DECADECA Travel and Tourism Practice Exam

The term that best describes a company's strategy for improving customer interaction across multiple products is cross-selling. This strategy involves suggesting or promoting additional products or services to an existing customer based on their current purchases. By leveraging the relationship with the customer and understanding their preferences and needs, companies can enhance customer satisfaction and increase sales by providing relevant options that may complement the products the customer has already chosen.

Cross-selling encourages customers to view a brand or company as a one-stop shop for their needs, thereby fostering a deeper relationship. This can lead to higher customer retention rates and increased revenue per customer, ultimately benefiting the business.

Other terms, such as product diversification, refer to a strategy that involves expanding a company’s range of products or services to reach new markets or customer segments, rather than enhancing interaction with existing customers. Market segmentation focuses on dividing a broader market into smaller groups with shared characteristics, which helps tailor marketing efforts but does not specifically address customer interaction across products. Brand loyalty describes the tendency of consumers to continue buying the same brand due to a positive experience or emotional connection, but it does not directly pertain to the strategy of promoting interactions among different products.