DECA Sports and Entertainment Marketing Practice Exam

Which strategy best describes selling additional related products tied to one name?

1. Cross-promotion

2. Bundle pricing

3. Cross-selling

4. Upselling

The correct answer is: Cross-selling

The strategy of selling additional related products tied to one name is best described as cross-selling. This approach involves offering customers complementary products that enhance or relate to their initial purchase, effectively encouraging them to consider additional items that align with their interests. For instance, if a customer buys a camera, the retailer might suggest a memory card, a camera case, or a warranty for that camera as part of the cross-selling technique. This strategy emphasizes the relationship between the products, enhancing the overall value proposition for the customer and improving revenue for the seller by capitalizing on the customer's existing interest or intent to buy. It strengthens customer engagement by suggesting items that the customer may need or desire at that moment, thus increasing the likelihood of additional purchases. In contrast, other strategies like cross-promotion focus on marketing multiple products across different brands or entities, bundle pricing involves selling multiple products together at a discounted rate, and upselling is about encouraging customers to purchase a higher-end version or add-ons of the initial product rather than unrelated items. Each of these strategies has a distinct purpose, further clarifying why cross-selling specifically pertains to selling additional related products under a singular name.