What does the term 'upselling' refer to?

The term 'upselling' specifically refers to the practice of encouraging customers to purchase additional items or upgraded versions of a product they are already considering. It is a sales technique aimed at maximizing revenue by persuading the customer to spend more than they initially intended. This can be achieved by highlighting the additional features or benefits of a higher-priced item or by suggesting complementary products that add value to the original purchase.

The other options describe different sales strategies but do not accurately define upselling. For instance, providing discounts or reducing prices are strategies aimed at increasing sales volume rather than enhancing customer value through upgraded purchases. Offering refunds pertains to customer service and satisfaction management, rather than a proactive sales approach. Thus, identifying upselling correctly as the encouragement of purchasing additional items captures the essence of this strategic sales tactic.