A retailer is trying to decide what level of purchase restriction it should impose during its upcoming sale of a particular product. One school of thought is that a severe restriction should be imposed of limiting shoppers' purchases to one unit per customer. A very different approach would be to set the restriction to a much higher level, such as 10 units per customer. How might the relative effectiveness of these two different levels of restriction depend on the product being promoted?

A retailer is trying to decide what level of purchase restriction it should impose during its upcoming sale of a particular product.  One school of thought is that a severe restriction should be imposed of limiting shoppers' purchases to one unit per customer.  A very different approach would be to set the restriction to a much higher level, such as 10 units per customer.  How might the relative effectiveness of these two different levels of restriction depend on the product being promoted? 

The level of consumer involvement in product that are being promote will lead to company to used either limited severe restriction that should be imposed of limiting shoppers’ to purchase to one units per customer or to set the restriction a much higher level , such as 10 units per customer. Normally, company who sell high involvement product such as luxury product, they will set the level of purchase restriction to be one units per customer during the upcoming sale of the product. The reason company set the level of purchase restriction in this way is because they want  consumer feel the product is scarce and  this will make people have more exclusive feeling that motivate them to buy the product . Also, cost of production on the entire luxury product is usually very high toward company. So, if company set the restriction to much higher level, and reduce much of the price, this will increase the consumer demand for the product during the sales promotion. Even thought, this can stimulus the sales but actually the company does not earn any profit or even loss. This will then make the sales promotion become ineffectiveness.

For those low involvement product such as necessity goods, company will usually set the purchase restriction to 10 units per customer. The reason why company will set limitation of purchase of the product is higher than those higher involvement product is because it will help company generate more sale by practicing in this way. For example, there are 50% off sales promotion on the soap, consumer will then buy large quantity of it without second thought of it because it is low involvement product , especially those price conscious consumers. More purchase, more sales then it will make the sales promotion more effective.

In conclusion, company uses different level of purchase limitation on different product that they want to promote during the sales promotion. Therefore, this can help to increase the effective of the sale promotion.