers to the price in year:
a) 2000 b) 2001 c) 2010 d) 2015
42. The slope (b) explains:
a) Average price increases per year amounting to P3.72
b) Average price increases per year amounting to P3.14
c) Average price increases per year amounting to P6.86
d) None of the above
43. This particular problem makes use of a technique to project or predict future prices
and this is known:
a) Simple linear regression analysis c) Statistical analysis
b) Demand analysis d) Seasonal indices
44 – 46. Consider the following data for cabbage:
Farm price --------- P 12/kg
Retail price -------- P 18/kg
Marketing Cost ---- P 0.65/kg
44. Determine the farmer’s share:
a) 67 % b) 33 % c) 50 % d) 45 %
45. Calculate the net profit as percentage of marketing margin:
a) 75 % b) 60 % c) 89 % d) 40 %
46. Calculate the marketing cost as percentage of marketing margin:
a) 11 % b) 25 % c) 15 % d) 20 %
47. It refers to all services, activities or functions involved in moving the farm products from
the point of production to the point of consumption:
a) Distribution b) Marketing c) Transportation d) Trading
48. Which of the following is not a component (sub-system) of marketing system:
a) Consumer b) Producer c) Market channel d) None of the above
49. The behavior pattern of a firm in the industry:
a) Market conduct b) Market structure c) Marketing performance d) Market
50. A component of the marketing margin that refers to the returns to the various factors
of production used in providing the processing and marketing services rendered
between the farmers and consumers:
a) Marketing costs b) Net return c) Processing costs d) Marketing charges
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Answer Key
1. c 11. a 21. a 31. c 41. a
2. a 12. b 22. b 32. b 42. b
3. b 13. c 23. c 33. d 43. a
4. d 14. c 24. d 34. a 44. a
5. a 15. c 25. a 35. c 45. c
6. a 16. a 26. b 36. a 46. a
7. b 17. c 27. d 37. c 47. b
8. b 18.b 28. b 38. b 48. d
9. d 19. b 29. c 39. b 49. a
10. c 20. d 30. a 40. b 50. a