Final answer:
Upselling is a sales technique to increase revenue by offering additional or higher-priced items. It's different from tying sales, where a product is sold only with another, and bundling, where products are packaged together for a discount.
Step-by-step explanation:
The strategy where a server encourages guests to buy additional or higher-priced items in order to make a larger sale is known as upselling. This practice is distinct from tying sales, which requires customers to purchase one product only if they also buy a second, and bundling, a strategy where multiple products or services are sold together at a bundled price, which often provides a price benefit to consumers. While upselling is a common sales technique to increase revenue, tying sales can be controversial as it may force consumers to buy items they don't need or want, whereas bundling is generally consumer-friendly, offering cost savings.
For instance, if a customer wanted to purchase a popular DVD, a tying sale situation would require them to buy a specific portable TV model as well, without the freedom to choose other models. In contrast, bundling could offer the DVD together with a range of portable TVs at a special bundled price, allowing the customer to enjoy a discount for the combined purchase.