Future Business Leaders of America (FBLA) Hospitality Management Practice Test

What is the method of selling additional related products to customers called?

1. Cross-selling

2. Up-selling

3. Bundling

4. Market segmentation

The correct answer is: Cross-selling

The method of selling additional related products to customers is known as cross-selling. This strategy involves encouraging customers to purchase complementary items that enhance their primary purchase. For example, if a customer is buying a camera, a salesperson might suggest a camera bag, memory cards, or a tripod. The objective of cross-selling is to increase the overall sale value while providing the customer with additional useful products that can enhance their experience with the original product. Cross-selling is particularly effective in hospitality and retail settings, where understanding customer needs can lead to increased satisfaction and sales. This differs from other methods such as up-selling, which focuses on convincing a customer to purchase a higher-end item than the one they were initially considering. Bundling involves offering products together at a discounted price, whereas market segmentation refers to dividing a market into distinct groups of buyers. Each of these strategies has its own intended goal, but cross-selling specifically targets the sale of related products to enhance the customer's experience and maximize revenue.