3d Printing For Mass Customization

Abstract

3D printing allows manufacturers to customize products to fit customers exact biometric specifications. Ensuring fit requires capturing customers’ measures, which can be achieved by delegating the process either to retailers or to end customers. The former often involves on-site production of the fitted product, which implies ceding pricing power to the retailer. The latter, usually conducted via a mobile application, exposes the manufacturer to data imperfection challenges and, consequently, to potential lack of fit of the product. Should the manufacturer delegate data collection and 3D printing cost to the retailer or should she bear the 3D printing cost while engaging with the customer directly to carry out data collection? Employing a game theoretical model that explicitly captures the measurement precision loss in the direct channel, we reveal clear explanations as to (i) why 3D printing is not widely adopted in practice, (ii) why, when it is practiced, it is more likely to be executed via the direct channel than through retailers, and (iii) why, when it does take place through the retail channel, manufacturers may need to financially support retailers to install 3D printers.