Color Output
Color output is used by the color channels of a material. The color values you assign to a texture's components are combined to form a final texture. The combined values are then used to drive the Diffuse, Ambient, Specularity, Specular Halo, or Transparency Color channels.
The colors in a texture usually appear in the form of a pattern or grain. When you assign the texture to a material, this pattern appears in the final material.
The texture in this example was applied to the Diffuse Color and Ambient Color channels of the object's material. You can see how the color pattern in the texture appears in the material.

To assign Color output to a texture:

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