Economic Value of Digitized Manufacturing: Product Customization with 3D Printing

Academy of Management Annual Meeting Proceedings includes abstracts of all papers and symposia presented at the annual conference, plus 6-page abridged versions of the “Best Papers” accepted for inclusion in the program (approximately 10%). Papers published in the Proceedings are abridged because presenting papers at their full length could preclude subsequent journal publication. Please contact the author(s) directly for the full papers. Economic Value of Digitized Manufacturing: Product Customization with 3D PrintingChristian Weller and Robin KleerChristian WellerRWTH Aachen U. and Robin KleerRWTH Aachen U.Published Online:30 Nov 2017https://doi.org/10.5465/ambpp.2015.11524abstractAboutSections ToolsDownload CitationsAdd to favoritesTrack Citations ShareShare onFacebookTwitterLinkedInRedditEmail AbstractAdditive manufacturing (AM) technology, or colloquially "3D printing", opens new opportunities in product customization because (i) fewer design restrictions are involved by building objects layer upon layer and (ii) customization does not cause cost penalties in manufacturing. This is why AM allows to efficiently offer "full customization" with continuous (stepless) adjustments of product attributes. To analyze if this "full customization" approach is a source of value creation, we compared it to conventional (modular) mass customization (MC) offerings. We empirically assessed consumers’ perceived product value for full customization available with AM (continuous adjustments) and conventional MC (modular choices) in two studies. We further identified drivers for consumers’ perceived product value of customized products. In Study 1, we assessed the value increment of enhancing customization in a simulated online buying process of a customizable espresso cup. In Study 2, we again let consumers state their perceived product value for an espresso cup but in a real experimental setup. We found that full customization led to significant value upsides in Studies 1 and 2. When steplessly adjusting product attributes, WTP was between 50-68% higher than the conventional MC offerings at an aggregated level. Moreover, we found that participants’ characteristics largely affected WTP. Further, we deduct theoretical as well as managerial implications and outline future research directions. FiguresReferencesRelatedDetails Vol. 2015, No. 1 Permissions Metrics in the past 12 months History Published online 30 November 2017 Published in print 1 January 2015 InformationCopyright of Academy of Management Journal is the property of Academy of Management and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder’s express written permission. However, users may print, download, or email articles for individual use.Keywords3d printingadditive manufacturingmass customization