Which of the following best exemplifies the heterogeneity of services?

• A. Two haircuts by different stylists resulting in different customer experiences
• B. A bank issuing standardized credit cards to all customers
• C. A factory producing identical cars on an assembly line
• D. A grocery store selling packaged goods with uniform quality

Answer: (A)

Verified step by step guidance

1. Understand the concept of heterogeneity in services: it refers to the variation in quality and experience that occurs because services are often produced and consumed simultaneously and can differ from one provider to another or from one occasion to another.
2. Analyze each option to see if it involves variation in the service experience or output:
3. Option 1: Two haircuts by different stylists resulting in different customer experiences — this shows heterogeneity because the service (haircut) varies depending on the stylist and their technique.
4. Option 2: A bank issuing standardized credit cards to all customers — this is a standardized service with little variation, so it does not exemplify heterogeneity.
5. Option 3 and 4: A factory producing identical cars and a grocery store selling packaged goods with uniform quality — both involve standardized products with minimal variation, so they do not represent heterogeneity in services.