How to signal product variety on pack: An investigation of color and image cues

Line Extensions are among the most common form of product launch in packaged goods markets. As part of this process, brand managers must decide the visual design of the new variant's packaging.

Introduction

The introduction of new products is a common strategy for brands in a wide variety of categories. For example, 30,000 new consumerpackaged goods are launched each year in the UnitedStates alone. One of the most common types of new product are New Line Extensions (NLEs); this is when an existing brand launches a new variety, such as a new flavor or scent (Behrmann, 2019; Nielsen, 2019).

These launch activities are expensive and risky, with an average of 40% failing to remain on shelf one year after launch (Castellion & Markham, 2013; Victory et al., 2021). When a brand launches...

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