How do Limited Editions Work in FMCG Context

Limited Editions are a widely used type of line extensions. An exceptional, limited available variant is added to the permanent product line offers. Whereas Limited Editions look back on a long tradition in high involvement categories, recently, they have been increasingly used in Fast-Moving-Consumer-Goods (FMCG) categories. For example, in the U.S. food and beverage sector the number of yearly Limited Edition launches increased from 2001 to 2004 by 87% (Banasiak 2005). In spite of their high practical relevance, no scientific discussion about the effects of Limited Editions on the consumers exists. Some authors have proposed possible effects, like positive feedback effect on parent brands, but their theoretical foundation and empirical discussion is lacking. The objective of this study was to theoretically explain and empirically test the essential variables and their interrelations characterizing the consumers’ evaluation of Limited Editions.