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Correct Answer: D

The statement that is incorrect is iv) High cost per contact.

Key Points:

i) Improved Rural Infrastructure: Improved rural infrastructure, such as better road connectivity, access to electricity, and improved communication networks, creates opportunities for marketers in rural areas. It enables easier distribution and reach to rural consumers, which favours the growth of rural marketing. Hence, this statement is correct.

ii) Improved Literacy Rate: Increased literacy rates in rural areas contribute to the growth of rural marketing. As the literacy rates improve, rural consumers become more aware and informed about products and brands, enabling marketers to effectively communicate and engage with them. Hence, this statement is correct.

iii) Agriculture Prosperity: Agriculture plays a significant role in the rural economy, and when there is prosperity in the agriculture sector, it positively impacts the purchasing power and demand for goods and services in rural areas. This creates opportunities for marketers to tap into the growing market and cater to the needs of rural consumers. Hence, this statement is correct.

iv) High cost per contact: High cost per contact would not favour the growth of rural marketing. Ideally, lower costs per contact are desirable for marketers as it allows for more cost-effective marketing strategies. Higher costs per contact could be a challenge in reaching rural consumers and may hinder the growth of rural marketing. Hence, this statement is incorrect.