upselling

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  • cmak

    New Member
    greek
    Hello cmak, and Welcome to the Forum! :)

    Please provide us with a complete sample sentence, one in which you have seen the term 'upselling' being used.
    Thank you Beryl. The sample sentence is "When ordering room service, upselling is apparent just prior to the checkout stage..."

    Kind regards,

    cmak
     

    natkretep

    Moderato con anima (English Only)
    English (Singapore/UK), basic Chinese
    Have a look at wikipedia:
    Upselling (sometimes "up-selling") is a sales technique whereby a seller induces the customer to purchase more expensive items, upgrades, or other add-ons in an attempt to make a more profitable sale. Upselling usually involves marketing more profitable services or products but can be simply exposing the customer to other options that were perhaps not considered.
    In your particular example, if you've ordered fish and chips, you might be invited to add on a drink, or a side salad, or a desert and so on.
     

    redgiant

    Senior Member
    Cantonese, Hong Kong
    During the checkout at a convenient store, the cashier kept pushing me into buying something I didn't really need. I only wanted to have my soda rung up, but she couldn't stop asking me if I wanted a variety of products they were promoting. Was it an act of upselling?
     

    Egmont

    Senior Member
    English - U.S.
    During the checkout at a convenient store, the cashier kept pushing me into buying something I didn't really need. I only wanted to have my soda rung up, but she couldn't stop asking me if I wanted a variety of products they were promoting. Was it an act of upselling?
    Yes, it was. Upselling is a general term. It can refer to trying to get a customer to purchase an additional item such as soda with a hamburger, a related item such as an extended warranty with a refrigerator, or a higher-priced item such as a Model 150 vacuum cleaner instead of the Model 100.
     

    morior_invictus

    Senior Member
    Slovak
    During the checkout at a convenient store, the cashier kept pushing me into buying something I didn't really need. I only wanted to have my soda rung up, but she couldn't stop asking me if I wanted a variety of products they were promoting. Was it an act of upselling?
    What was that "something"? I would say that it was a cross-selling (99,9%) but I can't tell because you were not specific.
     

    Parla

    Member Emeritus
    English - US
    What was that "something"? I would say that it was a cross-selling . . .
    It doesn't matter; the term is still upselling, whether the seller is pushing an add-on, a costlier version, or a related item. Natkretep and Egmont have explained it correctly.
     

    Egmont

    Senior Member
    English - U.S.
    No Parla, it does matter. This website, for instance, explains it very good and also provides some examples: profitfuzion.com : Upselling Versus Cross-Selling: What’s The Difference?

    These terms are often used interchangeably but they don't mean the same. Take a quick look at the website above and maybe you will change your mind.
    With respect, this links to a promotional blog published by one company (perhaps one person) without benefit of independent review. I don't think we can take this person's opinion as authoritative when others, at least as knowledgeable, use the terms differently. The most we can say with confidence is that people who claim to know something about upselling are not always consistent in their use of the term.
     

    morior_invictus

    Senior Member
    Slovak
    I don't think we can take this person's opinion as authoritative...
    Neither do I. That website just shared my opinion about upselling and cross-selling at the time of writing so I used it. :) I'm just kidding (partly :)). And to be honest, I read only the examples on the aforementioned website and relied on the fact that the rest of the content is also goodly written. And... I still haven't read the rest of it. :eek:
    So here are more plausible sources (at least I consider Kotler's and AMA's materials as the plausible ones):
    Product line length is influenced by company objectives and resources. For example, one objective might be to allow for upselling. Thus BMW wants to move customers up from its 3-series models to 5- and 7-series models. Another objective might be to allow cross-selling: Hewlett-Packard sells printers as well as cartridges.
    Source : KOTLER, P. - ARMSTRONG, G. 2010. Principles of Marketing.
    That was just an example of an upselling as a sales technique inducing a buyer to buy more expensive model of a particular product category and of a cross-selling as a technique trying to convince a buyer to buy a complementary product.
    Here is a definition of a cross-selling as defined by American Marketing Association:
    cross selling
    1. (retailing definition) The process of selling between and among departments to facilitate larger transactions and to make it more convenient for the customer to do related item shopping.
    2.
    (sales promotion definition) A consumer sales promotion technique in which the manufacturer attempts to sell the consumer products related to a product the consumer already uses or which the marketer has available.
    Source : American Marketing Association : Dictionary
    For some unknown reason I couldn't find a definition of upselling on that website. There is only a statement:
    Whether you're looking for an obscure phrase or your basic marketing definition, the AMA Dictionary has it all!
    Maybe it works only when you are looking for all definitions - then you will find all because you were looking for all. :) Well, I was just looking for two phrases so that dictionary didn't fall all over itself to provide them both. :)
    Here is another source:
    Up selling revenue is yielded by the additional selling of the same product as a consequence of increased purchase frequency and intensity in long-life relationships (quantity effect, i.e. higher purchase amount per transaction and more transactions per period). They also emerge from a price effect, that is the selling of higher-priced substitutes of the same category to loyal, long-term customers that are less price sensitive. In contrast to up selling, cross selling can be defined as the selling of complementary products or product categories respectively which have not been bought from the vendor; a case in point is the selling of a life insurance to an automobile insurance customer.
    Source : BAUER, H. H. - HAMMERSCHMIDT, M. - BRAEHLER, M. 2003. The Customer Lifetime Value Concept And Its Contribution To Corporate Valuation. 2003.
    And the last source (it looks like an online blog):
    UPSELL
    Suggesting your customer buys the more expensive model of the same product or service; or that they add a feature that would make it more expensive. With upsell you’re suggesting they pay more in exchange for a better product or service.
    CROSS SELL
    Also called an add on, cross sell is when you suggest your customer buys additional products or services from a category that is different to the product or service they are viewing / purchasing.
    Source : GERVAI, A. Would you like fries with that? How to Use Cross Sell & Upsell

    Conclusion: I agree with your post #7, Egmont, except for your first example - that is an example of a cross-selling, to my knowledge. Upselling is about inducing a buyer to buy a more expensive / newer model of the same product or about adding some feature to a particular product that will make it more expensive - e.g. a warranty, upgrade, etc. So to me, it does matter what that "something" in redgiant's post refers to.
     
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