DECA Sports and Entertainment Marketing Practice Exam

What kind of organization typically participates in suggestion selling?

1. Retail businesses

2. Manufacturing companies

3. Non-profit organizations

4. Service providers

The correct answer is: Retail businesses

Retail businesses typically engage in suggestion selling as part of their sales strategy. This technique involves promoting additional products or services that complement the initial purchase the customer is considering. Retail environments are ideal for suggestion selling because sales associates can directly interact with customers at the point of sale, allowing them to recommend related items that enhance the customer's experience or satisfaction. For instance, if a customer is buying a camera, a retail associate might suggest purchasing a camera case or additional memory cards. This not only increases the average transaction value but also helps customers find products that they may not have considered, ultimately improving their overall shopping experience. While other types of organizations, such as service providers and manufacturing companies, can also employ various upselling techniques, they do not typically operate in the same direct consumer-facing environment that retail businesses do. Non-profit organizations, on the other hand, primarily focus on fundraising and service delivery rather than on traditional sales tactics, making suggestion selling less relevant to their operations.